Business Model of Mobile TV Business Model of Mobile TV and Its Key Success Factorsand Its Key Success Factors

Mu-Piao Shih, Vice PresidentChunghwa Telecom Mobile Business Group

November 26, 2008

全球 Hi 數位 -2008 數位高畫質及行動電視國際研討會

2

G1, Touch Diamond and iPhone 3G

They all support HSDPA 3.6M or 7.2 M !

3

They All Support HSPA

•NetBook•MID

4

Mobile Broadband will Overtake Fixed

Contents

Overview of Mobile TV Solution Sample of Global Mobile TV Operators Mobile Operator’s Opportunities in the

Developing Mobile TV Market New Business Model on New Mobile Media Taiwan Experience on Mobile TV Key Success Factors Summary

Overview of Mobile TV Solution

Technology Major Market Standard Group Industrial players Comparisons

DVB-H Europe, Asia, North America, Australia…

DVBOMA

Nokia, BenQ-Siemens, Motorola, Samsung, LG, Alcatel…etc.

IP based; 90% power saving design; either use independent MUX, or be constructed based on existing DVB-T network

T-DMB South Korea DAB LG, Samsung some proprietary; bit rate 1.5Mbps, non-IP based; external antenna; less power saving; be constructed based on existing DAB network

S-DMB South Korea, Japan

DAB LG, Samsung, Alcatel some proprietary; non-IP based, big antenna; power saving; satellite transmission with terrestrial repeaters

MediaFLO North America Qualcomm Qualcomm & CDMA manufacturers

Proprietary; non-IP based; bandwidth efficiency

ISDB-T Japan only proprietaryMBMS 3G service

regions3GPP, 3GPP2 Most 3G manufacturer Bit rate 345kbps~2Mbps, IP based; based on

3G network; standardization still in progressIPTV overWiMAX

WiMAX service regions

WiMAX Forum Intel…etc. standardization still in progress

* Source: “Unlimited Mobile TV for the Mass Market”, Alcatel Strategy White Paper

Comparison of the Main Technologies

Country Regulator Launch Tech. Channel Freq. Owner Biz Model

Tariff # Sub.

Italy Agcom 2005/11 DVB-H 21~56 H3G/Mediaset B2B/B2C

€19/m 600K

Germany BNetzA 2007/10 DVB-H 39 Media Broadcast

B2B --- ---

France CSA 2008/12 DVB-H UHF N/A FTA FTA ---

Netherlands Agentschap 2008/6 DVB-H 25~44 Digiteenne B2B €9.95/m ---

Austria KommAustria

2008/5 DVB-H 36,37,47 Media Broadcast

B2B FTA, €6/m

---

Swiss ComCom 2008/5 DVB-H 23,34,36,40

Swisscom B2C 16 CHF/m ---

USA FCC 2007/3 MediaFLO 55 Qualcomm B2B US15/m

Korea MICMIC

2005/122005/5

T-DMBS-DMB

BandIIIL-Band

KBS,MBC,SBS

TU Media

FTAB2C

FTA7000W/m

7.8M1.4M

Japan 2003/12 ISDB-T 13~62 NHK FTA FTA 20M

Taiwan NCC >2009 DVB-H 35~50 ??? ??? ??? ???

Sample of Global Mobile TV Operators

Mobile Operator’s Opportunities

Advantages of Mobile Coverage Customer base CRMBillingSolid Business Base

Advantages of BroadcastPlenty of ContentsBroadcast BandwidthEntertainment Experience

Technology InnovationReduce Risk and CostNew MarketInnovation

ComplementaryBetter ArchitectureCulture Difference Legal Issues

Alliance of Mobile and Broadcast

The Attractiveness of Mobile TV Handset

您想擁有超級手機嗎？

太棒了，我很想

要！94.1%

我要再考慮5.9%

samples ＝ 868

• Up to 94.1% people in Taiwan who are asked want to have a mobile TV handset

• From the survey data, we did the crossing analysis from the factors of age, sex, education and income, and found they are no differences

