2. 2
Incipit
Prophecies, then and now
Structure of the business model
Basic data
costs
revenue
Results and conclusions
3. 3
Then (beginning 2006) ...
Vodafone UK today revealed its surprise at the success of its
mo
bile TV service and the level of consumer expenditure (Telecoms.com)
Handy-TV sieht ungewisser Zukunft entgegen (Digital Fernsehen)
Mobil
e
TV Market in Korea to Reach 136.9 Billion KRW in 2006 (ROA Group)
Growing demand
fo
r
video will generate $501 million in revenue by 2010 (JupiterResearch)
Mobile TV nightmare:
Win
d
ow of opportunity smaller than your phone screen (Rethink Research)
4. 4
... and now
Mobile TV a potential $2bn market (BIA Financial Network)
M
obile TV to explode ... 462 million subscribers by 2012 (ABI Research)
Mobile television failed to gain significant traction, with some
services
ramping down or shutting down entirely due to weak demand. (Deloitte)
Mobile TV: Subscribers but no profits (Screen Digest)
Interest in Mobile TV continues to wane (Continental Research)
Sales of video phones to double by 2010 (Infonetics)
5. 5
The ecosystem
Content providers
Aggregators
Network(s)
Users
6. 6
Components of the model
Market prognosis +
Growth prognosis +
Accountancy and taxation rules +
Company policies =
Result for investors
8. 8
Overview
Prophecies, then and now
Structure of the business model
Basic data
costs
revenue
Results and conclusions
9. 9
Networks
Covering Flanders + Brussels
16QAM (= Gent), 10 Mbit/s, ± 20 tv-programmes per mpx
QPSK, 5 Mbit/s or 7-10 tv-programmes per mpx
Twice five scenarios:
Small cells only (780 16QAM / 325 QPSK)
Medium sized cells only (262 16QAM / 114 QPSK)
[Large cells only (49 16QAM / 22 QPSK)]
Existing large and medium-sized cells,
s
u
pplemented with small cells (619 16QAM / 173 QPSK)
Existing large and medium-sized cells,
supplemented
w
ith small and medium-sized (528 16QAM / 101 QPSK)
10. 10
Networks
Two Monte-Carlo simulations (16QAM and QPSK)
Investments normally distributed
Opex and depreciations ~ capex
Economic lifetime ± 15 years
Opex include:
power
sites rental
maintenance
NOC
11. 11
Costs
Content/rights: uniform 30 % to 60 % (?) of arpu (ex VAT)
VAT 12 or 21% (?)
Marketing
Taxation (+ notional intrest, transferable losses)
New user registration
ESG, capex and opex
Conditional Access System
Billing and factoring
Help desk
Labour + overhead
Spectrum licence
12. 12
Demand from MICT Internet survey
Adoption classes: Early Adopters, Early Majority, Late adopters
Payment classes: Free To Air, subscription, PPV
18. 18
Uncertainties
Model has no proven track record
Internet survey (representative?)
Model
b
ased on existing tv content, not specialized mobile content
19. 19
Results and conclusions
Success depends on many factors
Return € 6...60 million if success...
... but failure not impossible.
Government strategies as yet unclear
Strategic motives may be more important: image, quad
play, customer retention, squeezing out competition...
Market can evolve positively, killer applications can
emerge