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AN INNOVATIVE APPLICATION: MOBILE TELEVISION

”WILL IT BE A SUCCES?"

Chang, Dwain, Erasmus University Rotterdam, The Netherlands,
279457dc@student.eur.nl
Chin, Mandy, Erasmus University Rotterdam, The Netherlands,
280614mc@student.eur.nl

Abstract
This paper discusses a special kind of mobile innovation, namely mobile television. There are
several factors why people think that this innovation will be a success. Prior research shows that
people are interested in mobile television, especially while on the road. But to make mobile
television succeed, providers will have to deal with a few issues like technological constraints
and smart price settings. They also have to be innovative in how they bring mobile television to
the market. Furthermore, mobile telecom companies will have to deal with the fact that people
will use their phone less and less for calling, so they will have to find other ways to bind people.
Some examples are mentioned in this paper like offering 3G broadband or HTML-recoding.
Keywords: Mobile television, M-Commerce, Mobile innovation.

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we can see that mobile Internet is becoming faster these days. Our expectations regarding mobile television is that mobile television in its current form won’t be a success. Mobile television in its current form is simply downloading clips that are offered by certain providers. Two headings of articles follow below. One of these trends will get special attention. All of our results are based on situations in the Irish telecom sector. companies introduce something new go gain a competitive advantage. It is interesting to see whether mobile television will be a success or not.2 Research questions One recent innovation in the mobile world is mobile television. the consumer will likely make use of that product or service as opposed to a product or service that is acquired in the traditional way. 1. 1. This paper will briefly discuss the recent trends and applications in mobile commerce.1 INTRODUCTION 1. and what mobile television providers must do to make this succeed. we are expecting to see telecommunications companies developing mobile applications that are mainly Internet-based. The difference between the speed of the mobile Internet and the speed of the Internet connection people have at home is becoming smaller. a company must be innovative in its processes and product developments. a few other interesting trends and applications will be mentioned to give a general idea of other ways (telecom) companies can use innovation to gain a competitive advantage. Companies and organisations who supply products or services make use of this fact by making their business activities easily accessible to the customer. M-commerce is a very important topic nowadays. m-commerce is developing rapidly and becoming extremely popular. Thus. namely mobile television. To gain a competitive advantage over other companies. Mobile phones that were initially made for calling are now able to provide the user many other services.3 Hypotheses When we observe the technological developments in m-commerce.4 Relevance There are many examples that show the business relevance of innovations in mobile commerce. Innovation is the introduction of something new. For this reason. Almost everyone has a mobile phone. 1. 2 . When a product or service is easily accessible and also at anytime. Ammeon and other scientific papers and publications.1 Background Mobile commerce is a form of e-commerce that specifically focuses on commerce by the use of mobile devices. Although still in its infancy. Most of the data that is used is obtained by company visits (in Ireland) at Vodafone. We will discuss this in more detail in one of the chapters still to come. That is why we formulated the following (main) research question: • Will mobile television be a success? While researching this trend.

which is a part of m-commerce.com 3 .com/shop/viewpressrelease. The two most important companies for our research that will be visited are: • Vodafone: Ireland's leading mobile phone operator with a customer base of over 1. If we think of mobile services such as sending terrorist alerts or medical alert. After that the research will move to Ireland. 1. Mobile television to reach 120 million users by 20122. And that is gambling alone. Chapter four is our closing chapter with a short summary of the whole paper. innovations in m- commerce also have scientific relevance. M-commerce is booming business. This article suggests that mobile television is expected to reach almost 120 million users by 2012. will generate $12bn dollars within the next 3 years.8 million and a total of 1. the relevance of this topic and the way we worked.ammeon.5 Methodology The first step in this project is to conduct a literature study on m-commerce and its applications with a special focus on mobile television.co. 2 MOBILE TELEVISION 2. The previous quote suggests that mobile gambling. 2. We will take a look at the pros and cons of this trend being a success.uk/2007/09/20/mobile_tv_report/ 3 http://www. which is a significant increase from the current 12 million.1 Mobile television in its current form Mobile television in its current form is simply downloading clips and playing them on the users’ mobile device.vodafone.Heading from an Internet news article: “Press Release: Mobile gambling wagers to approach $12bn within 3 years.4 • The information that is obtained at these two companies and the information gathered during the literature study will then be analysed and the paper will be written next.ie 4 http://www.theregister. where several companies will be visited.6 Outline This paper is structured as followed: This chapter gave an introduction to mobile commerce and discussed our research question.3 • Ammeon: is a privately held consultancy company headquartered in Dublin and one of Europe's fastest growing technology companies.2 Mobile television in the desired form Telecommunication companies would like to offer their customers the ability to experience mobile television just as “normal” television. users can switch from channel to channel. 1 http://www. Chapter three will give a brief overview of some other interesting trends and applications at the moment. A recent example on how this works is during the last Rider Cup.500 employees. Instead of downloading clips or watching streaming video clips. In this chapter we will discuss mobile television. according to Juniper Research”1. 1. Video highlights and news are made available for the customers.juniperresearch. Chapter two is our main chapter.php?pr=57 2 http://www.

