Mobile TV in China: Heading for the Promised Land
Summary
Mobile video has become important to both telecom operators and broadcasters looking for new
services to generate new revenue in China. In its Eleventh Five-year (from 2006 to 2010) Plan of the
telecom sector, China has placed much emphasis on 3G and mobile TV services, and for the broadcast
sector, IP TV and mobile TV are also marked as hot spots in next five years.
Telecom operators in China have developed a clear business model for streaming mobile video services
over a 2.5G or 3G network. However, broadcast technology, due to the different regulatory bodies and
operation, is still in a state of flux with regard to regulations, technology adoption and business models.
In-Stat feels that with the development of clear business models, appropriate content, available and
affordable terminals and cooperation between telecom operators, broadcasters and regulatory bodies
that this market could become key for China telecom market. As the government is pushing for
widespread Mobile TV availability for the 2008 Olympics, In-Stat is looking for some solid subscriber
numbers in 2008 and 2009. This report discusses regulatory issues, business models, case studies,
market drivers and barriers, and subscriber forecasts. Vendor side information and market views are
augmented by end-user research collected from 488 consumer respondents.
Mobile TV in China: Heading for the Promised Land
Abstract
Mobile video has become important to both telecom operators and broadcasters looking for new services
to generate new revenue in China. In its Eleventh Five-year (from 2006 to 2010) Plan of the telecom
sector, China has placed much emphasis on 3G and mobile TV services, and for the broadcast sector, IP
TV and mobile TV are also marked as hot spots in next five years.
Telecom operators in China have developed a clear business model for streaming mobile video services
over a 2.5G or 3G network. However, broadcast technology, due to the different regulatory bodies and
operation, is still in a state of flux with regard to regulations, technology adoption and business models.
In-Stat feels that with the development of clear business models, appropriate content, available and
affordable terminals and cooperation between telecom operators, broadcasters and regulatory bodies
that this market could become key for China’s telecom market. As the government is pushing for
widespread Mobile TV availability for the 2008 Olympics, In-Stat is looking for some solid subscriber
numbers in 2008 and 2009. This report discusses regulatory issues, business models, case studies,
market drivers and barriers, and subscriber forecasts. Vendor side information and market views are
augmented by end-user research collected from 488 consumer respondents.
Table of Contents
Executive Summary
Methodology
o General Methodology
o Consumer Study Methodology
Definitions
Market Overview
o Regulatory Environment
MII and SARFT
Government Regulations
Mobile TV Licenses
o Technology
Cellular Technology
Digital Broadcast Technology
DVB-H
SDMB and TDMB
MediaFLO
o Business Model
Operator-Led Mobile VAS Approach
Broadcaster-led Approach with Mobile Operators
Independent DVB-H Service Provider Approach
Convergence Issues
o Success Factors
Pricing Scheme
Content
Terminals
o Case Study—Korean DMB
Provider and Regulation
Business Models
Customers
Analysis
o Case Study—Artificial Life
Innovative Application
Business Model
o Consumer Behavior Analysis
Expected Service
Favorite Content
Expected Spending
Location and Time
Drivers and Barriers
o Drivers
The Chinese Government has Asked Mobile TV to be Ready Before
the 2008 Olympics
Huge Potential Revenue Attracts Broadcasters and Telecom Carriers
o Barriers
No Clear Convergence Model Exists
Infrastructure and Terminals Are the Bottleneck
Market Sizing and Forecast
o Mobile Subscriber Growth
o Mobile VAS Revenue Forecast
o Mobile TV Subscriber Growth Forecast
Profiles
o Mobile Operators
China Mobile
China Unicom
o Broadcasters
SMG
Dragon Mobile
CCTV and myCCTV
o Mobile TV Service Providers
FunVio
FoneNet
LE-TV
CTTNET
o Mobile TV Solution Providers
Guangzhou Funinhand
O2-wireless, Inc.
o Handset and Chipset Vendors
Nokia
Dopod
Samsung
NEC
Qualcomm
Intel
Philips
Conclusions
o Technology Adoption
o End-users
o Content
o Service Charge
o Terminals
Glossary
o Link to Related Reports
List of Tables
Table 1. SWOT Analysis of Mobile Operators
Table 2. Monternet’s Mobile TV Programs and Pricing Scheme
Table 3. Categories of Video Online’s Programs
Table 4. China Unicom’s Mobile TV Monthly Charge
Table 5. SWOT Analysis of Broadcasters
Table 6. FunVio Pricing Policy
Table 7. Mobile TV Programs and Pricing Policy of CTTNET
Table 8. Handsets Supported by Fondoplayer
List of Figures
Figure 1. Users Segment by Age
Figure 2. The Marriage Status and Gender of Respondents
Figure 3. Average Income and Service Providers $US
Figure 4. Current Operator-led Mobile VAS Approach
Figure 5. Broadcaster-led Approach with Mobile Operators
Figure 6. Independent DVB-H Service Provider Approach
Figure 7. Business Model of SDMB and TDMB
Figure 8. What Applications Would You Use on your Mobile Phone Besides Voice in
the Next Three Years?
Figure 9. What Applications Do You Want to Have on Your Handset Besides Voice?
(by Respondents’ Age)
Figure 10. What Kind of Content Would You Expect from a Mobile TV Service?
Figure 11. How Much Do You Spend on Mobile Phone Per Month? ($US)
Figure 12. How Much Would You Pay for the Mobile TV Service Monthly? ($US)
Figure 13. When And Where Would You Like To Watch Programs On a Mobile
Handset?
Figure 14. China’s Mobile Subscriber Growth (2000–2004)
Figure 15. Mobile Subscriber Growth Forecast (2005–2009)
Figure 16. Mobile VAS Revenue Forecast (US$ in Millions and %)
Figure 17. Phases in the Evolution of Mobile Video Technology
Figure 18. Mobile TV Subscribers Growth Forecast 2005–2009 (Million and %)
Figure 19. MyCCTV’s Stage-Division on Mobile TV
Figure 20. Samsung TDMB Mobile TV handset
Figure 21. NEC940