Hellenic Telecommunications Organization S.A.

Mobile TV in the European Market Sector: Mobile TV in the European Market Sector: Opportunities and LimitationsOpportunities and Limitations

Dr. Ioannis P. CHOCHLIOUROSDr. Ioannis P. CHOCHLIOUROSTelecommunications Engineer, Ph.D., M.Sc. Head of Research Programs Section, Labs & New Technologies DivisionNetwork Strategy & Architecture Dept.,Hellenic Telecommunications Organization S.A.

MsMs. . Anastasia S. SPILIOPOULOUAnastasia S. SPILIOPOULOULawyer, LL.M., c.Ph.D. of Athens University Law School Member of Athens Bar Association

Presentation Summary

Brief overview of Mobile TV

Innovative features & global market opportunities

Potential Obstacles & Limitations: Technical Issues: Standards & Interoperability Radio Spectrum Availability Appropriate Regulatory Environment Content-related Issues Concluding Remarks

Brief overview of Mobile TV (1/2) Brief overview of Mobile TV (1/2)

Mobile Television (M-TV):is the transmission of "traditional" and on-demand audiovisual content to a "suitable" mobile device, including both live and time-shifted TV.

is a major example of "digital convergence" between telecommunications, broadcasting and the Internet.

can occur over a variety of networks, including cellular mobile, terrestrial broadcast, satellite and Internet-based.

Mobile TV transmission can be distinguished to:

Unicast ("one to one") ExamplesExamples:: VoD & time-shifted tv content

Broadcast ("one to many"): it delivers content to a large number of users, simultaneously, and is the ”key” to achieve mass-market deployment

Technically, there are two main ways of delivering are two main ways of delivering

M-TV:M-TV: via a cellular network or through a dedicated broadcast network.

Brief overview of Mobile TV (2/2) Brief overview of Mobile TV (2/2)

Mobile TV Mobile TV can bring togethercan bring together personal mobile communicationspersonal mobile communications (i.e. one of the most (i.e. one of the most dynamic European markets)dynamic European markets) with the with the diversity of Europe’s audiovisual sector!diversity of Europe’s audiovisual sector!

Mobile TV is one of the coming technologies that Mobile TV is one of the coming technologies that offers the potential of becoming a offers the potential of becoming a new mass new mass phenomenonphenomenon or a or a ” ”new killer-application”new killer-application”,, in the wider market of in the wider market of electronic electronic communications.communications.

Mobile TV can create a new lifestyle rather than just a new Mobile TV can create a new lifestyle rather than just a new technology platform.technology platform.

Innovative Features (1/2)Innovative Features (1/2)

A possibility of viewing any content, any time, A possibility of viewing any content, any time, anywhereanywhere

Mobility & interactivity:Mobility & interactivity: Viewers can see TV while they ”on Viewers can see TV while they ”on the move” and also access personalised, interactive and the move” and also access personalised, interactive and on-demand audiovisual content, on-demand audiovisual content, specifically adapted to the specifically adapted to the mobile medium.mobile medium.

Diversity of services & customization/personalization: Diversity of services & customization/personalization: Mobile TV offers a great variety of services including video-Mobile TV offers a great variety of services including video-on-demand (VoD), traditional/linear and live TV programs.on-demand (VoD), traditional/linear and live TV programs.

Accessibility & Ease of Use:Accessibility & Ease of Use: Once locally stored, content can Once locally stored, content can be viewed even when there is no network connection be viewed even when there is no network connection ––

Innovative Features (2/2)Innovative Features (2/2)

Market Opportunities for Mobile TV (1/2 )Market Opportunities for Mobile TV (1/2 )Mobile TV may constitutes the ”basis” for new profits in various business domains and multiple players: Mobile TV may constitutes the ”basis” for new profits in various business domains and multiple players: - mobile operators - mobile operators - network operators & integrators- network operators & integrators- manufacturers & equipment suppliers- manufacturers & equipment suppliers- broadcasters & content creators/aggregators- broadcasters & content creators/aggregators- service providers & software providers - service providers & software providers

Mobile TV is a remarkable opportunity for Europe to maintain and expand its leadership in mobile communications technology & in audiovisual services, to further boost some adjacent sectors (content creation/aggregation, software provision, etc.).

Market Opportunities for Mobile TV (2/2 )Market Opportunities for Mobile TV (2/2 )Mobile TV can potentially be a market of up to 20 Mobile TV can potentially be a market of up to 20

billion Euros by 2011, reaching between 200 million billion Euros by 2011, reaching between 200 million and 500 million customers worldwide! and 500 million customers worldwide!

