This PPT gives a general overview on the landscape of mobile TV. It also gives a discussion on the business opportunity and buisness model of broadcast mobile TV.

1. The Business Model
for Broadcast Mobile TV
Anke Gill
Vice President of Marketing, BNS Ltd
June 2008
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BNS Ltd, all rights reserved

2. Before we start…
“How does this
thing
work..??”
David Rice, Master of
teleportation in “Jumper”,
2008 (Fox)
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BNS Ltd, all rights reserved

3. What has this to do with Mobile TV?
Plenty.
People are irrational, loss-averse and
effort-averse so Mobile TV operators
need to figure out how to transform
the young David into the adult David
as fast as possible
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BNS Ltd, all rights reserved

4. The Mobile TV technology
landscape so far…
Traditionally, Mobile TV is the broadcast of live TV to an
adapted mobile phone handset (Broadcast Mobile TV) or the
streaming of an on-demand programme to a 3G phone
(Cellular Mobile TV).
• Broadcast Mobile TV:
– Truly ‘broadcast’, the same signal is broadcast across a large
area regardless of whether anyone is watching, similar to
watching TV, thus inexpensive to scale to large audiences
• Cellular Mobile TV:
– Cellular service, just like voice
– Streaming approach - similar to watching a movie clip on the
Internet (buffering issues)
– Direct relationship between the number of people watching
and the bandwidth of the mobile phone networks’ streaming
servers means expensive to scale to large audiences
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BNS Ltd, all rights reserved

5. Some statistics..
• People today consume 70.6 hours of media a week,
but only 23% of that content via a traditional television
device. Source: IDC
• 3 out of 10 adults now watch TV content on alternative
devices such as the mobile phone, PDA or PC. Source: Accenture
• Total mobile TV revenue
across cellular and broadcasting
platforms will jump from US$1.9
billion in 2007 to $25 billion by
2010. Source: Gartner
• Mobile broadcast TV
subscribers will total 155.6
million worldwide by the end of
2012, up from 4.4 million in
June 2007 Source: Datamonitor
• The Asia-Pacific region is set
to have the highest number of
mobile subscribers, followed by
Europe and North America Source: Source: eMarketer
Datamonitor
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BNS Ltd, all rights reserved

6. But will customers want it?
• Complementary to traditional TV
• Mobile TV combines two features:
1. TV on the go, offering familiar content
2. multimedia functions with features such as radio, music
player, camera and video recorder for a personal viewing
experience
• Why people will use Mobile TV
– Flexibility and Independence
– Enhanced personal viewing experience
– Obtaining time and location-dependent information
– Filling idle time – People in Asia commute more often and
longer than anywhere else in the world
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BNS Ltd, all rights reserved

7. …and is it happening?
• Europe
– Slow uptake as operators charge premium, keen to recoup 3G
licence money
– Regulation restrictive, not supportive
• USA
– Steady growth with all major players launching broadcast
Mobile TV services (mainly MediaFLO)
• Asia
– Embraced free TV service model early / built up subscriber
base fast
– Fastest growing mobile TV markets are Japan, China and
Korea
• Over 25 million TV-enable handsets sold in Japan last year
• In December, half of all mobiles shipped in Japan were TV-enabled
– Strong regulatory support
• in Japan and Korea the governments mandated that mobile operators
had to support free-to-air TV services.
• Chinese government actively supporting Mobile TV in lead up to
Olympics
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BNS Ltd, all rights reserved

8. Broadcast Mobile TV Technologies
Overview
• LG's quot;Mobile-Pedestrian-Handheldquot; and
Samsung's quot;Advanced VSB“ recommended as
general standard by Open Mobile Video Coalition
• CMMB (China Mobile Multimedia Broadcasting)
• DAB-IP (Digital audioreal issueMobile
But the broadcasting transmits
TV via Internet protocol)
is not technology,
• DMB (Digital Multimedia Broadcasting)
but the cost to the user
• DVB-H + DVB-SH (Digital Video Broadcasting –
Handhelds and Satellite to Handhelds; endorsed by EU)
• ISDB (Integrated Services Digital Broadcasting)
• MediaFLO
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BNS Ltd, all rights reserved

9. Factors impacting Broadcast
Mobile TV
• Spectrum Competition
– Traditional broadcasters vs telcos
– Regulatory obstacles and support issues
• Content rights issues
– Media rights holders wary
• Commercial terms between handset
manufacturers, software companies, content
creators and network owners unclear
• Standardisation attempts
– Multiple broadcast Mobile TV standards helpful, not
hindrance to industry growth
– Market will decide technology most appropriate for
individual deployments
• High-performance single-chip mobile TV solutions
providing free terrestrial TV
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BNS Ltd, all rights reserved

10. Enter the Single Chip Wild Card
• Single-chip Mobile TV Potential of FTA Mobile TV
receivers enabling By Country
free-to air TV in
cellular phones and
other portable media
devices
• No network built
required
• High potential to be
disruptive in markets
with low cable/pay TV
penetration
• Telegent is one of the
pioneers in this area
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BNS Ltd, all rights reserved

11. For example: China
• Relatively low pay TV penetration – terrestrial
channels rule
• More than three million users of free-to-air
mobile TV
• 74% of survey respondents to Telegent survey
watching television on their handset for thirty
minutes or more at a time, and 54% watching
five times a week.
• For 85% the primary influence driving their
handset purchase decision was the built-in
free-to-air TV feature
Source: Telegent
Telegent interviewed more than 400 consumers who purchased Telegent-enabled
handsets, half of which were interviewed in February 2008, and the other half of
which were interviewed between July and September of 2007.
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BNS Ltd, all rights reserved

12. Potential issues with the Next Gen
Single Chip Model
• Grey area for content licensing
– What happens to existing licensing deals?
– Does free to air TV include re-carriage on mobile
phones?
– Which regulatory body will regulate?
• Moving up the value chain
– Solely a customer retention feature, no ARPU gains
– Operator still have to build out either 3G or broadcast
Mobile TV network if they want to expand the service,
introduce own channels, advertising etc.
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BNS Ltd, all rights reserved

13. Towards a successful
Business Model
PHASE 1
•Make it free: start with a basic free TV and audio
channel offer as part of handset package to drive
initial consumer adoption
•It’s TV: keep it simple and easy to start
– Simple navigation to replicate the familiar TV
viewing experience
– Interactivity of lesser importance for Mobile TV
initially
•Educate customers about merits and value of the
service
PHASE 2
• Add premium content gradually (mobile commerce,
gambling, etc.)
• Adopt advertising funded vs paid for service
• Open new revenue streams through affiliations such as
concert tickets, merchandise
• Make it unique and create a memorable, easy to use
and ultimately ‘sticky’ service
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BNS Ltd, all rights reserved

14. Conclusion: Creating the
Tipping Point
• Free to air content to start with
• Fool-proof choices: opt out, instead of opt in
• Wide handset variety
• Handset capability (resolution, battery life)
• Connectivity
• Content variety
• Ease of access and navigation
…. give customers a nudge
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BNS Ltd, all rights reserved

15. BNS Ltd
The leading IPTV content and technology
provider in the Asia-Pacific region
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BNS Ltd, all rights reserved

16. Thank You
www.bnsltd.com
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BNS Ltd, all rights reserved