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Press release: 3G iPhone to make significant impact on mobile TV market

With the imminent launch of its 3G iPhone, Apple has a window of opportunity to have a significant impact on the mobile TV market, according to a report written by Unwired Insight.

There is of course considerable speculation about what next to expect from Apple’s iPhone ahead of CEO Steve Jobs’ keynote at the annual Worldwide Developers Conference (WWDC) in San Francisco on Monday.

“The iPhone could become the mobile video delivery device of choice for many consumers, by providing a compelling mobile TV and video proposition before mobile broadcasting networks, such as DVB-H become widely available,” says Mark Heath, co-author of the new report iPhone Shows the Way for Mobile TV.

Many operators are offering mobile TV services, using 3G streaming, but these are constrained by lack of coverage, relatively poor quality of service and 3G capacity limitations (as 3G networks may only support relatively low penetrations of mobile TV users).

Market research shows that many iPhone owners have accessed TV and video content, with greater frequency than subscribers using other types of mobile handsets. With added 3G capability, the iPhone will bring the following highly attractive attributes to the mobile TV market.

Video-friendly specifications, including high-quality widescreen display, substantial internal memory and low battery consumption. Access to a rapidly increasing range of TV and video content provided by Apple or specifically optimised for the iPhone. By May 2008, the iTunes Store had a catalogue of 600 TV programmes and over 1500 films and, by April 2008, Apple iTunes had sold 125 million TV programmes.

The ability to support multiple methods of delivering TV and video content, including sideloading, indoor WLAN and high-speed 3G cellular data access. Sideloading and indoor WLAN minimises the amount of TV and video traffic that needs to be carried on 3G networks, allowing 3G operators to support high rates of mobile TV penetration.

While iPhone take-up has been relatively modest, with cumulative sales of about 5.4 million units by the end of March 2008, this is due to Apple’s initial strategies of constraining worldwide availability and launching exclusively with a single operator in each market. As Apple moves away from these restrictive distribution strategies, there could be substantial growth in the number of iPhones sold.

“If the iPhone is able to achieve significant worldwide market share, it will be well-positioned to have a significant impact on the way mobile subscribers purchase and watch mobile TV and video content,” adds Dr Alastair Brydon, co-author of the report.

Press release: Mobile TV and video services are possible without 3G and dedicated mobile broadcasting networks

While many mobile network operators (MNOs) are planning to use a combination of 3G and dedicated mobile broadcasting networks to deliver mobile TV and video services, they must not overlook emerging alternatives, according to a new report, Critical Ingredients of Mobile TV: femtocells and sideloading, written by Unwired Insight.

Many MNOs already offer TV and video services over their 3G networks. Concerns over capacity and quality of service are driving MNOs to combine 3G networks with dedicated mobile broadcasting networks (such as DVB-H and MediaFLO). However, these are not the only ways of delivering mobile TV content. Indoor wireless systems (such as femtocells and WLAN) and sideloading (where content is transferred from a PC or other device to memory in a mobile handset) are important delivery mechanisms with valuable benefits.

“iPhone users can already watch a range of TV content without the need for 3G or mobile broadcasting capability, using sideloading and WLAN streaming,” says Dr Alastair Brydon, co-author of the report.

Key findings of the new report include:

  • Trials of DVB-H services have shown significant indoor usage of mobile TV services, with 36-50% of participants using these services mainly at home. Indoor systems such as femtocells could successfully carry this traffic, potentially with higher quality than is achievable with outdoor 3G and broadcasting networks.
  • Sideloading can be a highly effective way of delivering content that is not time critical, such as pre-recorded TV programmes (for example soap operas, dramas, situation comedies and documentaries) and movies. Compared to other mobile TV distribution methods, sideloading can provide guaranteed reliability in any location, with very high quality. For example, video content available on iTunes for Apple iPods and iPhones is encoded at a data rate of over 1Mbit/s, compared with 128kbit/s for some 3G services.
  • MNOs that are unable to deploy broadcasting networks could potentially deliver a compelling proposition without filling up the capacity of their 3G networks. If 75% of mobile TV content was delivered using sideloading and 60% of streamed content was consumed indoors, then 3G networks would need to carry just 10% of total mobile TV traffic.

Critical Ingredients of Mobile TV: femtocells and sideloading, considers the role of indoor wireless systems and sideloading alongside 3G macrocells (including HSPA, HSPA+ and LTE) and broadcasting networks (such as DVB-H and MediaFLO). The report analyses the capabilities and limitations of each technology, and maps these against the factors that will influence customer choices on mobile TV services. Using modelling of typical 3G networks and service mixes, the report assesses which technologies are required to deliver a compelling service proposition and which may be unnecessary. It also considers how operators can best take advantage of the range of different mobile TV delivery mechanisms, some of which may not be in their direct control.

Press release: Extensive 3G infrastructure sharing is now inevitable

3G network sharing is set to sweep through developed markets, and will have profound implications for mobile operators, vendors and regulators, according to a new report, 3G Infrastructure Sharing: the future for mobile networks, written by Unwired Insight.

“Despite a number of announcements made around the time of 3G licence awards, the mobile industry was not ready to adopt extensive network sharing,” said Dr Alastair Brydon, co-author of the report.

“Early interest in infrastructure sharing evaporated, and mobile operators chose to build and operate their own dedicated 3G networks. However, network sharing is back on the agenda. Mobile operators face major expenses in the coming years, including investments in femtocells, LTE, broadcasting networks and fixed broadband. As a result, most operators will not be able to invest sufficient amounts quickly enough on their own to exploit 3G’s full potential.”

Key findings from the new report include:

  • Recent announcements of network sharing agreements between major network operators, such as T-Mobile and 3 in the UK (in December 2007), indicate a change in attitude towards network sharing.
  • Network sharing can have considerable cost benefits. For example, a network operator that aims to extend its 3G network to 13 000 sites can save USD1 billion in capital expense (by reducing the need for new base station equipment and sites) and USD1 billion in operational expense (by sharing the cost of operating sites) over ten years by sharing 3G networks. 2G network sharing could provide even greater cost savings.
  • Network sharing can take different forms. At one extreme, two mobile operators might share physical resources, such as sites and masts, but not network equipment. At the other extreme, all mobile operators in a country could share the same radio access and core networks. Different forms of network sharing will present different challenges. Sharing of radio access networks will be the most common approach.

“3G network coverage must be at least as good as 2G network coverage if mobile users are to be encouraged to migrate to 3G services, as operators’ experience in Japan has demonstrated. Most 3G networks are nowhere near this,” says Dr Mark Heath. “Network sharing provides mobile operators with the means to accelerate 3G coverage roll-out dramatically. It has taken the UK operator 3 about four years to increase its number of 3G base stations from about 5000 to 7500, but its network sharing agreement with T-Mobile will enable it to increase this number to 13 000 within two years.”

3G Infrastructure Sharing: the future for mobile networks reviews a range of network sharing arrangements, from site sharing through to complete network sharing. It evaluates the potential cost savings and assesses the other benefits.

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