3,4 11,8 26,072,5 112,8

335,0

0

100

200

300

400

500

2006 2007 2008 2009 2010 2011

Variation of estimates

Number of subscribers w orldw ide (million) average of estimates

Estimates by: In-Stat, ABI, NSR, Datamonitor, Informa Telecoms&Media, eMarketer, Strategy Analytics, Gartner

A high increase in demand in 2009 with an impressive 68 million subscribers in Europe by 2011, are predicted based on models in which M-TV is offered as part of a service package.

Some €7-9 million by around 2010-11, and a €20 billion turnover in 2015.

Mobile-TV: Current stateMobile-TV: Current state

Until today, the take-up of services in Europe still remains slow in comparison with the US and Asia.

Penetration rate in South Korea is close to 10% (the EU leader Italy has only a rate of less than 1%).

South Korea and Japan alone have 20 million Mobile TV customers (more than 30 times the number of actual users in the EU).

In the US, service is commercially offered since 2003.

● ● Current development is still slow and not efficiently Current development is still slow and not efficiently "coordinated coordinated ", to create to create right conditionsright conditions for a for a quick quick take-uptake-up of Mobile TV, on a of Mobile TV, on a large scalelarge scale in Europe. in Europe.

● ● A predictable environment is required to support:A predictable environment is required to support:investment in equipment production investment in equipment production development/launching of services development/launching of services dispersion/penetration of all related facilities. dispersion/penetration of all related facilities.

● ● The relevant market The relevant market is still in its is still in its "infancyinfancy" - ClearClear signals are needed from policy makerssignals are needed from policy makers on issues like: on issues like: Technical matters (mainly standards & interoperability) Technical matters (mainly standards & interoperability) spectrumspectrumlicensing and regulation licensing and regulation content creation/provisioncontent creation/provision

Obstacles & Limitations for GrowthObstacles & Limitations for Growth

Different existing Different existing ((occasionally competingoccasionally competing)) technologies, create a complexity of technologies, create a complexity of technical options and solutions which technical options and solutions which prevents from wide implementation!prevents from wide implementation!

The European response:The European response: Industry-led approaches withIndustry-led approaches with regard to the

definition of standardsdefinition of standards and interoperability issuesinteroperability issues. Support of oopen standards, as the basis for

technology development.

Obstacles & Limitations for Growth Obstacles & Limitations for Growth A Common Approach on Technical IssuesA Common Approach on Technical Issues

DVB-H:DVB-H: A new open digital broadcasting standard for the A new open digital broadcasting standard for the reception/transmission of video-audio-data toreception/transmission of video-audio-data to mobile handset terminals. mobile handset terminals.

Obstacles & Limitations for Growth Obstacles & Limitations for Growth Support for a Common European Standard DVB-HSupport for a Common European Standard DVB-H

CompatibleCompatible with the DVB-T (terrestrial) standard. with the DVB-T (terrestrial) standard.SSpecifiespecifies both the both the physicalphysical & the & the lower protocol layerslower protocol layers..Can be extendedCan be extended to to satellite transmission (DVB-SH).satellite transmission (DVB-SH).

Emphasizes on practical facilities for handheld Emphasizes on practical facilities for handheld terminals: terminals:

• low power consumptionlow power consumption (to prolong battery life)(to prolong battery life)• increased robustnessincreased robustness (to facilitate operation at high (to facilitate operation at high

vehicle speed)vehicle speed)• high data rateshigh data rates of 10 Mbit/s per channel of 10 Mbit/s per channel (to offer (to offer

”broadcast”-equivalent services)”broadcast”-equivalent services)

Obstacles & Limitations for Growth Obstacles & Limitations for Growth DVB-H : A Global StandardDVB-H : A Global Standard

Overview of DVB-H adoption: Commercial DVB-H services already available inCommercial DVB-H services already available in ItalyItaly.. Further launches are expected inFurther launches are expected in FranceFrance, , AustriaAustria, ,

FinlandFinland, , SwitzerlandSwitzerland, , EstoniaEstonia and and SpainSpain.. Pre-commercial and commercial services using DVB-H

networks have already been rolled-out in: South-East AsiaSouth-East Asia (Vietnam, Malaysia,(Vietnam, Malaysia, the Philippinesthe Philippines)),, IndiaIndia and and AfricaAfrica (Nigeria, Kenya, Namibia(Nigeria, Kenya, Namibia)). .

UruguayUruguay and and Colombia Colombia have chosen DVB-T; DVB-H will have chosen DVB-T; DVB-H will be proper for rolling-out mobile broadcasting trials.be proper for rolling-out mobile broadcasting trials.

