Mobile TV broadcasters have finally been licensed in SA, a process six years in the making, but indecision over broadcasting standards may hinder the already shaky future of the service.
MultiChoice and etv were recently awarded licences for Digital Video Broadcasting and Handheld (DVB-H) spectrum by the Independent Communications Authority of SA (ICASA).
The process followed by the authority left the two bidding broadcasters unrivalled, which resulted in the issuing of 60% spectrum capacity to MultiChoice and the remaining 40% to etv.
The announcement comes amid controversy surrounding which broadcasting standard the country would adopt in its move from analogue to digital terrestrial TV (DTT). Earlier this year, the Department of Communications shocked the industry when it revealed its intentions to consider the Japanese broadcasting standard ISDB-T over DVB-H.
Proponents of both ISDB-T and DVB-H have been at loggerheads as to which would be the better standard for the country and the technical specifications for mobile TV remain a point of dispute going forward.
While industry commentators remain sceptical about the uptake of mobile TV as a service, the financial implications surrounding the broadcasting debate may spell disaster for the service locally.
Money talks
To date, MultiChoice claims it has invested in excess of R300 million in the experimentation and rollout of mobile broadcast technology and network infrastructure. This investment may be amplified if a different standard is introduced at this late stage.
However, supporters of ISDB-T argue that the cost to deliver mobile TV reception will be minimal with little extra infrastructure required.
“The costs of converting to ISDB-T, at this stage, are not so high (estimated at additional 10% investment on the broadcaster side),” argues the Brazilian embassy.
“In fact, that would be directly compensated by the advantage of mobile TV without any additional investment. Converting to DVB-T2, or building an additional network for mobile TV, would definitely be more expensive.”
But Gerhard Petrick, a Southern African Digital Broadcasting Association representative, argues that the 1-SEG mobile TV service provided by ISDB-T is very limited, accommodates only one or two channels, and coverage provided is poor.
Japan has developed an additional standard to accommodate multi-channel mobile TV (ISDB-Tmm) and has recognised MediaFLO as an alternative technology to be considered for mobile TV services.
Both these technologies would result in additional networks and costs, notes Petrick. Added to this, he argues, the ISDB-T mobile TV offering will not be sustainable in the country.
Flawed model
“Consider that the SA DTT regulations have clearly defined an environment where multiple competing programme channels will be carried on one DTT multiplex, it would be virtually impossible to 'pick' the one or two channels that are to be carried on 1-SEG mobile,” says Petrick.
“Keep in mind that in Japan and Brazil, each broadcaster has a frequency for DTT and the ability to accommodate their service on high-definition and in the 1-SEG mobile slot without any disputes. This is due to frequency availability constraints, which are not possible in SA,” states Petrick.
“DVB-H will deliver up to 16 channels of mobile content. These services are likely to be offered on a subscription basis and the number of users will be known and measurable. Given the large number of channels, one can put together an attractive consumer offering; this is not the case for 1-SEG mobile TV,” maintains Petrick.
But Brazilian minister councillor for SA Felipe Costi Santarosa remains confident of ISDB-T's potential in the local market. “Brazil's DTT process has been most successful in the mobile TV space. It has developed its own mobile TV handsets, which have sold well in the country,” he explains.
With SA and Africa's very high levels of mobile penetration, Brazil could make a fortune either selling the intellectual property, or the actual devices on the continent.
A new range of mobile handsets recently came onto the Brazilian market at under R1 000. Using the ISDB standard, TV can be watched on the phone without having a contract or prepaid subscription with mobile network providers, states Santarosa.
Despite the ongoing dispute over which standard would be best, Word Wide Worx MD Arthur Goldstuck maintains that the concept of mobile TV will have little traction in the market.
Bleak offering
According to the 2009 Mobility Survey, conducted by World Wide Worx, less than 1% of the mobile market in SA is keen to take up mobile TV as a service.
Goldstuck explains that this is largely a result of the long delays and failure of the regulator in the past. “With good programming, good marketing and good pricing combined, with handset availability and an end to regulatory sloth, it may well take off. However, that amounts to five key factors, and it remains to be seen whether all five can be delivered in the short-term.”
Goldstuck argues that, in the longer term, mobile TV may become “taken for granted” as an alternative viewing platform when people are out of reach of TVs.
“But that also highlights the great flaw in mobile TV business models: it will never be a preferred viewing channel for general programming, and must always play second fiddle to a standard TV set in a home or place of entertainment,” he concludes.
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