AT&T US Mobile TV Delay Renews Concern About Viability

By Scott M. Fulton, III | Published October 30, 2007, 6:28 PM

A move by AT&T last week to delay the planned initial rollout of its US mobile TV service, based on the MediaFLO platform, until "early 2008" at the earliest, is bringing up old questions about not only whether American consumers are ready to embrace the technology, but whether the infrastructure is there to support it.

The news was first reported by RCR Wireless and later confirmed by Reuters, and comes as bad tidings for Qualcomm, the key stakeholder in mediaFLO. When all is said and done, that company could have spent close to a billion dollars since 2004 on the establishment of an infrastructure for streaming full-length, broadcast quality TV programming to cell phones. For all that investment to make sense, customers have to want it, and not having it this holiday season won't help them to conjure a want for it.

A report released last week by media analysis firm Berg Insight states that 78%, or about 38 million, of all the world's mobile TV viewers are concentrated in two countries: Japan and South Korea. There, consumer interest is high, but not elsewhere. And those systems are based on competing Asian standards such as T-DMB; the world's #3 adopter of mobile TV is believed to be China, which has its own national standard.

Compounding that analysis is a report released today by British firm Continental Research, and reported by Brand Republic, saying that in its recent poll, only 1% of British consumers are currently using mobile TV (probably DVB-H), and that only 3% are considering using it in the near future.

Elsewhere in the world, the Philippine government is responding to claims from its cable operators that having bequeathed the right to broadcast mobile TV to the company's telecom companies was against the law. MediaFLO was supposed to play a critical role in that country's service.

And in India, which has for years been debating whether content broadcast over mobile TVs be regulated using its outdated broadcasting content license laws or its equally outdated telecommunications laws, the country's distributor of Dish Network service has filed suit. It seeks to bar any service that uses MediaFLO from ever being established in India, on the grounds that it violates the country's policy toward open standards - in this case, its pre-existing, official endorsement of DVB-H.

It seems Qualcomm can't catch a break anywhere. For its investment to pay off and for mediaFLO to actually happen, it needs to have a home base. And with Europe's lawmakers placing its bets on its DVB-H continental standard and its people betting against it, the only market left where MediaFLO should have a chance is North America. That's why AT&T's rollout is so critical; if it doesn't happen here, it might not happen anywhere.

Comments

View comments by with a score of at least

Excellent summary, Scott.
The key thing to understand about 'broadcast' TV on mobiles is the unknown number of us who would be prepared to pay to watch full-length TV on our mobiles when you get TV for free at home and/or via IPTV.
Without a proven businbess case for subscriber growth, you've got to question the likelihood of return on investment.

Score: 0

|

Google Chrome 4: Yes, it's fast, but is it usable?

As Betanews readers have responded to our stories about Chrome's JavaScript superiority...Does that mean we'd actually use this browser? Well...

Video: Netflix on PlayStation 3

Netflix has come to the PlayStation 3 via Blu-ray and BD-Live.

Verizon Wireless launches new Android, Chocolate, and ruggedized phones

The lower-priced Eris joins the Droid, while the Chocolate gets a touchscreen and more music playback.

Early sales figures for Windows 7 nicely high, but do we know why?

Fans of triple-digit surges in figures quoted by Betanews will love this one, as it appears Microsoft rediscovered how to pull off a software launch.

Myka announces its latest Linux-based 'net top box'

Myka's ION brings Boxee, XMBC, and much more to HDTVs.

What hath Mac wrought? A remembrance after a quarter-century

The reason there's a Macintosh today is not because of some brilliant flash of engineering genius, but because Apple had the audacity to learn from its mistakes.

Early build of Moblin 2.1 improves connectivity, but not device support

The Linux Foundation's Atom-centric OS yesterday received a major overhaul with the project release of Moblin 2.1 for netbooks and nettops.

The iPhone's China syndrome: Sales of 5,000 and climbing

There's actually a country where Apple's device is not a godsend, where sales can be measured in the dozens.

New European counterpart to FCC will ensure 'a more neutral net'

Late Thursday night, the ruling telecom administrators of the EU's member nations signed away their final authority to a new entity overseen by the EC.

Sophos study suggests Windows 7 UAC's default setting is self-defeating

Without any anti-virus installed, a Sophos test showed, User Account Control was only capable of thwarting just one malware package out of ten samples chosen.

Indiscreet tweet trips awareness of Web SSL vulnerability

A group of high-level security engineers had been making progress on thwarting a low-level threat to the Web, until somebody blurted it all out on Twitter.