Abstract

Mobile TV is still very much a new business in China. Various problems remain to be overcome, including issues relating to technology standards, management strategy, the high price of terminal devices, and high service fees. Nevertheless, given that China now has over 400 million mobile phone users, and that operators will soon begin to roll out 3G service, the potential for growth in the mobile TV market is enormous. Such opportunities have attracted numerous companies to the mobile TV market.

Although SARFT uses the licensing system to restrict the entry of telecoms into the mobile TV business, telecoms still have the option of collaborating with other companies that do hold a mobile TV license, as China Mobile has done with Shanghai Media Group. When providing mobile TV service on their GPRS or CDMA2000 1x mobile communications network, telecoms play the role of platform provider, with content provision and integration being handheld by service and content providers. Through this business model, China's telecoms can leverage their huge subscriber base to achieve a significant revenue stream from mobile TV service. Telecoms can also work with broadcasters on the development of VOD and pay-TV mobile TV service, as the one-directional nature of conventional broadcasting technology makes it difficult for broadcasters to develop on their own. In this way, besides providing the network for mobile TV service, telecoms will also be participating in mobile TV service operation.

So far, the Chinese government has awarded mobile TV licenses only to broadcasters. The biggest single advantage that these companies enjoy is their control over content. SMG has been able to integrate its content with China Mobile's network to develop mobile TV service. Although CCTV has only just secured a license for mobile TV operation, it has already rolled out a free mobile TV service to attract the interest of consumers. The next step for broadcasters is to expand the scope of their mobile TV services to include VOD and pay-TV. To achieve this goal, broadcasters need to achieve two-way communication with their viewers, which is why Beijing Jolon Digital Media Broadcasting and Oriental Pearl have been collaborating with mobile operators.

Besides working with mobile communications service providers, broadcasters have also been using direct broadcasting technology to develop mobile TV service. Both SMG and Southern Media Corporation have adopted a vertically integrated business model in which, besides providing the content for mobile TV, they have also established their own mobile TV broadcasting network. As regards the choice of mobile TV technology, while China is currently formulating its own mobile digital multimedia broadcasting technology standard, various other standards have already been adopted in other parts of the world. As a result of aggressive promotion by Korean companies and the Korean government, most Chinese broadcasters have chosen to use Korea's DMB technology for their mobile TV networks, and SARFT has proposed the adoption of DMB as a de facto industry standard. Although Beijing Radio has chosen to use DAB rather than DMB, both technologies are based on the Eureka 147 standard, so it would be relatively easy for Beijing Radio to upgrade its network to DMB.

To summarize, China's mobile TV industry is still just starting to take off. The relationship between telecommunications operators and broadcasters is a complex mixture of collaboration and competition. Both telecoms and broadcaster have their own unique strengths that they can leverage when developing mobile TV service. However, the content that broadcasters control can help mobile operators to improve their mobile TV services, while at the same time the mobile operators' network resources can help broadcasters to improve their services. This potential for cooperation is balanced by competition between the two types of company, both of which are seeking to establish a dominant position in the emerging mobile TV market.

Appendix

List of Companies