1seg - mobile digital TV in Japan

©2010 Eurotechnology Japan KK www.eurotechnology.com

Mobile TV (Version 12) August 12, 2010

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Mobile TV in Japan

Version 12, August 12, 2010

Gerhard Fasol, PhD [email protected] Eurotechnology Japan K. K.

www.eurotechnology.com

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Executive Summary   Terrestrial digital TV uses frequency bands in the UHF section of the radio spectrum between 470 - 770 MHz. Each

station, e.g. NHK, TBS, Fuji-TV is assigned one channel. Each channel is divided into 13 segments + 1 guard segment. 12 of these 13 segments are used for digital TV to homes, and the remaining one segment (“1-SEG”) is used for digital mobile TV!

  “1-SEG” mobile TV offers a combination of TV broadcast, data broadcasts combined with homepages, multimedia, customer clubs and other information and services offered via internet and encoded in BML (Broadcast Markup Language), which is XML based. !

  This broad and flexible technology platform allows a variety of value added services and media products to be offered to customers, and opens a new media channel.!

  “1-SEG” mobile TV started officially in Japan on April 1, 2006 after several months of public testing!  Similar to i-Mode, mobile TV is a platform for service providers, critical for the success of “1-SEG” are high

penetration rates for mobile TV enabled terminals, at the same time as high numbers of services providers. Currently (2010) about 70%-90% of all mobile phones shipped in Japan are equipped with 1-seg mobile TV.!

  1-SEG broadcasting was SimulCast until March 31, 2008, i.e. the 1-SEG broadcasts are exactly the same as traditional analog TV. From April 1, 2008, the SimulCast requirement is lifted and new services have started.!

  We expect that 1-SEG broadcasts have the potential to create an important new industry. !  Given that Japan’s TV industry’s size is about US$ 40 billion, we can easily imagine 1-SEG to grow into a US$ 4

billion industry, i.e. 10% of Japan’s TV industry, of similar size to the mobile internet industry (I-Mode + Ezweb + YAHOO!-keitai)!

  Mobile-TV using Japanese one-seg (ISDB-T) technology has been introduce in several South-American countries (Brazil, Peru and Argentina), however broadcasting parameters (e.g. frame rates) are different so that terminals currently are not directly compatible!

  At this moment (Summer 2010) Japan’s General Affairs Ministry is deliberating about additional mobile TV spectrum for which NTT-DoCoMo and KDDI (in cooperation with Qualcomm and using MediaFLO technology) are competing. Either or both may be awarded this news spectrum for next generation mobile TV services.!



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Agenda: mobile TV   Executive Summary!  Mobile TV - overview: multiple services and multiple terminals!  Digital mobile TV: “one seg”!  Multiple program: one-seg2, NHK-OneSeg2!  EPG – Electronic Program Guide (G-Guide)!  Digital mobile TV: handsets!  Usage: how many hours/month do people watch mobile TV in Japan?!  Mobile TV as a strategic tool for operators !  Data broadcast and link to mobile internet!  AU’s digital TV appli: Functionality!  Business models for mobile TV!  Monetizing one-seg mobile TV!  Digital mobile TV and m-commerce!  Digital vs Analog terrestrial TV!  Digital terrestrial TV for PCs and other terminals (PSP, Nintendo DS…)!  Japan’s TV industry!  Japan’s advertising industry!  BeeTV: “Personal Entertainment Collector”!  Unlicensed competition via the internet: Packet Radio!  Next generation mobile TV!  Annex: International comparison!  Annex: one-seg internationally!  Historic appendix: Mobaho!: satellite TV to mobile terminals and mobile phones!  Summary!



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Mobile TV



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Mobile TV   Japanese people spend on average 3:40 hours/day/person watching TV, I.e. about 20% of time

awake, and Japan’s TV industry sector’s size is about US$ 40 billion/year. (for an overview of Japan’s media industry see: http://www.eurotechnology.com/store/jmedia/ )!

  Several different ways exist to deliver signals (movies, sound, data) similar to traditional TV to mobile phones, and several alternatives are presently explored all over the the world.!

