Abstract

Turf Battle between T-MMB and CMMB Continues; Goes Beyond Technological Matters

Even though the T-MMB standard was chosen as China's national mobile TV standard in mid-2008, the decision has yet to be finalized and awaits the final approval by China's State Council. Many variables thus still exist. Observing the development and formation of new media standards in the past, content, broadcasting channels and consumer terminal devices are essential elements. Currently, SARFT's control over content and broadcasting channels has stimulated upstream and downstream companies to develop relevant chipsets, equipment, and terminal products supporting CMMB. As a result, the CMMB standard has outperformed the T-MMB standard.

As far as technology is concerned, the T-MMB and CMMB standards are both able to satisfy demand for mobile TV services. The competition between these two standards stems from the competition between administrative bodies in charge of telecom and broadcasting sectors, which has evolved into a turf battle between the two bureaucracies. The competition between CMMB and T-MMB has cast a shadow over the development of mobile TV, 3G services, and the industry chain in China. After the MIIT announced that CMMB-enabled TD-SCDMA mobile phones would be allowed to go through network entry tests, it seems that cooperation between the two camps is possible. In 2008, the MIIT announced that all GSM mobile phones should have network access licenses issued by the MIIT. This made it evident that the MIIT did not want to concede its control over GSM mobile phones, which have the largest subscriber base in China. This further complicates the competition between these CMMB and T-MMB standards. The turf battle between these two standards is regarded as the biggest variable in mobile TV development in China.

Formation of Industry Chain, Diverse Terminals Key Drivers for CMMB

Other than SARFT's aggressiveness in network deployment, the rapid rise of CMMB mobile TV subscribers is also attributed to the gradual formation of the industry chain and diverse terminals. Aside from mobile phones, users can view mobile TV programs by means of any mobile device equipped with a CMMB chip module, including PNDs, MP4s, notebook/netbook PCs, and in-vehicle displays. In addition, the SARFT had invited large-scale bids for CMMB equipment, which is regarded as one of the key factors encouraging terminal product vendors to invest in CMMB.

One of the factors constraining the development of the T-MMB standard is lack of legal broadcasting content which has caused upstream and downstream vendors to be hesitant in terms of T-MMB investments. With only a few prototype products, there are virtually no products supporting T-MMB available in the market. Telecom and mobile operators, which initially had strong ties with the T-MMB camp, have been taking a cautious approach in T-MMB investment as well. The lack of strong support from the SARFT - which has national influence and the ability to open large-scale telecom equipment tenders-  has been regarded as one of the key factors causing T-MMB, the product of private enterprises' development efforts, to lag behind its rival CMMB.

Impact of Content Encryption Uncertain

Currently, the T-MMB standard is still in a trial phase and is yet to begin commercial trials. By contrast, as the SARFT has propelled CMMB network deployment, CMMB network coverage is increasing continuously. Other than trial broadcasting of CMMB programs, local operation branches have been set up. In some areas, commercial operations have begun. The SARFT's announcement that all CMMB programs will be encrypted and all mobile terminals will have to be equipped with CA functions is expected to prevent the proliferation of counterfeit products in future, and serve as a foundation for the development of customized and value-added services.

The reason that consumers subscribe to mobile TV service is that they can view TV programs anywhere instead of only at their homes. Formulating a clear business model at the beginning of business development can help reduce operational disputes. However, as the number of mobile TV users is still relatively small, it remains to be seen whether content encryption will affect the development of mobile TV services in the future. 

Due to the fact that the CMMB standard has been developed based on broadcasting technology, it is relatively hard to support interactive functions. In addition, as operators have large subscriber bases, it is inevitable that the CMMB camp will collaborate with operators in order to build up interactive services. How to manage the cooperation relationships between mobile TV operating units and mobile operators will be a key factor affecting the development of mobile TV in China.

Furthermore, even though the CMMB camp has established operating branches at different levels, it currently still operates through subsidiaries at the provincial level.  The CMMB camp has yet to clearly define the structure of prefecture-level subsidiaries, including content acquisition, operation authority and responsibilities, service development, and profit-sharing. How to establish a mechanism to clearly define authority and responsibilities and profit sharing are key tasks for the SARFT to promote mobile TV services in the future.

Appendix

Definitions

Prefecture-level Cities

A prefecture-level city is one of China's administrative divisions, raking below a province and above a county in China's administrative structure. Prefecture-level cities are the second level of the administrative structure.

As of year-end 2007, China administers 333 prefecture-level regions, which consist of 17 prefectures, three leagues, and 283 prefecture-level cities. Prefecture-level cities accounted for 85% of the total prefecture-level regions.

CA Card Featuring Decryption and Descrambling Functions

This type of CA card is a solution that features both decryption and descrambling functions. A CMMB terminal receives encrypted content and transmits to this card, which decrypts and descrambles content and delivers content back to the terminal before being broadcasted on terminal displays. Users only need an easy software upgrade for the terminal. After inserting this card into the terminal, users can access encrypted CMMB TV programs.

CA Card Featuring Descrambling Function Only

This type of CA card is a solution that features a decryption function. The solution relies on a CMMB terminal to descramble encrypted content using computing core such as application processors. The CMMB terminal receives encrypted content and transmits to this card, which then decrypts content and delivers content back to the terminal. The terminal then descrambles the content before being broadcasted on terminal displays. Adopting a CA card featuring descrambling function is slightly cheaper, but is more challenging than a CA card featuring decryption and descrambling functions.

G3

G3 is a brand name for a customized, ultra-portable 3G notebook PC developed by China Mobile.

Glossary of Terms

List of Companies