ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009 Keys for ensuring Mobile TV business...
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Transcript of ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009 Keys for ensuring Mobile TV business...
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
Keys for ensuring Mobile TV business success stories
Focus on the impact of Mobile TV regulatory frameworks on business models and commercial launches
in different countries around the worldand
Recommandations for future settings
Bernard PAUCHON Senior Vice President Global Media
Corporate Strategy & Development, TDF
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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A European Group
TDF is now present and active in 10 European countries (Austria, Estonia, Finland, France, Germany, Hungary, Monaco, The Netherlands, Poland, Spain)
Shareholders:
Texas Pacific G. (42%), CDC (24%), Axa (18%), Charterhouse (14%), Personnel (2%)
1,600 M€ revenue 5,500 employees 8,000 sites
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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SpainAxion, Spain’s second-ranking broadcast operator, launched regional DTT in Andalusia in 2005.
FinlandDigita launched DTT in 2001 and covers more than 99.9% of the population.
PolandPSN is the country’s second-ranking Broadcast Network Operator.
EstoniaLevira launched DTT in December 2006.
MonacoMCR is a technical operator and concession holder of the radio frequencies.
The NetherlandsAlticom operates 24 audiovisual towers.
HungaryAntenna Hungaria employs 800 people and operates 156 sites. It provides Radio, TV and telecoms services. Revenues are 110 M€.
The European leader in infrastructure and transmission services for broadcasters and telecom operators
GermanyMedia & Broadcast is the leading TV and Radio transmission company in Germany with 530M€ revenues and 1200 employees.
•AustriaMedia & Broadcast has won the DVB-H frequency license. (Service started June 2008)
•AustriaMedia & Broadcast has won the DVB-H frequency license. (Service started June 2008)
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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TDF’s business lines
Audiovisual Telecoms Digital broadcasting Multimedia services Mobile TV
Infrastructures Service integration Wholesale operator
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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TDF’s concept : Shared networks operated in a B to B model
The digitization of TV networks leads to the sharing of frequencies, hence networks, between various content providers.
Similarly, for broadcast services towards mobile handheld devices, the scarcity of frequency resources leads operators (content edotors, distributors/service operators) to share the same network.
The presence of a neutral network operator working in a B-to-B environment, independent from commercial operators servicing the end-customers, is a guarantee of a non-discriminatory, unbiased and equitable treatment of all players.
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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TDF’s Mobile TV activities in brief
We have been involved for years in European collaborative projects, are now deploying networks and are still conducting pilots in the different countries where we are present:
• In Austria, in early 2008, TDF’s German subsidiary, Media Broadcast, with its partners MNOs and Broadcasters, has won the beauty contest among several industrial projects which resulted into the commercial launch of Mobile TV services in June 2008
• In Estonia, Levira has launch in cooperation with EMT, the Estonian subsidiary of TeliaSonera, on April 2nd 2008, a Pilot with major broadcasters
• In Finland, Digita has been a key player of the Finnish mobile TV project, has been granted on March 23rd 2006, with the Finnish DVB-H network license, and has deployed the DVB-H network it has committed to, supporting a soft launch since June 2007
• In France, we have completed a DVB-H experimentation in Paris with all major Broadcasters and Mobile Network operators. We are also actively anticipating the deployment of a national network in view of a commercial launch in first half 2010
• In Germany, Media Broadcast has been granted with the frequency license, and has been operating a DVB-H network for Mobile 3.0(which originally got the media license)’s soft launch in Frankfurt, Hamburg, Hannover and München
• In Hungary, Antenna Hungaria is still currently running a DVB-H Pilot in cooperation with T-Mobile, Vodafone and main Broadcasters, and in August 2008, has won the frequency license for a DVB-H Muitiplex
• In Poland, PSN is operating a DVB-H Pilot in the city of Warsaw• In Spain, since March 2007, Axion, has launched a DVB-H pilot involving all major
broadcasters and open to all mobile telecom operators
Furthermore, we are actively involved into a variety of fora : DVB, bmco-forum, DigiTAG, … in order to contribute to settle this new business on solid at least Europe-wide grounds.
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
What is Mobile TV about?
