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ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009 Keys for ensuring Mobile TV business success stories Focus on the impact of Mobile TV regulatory.

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Presentation on theme: "ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009 Keys for ensuring Mobile TV business success stories Focus on the impact of Mobile TV regulatory."— Presentation transcript:

1 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009 Keys for ensuring Mobile TV business success stories Focus on the impact of Mobile TV regulatory frameworks on business models and commercial launches in different countries around the world and Recommandations for future settings Bernard PAUCHON Senior Vice President Global Media Corporate Strategy & Development, TDF

2 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April A European Group TDF is now present and active in 10 European countries (Austria, Estonia, Finland, France, Germany, Hungary, Monaco, The Netherlands, Poland, Spain) Shareholders: Texas Pacific G. (42%), CDC (24%), Axa (18%), Charterhouse (14%), Personnel (2%) 1,600 M revenue 5,500 employees 8,000 sites

3 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April Spain Axion, Spains second-ranking broadcast operator, launched regional DTT in Andalusia in Finland Digita launched DTT in 2001 and covers more than 99.9% of the population. Poland PSN is the countrys second-ranking Broadcast Network Operator. Estonia Levira launched DTT in December Monaco MCR is a technical operator and concession holder of the radio frequencies. The Netherlands Alticom operates 24 audiovisual towers. Hungary Antenna Hungaria employs 800 people and operates 156 sites. It provides Radio, TV and telecoms services. Revenues are 110 M. The European leader in infrastructure and transmission services for broadcasters and telecom operators Germany Media & Broadcast is the leading TV and Radio transmission company in Germany with 530M revenues and 1200 employees. Austria Media & Broadcast has won the DVB-H frequency license. (Service started June 2008)

4 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April TDFs business lines Audiovisual Telecoms Digital broadcasting Multimedia services Mobile TV Infrastructures Service integration Wholesale operator

5 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April TDFs concept : Shared networks operated in a B to B model The digitization of TV networks leads to the sharing of frequencies, hence networks, between various content providers. Similarly, for broadcast services towards mobile handheld devices, the scarcity of frequency resources leads operators (content edotors, distributors/service operators) to share the same network. The presence of a neutral network operator working in a B-to-B environment, independent from commercial operators servicing the end-customers, is a guarantee of a non-discriminatory, unbiased and equitable treatment of all players.

6 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April TDFs Mobile TV activities in brief We have been involved for years in European collaborative projects, are now deploying networks and are still conducting pilots in the different countries where we are present: In Austria, in early 2008, TDFs German subsidiary, Media Broadcast, with its partners MNOs and Broadcasters, has won the beauty contest among several industrial projects which resulted into the commercial launch of Mobile TV services in June 2008 In Estonia, Levira has launch in cooperation with EMT, the Estonian subsidiary of TeliaSonera, on April 2nd 2008, a Pilot with major broadcasters In Finland, Digita has been a key player of the Finnish mobile TV project, has been granted on March 23 rd 2006, with the Finnish DVB-H network license, and has deployed the DVB-H network it has committed to, supporting a soft launch since June 2007 In France, we have completed a DVB-H experimentation in Paris with all major Broadcasters and Mobile Network operators. We are also actively anticipating the deployment of a national network in view of a commercial launch in first half 2010 In Germany, Media Broadcast has been granted with the frequency license, and has been operating a DVB-H network for Mobile 3.0(which originally got the media license)s soft launch in Frankfurt, Hamburg, Hannover and München In Hungary, Antenna Hungaria is still currently running a DVB-H Pilot in cooperation with T- Mobile, Vodafone and main Broadcasters, and in August 2008, has won the frequency license for a DVB-H Muitiplex In Poland, PSN is operating a DVB-H Pilot in the city of Warsaw In Spain, since March 2007, Axion, has launched a DVB-H pilot involving all major broadcasters and open to all mobile telecom operators Furthermore, we are actively involved into a variety of fora : DVB, bmco-forum, DigiTAG, … in order to contribute to settle this new business on solid at least Europe-wide grounds.

