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INDUSTRY ANALYSIS
Mobile TV and the great vendor conspiracy
By Monte Silver

Since the introduction of cellular data networks, data applications have enjoyed a constant hype. Attending mobile trade shows, one could easily identify the annual killer-application. Mobile Internet, MMS (multimedia/picture messaging), streaming and Mobile TV have all enjoyed much more than their 15 minutes of fame, but none have delivered anything but a trickle of early-adopters.

Mobile TV means the streaming of television content to the mobile phone. As with streaming in the PC/Internet world, Mobile TV involves the simultaneous delivery and viewing of the content. Nothing is saved or downloaded on the phone. Mobile TV can be contrasted to a "download first and watch later" experience. As with email attachments, a downloaded file (which can even be a TV episode) resides on the mobile phone and can be viewed at will.

While there can be no single explanation for this failure to fire up the consuming public, the unspoken truth is that these services have failed mainly because they been generated to serve the interests of industry, and primarily network and handset vendors. Unfortunately, the user is low on the totem pole of interests. Although we all hold devices and constantly fiddle with their buttons, we refuse to adopt the data services offered. If services continue to primarily serve industry, and particularly the vendors rather than the user, expensive new networks will be launched, but used by few.

"Nokia alone sold 128,000,000 handsets, generating Euro 21.8B in sales."

It can not be disputed that streaming services generally, and Mobile TV specifically have been the dandy of vendors for years. Attending Nokia developer events as early as 2002, one could watch Nokia keynote speakers demonstrate the live streaming of TV programs, and promoting it as the next big thing. At 3GSM, the industry's main trade show, topics such as Push to Talk and Instant Messaging have received some attention, but Mobile TV has for years enjoyed unparallel exposure. In the high-tech industry, where Next Big Things enjoy a short shelf life, the on-going obsession with Mobile TV requires examination.

Why do vendors love Mobile TV so much?
The reason for the vendor obsession with Mobile TV is clear: vendors will inherently promote services which favor network and handset upgrades, and thus vendor sales. Mobile TV has been the main weapon that vendors have hyped and exploited to get operators to keep upgrading their networks.

Here, too, the reason is clear: of all the rich-media services, streaming generally, and Mobile TV specifically, place the greatest demand on the radio network, the most precious network resource. By promoting Mobile TV, vendors are directly causing operators to upgrade or replace networks each time vendors produce a new radio technology.


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