Tuesday, March 18, 2008

Mobile Eurovision

International Herald Tribune

EU nations to push DVB-H over other mobile TV standards
Monday, March 17, 2008

BRUSSELS, Belgium: The European Union on Monday chose the mobile TV standard DVB-H over other versions of the technology, saying governments are now required to promote it as operators start to offer broadcasts to mobile phones.

DVB-H, or Digital Video Broadcasting for Handhelds, is the most widely used mobile TV format in Europe and is supported by handset makers Nokia, Motorola, Philips, Sagem, Sony, Ericsson, Samsung and operators Vodafone, O2 and T-Mobile.

The European Commission said its decision ordering EU nations to privilege DVB-H over rival standards — such as Qualcomm Inc.'s MediaFLO and DMB which is favored by Chinese and South Korean manufacturers — was necessary to create economies of scale and get the technology off the ground.

"They can do that by labeling, they can do that by promoting it in attributing licenses and so on, radio frequencies decisions could be at issue," said EU spokesman Martin Selmayr.

The EU's executive is entitled to make decisions on some technical standards on behalf of national governments.

Selmayr said the European Commission believed it important to throw its weight behind DVB-H to end a possible war on standards that could hold back mobile broadcasting, claiming the market had already picked the format.

The EU also called on other countries to follow the EU in favoring DVB-H.

But the EU's endorsement of one technology over another is limited: EU nations can choose to avoid making decisions favoring the format and are under no obligation to eliminate other standards.

Ovum analyst Matthew Howett said the development and use of other technologies is still possible although EU backing for one standard creates "some certainty" for operators planning mobile broadcasting services and manufacturers making phones and chips.

He said some regulators were anxious to keep the field open, saying Germany last year cleared T-Mobile, O2 and Vodafone to create a joint platform for DVB-H mobile TV that could also use other standards "since the operators agreed that the devices must be able to receive transmissions from other mobile TV standards such as DMB."

Some EU nations — including Britain — were more skeptical about picking a format last December, refusing to back an EU-wide mandate for the new technology because it would be too early to intervene in the market by eliminating rivals and giving DVB-H a clear run.

The EU has taken the same tack before on new technology, pushing GSM (the Global System for Mobile communications) for mobile phones, which led Europeans to switch to cells much faster than people in the United States.

Mobile TV is still at an early stage in Europe and is up and running only in Italy, with launches planned for Finland, Austria, France, Switzerland and Spain. EU officials claim Europe will be left behind if regulators don't push one standard to help the technology take off.

The EU cited research forecasts of a steep increase in demand in 2009, with the worldwide market reaching €20 billion (US$31 billion) in sales by 2011.

In the U.S., Qualcomm's technology has signed up the two biggest players — Verizon Wireless and AT&T — with a combined customer base of roughly 120 million.

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