7 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009 What is Mobile TV about? It is about industrial projects involving motivated actors, which can only work properly if benefits as well as risks are shared between players in a well balanced way and as a complement to other ways for delivering such sevices (e.g. 3G) Let us see how to make it successful

8 Spectrum avaibaility : look for, and you will find Non fragmented well established technology related to spectrum availability Appropriate regulatory frameworks: –Regulatory frameworks can be helpful, helpless…or even make things difficult! –Content right issues have to be cleared Involvement of key players with well defined relationship : –Mobile Operators (because of their distribution power, and their influence on device manufacturers), but also Pay TVs and other distributors may also be of importance –Media groups because content is king ( of simulcast and dedicated formats) –Broadcast Network operators Business model satisfying all key players including reasonnably balanced risk sharing amongst players( which may influence TDF Group offering) Devices and equipment manufacturers confidence Key success factors

9 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009 Spectrum How to find the necessary ressource in various cases –Easy if SWO completed( Finland, Germany, Netherland…) –Possible where originally difficult to believe( France, Hungary, Poland...) Example of France : Toulouse –Note : In general, the more –the spectrum is crowded, the more expensive is the solution, due to transmitter power limitations in order to avoid interference with other services

10 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009 Technology Strengths –Most countries prefer DVB-H, Standard based DVB-H technology already used for commercial services –Most new providers use OMA BCAST DRM (Austria, Netherland, Switzerland),and OMA BCAST SCP close to be ready, several providers planning to use it To be improved –More terminal variety needed Possible challengers –Other crocodiles turning around : FLO, LTE, Others

11 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009 Focus on the Regulatory Framework Issue The regulatory framework of a given country is strongly influencing the business models that can be put in place as well as the speed of launching commercial services in this country Let us see how

12 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April Broadcast Network Operator(s) The main players ( they have to establish together the business model) Content Editors (Broadcasters,…) Distributor(s) (Mobile Operators, Pay-TV… 3rd party middle man (Investor…)

13 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April Broadcast Network Operator(s) … and their environment Content Editors and Agregators (Broadcasters…) Distributor(s) (Mobile Operators, Pay-TV… 3rd party middle man (Investor…) Consumers Device Manufacturers Regulator(s) Content producers

14 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009 How they play in various countries, depending on the rules set by regulatory bodies

15 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009 Italy: Two different situations

16 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April Italia (DVB-H): A Vertical Business Approach Third party Channels Mobile Network Operator Broadcast Network and Platform Operation Own Channels Additional channels Free and simulcast

17 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April TIM and vodafone as distributors using a common broadcast infrastructure operated by a third party Broadcast Network Operator Channels MNO Channels Not illustrated here Channels

18 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April Current results and analysis Current situation : First european country with true commercial services 3 Italia seems up to now satisfied by results( around one million subscribers) No significant results for TIM and vodafone, but no real marketing activity Main finding by 3 Italia : Mobile TV users generate more ARPU than average consumers 3 Italia is currently changing its commercial offer in order to take into account this finding Analysis: Very light regulation, not organizing nor even encouraging optimization of spectrum management and mutualisation of network infrastructure, which, among others, results into the following effects: A vertical integration model for 3Italia A common but not mutualised network for TIM and Vodafone offers. RAI channels on 3, Mediaset channels on TIM offer(at least originally). 1 channel of SkyItalia and 1 of Mediaset on the 2 networks in parallel! Even more some simulcast channels on the same network( TIM and Vodafone)!

19 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009 Finland

20 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April DVB-H network operator License terms The DVB-H network operator is obliged to sell capacity to all under equal terms Programming licenses are needed for TV and radio content (Ficora) No programming licenses needed for data services No single entity can purchase more than 1/3 of the networks capacity The DVB-H network operator Digita cannot function as a service operator

21 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April Relationship in Finland: The BNO, Digita is the only one to have commitments Broadcasters Distributor(s) (Mobile Operators, Pay-TV… Broadcast Network Operator Leader for regulatory body