It is about industrial projects involving motivated actors, which can only work properly if benefits as well as risks are shared between players in a well balanced way
and as a complement to other ways for delivering such sevices(e.g. 3G)
Let us see how to make it successful
• Spectrum avaibaility : look for, and you will find
• Non fragmented well established technology related to spectrum availability
• Appropriate regulatory frameworks:– Regulatory frameworks can be helpful, helpless…or even make things difficult! – Content right issues have to be cleared
• Involvement of key players with well defined relationship : – Mobile Operators (because of their distribution power, and their influence on device
manufacturers), but also Pay TVs and other distributors may also be of importance – Media groups because content is king ( of simulcast and dedicated formats)– Broadcast Network operators
• Business model satisfying all key players including reasonnably balanced risk sharing amongst players( which may influence TDF Group offering)
• Devices and equipment manufacturers confidence
Key success factors
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
Spectrum
• How to find the necessary ressource in various cases
– Easy if SWO completed( Finland, Germany, Netherland…)
– Possible where originally difficult to believe( France, Hungary, Poland...)
• Example of France : Toulouse
– Note : In general, the more –the spectrum is crowded, the more expensive is the solution, due to transmitter power limitations in order to avoid interference with other services
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
Technology
• Strengths
– Most countries prefer DVB-H, Standard based DVB-H technology already used for commercial services
– Most new providers use OMA BCAST DRM (Austria, Netherland, Switzerland),and OMA BCAST SCP close to be ready, several providers planning to use it
• To be improved
– More terminal variety needed
• Possible challengers
– Other crocodiles turning around : FLO, LTE, Others
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
Focus on the Regulatory Framework Issue
The regulatory framework of a given country is strongly influencing the business models that can be
put in place as well as the speed of launching commercial services in this country
Let us see how
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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Broadcast Network Operator(s)
The main players( they have to establish together the business model)
Content Editors(Broadcasters,…)
Distributor(s)(Mobile Operators,
Pay-TV…
3rd party middle man
(Investor…)
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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Broadcast Network Operator(s)
… and their environment
Content Editorsand Agregators(Broadcasters…)
Distributor(s)(Mobile Operators,
Pay-TV…
3rd party middle man
(Investor…)
Consumers
DeviceManufacturersRegulator(s)
Content producers
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
How they play in various countries,depending on the rules set by regulatory
bodies
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
Italy:
Two different situations
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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3 Italia (DVB-H): A Vertical Business Approach
Third partyChannels
€€
€€
€€
MobileNetworkOperator
Broadcast Network and
Platform Operation
OwnChannels
Additional channelsFree and simulcast
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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TIM and vodafone as distributorsusing a common broadcast infrastructure operated by a third party
€€€€
€€
BroadcastNetwork Operator
Channels
MNO
MNO
Channels Not illustrated here
€€
Channels
€€
€€
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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Current results and analysis
Current situation : First european country with true commercial services
3 Italia seems up to now satisfied by results( around one million subscribers) No significant results for TIM and vodafone, but no real marketing activity
Main finding by 3 Italia : Mobile TV users generate more ARPU than average consumers
3 Italia is currently changing its commercial offer in order to take into account this finding
Analysis: Very light regulation, not organizing nor even encouraging optimization of spectrum
management and mutualisation of network infrastructure, which, among others, results into the following effects: A vertical integration model for 3Italia A common but not mutualised network for TIM and Vodafone offers. RAI channels on 3, Mediaset channels on TIM offer(at least originally). 1 channel of SkyItalia and 1 of Mediaset on the 2 networks in parallel! Even more some simulcast channels on the same network( TIM and Vodafone)!