• In Korea. The younger users want mobile television in bed or at school.3 User expectations This section of the paper will discuss the user expectations of mobile television.2.5 billion in Europe by 2015. The most popular places where people will make use of mobile television are while on vacation or while travelling.asp?id=c001&file=persvannipo\tv_kijken_op_mobiel07. male users will want to see news and sport related programs. SK Telecom already has 1 million subscribers to its Broadcast Mobile TV bouquet. and 65 million will be subscribed to a Mobile TV offer. Some examples why people have doubts are mentioned below. while only 1% of the users make use of mobile television. Questions like “where and when do people want to use mobile television?” and “what kind of programs do people want to see on their mobile device?” will be addressed. Figure 1 shows user interests (mobile television) As mobile telecom companies expected.broadcastpapers. and € 17.4 Market expectations In this section of the paper we will illustrate some facts and figures about the forecasts done by external parties6.htm 6 http://www. • This relatively non-existent market is expected to grow exponentially to 69 million people worldwide by 2009. • By 2010.tns-nipo. especially soccer. According to Dutch research 5 almost half of all the people who have a mobile phone know what kind of programs they want to see on their mobile device.com 4 . Mobile television providers will have to consider the following constraints: 5 http://www. 125 million people over the world will own a Mobile TV phone. generating total revenue of around $5. while women want to see soaps and television series. The facts mentioned above are all positive. 2. There is also however scepticism regarding mobile television.com/print. • Mobile TV will represent US$ 5 billion in 2010 world wide.5 billion.

• Other technological constraints. Good news for mobile TV 5 . This standard uses less bandwidth and is cheaper than UMTS and 3G. the appearance of an interactive voting menu on the screen while the user is watching a program. Furthermore.• Mobile phone companies will have to pay a fee to offer mobile television content. Mobile telecommunication companies are concerned that people will use their mobile phone less for calling. • Mobile television content doesn’t have to be streamed to each mobile phone separately. Mobile telecommunication companies will try to keep customers connected to their network by offering them other services 7 Knoche & McCarthy. It isn’t sure that people will want to pay for a mobile telephone subscription while they are already paying for television at home. as voice calls are the core business of these companies. Mobile television on a small screen won’t work for long movies or for a whole sports match for example.1 Introduction In this chapter we will briefly mention some other trends and application in mobile commerce. So the customers of the company will most likely have to pay for the service if they want to use it. The standard now with the largest chance of succeeding is DVB-H. Research done by Knoche and McCarthy 7 show that people would pay £2. • A real time personal TV-guide that lets the user know when his favourite program is on or when a program that he might be interested in is being broadcasted. HSDPA and 3G. Some examples: • Mobile television providers can make episodes of new series or soaps available to the user before it is being aired on normal television. • Technological constraints.50 per day and £10 per month. These can be shortened episodes for example. • It is very important to set the right price for mobile television. The mobile device that is being used should be equipped with a battery that is able to provide the device enough electricity. Mobile television can also be provided over mobile data networks such as UMTS. The standard for mobile television isn’t decided yet. Several standards are for example DVB-H (Digital Video Broadcast – Handheld) and T-DBM (Terrestial Digital Multimedia Broadcasting). • Create something like interactive television. In this case. 2.5 Possible solutions In this section of the paper we offer some possible solutions to some of constraints that are mentioned in the previous paragraph and some other general ideas. mobile television providers have to come up with innovative ideas to raise peoples’ interest. This problem however lies with the developer of the phones. the problem of small screens isn’t applicable. • Deciding on what the standard will be for mobile television is very hard. 3 OTHER TRENDS AND APPLICATIONS IN M-COMMERCE 3. For example. • Provide mobile television content especially designed for mobile devices. Mobile television providers can make deals with these developers for instance to provide their phones if they can take care of the technological problems. • People don’t want to watch television on a small screen for too long. It can be broadcasted to many mobile devices at the same time. • It is relatively expensive to stream a broadcast to mobile phones. Watching television on a laptop is also a form of mobile television. • Obviously technological issues such as battery life should be taken into consideration.