22 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April Current results, analysis and forecast Current situation : Soft launch since June 2007 with MTV3, Nelonen and later on Voice TV on air N 77 by Nokia available in the shops (first public price in web shops = 539 Euros) and N73 has been supported by accessory product ( price level under 100 ) Contractual relationships between actors of the value chain hopefully in finalization phase Analysis: National license granted to a Broadcast Network Operator, being the only player to have been asked for commitments ( roll out of the network) without The absence of any commitment from the other players, in conjunction with the prevention of the BNO to act as a B2C operator do not help for a quick development of commercial services, Could work in a situation where a broadcast network operator( Digita), well backed by its shareholder, has shown a very proactive attitude and in an environment with strong presence of one major industrial actor (Nokia) with a high interest for the success of this service Forecast for the date of launch of commercial service : Autumn 2008

23 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009 Netherland and Switzerland

24 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April Relationship organisation expected in Netherland and Switzerland Broadcasters Distributor(s) (Mobile Operators, Pay-TV… Broadcast Network Operator Leader in front of regulatory body (*) At the end of the day, due to non secured relationship with distributors prior to bidding, the model has evoloved towards a vertical integration between respective BNO and MNO sister companies (*)

25 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April A regulatory framework attempting to put a BNO as wholesaler in the front, but… The problem is that the selected wholesaler is a sister company of a particular MNO : The other MNOs have been reluctant to contribute to the benefits of a sister company of their main competitor They argue that the commercial conditions are so far unacceptable This has resulted into a vertically integrated model similar to the one of 3Italia Results: Effective launch of commercial services by June 2008, for the Euro Soccer Cup Situation to be monitored

26 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009 Germany

27 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April Germany In Germany: In spite of a complex regulatory framework (licensing of the frequency at national level, whilst authorization of services will be given at regional level by Media Authorities) the interregional coordination paves the way to an interesting business oriented approach, based on a beauty contest of industrial projects: BUT The competing industrial projects seems NOT to be based so far on a cooperation between all actors of the value chain : –there was a MNO led project, where no Media partners were visible –there was a Media led project, where no distributor was visible –there was a investor project where we did not see major Media nor MNOs Partners, these last two having joined forces into Mobile 3.0 company, and won the beauty contest In parallel to the media beauty contest, there had been a tender for the granting of the frequency, one of the main criteria being commitment on coverage and its roadmap. This tender has been won by Media&Broadcast( TDF Group)

28 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April Mobile 3.0: A consortium of investors as a wholesaler ( looking for a model similar to the T-DMB model described below) MVNO Channels BNO Independent Service provider

29 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April Broadcast Network Operator(s) Summary of relationship organisation in Germany: No established secured relationship before license granting Broadcasters Distributor(s) (Mobile Operators, Pay-TV… Leader in front of regulatory body 3rd party middle man (Mobile 3.0…)

30 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April Current results, analysis and forecast Current situation : Soft launch in June 2008 in 4 main towns The disappointment of MNOs (which had strongly worked in order to get the media license) results into difficulties for Mobile 3.0, the winner of the Media License, for establishing commercial relations with distributors Media Authorities have just received the license back from Mobile 3.0 Analysis: National media license granted to a third party( consortium investor), but without having prior any strong commitment from all the other main categories of players Next Steps: Create conditions for a succesful launch as soon as possible. TDF/MB is currently working to contribute to that goal

31 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009 France

32 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April Legal and licensing issues Licensing framework (Update of Audiovisual law issued on March 5, 2007) –TV channels(other than public service) are selected through a beauty contest by the audiovisual regulatory body (Conseil Supérieur de lAudiovisuel – CSA). Antitrust provision : max. 20% of channels / media group –Selected TV channels, with those preempted by government for public service, will have to jointly set a multiplex operator, responsible for steering the roll-out of the network and the service platform operation, at the latest two months after the granting of the last media license. Otherwise, the whole selection process will have to be restarted –Frequencies will be granted to the multiplex operator –MNOs may take part in the multiplex operator, provided that they wish to and contribute significantly to financing the network –Business models: No constraint Licensing process –Spectrum availaility A first multiplex with potential coverage up to 70% to 80% of pop. before switch-over (2011). A second multiplex is planned in the context of Geneva-06. –Calendar : For the first multiplex, the CSA launched the beauty contest in Nov.2007 for 13 channels, The 13 channels has been selected in April, will be finally approved by mid September, and the multiplex operator is to be set up in October or November2008 For the second multiplex, a tender is to be organised during 2009 –Specifications and obligations( for the first multiplex) DVB-H compulsory, (governmental decision taken based on results of market consultation) Modulation/capacity (resulting from a market consultation) Pop. Coverage : minimum coverage : 30% of population by mid-2011, 60% by mid-2014 Indoor coverage : no obligation, but is a criterion in the beauty contest Business model : no obligation, but has to be presented when bidding