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
Finland
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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DVB-H network operator License terms
The DVB-H network operator is obliged to sell capacity to all under equal terms
Programming licenses are needed for TV and radio content (Ficora)
No programming licenses needed for data services
No single entity can purchase more than 1/3 of the network’s capacity
The DVB-H network operator Digita cannot function as a service operator
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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Relationship in Finland: The BNO, Digita is the only one to have commitments
BroadcastersDistributor(s)
(Mobile Operators, Pay-TV…
Broadcast Network Operator
Leader for regulatory body
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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Current results, analysis and forecast
Current situation : Soft launch since June 2007 with MTV3, Nelonen and later on Voice TV on air N 77 by Nokia available in the shops (first public price in web shops = 539 Euros) and
N73 has been supported by accessory product ( price level under 100 €) Contractual relationships between actors of the value chain hopefully in finalization
phase
Analysis: National license granted to a Broadcast Network Operator, being the only player to
have been asked for commitments ( roll out of the network) without The absence of any commitment from the other players, in conjunction with the
prevention of the BNO to act as a B2C operator do not help for a quick development of commercial services,
Could work in a situation where a broadcast network operator( Digita), well backed by its shareholder, has shown a very proactive attitude and in an environment with strong presence of one major industrial actor (Nokia) with a high interest for the success of this service
Forecast for the date of launch of commercial service : Autumn 2008
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
Netherland and Switzerland
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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Relationship organisation expected in Netherland and Switzerland
Broadcasters Distributor(s)
(Mobile Operators, Pay-TV…
Broadcast Network Operator
Leader in front of regulatory body
(*) At the end of the day, due to non secured relationship with distributors prior to bidding, the model has evoloved towards a vertical integration between respective BNO and MNO sister companies (*) At the end of the day, due to non secured relationship with distributors prior to bidding, the model has evoloved towards a vertical integration between respective BNO and MNO sister companies
(*)(*)
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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A regulatory framework attempting to put a BNO as wholesaler in the front, but…
The problem is that the selected wholesaler is a sister company of a particular MNO :
The other MNOs have been reluctant to contribute to the benefits of a sister company of their main competitor
They argue that the commercial conditions are so far unacceptable This has resulted into a vertically integrated model similar to the one of
3Italia
Results:
Effective launch of commercial services by June 2008, for the Euro Soccer Cup
Situation to be monitored
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
Germany
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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Germany
In Germany: In spite of a complex regulatory framework (licensing of the frequency at national level, whilst authorization of services will be given at regional level by Media Authorities) the interregional coordination paves the way to an interesting business oriented approach, based on a beauty contest of industrial projects:
BUTThe competing industrial projects seems NOT to be based so far on a cooperation
between all actors of the value chain : – there was a MNO led project, where no Media partners were visible– there was a Media led project, where no distributor was visible– there was a investor project where we did not see major Media nor MNOs
Partners, these last two having joined forces into Mobile 3.0 company, and won the beauty contest
In parallel to the media beauty contest, there had been a tender for the granting of the frequency, one of the main criteria being commitment on coverage and its roadmap. This tender has been won by Media&Broadcast( TDF Group)
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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Mobile 3.0: A consortium of investors as a wholesaler( looking for a model similar to the T-DMB model described below)
MVNO
Channels
BNO
€€
€€
€€
€€
IndependentServiceprovider
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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Broadcast Network Operator(s)
Summary of relationship organisation in Germany:No established secured relationship before license granting
BroadcastersDistributor(s)
(Mobile Operators, Pay-TV…
Leader in front of regulatory body
3rd party middle man(Mobile 3.0…)
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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Current results, analysis and forecast
Current situation : Soft launch in June 2008 in 4 main towns The disappointment of MNOs (which had strongly worked in order to get
the media license) results into difficulties for Mobile 3.0, the winner of the Media License, for establishing commercial relations with distributors
Media Authorities have just received the license back from Mobile 3.0
Analysis: National media license granted to a third party( consortium investor), but
without having prior any strong commitment from all the other main categories of players
Next Steps: Create conditions for a succesful launch as soon as possible. TDF/MB is
currently working to contribute to that goal
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
France
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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Legal and licensing issues
Licensing framework (Update of Audiovisual law issued on March 5, 2007)– TV channels(other than public service) are selected through a beauty contest by the audiovisual regulatory
body (Conseil Supérieur de l’Audiovisuel – CSA). Antitrust provision : max. 20% of channels / media group– Selected TV channels, with those preempted by government for public service, will have to jointly set a
multiplex operator, responsible for steering the roll-out of the network and the service platform operation, at the latest two months after the granting of the last media license. Otherwise, the whole selection process will have to be restarted
– Frequencies will be granted to the multiplex operator– MNOs may take part in the multiplex operator, provided that they wish to and contribute significantly to
financing the network– Business models: No constraint
Licensing process– Spectrum availaility
• A first multiplex with potential coverage up to 70% to 80% of pop. before switch-over (2011).• A second multiplex is planned in the context of Geneva-06.
