Saturday, January 27, 2007

Digital Broadcasters | DVB-H | Future is Bright Says Report

Digital Broadcasters Vendor News has received advanced notice of a new report from Frost & Sullivan on the DVB-H Technology-Market and Potential Analysis that reveals that revenues in this market totalled US$60 million in 2006 and is likely to reach US$2.04 billion in 2010. F&S state that DVB-H is set to be the future of Mobile Television.

The announcement was released from San Antonio, Texas but did not mention if it refers to worldwide or just the United States. A case of the left hand not knowing what the right is doing for this F&S report, I suspect.

Importantly, the report summerizes that the concept of providing television services on a mobile device is generating much enthusiasm among the wireless industry, in turn driving the growth and development of digital video broadcasting-handheld (DVB-H) open standard technology.

Furthermore, F&S says that DVB-H delivers an improved end-user experience over current video streaming services that utilize cellular networks, while also providing, broadcasters, cellular operators, handset manufacturers and silicon providers with tremendous growth opportunities.

This apart, the quality of service (QoS) is likely to be better due to the use of a dedicated broadcast network. Additionally, though DVB- H claims speeds of 25 frames per second (fps), trials show practical speeds of 15-16 fps, which seem to be sufficient for existing screen sizes and resolutions. However, in future, these speeds are likely to increase to 20-25 fps for fixed digital TV in Europe.

Despite the promise of a bright future for DVB-H, one of the biggest challenges to adoption of DVB-H by mobile operators is the issue of business and revenue models.

With DVB-H, mobile operators are likely to prefer to continue operating in their area of domain expertise, service provisioning, billing, and customer care and therefore, broadcasters would have ownership of the content and the overall visual experience.

“Hence, mobile operators would need to differentiate their offerings and provide value to ensure customer loyalty and remain profitable,” says the F&S report. “This also means that mobile operators are likely to serve only as a link to customers and would not be in a position to negotiate for better revenue splits with others in the value chain.“

Service providers would be required to work very closely with content creators, aggregators, and broadcasters, and ensure secure content and support digital rights management in an effort to protect copyrighted content. While revenue issues could be addressed through subscription models, event-based, pay per view, and even interactive services, the most important challenge is likely to be the optimizing of battery life of the handsets.

Digital Broadcasters Vendor News reckons that F&S are on the right path with their prognoses.

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