3G Networks To Feel The Strain

Europe : Mobile TV and video services ­ viewed by operators as a means to drive 3G take-up and increase average revenue per user (ARPU) ­ could run up against capacity constraints on 3G networks within as little as two years, according to a new report, Making a Success of Mobile TV and Video, published by Analysys. Inset is Mark Heath co-author of the report.

With currently under-utilised 3G networks, some mobile operators are offering streamed TV and video content at highly attractive prices to encourage consumers to adopt and use the services. However, warns Analysys, the heavy data consumption of these services demands careful management of service usage, pricing and technology evolution.

Although 3G networks will carry the vast majority of mobile TV and video services for the next five years, 3G has limited capacity to support the substantial network traffic generated by video streaming. According to report co-author Dr Alastair Brydon, “The capacity of a typical W-CDMA network could be exceeded as soon as 2007 ­ for example, if 40% of 3G users take up mobile TV and video services and each consumes only eight minutes of video per day.”

Broadcasting technology will be essential to support the full range of mobile TV and video usage scenarios. “Broadcasting technology will be the only realistic means of supporting peaks in demand ­ such as those created by major news stories ­ and extended periods of mobile TV viewing,” says co-author Dr Mark Heath. The little-known 3G feature MBMS (Multimedia Broadcast and Multicast Service), which could be available from 2007, has the potential to make 3G itself the most attractive broadcasting solution.

“MBMS is based on relatively small changes to the existing 3G standard,” says Dr Heath. “It does not require additional spectrum or licensing and, perhaps most importantly, MBMS has the potential to enable mobile operators to continue to control the mobile TV and video market.” However, MBMS requires operators to set aside capacity that could otherwise be used for voice, messaging or data services, and can only be justified if operators can attract mainstream audiences to a small number of broadcasting channels.

Dedicated broadcasting technologies, such as DVB-H, DMB and MediaFLO, are vying to be deployed for the broadcasting of large numbers of TV channels to mobile devices and could become competitive or complementary solutions to 3G and MBMS. However, mobile operators may be unable to exert the same control over these broadcasting technologies as they can over 3G and MBMS. All of these options face uncertainties and there is a risk that no single dominant standard will materialise.

Making a Success of Mobile TV and Video helps mobile operators and their partners to develop winning business models for mobile TV and video. The report describes the most appropriate content, models the real limitations of technology and identifies the partnerships required for success. The report is available to order from http://research.analysys.com priced at GBP1700 plus VAT.