– Calendar :• For the first multiplex, the CSA launched the beauty contest in Nov.2007 for 13 channels, 2008. The 13 channels has been
selected in April, will be finally approved by mid September, and the multiplex operator is to be set up in October or November2008
• For the second multiplex, a tender is to be organised during 2009– Specifications and obligations( for the first multiplex)
• DVB-H compulsory, (governmental decision taken based on results of market consultation) • Modulation/capacity (resulting from a market consultation) • Pop. Coverage : minimum coverage : 30% of population by mid-2011, 60% by mid-2014• Indoor coverage : no obligation, but is a criterion in the beauty contest• Business model : no obligation, but has to be presented when bidding
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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Multiplex
operatorMNOs/MVNOs
Mobile
SubscribersRevenue sharing
Contribution to network costs
Mobiviewers
on pocket TVs
TV CHANNELS
Basic scrambled
Premium channels
Advertisingrevenues
Contribution to network cost ?Service platform costs*
Interactiveservicesrevenues
Transmissioncosts
Pay TV
operatorsDevice
manufacturers
*Bundled with price of the device
Main business model considered and foreseen flows of revenues and services between key categories of players
TV subscription(DVB-H part)
Mobile Subscription(DVB-H part)
One-off access fee*
Note : Business model is left open by legal framework and licensing process: candidates had to specify their choice : free-to-air versus encrypted, nature of offer to final customers…
DISTRIBUTORS
Service PlatformOperator*
*if service outsourced by Mux Operator
BNO(s)BNO(s)
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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Summary of relationship organisation in France:Broadcaters are the only ones to take commitments
BroadcastersDistributor(s)
(Mobile Operators, Pay-TV…
Broadcast Network Operator(s)
Leader in front of regulatory body
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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Current results, analysis and forecast
Current situation : Selected channels negotiate together, and with the interested distributors (MNOs, Pay-TV operators,…) the
setting of the Multiplex Operator and its related business plan They have received draft contracts with the CSA for being granted with a media license, but most of them have
not returned them signed , so to avoid to set a Damocles sword, because by the law, there is a dead line for the Multiplex Operator to be set 2 months after last contract signed.
In this context, the government has assigned a special missioner with the goal of having the main players converging on a business model, balancing risks and revenue opportunities , among all players( hopefully including all MNOs)
Analysis: Strongly regulated framework adapted from the one in place for DTT : national license to be granted to
Broadcasters, being the only players to have been asked for commitments ( ensure roll out of the network and put signal on air)
Media regulator (CSA) has in charge the setting of the commercial offer (package of channels), and geomarketing decisions.
Possible uneasiness to react quickly for adapting the service offer to the consumer demand as it may evolve along the time
Having set up together a “Mobile TV Forum”, all players of the value chain (Broadcasters, MNOs, BNOs, manufacturers and sofware providers) had strongly influenced the obligations put in the regulatory framework (see above), and have initiated technical and economical work aiming at preparing the successful setting of the Multiplex Operator (governance and business model)
The absence of any direct or indirect commitment from the side of distributors may however result into some uncertainty for the date of launch of commercial services,
Estimated date for launch of commercial services : S1 2010
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
Austria
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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Mobile TV Austria.Overview and Timeline.
LoI with MNO, TV
stations due
September October November December January February 2007 to June 2008
Time Line to Commercial Launch
KommAustria releases
Tender
Application due 14.12.
07
License Decision
announced02.08
CommercialLaunch
31/05/08
Multiplex operator license granted supports network and platform operation
Content aggregation facilitated licensee but not directly influenced
Content aggregators define basic and premium bouquets in line with Austrian TV law
License applicant is required to submit contracts with aggregators, program owners, MNOs at the time of application
DVB-H
Single frequency networks QPSK, 8k, CR 2/3, GI 1/4
OMA DRM/SCP
Value chain fully established due to pre-application contract requirement
Clear commercial focus of tender accepting key role of MNOs in creating a mobile TV market
No binding pre-license obligations, penalty free post-license exit option for M&B
Complex pre-application negotiations need to be finished within three month
Licensing decision will be taken by regulator only four month before required commercial service start
License/Business Model Technical Framework
Opportunity Challenge
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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Overview Austrian Tender.Successful applicant must have support of MNOs, broadcasters, proven excellent technical skills and sustainable economic performance.