33 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April Multiplex operator MNOs/MVNOs Mobile Subscribers Revenue sharing Contribution to network costs Mobiviewers on pocket TVs TV CHANNELS Basic scrambled Premium channels Advertising revenues Contribution to network cost ? Service platform costs* Interactive services revenues Transmission costs Pay TV operators Device manufacturers *Bundled with price of the device Main business model considered and foreseen flows of revenues and services between key categories of players TV subscription (DVB-H part) Mobile Subscription (DVB-H part) One-off access fee* Note : Business model is left open by legal framework and licensing process: candidates had to specify their choice : free-to-air versus encrypted, nature of offer to final customers… DISTRIBUTORS Service Platform Operator* *if service outsourced by Mux Operator BNO(s)

34 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April Summary of relationship organisation in France: Broadcaters are the only ones to take commitments Broadcasters Distributor(s) (Mobile Operators, Pay-TV… Broadcast Network Operator(s) Leader in front of regulatory body

35 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April Current results, analysis and forecast Current situation : Selected channels negotiate together, and with the interested distributors (MNOs, Pay-TV operators,…) the setting of the Multiplex Operator and its related business plan They have received draft contracts with the CSA for being granted with a media license, but most of them have not returned them signed, so to avoid to set a Damocles sword, because by the law, there is a dead line for the Multiplex Operator to be set 2 months after last contract signed. In this context, the government has assigned a special missioner with the goal of having the main players converging on a business model, balancing risks and revenue opportunities, among all players( hopefully including all MNOs) Analysis: Strongly regulated framework adapted from the one in place for DTT : national license to be granted to Broadcasters, being the only players to have been asked for commitments ( ensure roll out of the network and put signal on air) Media regulator (CSA) has in charge the setting of the commercial offer (package of channels), and geomarketing decisions. Possible uneasiness to react quickly for adapting the service offer to the consumer demand as it may evolve along the time Having set up together a Mobile TV Forum, all players of the value chain (Broadcasters, MNOs, BNOs, manufacturers and sofware providers) had strongly influenced the obligations put in the regulatory framework (see above), and have initiated technical and economical work aiming at preparing the successful setting of the Multiplex Operator (governance and business model) The absence of any direct or indirect commitment from the side of distributors may however result into some uncertainty for the date of launch of commercial services, Estimated date for launch of commercial services : S1 2010

36 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009 Austria

37 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April Mobile TV Austria. Overview and Timeline. LoI with MNO, TV stations due SeptemberOctoberNovemberDecemberJanuaryFebruary 2007 to June 2008 Time Line to Commercial Launch KommAustria releases Tender Applicati on due License Decision announced Commercial Launch 31/05/08 Multiplex operator license granted supports network and platform operation Content aggregation facilitated licensee but not directly influenced Content aggregators define basic and premium bouquets in line with Austrian TV law License applicant is required to submit contracts with aggregators, program owners, MNOs at the time of application DVB-H Single frequency networks QPSK, 8k, CR 2/3, GI 1/4 OMA DRM/SCP Value chain fully established due to pre-application contract requirement Clear commercial focus of tender accepting key role of MNOs in creating a mobile TV market No binding pre-license obligations, penalty free post-license exit option for M&B Complex pre-application negotiations need to be finished within three month Licensing decision will be taken by regulator only four month before required commercial service start License/Business Model Technical Framework Opportunity Challenge