I ‘d like to have a mobile TV handset

I will think about it later on

Traditional Operation Model

HomemadePrograms

Bought Programs

Ads

Integrated Content

Channel

Licensed Broadcaster

Content IntegrationCustomer Service Channels

Broadcasting Systems

HomemadePrograms

Bought Programs

Ads

Integrated Content

Channel

Revenue from Ads

Licensed Broadcaster

New Media Operation Model

DMB

DVB-H

Media-FLO

BGC

UGC

Ad

New

Media G

roup

Other CPs

Licensed Broadcaster

Jointing the Content Creation

Mobile Distribution ChannelsBundling with Mobile Services

Partnership with Broadcaster

Content Creator

Content Aggregator

CA/DRM

Platform Operation

Service Management

BroadcastNetwork

Channel(Service and Terminal)

User

Billing, Customer CareVAS Platform GPRS/UMTS

Mobile Operator

Mobile OperatorIndependent Channel

DVB-HMediaFLODMB

TV company,Cable TV,others

Discovery,Disney

Value Chain of Mobile TV BusinessMobile TV Provider

Mobile TV Business Model 1

Mobile Operator

CP, CA, TV Company

CP/CA Core Network Base Station

TerrestrialTransmission Network

Dual-BandDual-ModeTerminal

Terminal Vendor

Broadcast Operator

Advertiser

Managed by TV Company and Terminal Vendor

Broadcaster/ContentProvider

ISP/ContentAggregator

MobileOperator

Mobile Network

Dual-BandDual-ModeTerminal

BroadcastNetwork

Managed by Mobile Operator, TV Company as a CP

Mobile TV Business Model 2

Broadcast Operator

Mobile Operator

Core Network Base Station

TerrestrialTransmission Network

Dual-BandDual-ModeTerminal

CP/CA

Managed by TV Broadcaster with Returned Path from Mobile Operator

Mobile TV Business Model 3

Broadcast Operator

TerrestrialTransmission Network

Mobile TVServiceProvider

CP/CA

Mobile Operator

Core Network

Base Station

Dual-BandDual-ModeTerminal

Managed by Mobile TV Service Provider in Cooperation with TV and Mobile Operator

Mobile TV Business Model 4

The Role of Mobile Operator

Return Path for Interactive Services

Authentication, Authorization and Billing

Existing Customer Base CRM Subsidy of User Terminal

Taiwan Experience on Mobile TV(1/2)

Started “Handheld TV Experimental Plan” from January 2007

Total 5 Teams Formed North Region（ PTS, CTV, TTV(MediaFLO)）

South Region（ CTS, CHWBN）

Experiments Ended 12/2007~6/2008 CHT Join Two Teams（ PTS, CTV）

CHT supports the return path via 3G/2.5G Networks

Customer Service and Billing system

2008/2/26 NCC Policy: Public consultation License issuing rules expected

to be announced by end 2008

Submit Final Report2008/1/8 Oral Presentation to NCC

Trial ProjectAnnounced by

NCC on 2006/8/4

Teams Approved on 2006/10/13:North- PTS, CTV, TTVSouth- CHWBN

2006/8 2006/10 2006/11

Team Approved on 2006/11/30:South- CTS

Submit Midterm Report

2007/6 2007/122007/1

Trial Started

Trials Completed: PTS: 2007/12/31 TTV: 2008/2/21 CTS: 2008/3/31 (6 Month Delay) FTV: 2008/3/31 (6 Month Delay) CTV: 2008/6/20 (6 Month Delay)

2008/62008/2 2008/8

New NCC on Duty

Taiwan Experience on Mobile TV(2/2)

Status of Mobile TV in Chunghwa Telecom

Offering Mobile TV Service with 3G Streaming Treated as a mobile value-added service 18+ channels: TTV financial, CTV entertainment,

CTiTV entertainment ,Unique Satellite TV commerce, etc.

Charged by packets, NT$3.0/min or NT$168/m Flat Join DVB-H Trial with PTS and CTV, Cooperate

with CTS for Another Research Project

Mobile TV Using 3G Video Streaming

Fair Quality (~100 kbps) Urban Coverage Access Time (>30 s) Channel Selection Time (18 s) Limited Network Capacity Power Consumption / Battery Life

3G Video Portal in CHT (1/2)

