China’s Mobile TV Breakthrough A
Must June 18, 2008
While mobile TV in China is still in its infancy, CCID Consulting expects a
breakthrough as commercialization of mobile TV standards begin to take root.
The key driver is China’s enormous base of mobile phone user population.
CCID forecasts China’s
mobile phone TV users will reach 128 million in 2012, and by then, the
number of broadcast-based mobile TV users will exceed that of streaming
media-based users. Currently, streaming media is the overwhelming majority,
while broadcast-based only numbers in the tens of thousands. 2008 looks to
be the entry point for high growth, with improved mobile networks, more
mobile phone choices, and richer content.
Source: CCID Consulting, March 2008
Assuming that mobile TV
user charge rates are a flat monthly fee of 30 Yuan, CCID forecasts China’s
mobile TV market will reach 46 billion Yuan in 2012.
NOTE: FORECAST ASSUMES FLAT MONTHLY USER FEE OF 30 YUAN
source: CCID Consulting, march 2008
Starting point:
Streaming media-based mobile TV.
CCID defines mobile TV in
China to include both streaming media-based and broadcast-based. Streaming
media is the starting point in China, as it can better leverage existing
exiting mobile phone networks.
China’s major mobile phone
operators China Mobile and China Unicom have focused on mobile TV, providing
such services in most provinces. They are offering services at low fees in
the hopes of promoting mobile TV adoption. In 2007, there were over 5
million users.
Streaming
Media-based Mobile TV
2005
2006
2007
GSM Users
(thousands)
290
1,850
4,781
CDMA Users
(thousands)
82
180
342
Total
372
2,030
5,123
source: CCID Consulting, march 2008
Standards: The race to
commercialization.
Standards have been
developed aggressively in 2007, and the challenge is to commercialize those
standards. The key inhibitor is the like of a unified standard, which is
caused, in part, by the competing interests of China’s broadcasting industry
and telecom industry. There is still uncertainty, as competing standards
race to commercialize:
China Mobile Multimedia
Broadcasting (CMMB). CMMB is a standard developed and specified by the
State Administration of Radio, Film, and Television (SARFT), and had
promising development in 2007. There are 120 enterprises that support the
standard, including IC providers like Telegent Systems, FCI, and Innofidei,
and mobile device providers like Lenovo Mobile, Huaqi, and ZTE.
A CMMB experimental network
is expected to be built for the 2008 Beijing Olympics. The CMMB standard has
fairly complete technology architecture, and the key issue is that of time
to market.
China Digital Multimedia
Broadcast (CDMB). The CDMB standard was issued in May 2007 by the China
Association for Standardization, and is supported by companies like ZL
Telecom and VIA Technologies. The biggest issue for CDMB is the absence of
telecom operator support. The business prospect of CDMB is still to be
proved.
Digital Multimedia
Broadcasting-Tsinghua (DMB-TH). DMB-TH from China’s Tsinghua University
has experimental networks under construction in Zhejiang, Shanxi, Liaoning,
and Sichuan.
Digital multimedia
broadcasting (DMB). DMB, a standard adopted in South Korea, is not
drawing much attention in China. However, Tier 1 cities of Beijing,
Shanghai, and Guangdong have experimental networks, supported by Beijing
Jolon Digital Media Broadcasting, Shanghai Oriental Pearl Group, and
Guangdong South Media Group, respectively. Samsung and LG are responsible
for technologies on the mobile device end.
Digital Video
Broadcasting - Handheld (DVB-H). This standard is officially endorsed by
the European Union, and promoted by Nokia and other European technology
providers. However, DVB-H has not gained much traction in China.
Terrestrial-Mobile
Multimedia Broadcasting (T-MMB). Supported by companies like NuFront and
Tensilica, T-MMB has had its challenges, and is also suffering from patent
issues.
TD-Multimedia
Broadcast/Multicast Service (TD-MBMS). This standard is a multi-media
service that can operate on TD-SCDMA (Time Division-Synchronous Code
Division Multiple Access) networks. TD-MBMS has the support of systems
providers like Datang, ZTE, Putian, and TD-Tech; IC providers like
Spreadtrum and T3G, and mobile phone vendors like ZTE and Lenovo.
Market development is a
must.
China’s mobile TV market
has enormous potential, as seen from the progressive developments of short
message service (SMS) and multi-media message service (MMS). In China, a
basic MMS service must provide voice and image sharing. Mobile TV appears to
be the next logical step in further unlocking market potential, as it has
the promise of offering more innovative variety, content, and
user-interaction.
The basic elements of
demand are in place. China already has a large mobile phone user base and
the networks to support it. The same can be said for existing television
users. Given this market potential, CCID believes that China’s broadcasting
and telecom industries will have to come together soon to achieve a win/win,
profitable result. Convergence, interaction, and competition will be the
three key words in 2008 mobile TV development.
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Unless otherwise specified,
all information provided is sourced from CCID Consulting.