Broadcast Network Operator (BNO) Plan, built and set up a DVB-H
network consisting of 15 trans-mitters by June 2006 (EURO ’08)
Achieve at least 50% PoP coverage portable outdoor by year end 2008 (= 7 transmitters)
Extension of PoP coverage is encouraged but is not mandatory
DVB-H standard compliant plat-form supporting connected, (if economically feasible) non connected devices
Provide for open and non discri-minatory access of all content aggregators and program providers
Content Aggregators MNO are required to agree
on basic and premium program bouquets
Acquire and integrate television and radio broadcasters into a compelling bouquet of programs
Provide BNO with signed contract or equivalent by time of the first’s application
Disclose marketing strategy formobile TV service, price plans, device availability etc. regulator through BNO’s application
Broadcasters / Rights Holders No obligation to sign with
aggregator or to cpntribute program to mobile TV service
Public Austrian television has a “must carry if” privilege
Private broadcasters are free to sign with content aggregator
Signed contracts due at time of BNO’s application
Regulator supports encryption of all services as a minimum requirement for mobile TV market creation
Roles, Tender Requirements in Austrian Mobile TV Tender
Actual Applicant BNO Supporters
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
Propagation Prognosis.Scenario License Requirement YE 2008 (Outdoor).
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
Propagation Prognosis.Scenario EURO 2008 (Outdoor).
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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Competition between Industrial projects in Austria
TV-/RadioBroadcaster
s
Broadcast Network
Op.
Mobile Network
Op.Subscriber
30% Market Share
None 0%
40% Market Share
Austrian Publisher
ConsortiumNone 0%
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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Resulting current situation in Austria
TV-/RadioBroadcaster
s
Broadcast Network
Op.
Mobile Network
Op.Subscriber
70% Market Share
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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Organisation of relationships in Austria
BroadcastersDistributor(s)
(Mobile Operators, Pay-TV…
Broadcast Network Operator
Leader for regulatory body
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
DVB-H Program Bouquet.
1 2 3 4 5 6 7 8
9 10 11 12 13 14 15 Radio
One single Basis Package (NO explicit Premium Package)
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
Overview DVB-H Devices.
At Start
October/November 2008
+ ZTE DVB-H fähigePC Modem-Karte
ZTE RBM1
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
Lessons Learned.Welcoming change to the “old” broadcast environment is key.
Forced Marriage vs. Freedom of
Choice
Market Drivenvs.
Public Good
Broadcast vs. Commercial
Service
In the past broadcast infrastructure was considered public good in Europe
Introduction of innovation followed public investment cycles
Broader view on markets, thus creating new opportunities for winning support outside broadcast industry, is crucial to keep the pace of shortening technology life cycles
Austrian case creates pressure on all players involved to commit
Resulting reduction of uncertainty about co-operation among key players in the value chain minimized risk of failure to launch
Swiss and German Case indicate that non binding pre-license agreements often lead to obstacles when post-licensing negotiations commence
Must carry rules, refusal to accept encryption, lack of commercial management of content assets define broadcast environment
Over-emphasizing broadcast side of the scale bears risk of driving away crucial partners like MNOs and leaving “program owners” without commercial case and technical reach
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
Some main facts outside Europe
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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Korea
T-DMB : free model with few but attractive channels( six operators, 7 TV channels, 13 radios), launched in December 2005,12 millions receiving equipment sold( 1/2 are mobile phones), but broadcasters are loosing money (advertisers needs a threshold of this kind of figure in order to start to have interest), and handset manufacturers seems to be the only winners!
S- DMB : pay model, but with not extremely attractive content ( 11 TV channels, 26 radios). This service attracts 1,3 millions subscribers. This is a combination of a wholesale model with a B2C model
Source Jitex
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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Japan and USA
Japan : Free to air model led by broadcasters
Takes advantage of network deployed for DTT HDTV, thanks to ISDB-T One Seg design, but need to reinforce the signal for good QoS: who will candidate to pay for this?
Around 40 million devices sold, but who else, but device manufacturers, earns money?
USA : Wholesale model for Media FLO USA Inc., as described in the following slide
Wholesaler had to purchase spectrum
Commercial opération by Verizon and AT&T ( No figure yet) , but marketing seems rather weak( due to lack of early well established relationship with wholesaler?)
Note :Having experienced the situation of having to negociate with distributors after having taken the risk, Qualcomm/MediaFLO will not promote a similar model overseas, and is now promoting more collaborative models
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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MediaFLO USA, Inc. : a pure wholesale model
MediaFLO USA, Inc.
(QUALCOMM)
Programmers / Content Providers
Broadcast Network Infrastructure
Provider
Prof. Services & Software
Network Build & Operation
Pay mobile TV Wholesale model - Integration w/WO’s billing systems and minimum handset specs.
