Telly on your mobile is no cash cow

Mobile TV isn't going to be the big money-spinner mobile operators are hoping for, which will limit the technology choices they will make when building their networks.

There is a "strong chance" that mobile users will not spend a substantial amount on mobile TV and radio services compared with voice telephony, according to a new report from consultancy Analysys.

So while there will be pressure on mobile operators to launch services or risk losing market share, they will have to make careful choices about broadcasting technology to make a good return while still delivering a decent service.

Mobile operators are already evaluating broadcasting technologies including DAB-IP, T-DMB, DVB-H and TDtv, alongside the option of relying on enhanced 3G networks.

On top of this, they must decide whether to build their own networks or to share the cost and risk with other operators.

DAB-IP is potentially the cheapest option in the few markets where DAB has been deployed extensively but DVB-H is currently attracting the most interest from mobile operators in Western Europe.

But small operators will have a very limited choice of viable options, according to the report co-author Alastair Brydon. Sharing a broadcasting network with a number of other mobile operators will be essential, he said, with either DAB-IP or DVB-H able to yield attractive returns.

Mobile operators with a large customer base have more options than smaller operators. Dr Mark Heath, report co-author, said in a statement: "While a shared DAB-IP or DVB-H network could provide a strong financial return for a large operator, some may want their own broadcasting networks, to differentiate themselves from competitors."

Mobile operators wanting to own broadcasting networks have two viable options: building DVB-H networks or upgrading their 3G networks to TDtv, the report said.