Obstacles & Limitations for Growth Obstacles & Limitations for Growth Spectrum Availability for Mobile TV ServicesSpectrum Availability for Mobile TV Services

Sufficient frequencies should be guaranteed, , in a in a timely and practical mannertimely and practical manner, , for suitable usages..

Mobile TV can benefit from some EU frequencies soon:Mobile TV can benefit from some EU frequencies soon:

In theIn the short termshort term, , some frequencies are immediately made some frequencies are immediately made availableavailable, to allow start of services. , to allow start of services.

In theIn the medium term medium term,, the switchover from analogue to the switchover from analogue to digital TVdigital TV, , anticipated by 2012anticipated by 2012, , should release some should release some spectrumspectrum (i.e. the ”digital dividend”)(i.e. the ”digital dividend”) for promising new for promising new digital applications. digital applications.

Obstacles & Limitations for Growth Obstacles & Limitations for Growth Spectrum Availability: Proposed Bands for UseSpectrum Availability: Proposed Bands for Use

Spectrum in the UHF bandSpectrum in the UHF band (470-862 MHz)(470-862 MHz) is considered as is considered as "the most suitablehe most suitable" for mobile multimedia services.for mobile multimedia services.

The UHF band provides advantagesThe UHF band provides advantages due to the due to the compatibility of DVB-H with DVB-Tcompatibility of DVB-H with DVB-T, ,

but its use is constrained by diverging national but its use is constrained by diverging national policies regarding the policies regarding the "digital dividenddigital dividend" and by a and by a ""lacklack"" of European coordination. of European coordination.

Currently, the EU also examines the possibility to open-Currently, the EU also examines the possibility to open-up the L-bandup the L-band (1452-1492 MHz)(1452-1492 MHz) to multimedia services to multimedia services (including Mobile TV), (including Mobile TV),

as a as a ""fall-back solutionfall-back solution“,“, in cases where there is no in cases where there is no other spectrum available…other spectrum available…

Obstacles & Limitations for Growth Obstacles & Limitations for Growth Suitable regulation for innovation & investmentsSuitable regulation for innovation & investments

Depiction of the current situation:Depiction of the current situation:In many EU Member States,In many EU Member States, Mobile TV is subject to the Mobile TV is subject to the general regime applying to broadcastinggeneral regime applying to broadcasting. .

In some othersIn some others, , there are no specific rulesthere are no specific rules, or , or the relevant the relevant regulatory framework is still being debatedregulatory framework is still being debated. .

So far, there is little experience with broadcasting services So far, there is little experience with broadcasting services using exclusively mobile transmissionusing exclusively mobile transmission (i.e. not having a (i.e. not having a "traditional" broadcasting programme licence under media "traditional" broadcasting programme licence under media law).law).

The new European Audiovisual Media Services Directive The new European Audiovisual Media Services Directive 2007/65/EC will contribute to the success of Mobile TV, by 2007/65/EC will contribute to the success of Mobile TV, by providing a coherent regulatory framework for the delivery providing a coherent regulatory framework for the delivery of audiovisual media service, including on-demand services of audiovisual media service, including on-demand services via mobile networks.via mobile networks.

Obstacles & Limitations for Growth Obstacles & Limitations for Growth Necessity to overpass any “content uncertainty“ Necessity to overpass any “content uncertainty“ issueissue

It is appropriate for the market to define: It is appropriate for the market to define: which content may be most attractive/suitable for use,which content may be most attractive/suitable for use,how it can be produced and distributed flexibly, how it can be produced and distributed flexibly, how to establish copyright protection issues how to establish copyright protection issues how to made “prime“ content (e.g. sports) widely how to made “prime“ content (e.g. sports) widely accessible on new platforms and across borders accessible on new platforms and across borders how “profitable“ services can be built.how “profitable“ services can be built.

Services offered will never be Services offered will never be "popularpopular" without without compelling content and services.compelling content and services.

Special tools are required to produce/adapt M-TV Special tools are required to produce/adapt M-TV content fast, easily, and at low costs.content fast, easily, and at low costs.

Content needs to be enriched with additional features Content needs to be enriched with additional features to allow access to further business.to allow access to further business.

A transparent IPR regime is necessary.A transparent IPR regime is necessary.

Concluding Remarks

Mobile TV is at the crossroads of two powerful social trends (i.e. greater mobility and new forms of accessing media content) andis at the crossroads of two powerful social trends (i.e. greater mobility and new forms of accessing media content) and can become one of the next high-growth consumer technologies

Mobile-TV is an "opportunity" for Europe to maintain and expand its leadership in mobile technology and audiovisual services

The recent EU strategy directive will allow achieving remarkable benefits, for the entirety of the market sector.

Further support of DVB-H -based solutions, will help to reduce market fragmentation and to provide certainty for investments.