38 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April Overview Austrian Tender. Successful applicant must have support of MNOs, broadcasters, proven excellent technical skills and sustainable economic performance. Broadcast Network Operator (BNO) Plan, built and set up a DVB-H network consisting of 15 trans- mitters by June 2006 (EURO 08) Achieve at least 50% PoP coverage portable outdoor by year end 2008 (= 7 transmitters) Extension of PoP coverage is encouraged but is not mandatory DVB-H standard compliant plat- form supporting connected, (if economically feasible) non connected devices Provide for open and non discri- minatory access of all content aggregators and program providers Content Aggregators MNO are required to agree on basic and premium program bouquets Acquire and integrate television and radio broadcasters into a compelling bouquet of programs Provide BNO with signed contract or equivalent by time of the firsts application Disclose marketing strategy formobile TV service, price plans, device availability etc. regulator through BNOs application Broadcasters / Rights Holders No obligation to sign with aggregator or to cpntribute program to mobile TV service Public Austrian television has a must carry if privilege Private broadcasters are free to sign with content aggregator Signed contracts due at time of BNOs application Regulator supports encryption of all services as a minimum requirement for mobile TV market creation Roles, Tender Requirements in Austrian Mobile TV Tender Actual ApplicantBNO Supporters

39 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009 Propagation Prognosis. Scenario License Requirement YE 2008 (Outdoor).

40 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009 Propagation Prognosis. Scenario EURO 2008 (Outdoor).

41 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April Competition between Industrial projects in Austria TV-/Radio Broadcasters Broadcast Network Op. Mobile Network Op. Subscriber 30% Market Share None0% 40% Market Share Austrian Publisher Consortium None0%

42 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April Resulting current situation in Austria TV-/Radio Broadcasters Broadcast Network Op. Mobile Network Op. Subscriber 70% Market Share

43 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April Organisation of relationships in Austria Broadcasters Distributor(s) (Mobile Operators, Pay-TV… Broadcast Network Operator Leader for regulatory body

44 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009 DVB-H Program Bouquet Radio One single Basis Package (NO explicit Premium Package)

45 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009 Overview DVB-H Devices. At Start October/November ZTE DVB-H fähige PC Modem-Karte ZTE RBM1

46 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009 Lessons Learned. Welcoming change to the old broadcast environment is key. Forced Marriage vs. Freedom of Choice Market Driven vs. Public Good Broadcast vs. Commercial Service In the past broadcast infrastructure was considered public good in Europe Introduction of innovation followed public investment cycles Broader view on markets, thus creating new opportunities for winning support outside broadcast industry, is crucial to keep the pace of shortening technology life cycles Austrian case creates pressure on all players involved to commit Resulting reduction of uncertainty about co-operation among key players in the value chain minimized risk of failure to launch Swiss and German Case indicate that non binding pre-license agreements often lead to obstacles when post-licensing negotiations commence Must carry rules, refusal to accept encryption, lack of commercial management of content assets define broadcast environment Over-emphasizing broadcast side of the scale bears risk of driving away crucial partners like MNOs and leaving program owners without commercial case and technical reach

47 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009 Some main facts outside Europe

48 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April Korea T-DMB : free model with few but attractive channels( six operators, 7 TV channels, 13 radios), launched in December 2005,12 millions receiving equipment sold( 1/2 are mobile phones), but broadcasters are loosing money (advertisers needs a threshold of this kind of figure in order to start to have interest), and handset manufacturers seems to be the only winners! S- DMB : pay model, but with not extremely attractive content ( 11 TV channels, 26 radios). This service attracts 1,3 millions subscribers. This is a combination of a wholesale model with a B2C model Source Jitex

49 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April Japan and USA Japan : Free to air model led by broadcasters Takes advantage of network deployed for DTT HDTV, thanks to ISDB-T One Seg design, but need to reinforce the signal for good QoS: who will candidate to pay for this? Around 40 million devices sold, but who else, but device manufacturers, earns money? USA : Wholesale model for Media FLO USA Inc., as described in the following slide Wholesaler had to purchase spectrum Commercial opération by Verizon and AT&T ( No figure yet), but marketing seems rather weak( due to lack of early well established relationship with wholesaler?) Note :Having experienced the situation of having to negociate with distributors after having taken the risk, Qualcomm/MediaFLO will not promote a similar model overseas, and is now promoting more collaborative models

50 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April MediaFLO USA, Inc. : a pure wholesale model MediaFLO USA, Inc. (QUALCOMM) Programmers / Content Providers Broadcast Network Infrastructure Provider Prof. Services & Software Network Build & Operation Pay mobile TV Wholesale model - Integration w/WOs billing systems and minimum handset specs. Handset specifications & purchase Retail sales & distribution of Mobile Pay- TV service Wireless Operators (Carriers) AT&T Verizon Carrier #5 Carrier #3 Carrier #4 Programming Rights Handset Manufacturers Qualcomm MediaFLO Advertisers Transmitter Vendors Licensing of FLO Technology End Consumer / Subscribers Chipsets & Technical Support

