Strategy Analytics: Mobile Phone TV Hype not Justified by Demand
March 8, 2005
If you've been reading RF Report recently, you've noticed TV over mobile phones is generating a lot of excitement. Qualcomm and Crown Castle have secured spectrum in early auctions of out of core TV broadcast channels and plan to offer the service in the U.S. Trials are underway around the world to test the technology and consumer acceptance. Not so fast, according to a recently released report.
Last week Strategy Analytics' Wireless Internet Applications service released a report Mobile Content Broadcasting: Hype not Justified by Demand!. Phil Taylor, Director of Strategy Analytics Global Wireless Practice, explained, "Consumer demand for paid for Mobile TV remains highly uncertain, and we remain unconvinced that consumer appetite for mobile TV services exists outside of niche segments. Operators have the perfect opportunity in 3G to see if mobile video services will fly, without further extending themselves into the provision of broadcast services."
Strategy Analytics' press release also warned that the momentum built behind mobile broadcasting is unfounded and that poorly-defined infrastructure deployment costs will extend ROI for mobile broadcast networks beyond "the currently envisaged two to four years."
David Kerr, vice president, Strategy Analytics Global Wireless Practice, said that mobile TV faces four key challenges.
"The technology roadmap is far from stable; regulation and low spectrum availability may also act to slow the spread of services; beyond the technophile segment there is slow diffusion of media-enabled devices; and uncertain revenue models and value chain reconciliation will deter content industry participation," he said.