手機電視各國內外主要電視台，包括，台視、中視、民視、 TVBS、中天、三立、大愛、東森等等

手機電影

電影預告、精采短片、相關活動直播及結合精采片段的電影MV、電影明星八卦

流行 MV隨時隨地觀看國內外最 in、最紅的歌手MV，第一時間掌握歌手的全記錄及幕後花絮

綜藝娛樂

手機也能看康熙來了， 美麗藝能界， 綜藝大哥大， 我猜我猜我猜猜猜，綜藝節目多不勝數

貴 Land內容含風靡全球的阿貴動畫、幽默爆笑的唬客會社、溫馨浪漫的小薰 DJ秀

美國職棒大聯盟

與公視美國職棒大聯盟合作精彩球賽直播，更有每日賽事精華報導

手機戲劇

手機戲劇頻道幫你蒐集最 in的偶像劇、武俠劇、港劇、大陸劇，精采片段通通不錯過

資訊新視界

新聞、知性、生活、時尚、娛樂、文化。即時新聞及生活娛樂兩大影音資訊。

3G Video Portal in CHT (2/2)

Vendor Nokia Samsung LG

Model N77 N92 N96SGH-P930

SGH-P940

SGH-P960

U960 KU950Vu

(AT&T)

Mobile WCDMA WCDMA HSDPA HSDPA HSDPA HSDPA HSDPA HSDPA HSDPA

TV DVB-H DVB-H DVB-H DVB-H DVB-H DVB-H DVB-H DVB-HMediaFLO

Display 2.4” 2.7” 2.8” 2.3” 2.15” 2.6” 2.4” 2.4” 3”

Camera 2M 2M 5M 2M 2M 3.2M 2M 1.3M 2M

Launch2007.7

(Europe)2007.3

(Europe)2008Q3 NA

2007.3(Europe)

2008.4 NA NA NA

Price 16962 22318 25,500 NA NA NA NA NA NA

Photo

Mobile TV Terminals Available(1/2)

Vendor Gigabyte Glofish HTC Motorola Sharp

Model t600 MS808 V900Modeo 3389

DH01920SH

(Softbank)SH906i

(DoCoMo)

Mobile GPRS HSDPA HSDPA GPRS HSDPA HSDPA HSDPA

TVDVB-T/H

DABT-DMB

DVB-T/HT-DMBISDB-T

DVB-T/HT-DMBDAB

DVB-H DVB-H ISDB-T ISDB-T

Display 2.6” 2.8” 2.8” 2.2” 4.3” 3.2” 3”

Camera 2M 3M 3.2M 1.3M 5M 3.2M 5M

Launch 2007.6 NA 2008.9 2006.4CeBIT2008

2007.11 2008.6

Price 15,720 NA NA NA NA 13,874 16,940

Photo

Mobile TV Terminals Available(2/2)

Key Success Factors

Contents Terminal Cost Video Quality Coverage Power Consumption / Battery Life Right Business Model Collaboration with Mobile Operators

Co n te n tS o u rc e s

B ro a dc a s t S e rvic eMa n a ge r

IPE Ma na ge r

RNCNodeB

S tre a mEn c o de r

S tre a mEn c o de r

S tre a mEn c o de r

Mobile TVTe rm ina l

DVB -H Tra ns m itte rs

S GS N GGS N

Multic a s t In tra n e t

IPE

B MS

B ro a dc a s t Ac c o u n tMa n a ge r

Source: Nokia

DVB-H Network Architecture

Common Transmission Platform

Reduce the Infrastructure Cost Collocate with the Mobile Base

Station Leased Line Power Reuse of other existing facilities

Future of Mobile TV

DVB-T/DVB-S/DMB-S (receive only)

Global

Wide, Large Concentrated Audience, Heavy Duty Streaming

DVB-H/DVB-MHP/DMB-T/DAB TV(interactive)

Light Video, Audio Clip, Real Streaming

MBMS(interactive)

DVB-T/DVB-S/DMB-S (receive only)

Global

Wide, Large Concentrated Audience, Heavy Duty Streaming

DVB-H/DVB-MHP/DMB-T/DAB TV(interactive)

Light Video, Audio Clip, Real Streaming

MBMS(interactive)

Summary

DVB-H and MediaFLO have been demonstrated in Taiwan

The video quality is impressive Terminal availability/cost will be the key

for the success of mobile TV business Mobile operator can provide AAA and

support the required return path for interactive services

Common transmission platform will reduce the total investment

NCC license issuing policy is critical