Handset specifications & purchase
Retail sales & distribution of Mobile Pay-TV service
Wireless Operators (Carriers)
AT&T
Verizon
Carrier #5
Carrier #3
Carrier #4
Programming Rights
Handset
Manufacturers
Qualcomm MediaFLO
Advertisers
Transmitter Vendors
Licensing of FLO
TechnologyEnd Consumer /
Subscribers
Chipsets & Technical Support
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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Broadcast Network Operator
Summary of relationship organisation in USA:No established secured relationship before license granting
BroadcastersDistributor(s)
(Mobile Operators, Pay-TV…
Leader in front of regulatory body
(Media FLO USA Inc.…)
(*)Same Mother House, Qualcomm Inc.
(*)
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
Provisional conclusion
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
53
The «Austrian approach» seems so far to be the best
They have taken the best of the already implemented approaches order to develop a business oriented regulatory framework stimulating co-operation between content providers, broadcast network operators and distributors (mobile operators, pay-TV actors and may be others)
In Austria, the regulatory body has granted the frequency to a DVB-H industrial project, organizing a beauty contest to select the best one
These actors had therefore to develop and negotiate commercial relationship prior to apply for license.
This results into avoiding biaised and long negotiations after only one actors has taken commitments for being granted with the license and find itself in a weakened position for negotiating with the others, which can result, as seen in other countries into unmanageable delays and difficulties
This also help further consolidation of the original industrial project( Mobilkom has joined afterwards, and Media Broadcast has made a deal with ORS)
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
But a more general approach based on the same principles
could offer more flexibility
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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Basic principles
Rationale : take the best of the already implemented approaches order to develop a business oriented regulatory framework forcing co-operation between at least content providers and distributors (mobile operators, pay-TV actors and may be others).
The actors will have to develop and negotiate commercial relationship prior to apply for license, and indeed create industrial project for developing the Mobile TV business
The regulatory body would only then grant licenses to what would appear to be the best industrial project, based on the result of a beauty contest
Like in Austria, this would avoid difficult negotiations after the granting of the frequency, but at the difference of Austria, this would allow different possible organisations for these industrial projects
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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Possible Relationship organisation (1) (the one established in Austria)
Broadcasters Distributor(s)
(Mobile Operators, Pay-TV…
Broadcast Network Operator
Leader in front of regulatory body
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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Possible other relationship organisation (2)
BroadcastersDistributor(s)
(Mobile Operators, Pay-TV…
Broadcast Network Operator(s)
Leader in front of regulatory body
Note : This may look like the french case, but the key difference is that here relationship between content editors( broadcasters) and distributors are secured prior to the license granting
Option secured relationprior to bidding
Option secured relationprior to bidding
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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Possible other relationship organisation (3)
BroadcastersDistributor(s)
(Mobile Operators, Pay-TV…
Broadcast Network
Operator(s)
Leader infront ofregulatory body
Option secured relationprior to bidding
Option secured relationprior to bidding
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
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Broadcast Network Operator(s)
Possible other relationship organisation (4)
BroadcastersDistributor(s)
(Mobile Operators, Pay-TV…
Leader in front of regulatory body
Note 1: This may look like the german case, but the key difference is that here relationship between content middle man and other parties have to be secured prior to the license granting Note 2 :The fourth party will consume a part of the overall revenues
3rd party middle man(Investor…)
Option secured relationprior to bidding
Option secured relationprior to bidding
ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009
Conclusion
Mobile TV Regulatory April 2009
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The regulatory framework is strongly influencing the business models that can be put in place as well as the speed of launching
commercial services
Consequently : Before establishing a regulatory frame work for mobile TV, investigating
and weighting advantages and disadvantages of all options already in place in other countries would certainly help
In order to maximize chances of having successful commercial services, the regulatory framework should make sure that it creates appropriate commitments from those whose task is to offer services to the public, the editors( TV Channels) and the distributors (and in particular Mobile Network Operators)
It is also extremely important to let the game open for further consolidation of the content offer and the extension of distribution channels
With this respect, the austrian regulatory framework looks like being so far the best… so far because Arab States…
Mobile TV Regulatory April 2009
ARAB STATES are ideally positionned for joining the club of countries with regulatory frameworks leading to successful Mobile TV business cases
I do hope that this presentation will be helpful for this purpose
TDF Group is ready to give whatever further contribution which would be considered useful