Member of

Mobile Television- A Strategy Canvas -

Guy Alain Djopmo Komguep

Arabcom, Dubai, April 12th 2007

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Detecon - your international partner in the consulting market

Established:1954 Diebold1977 DETECON

Reorganized:2002 Detecon International GmbH

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Content

1. Do we really have a latent demand for mobile broadcast?

2. What are the key regulatory issues?

3. Which technology options could embrace carriers to deploy Mobile TV?

4. What are the applied business models?

5. What are the lessons learnt from first rollout cases?

6. What is the outlook for different stakeholders?

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Mobile TV trend-scoutingDo we really have a latent demand for mobile broadcast?

The TV medium is a bigger application globally than telephony; the daily amount of time spent watching TV is far more significant than that spent on mobile services.

Worldwide mobile TV revenues(in billion), 2007-2010

Worldwide broadcast mobile TV users (in million) by Technology, 2007-2010 *

Source: Informa 2005

0

10

20

30

40

50

60

70

80

2007 2008 2009 2010

DVB-H

T-DMB

S-DMBISDB-T

* Excluding cellular (eg. MBMS, MediaFLO)

11

10

7

4

0

1

2

3

4

5

6

7

8

9

10

11

2007 2008 2009 2010

Source: Yankee Group 2006

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Mobile TV value innovationDo we really have a latent demand for mobile broadcast?

Innovation without value tends to be technology-driven, market pioneering or futuristic, often shooting beyond what end-users are ready to accept and pay for.

Value Creation through content segmentation Value Proposition through innovation

Content

Download Streaming

On-demand Carousel Non-live Live

Pay TV programVideo on-demandPush and store Clips

Subscription Free TV programValue proposition cornerstones for business segment Value proposition cornerstones for mass-market segment

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The gray zoneWhat are the key regulatory issues?

Pressure Points

The impact of regulation is steadily increasing within the mobile industry realm as part of many emerging new media access platforms.

Spectrum Allocation and acquisition

of scarce frequencies difficult in specific markets

Different regulatory bodies in geographical markets (even within same country e.g. Germany)

Some countries demand proprietary standards for broadcasting (e.g. China).

Content Regulatory issues

concerning unicast content (e.g. VoD) vs. broadcast transmissions

Public vs. commercial broadcasting

Digital Rights Management issues regarding distribution, protection and royalties for copyrights

Protection of consumers

Commercial Free to air networks might

prohibit charging for service (e.g. South Korea)

Coverage exigencies might forbid profitable network rollout

Non discriminatory conditions between different distribution platforms

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Broadcasting technologies landscape – DVB-H standard gains momentumWhich technology options could embrace carriers to deploy Mobile TV?

Broadcasting technologies – key facts

DVB-HDigital Video Broadcasting Handhelds

T-DMBTerrestrial

Digital Multimedia Broadcasting

S-DMBSatellite Digital

Multimedia Broadcast

MBMSMultimedia Broadcast

Multicast Service

MediaFloMedia Forward

Link Only

Region Europe, USA, Australia South Korea Japan Europe, South Asia USA

Download Rate Up to 11 Mbps Up to 1 Mbps Up to 2.3 Mbps Up to 0.38 Mbps Up to 11.2 Mbps

Video Codec MPEG-4 MPEG-4 MPEG-4 MPEG-4 MPEG-4

Channels/128kbps 60 3-5 9-27 3 50-70

Cell Size 17-67km 40-60km 3-700km 2-3 km 2-10km

Power Reduction Time slicing Bandwidth shrinking Bandwidth Shrinking Time slicing Time division multiplexing

Transport stream MPEG2 TS IP IP IP MPEG2, IP

Frequency 470 to 862 MHz,1452 to 1492 MHz

1,452 to 1,492 MHz 470 to 862 MHz 174 to 230 MHz, 470 to 862 MHz

716 to 722 MHz,698 to 746 MHz

CAPEX

Out of the large range of cellular, terrestrial and satellite broadcasting technologies, some of them are emerging as standards in different regions.

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Mobile TV devicesWhich technology options could embrace carriers to deploy Mobile TV?

Outstanding issues

The challenge here is to find the balance between device cost, performance, form-factor and style depending on the target customer segment.

Battery Technology and power management are two crucial aspects to determine the success of Mobile TV.

Integration of new DVB-H, DAB or DMB tuners and channel decoders represents a significant challenge both in terms of energy consumption and components costs.

Application processors, RAM memory, GPS chipsets, large and high resolution colour displays are vital for high quality of service and end-user acceptance.

Ease of use and large choice of different mobile TV ready handsets are essential for the momentum market take-up

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Strategic options from mobile operators perspective What are the applied business models?

Mobile TV business models

Discrete business model, the mobile operator chooses to provide mobile TV services over its own cellular network.

Hybrid business model, the mobile operator is lead player in the mobile TV provisioning scenario, which includes some level of interaction with broadcast network services.

Converged business model, the mobile operator and other stakeholders in the value chain cooperate to take full advantage of the complementary nature of cellular and broadcast networks.

Bypassed business model, the mobile operator is sidestepped altogether by the broadcast carrier, but still provide an uplink.

Rationale

Four main scenarios can be played out for the provisioning of mobile TV services.

Mobile Networks

Complementary orCompetitive?

Broadcast Networks

Discrete Hybrid Converged Bypassed

Business models

Key contribution Minimal involvement

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Status quo in early adopters marketsWhat are the lessons learnt from first rollout cases?

In a nutshell

Mobile TV market dynamics are heavily influenced by geographical characteristics and respective regulatory frameworks.

Market split between Video on demand subscribers and Mobile TV services

MobiTV content aggregatorapproach is a success story

Mobile TV over WiMAX envisaged 2008

USA

Regulatory muddle due tofederal system

Digital Right Management issues (GEMA)

European Commission initiative promoting DVB-H

Germany

Pitfalls of MBCo: no alliance with mobile operator, purpose built devices, distribution strategy

ISDB-T standard used for One Seg Service, no charging allowed by regulator

Japan

DVB-H is predominant, take-up push by FIFA World Cup 2006

High pricing with early adopters

Wholesale approach by Mediaset to serve mobile carrier

Italy

Source: DETECON Research and Analysis

Struggle between paid service and free of charge scenario

Pricing and handset affordability is a concern for user acceptance

Wholesale approach with 25% revenue share for mobile carrier

South Korea

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What is the outlook for different stakeholders?Sharpen the saw – Strategic alliances as key success factor

Strategic alliance framework – Mobile TV

Legal Framework Incentives

Content Providers function: Innovation leadership Content creation and protection Service branding Content licensing Sustainable

User Protection Governance

Mobile Operators role: Understanding user demands Business model Technology choice Marketing and pricing

ContentProvider

BroadcastCarrier

HandsetVendor

MobileOperator

Handset Vendors role: Terminals readiness Fostering standards Sharing investments Economy of scale

Broadcast Carriers function: Content aggregation Content transport Setting standards Business cooperation

Regulatory Bodies

Stakeholders in the Mobile TV value chain should contractually joint efforts to achieve business development through synergies, expenses sharing and technology transfer.

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Contact

Thank you very much!

Integrated management and technology consulting worldwide

Guy Alain Djopmo Komguep

Detecon International GmbHOberkasseler Str. 253227 Bonn (Germany)Phone +49 228 700 2826Fax +49 228 700 2107Mobile +49 151 1221 7902 Djopmo.Komguep@detecon.com