51 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April Broadcast Network Operator Summary of relationship organisation in USA: No established secured relationship before license granting Broadcasters Distributor(s) (Mobile Operators, Pay-TV… Leader in front of regulatory body (Media FLO USA Inc.…) (*)Same Mother House, Qualcomm Inc. (*)

52 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009 Provisional conclusion

53 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April The «Austrian approach» seems so far to be the best They have taken the best of the already implemented approaches order to develop a business oriented regulatory framework stimulating co-operation between content providers, broadcast network operators and distributors (mobile operators, pay-TV actors and may be others) In Austria, the regulatory body has granted the frequency to a DVB-H industrial project, organizing a beauty contest to select the best one These actors had therefore to develop and negotiate commercial relationship prior to apply for license. This results into avoiding biaised and long negotiations after only one actors has taken commitments for being granted with the license and find itself in a weakened position for negotiating with the others, which can result, as seen in other countries into unmanageable delays and difficulties This also help further consolidation of the original industrial project( Mobilkom has joined afterwards, and Media Broadcast has made a deal with ORS)

54 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009 But a more general approach based on the same principles could offer more flexibility

55 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April Basic principles Rationale : take the best of the already implemented approaches order to develop a business oriented regulatory framework forcing co-operation between at least content providers and distributors (mobile operators, pay- TV actors and may be others). The actors will have to develop and negotiate commercial relationship prior to apply for license, and indeed create industrial project for developing the Mobile TV business The regulatory body would only then grant licenses to what would appear to be the best industrial project, based on the result of a beauty contest Like in Austria, this would avoid difficult negotiations after the granting of the frequency, but at the difference of Austria, this would allow different possible organisations for these industrial projects

56 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April Possible Relationship organisation (1) (the one established in Austria) Broadcasters Distributor(s) (Mobile Operators, Pay-TV… Broadcast Network Operator Leader in front of regulatory body

57 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April Possible other relationship organisation (2) Broadcasters Distributor(s) (Mobile Operators, Pay-TV… Broadcast Network Operator(s) Leader in front of regulatory body Note : This may look like the french case, but the key difference is that here relationship between content editors( broadcasters) and distributors are secured prior to the license granting Option secured relation prior to bidding

58 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April Possible other relationship organisation (3) Broadcasters Distributor(s) (Mobile Operators, Pay-TV… Broadcast Network Operator(s) Leader infront of regulatory body Option secured relation prior to bidding

59 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April Broadcast Network Operator(s) Possible other relationship organisation (4) Broadcasters Distributor(s) (Mobile Operators, Pay-TV… Leader in front of regulatory body Note 1: This may look like the german case, but the key difference is that here relationship between content middle man and other parties have to be secured prior to the license granting Note 2 :The fourth party will consume a part of the overall revenues 3rd party middle man (Investor…) Option secured relation prior to bidding

60 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009 Conclusion

61 Mobile TV Regulatory April The regulatory framework is strongly influencing the business models that can be put in place as well as the speed of launching commercial services Consequently : Before establishing a regulatory frame work for mobile TV, investigating and weighting advantages and disadvantages of all options already in place in other countries would certainly help In order to maximize chances of having successful commercial services, the regulatory framework should make sure that it creates appropriate commitments from those whose task is to offer services to the public, the editors( TV Channels) and the distributors (and in particular Mobile Network Operators) It is also extremely important to let the game open for further consolidation of the content offer and the extension of distribution channels With this respect, the austrian regulatory framework looks like being so far the best… so far because Arab States…

62 Mobile TV Regulatory April 2009 ARAB STATES are ideally positionned for joining the club of countries with regulatory frameworks leading to successful Mobile TV business cases I do hope that this presentation will be helpful for this purpose TDF Group is ready to give whatever further contribution which would be considered useful

63 ASBU/AICTO Seminar on Mobile TV, Tunis 29-30th April 2009 THANK YOU !


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