  In Japan at least four different methods are presently in commercial services and several more are planned:!  Digital terrestrial mobile TV “1-seg” (testing since 2005, official start April 1, 2006)!  Traditional analog terrestrial TV. Especially Vodafone had several mobile phone handsets on the market which

included an analog TV tuner. TV reception is free of charge, the commercial purpose was therefore to reduce churn: users which were used to mobile TV would have to give this function up when changing to DoCoMo, which did not offer TV handsets. However, there is no charge for TV reception, therefore the TV offering did not generate direct income to Vodafone. Analog TV will be terminated in 2011.!

  Satellite TV broadcase “Mobaho” (Mobaho was unsuccessful commercially, has been terminated)!  Video streaming via the mobile internet data connection. However, due to the limited bandwidth for 3G, we are

only aware of a streaming radio service (packet radio), while we are aware of tests for video streaming!  Next generation mobile TV in planning!

  Clearly each of these types of TV delivery has strengths and weaknesses, which are now being tested and developed in Japan’s market. !

  While the press in Europe and US reports market research that consumers are willing to pay US$10, 20, 30 or more per month for TV channel subscriptions to mobile phones, in Japan the TV reception is free of charge for terrestrial digital or analog TV. Satellite TV, and packet radio however operate on a monthly fee basis. We expected new business models to evolve and to be refined over time.!



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Mobile TV   At least four types of mobile

TV are in operation in Japan today:!  Terrestrial digital mobile TV

(“1-seg”) started on April 1, 2006!

  Conventional analog terrestrial TV (will be terminated by July 24, 2011, however this date could be postponed)!

  Streaming TV broadcasts via the mobile internet data interface (I-Mode, Ezweb, etc)!

  Satellite broadcasts to mobile phones by “Mobaho” (terminated with end March 2009)!

  Next generation mobile TV!  Mobile TV can be watched with

a variety of terminals, including mobile phones, laptops, Nintendo DS and SONY-PSP portable game terminals, etc!

Internetserver

terrestrial digital TV(started April 1, 2006)

analog TV(ends July 24, 2011)

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SONY PSPPSP

satellite

Mobaho

streaming TVvia IP

“1-seg”digital mobile TV

analog TV



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Mobile TV to Mobile phones   Four different methods of sending

TV signals to mobile phones are in use today in Japan:!  Terrestrial digital TV broadcasting

“1-seg” (started officially on April 1, 2006)!

  Traditional terrestrial analog TV (will end on July 24, 2011)!

  Internet streaming via the mobile internet data connection on 3G (FOMA/i-mode, Ezweb)!

  Satellite broadcasting (“Mobaho”, terminates end March 2009)!

  In addition, wCDMA (FOMA) also provides a circuit-switched 64kbps digital dial-up channel similar to video-telephony. However, high video-telephony communication charges per-minute apply (about 20-30 US-cent/minute)!

  Next generation mobile TV (in planning)!

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terrestrial digital TV(started April 1, 2006)

analog TV(ends July 24, 2011)

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satellite

streaming TVvia IP

“1-seg”digital mobile TV+ data broadcast

analog TV“Mobaho”


Mobile TV (Version 12) August 12, 2010 1-seg Broadcast vs Streaming over IP�

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1seg broad cast!(digital terrestrial mobile TV) �

Streaming over IP!(eg Youtube)�

Quality� Guaranteed (in principle) within reception area, same quality to all participants!

“Best effort”, limited number of viewers, quality decreases with # of viewers.!QoS can be managed and limited depending on usage and payment plan!

Bandwidth � 312kpbs to all (broadcast)! wCDMA: max 384kbps !HSDPA: max 10Mbps (currently 7.2Mbps)!CDMA2000-1x-EVDO: 2.4Mbps!(decreases with number of active users)!

Content� Broadcasters have legal responsibility for content!IP protection is implemented for stored programs!

Open globally via the internet, !content control and IP protection is not possible !(or at least very difficult)!

