O2 has joined forces with network operator Arqiva and Nokia to conduct a six month mobile broadcast television trial in Oxford , England . Four hundred O2 subscribers in the Oxford city area will take part in the trial which launched on 22 September (click). Triallists have been provided with a specially modified Nokia 7710 which they will use as their primary phone. Participants will continue to pay for their existing phone service but will be provided with free TV access. Their usage of the television service will be monitored by regular interviews and automatically by a recording device within the phone.

Arqiva (formerly known as NTL Broadcast) has deployed eight transmitters covering a 120 sq km area centred on Oxford using a special test licence issued by UK regulator Ofcom. The trial will use spectrum in the Channel 41 band which is not occupied in the Oxford area. Arqiva has negotiated with a number of its existing customers to take part in the trial as a result of which triallists will have access to sixteen TV channels. Amongst the broadcasters participating are BBC1, BBC2, BBC News 24, ITV1, ITV2, Channel 5, five, CNN, MTV, Sky Sports News, Sky News, British Eurosport, the Cartoon Network, the Discovery Channel and ShortsTV.

Although conducted by 02, the trial will not use the operator’s 3G network. With the lengthy (up to 20 minutes per session) viewing times involved in television, utilising the 3G network would create unacceptable capacity problems. According to Dave Williams, CTO of O2, only 5 to 6 users could view television at any one time over a 3G bearer, and they would consume the entire capacity of the base station. Instead the Oxford trial is using DVB-H (Digital Video Broadcasting-Handheld), one of several technologies competing to be the global standard for mobile television. One of DVB-H’s main rivals is the DMB technology which is being deployed in Korea . O2 carried out an evaluation of DMB in Korea but, said Williams, believes that DVB-H is the best option and has the best chance of become the global mass market solution. With DVB-H, said Williams, it would be possible to deliver 16 to 32 good quality channels per 8MHz, compared to the 12 to 24 poor quality channels that could be achieved with DMB.

Everyone involved in the Oxford trial is forthright in admitting that part of the aim of the trial is to educate the UK regulator Ofcom. At present no spectrum has been officially allocated for mobile television and the consensus seems to be that nothing will happen until after the World Radio Conference in 2006. Proponents of mobile television have high hopes of winning the Band IV and V spectrum when the terrestrial analogue television services which currently occupy this spectrum are switched off. In terms of achieving maximum coverage with the fewest number of base stations, and for the highest possible level of in-building penetration, radiating in the spectrum at 400 to 500MHz represents the best solution for mobile television.

As to whether there is a demand for mobile television, proponents of the technology point to a major trial carried out earlier this year in Helsinki , Finland . Around 500 people took part in this trial which involved both free to air and pay-per-view channels. Both basic and premium packages were on offer at a cost of around €4 to €5 a month. This is a notable differentiator from the Oxford trial where the service is free. Some 58% of Helsinki triallists believed that mobile television would be a popular service. In addition, Arqiva has carried out research in the UK which substantiates the belief that there is a huge potential market for mobile television. Mobile operators are obviously keen to buy into positive research such as this in the hope that mobile television will be the much-sought-after money spinner that will finally justify their investment in 3G.

Commenting on the Oxford trial, John Delaney, principal analyst at UK analysts Ovum, said: “Customer surveys consistently show a positive reaction to the idea of watching TV on mobile phones. And for mass-market video services, you really need 3G. At first sight, it seems that what we have here is a marriage made in heaven. Mobile TV is a service idea that a lot of people like, and that requires them to become 3G subscribers - which the mobile operators like, because they're working hard to build a return on investment for their 3G networks. Well inevitably, it's not that simple. There are a couple of big snags”.

“Firstly, the networks. Yes, 3G can do video, but it's designed for point-to-point traffic, not broadcasting, which uses valuable cellular spectrum very inefficiently. So for mobile TV, operators are looking at using digital broadcast technology instead, which is why O2's trial is using DVB-H. Even if it all works well, that won't open the floodgates, as national radio spectrum for DVB-H has not yet been allocated in the UK ; and very few phones are currently compatible with DVB-H.”

“Secondly, the customers. Yes, a lot of people say they like the idea of mobile TV. They may also enjoy using it in the Oxford trials. But these trials won't tell O2 whether or not people like mobile TV enough to buy an expensive new phone that can receive it, and to pay regularly to watch it. The triallists will be given their phones and will be watching TV for free. Equipment vendors are citing ‘willingness to pay’ surveys to show that people will pay up to €10 per month for mobile TV, but we generally view such surveys sceptically. It's one thing to say that you're willing to pay; it's quite another thing to actually pay”.

Delaney said that Ovum would be tracking the trials with keen interest but even if they are successful, “that won't necessarily convince us that there's a big, quick revenue opportunity in mobile TV.”
Ian Channing