Service Providers and Terminal Vendors to Profit from This Growth

    LONDON, October 6 /PRNewswire/ -- Digital video broadcasting (DVB-H), the
standard used for bringing broadcast services to handheld receivers, is set
to gain momentum in Europe by 2008. With the full-fledged rollout of DVB-H
mobile television (TV), the current role of downloaded video content
(downloads and streaming) in providing access to TV and other forms of video
entertainment is likely to change.
    "By 2011, video services like downloading would be used as a sales
channel for specific video content while DVB-H takes over as the primary
channel for mobile video services," says Frost & Sullivan
(http://telecom.frost.com) Industry Analyst Pranab Mookken.
    Manufacturers will launch DVB-H mobile TV on a trial basis by 2008 after
dealing with ambiguities regarding spectrum allocation. Meanwhile, operators
are likely to deploy stopgap solutions involving multicasting technologies in
addition to using existing cellular networks and video services to introduce
TV in Europe.
    Notwithstanding this delay, the DVB-H standard is likely to witness high
adoption rates in Europe. It was developed by the digital video broadcast
(DVB) project, an industry-led consortium of over 260 professionals from over
thirty-five countries. The project had already established a terrestrial
transmission system for Europe in the form of DVB-T, but the industry still
lacked a standard that could support handheld terminals.
    The consortium developed DVB-H signals to meet the huge demand for such a
standard. DVB-H currently has the ability to utilize existing DVB-T
infrastructure, that is, it is backward compatible with DVB-T and its content
is delivered in the form of Internet Protocol (IP) datacasts that are similar
to that distributed on the Internet. This, along with the standards
specification which ensure maximum conservation of handset/terminal battery
power and thereby allay customer fears of running out of battery for
communication purposes, will facilitate its adoption in Europe.
    Moreover, mobile TV using DVB-H will be easy to use and will offer a
better experience for its customers. This will automatically translate into
increased viewership. Initially, companies will keep prices low, until
business models, service offerings and quality levels become satisfactory.
But by 2010, service providers might augment prices to anywhere between 7
Euro and 12 Euro per month.
    "The DVB-H mobile TV market is set to grow at an explosive rate and touch
Euro 6.80 billion in revenues by 2011," says Mr. Mookken. "The mobile average
revenue per user (ARPU) is also likely to rise as prices increase."
    The biggest beneficiaries of this development will undoubtedly be the
terminal providers that will gain tremendously from the revenue influx
prompted by the need for compatible handsets. Service providers, especially
mobile operators, will see a rise in their ARPU through the deployment of
value-added services (VASs) in the form of DVB-H mobile TV. The channel will
also help in making operators' retention and loyalty strategies more intimate
and effective.
    "Mobile TV using the DVB-H standard is likely to be the catalyst that
will help in expanding the mobile infotainment industry," points out Mr.
Mookken. "The market will drive innovation in content creation using formats,
which are flexible, easier to implement and provide growth opportunities to
content owners/aggregators. In addition, this technology will create a new
market for the short film industry, benefiting both large as well as boutique
studios."
    If you are interested in further information about the European Video and
DVB-H TV Markets, please send an e-mail to Janina Hillgrub, Corporate
Communications, at Janina.Hillgrub@frost.com, with the following information:
your full name, company name, title, telephone number, e-mail address, city,
state and country. We will send you the information via e-mail upon receipt
of the above information.
    Background
    Frost & Sullivan, a global growth consulting company, has been partnering
with clients to support the development of innovative strategies for more
than 40 years. The company's industry expertise integrates growth consulting,
growth partnership services and corporate management training to identify and
develop opportunities. Frost & Sullivan serves an extensive clientele that
includes Global 1000 companies, emerging companies, and the investment
community, by providing comprehensive industry coverage that reflects a
unique global perspective and combines ongoing analysis of markets,
technologies, econometrics, and demographics.
    Media Contacts:

    Europe:
    Janina Hillgrub
    Corporate Communications
    P: +49-(0)-69-770-33-11
    E: Janina.Hillgrub@frost.com

    Americas:
    Mireya Castilla
    Corporate Communications - North America
    P: +1-210-247-3830
    E: mireya.castilla@frost.com

    Asia Pacific
    Sarah Lourdes
    Corporate Communications - Asia Pacific
    P: +603-6204-5878
    E: sarah.lourdes@frost.com

    India:
    Surbhi Dedhia
    Corporate Communications
    P: +91-22-2832-4705 Ext: 131
    E: sdedhia@frost.com

    Australia:
    Sharmin Jassal
    Corporate Communications
    P: + 61-2-8247-8900
    E: sjassal@frost.com


    The following is a list of key industry participants: Digita, ntl
Broadcasting, Bamboo MediaCatsing Ltd., Idetic Ltd., O2 UK, Virgin Mobile,
Orange, Telia Sonera, Vodafone, 3 Hutch, KPN, Wind, Elisa, Ericsson,
Motorola, Samsung, Nokia, Hantro, Warner Bros, Sony Pictures, CoreMedia, Sony
Semiconductor & Electronic Solutions, DibCom, Philips Semi-conductors, Audi,
BMW, Diamler Chrysler, Delphi Systems

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