License� Licensed (broadcasting license and spectrum license are necessary, and are controlled by Government) �

unlicensed �


Mobile TV (Version 12) August 12, 2010 Terminals for “One Seg” Mobile Terrestrial Digital TV

Market penetration�Terminal type�

Mobile phones� Currently (2010) about 70-80% of all mobile phones in Japan are shipped with 1-seg"

PCs � USB external tuners: 300,000 sold!PCs with internal “one-seg” tuner: 53,000 sold (until December 2006)!

Car navigation� SANYO, ALPINE and other companies sell car-navigation terminals with built-in “one-seg”.!SANYO predicts sales on the order of 100,000/year!

Game Terminals� Nintendo plans to sell external One-Seg tuners for attachment to Nintendo-DS game terminals!

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Digital Mobile TV “one seg”



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Multiple-program: OneSeg2, 1seg2



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NHK’s OneSeg-2



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EPG Electronic Program Guide



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Digital Mobile TV Handsets



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How many hours/month do people watch mobile

TV in Japan?



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Mobile TV as a strategic tool for operators



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Data Broadcast and link to Mobile Internet

(I-Mode or Ezweb)



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AU’s Digital TV Appli Functionality



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Business models for Mobile TV



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Monetizing One-Seg



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Digital Mobile TV and M-Commerce

 For an overview of mobile commerce and mobile payment see:!

 http://www.eurotechnology.com/store/mobilepay/!



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Digital vs Analog Terrestrial TV



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Digital Terrestrial TV For PCs and other terminals



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TV Industry

(until March 31, 2008 “1-Seg” mobile TV is simultaneous broadcast

(“SimulCast”) with traditional TV)

 For an overview of Japan’s media markets see:! http://www.eurotechnology.com/store/jmedia/!



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Japan’s Advertising Industry

 For an overview of Japan’s media markets see:! http://www.eurotechnology.com/store/jmedia/!



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BeeTV = “Personal Entertainment Collector”



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Unlicensed Competition Via the Internet:

Packet Radio, YouTube

 More details in our report “Mobile Music in Japan”:! http://www.eurotechnology.com/store/momj/!



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Next generation mobile TV



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Annex International Comparison



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Annex: OneSeg - international



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Historic appendix:

“MOBAHO!” Satellite TV to Mobile Terminals and

Mobile phones

Mobaho! Services started on October 20, 2004 and have ended. All services will terminate with the end of March 2009.

This section is included as a historic appendix.



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Summary



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Summary

  “1-SEG” digital mobile TV started officially in Japan on April 1, 2006 after public trials in 2005/2006 and we expect this new media sector to grow into an important new industry. Sales could potentially reach US$ 4 billion in the future !

  “1-SEG” mobile TV offers a combination of TV broadcast, data broadcasts combined with homepages, multimedia, customer clubs and other information and services offered via internet and encoded in BML (Broadcast Markup Language), which is XML based. !

  Until 2008, 1-SEG broadcasts was exactly the same as traditional analog TV channels with additional internet content, multimedia, quizzes or information. From April 1, 2008, licensing conditions changed and the 1-SEG sector has been opened to newcomers. First new One-Seg specific programs are starting in spring 2009!

  Broadcasts via the mobile phones wireless internet connection, eg by YouTube, represent “unlicensed” competition to 1-SEG digital mobile TV. 1Seg requires licenses, IP-TV, e.g. by YouTube requires no licenses.!

  Japan’s one-seg (ISDB-T) technology is also used for mobile TV in several South-American countries (Brazil, Peru, Argentina), although the terminals are not directly compatible!

  Currently (summer 2010) Japan’s General Affairs Ministry (the Regulator) is considering the award of additional spectrum for next generation mobile TV. NTT-DoCoMo and KDDI/MediaFLO (in cooperation with Qualcomm) are competing to be awarded this new spectrum. The decision is expected during summer 2010.!



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More information:

 Blogs:! http://fasol.com/blog/! http://eurotechnology.com/blog/!

 Reports:! http://www.eurotechnology.com/store/!



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Contact

  Eurotechnology Japan KK!  http://www.eurotechnology.com/!

  CEO: Gerhard Fasol PHD!  [email protected]!  Mobile: +81-90-8594-6291!

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