Evaluating the Options for Mobile TV and Radio Broadcasting in Western Europe

• What do early trials of mobile broadcasting technologies indicate about consumer requirements, likely take-up, usage and ARPU?
• What are the most important factors that operators need to consider in selecting the right broadcasting technology and deployment strategy?
• What are the most realistic broadcasting technology and deployment options, and how do they compare? For each option, what level of take-up and ARPU will be required to achieve an adequate financial return?
• How do different spectrum licence costs and operating bands (UHF and L-band) affect financial viability?
• Should mobile operators own a broadcasting network or share a wholesale network with others?
• Could DAB-IP be an attractive short-term option in countries where DAB radio has been deployed extensively?
• In what circumstances could it be commercially viable for a mobile operator to build its own DVB-H network?
• Has T-DMB already lost the battle against DVB-H in Western Europe?
• Could TDtv be a better option than DVB-H for larger operators?
• Is a dedicated broadcasting technology necessary at all? In what circumstances could operators avoid the expense and revenue dilution of broadcasting networks and rely solely on 3G?

• Mobile operators: to identify the broadcasting technology and deployment strategy that best fits your circumstances.
• Wireless infrastructure and handset vendors: to identify the market opportunities for each mobile broadcasting technology and learn how best to position your offering to achieve strong take-up by mobile operators.
• Regulators: to understand the technical and commercial characteristics of different mobile broadcasting technologies, in order to set regulatory and spectrum licensing policy.

1 Operators need a financially viable broadcasting solution that enables high-quality mobile TV and radio

1.1 There will be strong consumer interest in high-quality mobile TV and radio

1.2 Operators will need upgraded networks in order to deliver a compelling mobile TV and radio service

1.3 Consumers may not be willing to spend a significant amount on mobile TV and radio

1.4 The key challenge for operators is to select the most appropriate broadcasting option for their circumstances

2 Different broadcasting solutions suit different operator types and circumstances

2.1 A number of factors determine which broadcasting solution is the most appropriate for a particular operator

2.2 Financial modelling reveals which broadcasting technology and network deployment options will achieve a satisfactory return

2.3 Small operators should use shared networks but would be hindered by fragmentation of broadcasting solutions

2.4 Large operators have a number of options but may benefit most from owning their own TDtv or DVB-H networks

2.5 Cellular capability and 3G LTE will be critical even if broadcasting technologies are used

3 DAB-IP is a cost-effective option in markets with wide deployment of DAB

3.1 DAB-IP is a cost-effective way of enhancing existing DAB networks

3.2 DAB has seen widespread deployment in only a few countries and is being superseded by newer technologies

3.3 DAB-IP can offer a limited number of low-picture-quality TV channels alongside digital radio

3.4 There are short-term opportunities for shared DAB-IP services in countries that have deployed DAB extensively

3.5 Success with DAB-IP would require a wide range of 2G and 3G handsets and would be enhanced by integration with DVB-H

4 DVB-H is a good solution but high licence costs and L-band spectrum would damage its business case

4.1 DVB-H can support a wide selection of mobile TV and radio channels

4.2 The technical and commercial strengths of DVB-H have attracted strong interest from mobile operators in Western Europe

4.3 DVB-H costs can be minimised by reusing cellular base-station towers and operating in UHF band IV spectrum

4.4 Sharing a DVB-H network involves less cost and risk than building one but may have drawbacks

4.5 Owning a DVB-H network would involve expense and risk but could be a clear differentiator for larger operators

5 T-DMB has benefits but has limited support outside South Korea

5.1 T-DMB is a development of the DAB standard, offering greater spectral efficiency and multimedia broadcasting

5.2 T-DMB was early to market and has already been commercially deployed and widely trialled

5.3 To be cost effective, T-DMB services need to be integrated with digital radio deployments

6 TDtv may be a cost-effective solution for mobile operators that want their own broadcasting networks

6.1 TDtv enables mobile operators to exploit 3G unpaired spectrum for broadcast TV and radio services

6.2 IPWireless is working with leading mobile operators to trial TDtv and to develop an ecosystem of TDtv products and content

6.3 TDtv can be deployed in a number of ways to meet mobile operator requirements for cost and capability

6.4 Modelling reveals that TDtv can be a cost-effective solution for a large operator

6.5 TDtv enables mobile operators to use their existing assets to achieve independence from broadcasters but has risks

7 Some operators may opt not to deploy broadcasting technology

7.1 A 3G-only strategy could avoid the disadvantages of broadcasting technologies

7.2 Video on demand may be the critical component in a consumer proposition

7.3 Total reliance on 3G may be viable in certain circumstances but mobile operators need to be aware of the risks

7.4 Operators relying on 3G for mobile TV and radio need to provide high-quality in-building coverage and deploy 3G enhancements quickly Actions

Figures and tables

Figure 1.1: Average weekly TV viewing and radio listening times in consumer trials of DAB-IP and DVB-H

Figure 2.1: Overview of the model used to compare broadcasting technology and deployment options for mobile TV and radio

Figure 2.2: Service penetration and average monthly revenue per service user required by a small mobile operator to achieve a 15% IRR using a shared DAB-IP or DVB-H network

Figure 2.3: Service penetration and average monthly revenue per service user required by a large mobile operator to achieve a 15% IRR using its own DVB-H or TDtv network

Figure 3.1: Bit-rates required to provide near-CD-quality stereo sound for MP2, MP3, AAC and HE-AAC audio codecs

Figure 3.2: Spectral efficiencies of DAB, DVB-H and T-DMB

Figure 3.3: Spectrum required for a radio station with good audio quality for DAB, DVB-H and T-DMB

Figure 3.4: Service penetration and average monthly revenue per service user required by a mobile operator to achieve a 15% IRR using a shared DAB-IP network, for four deployment scenarios

Figure 4.1: Service penetration and average monthly revenue per service user required by a mobile operator to achieve a 15% IRR using a shared DVB-H network, for four deployment scenarios

Figure 4.2: Service penetration and average monthly revenue per service user required by a mobile operator to achieve a 15% IRR using its own DVB-H network, for four deployment scenarios

Figure 5.1: Service penetration and average monthly revenue per service user required by a mobile operator to achieve a 15% IRR using a T-DMB network shared with mobile operators only, for four deployment scenarios

Figure 5.2: Service penetration and average monthly revenue per service user required by a mobile operator to achieve a 15% IRR using a wholesale T-DMB network deployed by a traditional broadcaster, for four deployment scenarios

Figure 6.1: Service penetration and average monthly revenue per service user required by a mobile operator to achieve a 15% IRR using its own TDtv network, for six deployment scenarios

Figure 7.1: Capacity of typical 3G LTE, HSDPA, MIMO HSDPA and W-CDMA networks to carry TV content

Table 2.1: Key factors for mobile operators to consider in selecting the most appropriate broadcasting option

Table 2.2: Description of mobile TV and radio broadcasting technology and deployment options and their suitability for different circumstances

Table 3.1: Scenarios modelled for DAB-IP deployment

Table 4.1: Number of channels possible with a DVB-H network, at aggregate data rates of 10Mbit/s and 5Mbit/s

Table 4.2: Scenarios modelled for a shared DVB-H network

Table 4.3: Scenarios modelled for an operator deploying its own DVB-H network

Table 5.1: Examples of existing and planned commercial deployments of T-DMB

Table 5.2: Scenarios modelled for a T-DMB network shared with mobile operators only

Table 5.3: Scenarios modelled for a T-DMB network deployed by a traditional broadcaster and offered on a wholesale basis to mobile operators

Table 6.1: Scenarios modelled for an operator deploying its own TDtv network