8 MB of data. 4 SUMMARY 4. This feature allows consumers to have a faster internet connection. 3D barcodes are images that can be found on poster for example or on the back of a name card. These codes can be used to show short videos of text on mobile devices only if the device is equipped with a certain application. Payter gives the consumer the ability to pay with his mobile phone. Mobile telephone companies must use their resources efficiently by broadcasting television content to multiple users at the same time instead of streaming to each user individually.2 Different trends and applications A trend we have seen in mobile commerce is faster internet for mobile devices. This makes it easy to install software like navigations software. This can be done in several ways. The 3D barcodes can capture up to 1. The Payter pilot was recently launched in Rotterdam (the Netherlands). 3. they will have to come up with the right price setting. First of all. Html-recoding is a technique that recodes regular html code into html code that is viewable for the mobile device that is being used. To use this service consumers have to buy a small modem and subscription to a mobile broadband provider. Payter uses a certain wireless technology for secure transactions while another ways of payment is making payments via SMS. They deal with this loss by trying to keep customers to use their network.as well. A few examples of services that they could offer or are already offering are mentioned in the next paragraph. we think that mobile television will be a success provided that telecom companies take into account the suggestions we mentioned in this paper. They are doing this by offering customers other innovative services like mentioned in chapter 3. A new application we came across during our research is html-recoding. We mentioned things like being able to vote during a broadcast with an interactive menu. The latest innovation in mobile technology is the skype phone. One example of mobile payments is Payter. Users can also sms and make calls to regular cell phones and fixed line phones on pre-pay basis. This is location based because the user can for instance specify where he wants to go and the phone will find the shortest path. So. web pages can be quickly and easily viewed on mobile devices. Second of all. to answer the research question. A new development is the use of 3D barcodes. Another new application is making payments by the use of a mobile phone. we have stated some critical aspects on chapter 2 along with some possible solutions. With this phone users can make free phone calls to other users who also have such a phone. Location-based services are services where the presence of GPS plays a big role. This way. for instance 3G broadband and HTML recoding. People will not accept mobile television when it is offered at a price that is too high. A new service provided by mobile telecommunication companies is 3G broadband. namely a 3D barcode reader. the providers of mobile television will have to come up with innovative ideas on how to bring mobile television to the market. A lot of the new phones have a GPS receiver.1 Conclusion To answer the question whether mobile television will be a success or not. 6 . Telecom companies have to deal with the fact that people are using alternative methods for mobile phone calls.

7 . to know all the trends. It might be interested to look at how providers marketed mobile television in Asia and see it these marketing strategies can be applied in Europe too. we have to visit more than two telecommunication companies.3 Recommendations for further research It might be interesting to do further research on the acceptance of some of the other mobile innovations that we mentioned in this paper. but this is impossible because of the time constraint we are facing.4. as these innovations are very valuable to the companies to gain a possible competitive advantage. 4. During this research we learned that people in Asia are more interested in mobile television than people in Europe.2 Limitations of the study This research has some limitations. First of all. The second limitation is that we have experienced that telecommunication companies are a bit reluctant to share their innovations.

McCarthy. May 2000 David Amselem. 2007 Andreas von Meyer zu Knonow and Mann A. Schilling. McGraw-Hill. From e-Commerce to m-Commerce: A new Competitive Environment for Wireless Vendors.com/print. Good News for mobile TV.uk/2007/09/20/mobile_tv_report/ http://www.ie http://www.co.vodafone. 3D code kan video bevatten voor mobieltjes. April 2007 Hendrik O. Strategic Management of Technological Innovation.php?pr=57 http://www. Hcc! magazine nieuws Websites http://www.tns-nipo.com http://www.References Melissa A.theregister. Knoche.juniperresearch. Mobile TV Production – Expectations. Sloan School of Management in Partial Fulfilment of Requirements for the Degree of Master of Science in Management of Technology at the Massachusetts Institute of Technology.asp?id=c001&file=persvannipo\tv_kijken_op_mobiel07.com/shop/viewpressrelease. John D.ammeon.htm 8 . Shoffer. Challenges and Strategie. July 2005 Olaf van Miltenburg.

+31-10-4081342 Fax. ISBN of the complete report: 978-90-812660-1-7 9 . etc.eur.nl Tel: +31-10-408 8846 Emiel Caron Assistant Professor Room H10-19 P. This report in front of you is part of the VRiSBI International Research Project Ireland 2007. We try to do this by regularly organizing different kinds of activities in association with interested companies. We do this by organizing all kinds of activities like company visits.vrisbi. +31-10-408 9162 VRiSBI is the study association for the study Economics & Informatics at the Erasmus University Rotterdam. INNOVATION & ICT VRiSBI International Research Project Ireland 2007 Study Association VRiSBI Kamer H11-02 Postbus 1738 3000 DR ROTTERDAM Email: info@vrisbi. The CD-Rom contains all the reports and it also contains the presentations from the symposium ‘Innovation & ICT’. The development and the pleasure of learning for the student is important to us. One of our most important tasks is to connect students of Economics & Informatics with companies to give them an inside look how it is in the field.nl Tel. study trips.Box 1738 3000 DR Rotterdam The Netherlands Email: caron@few.O.nl Internet: www. We have over 350 members and there are around 100 students currently in their final year of the bachelor or master program. etc. symposia.

nl for the complete paper of this presentation.vrisbi.VRiSBI International Research Project “Innovation and ICT” Comparing Ireland with The Netherlands Please visit http://studiereis2007. Other papers and presentations are also available. .