Throughout the past five years 3G has been evolving from the next big thing to a must-have technology. The days of 2G are fading fast as 3G sweeps across the globe, with networks now established on every continent, except Antarctica.
According to statistics, Asia has been leading the pack on 3G adoption, with 100% subscriber growth expected in 2009 to about 53.5 million users. China has launched a 3G network for the 2008 Beijing Olympics, and India has just released its plans to auction wireless spectrum - the first step in establishing 3G. In Europe, 3G coverage is becoming nearly ubiquitous, and is also widespread in North America and Australia. Across Latin America and Africa, it seems a new 3G network is launched each month.
However, a dramatic
surge in 3G usage, especially for data-intensive applications like
mobile video, spells clogged networks for service providers and
forebodes slow multimedia content delivery for the average user. The
total wireless network traffic generated from all voice and data
services is expected to increase ten-fold by 2015 in developed regions,
according to some research reports. In the same timeframe, the total
network traffic in developing regions is expected to increase by six
times, another report reveals. At the cusp of mass adoption, service
providers are in danger of alienating current and potential customers
before 3G even reaches its potential. For this reason, it is critical
that they capitalize on the benefits of 3G, such as the two-way
communications and interactivity, while pursuing a more efficient route
for transmitting mobile video over mobile broadcast networks.
3G networks are inherently bigger and faster than those employing older cellular technologies, and more importantly it offers advanced services like high-speed Internet, interactivity and video streaming, which reinvent the traditional concept of a telephone. However, these 3G networks are finite, and in some markets or under certain circumstances have shown to have capacity constraints. As 3G subscriptions increase, the quality and speed erode for the average user. Five years after initial launches, 3G technology has now reached critical mass, with 22% of European mobile phone owners using 3G devices, a research firm revealed. In fact, many service providers are already experiencing some network slowdowns and degradation in quality due to escalating mobile usage.
The high-speed data services that make 3G so attractive, especially video and SMS traffic, consume enormous network capacity. Video requires a lot of spectrum because 3G networks, also called unicast networks, offer a dedicated two-way communication channel with users.
Unlike conventional broadcasting, unicast networks send separate signals to respond to each individual request made by users. With each unicast signal the broadcasting transmitter sends, the overall quality and speed of the network decreases.
To understand how a unicast 3G network operates, imagine a grocery store with a set number of staff. As more customers enter the shop and require individual attention, the demand on the staff increases. This in turn increases each customer's wait-time, and decreases the quality of service. Now imagine that the majority of shoppers in the store are only buying one or two items - the line moves relatively quickly, until someone brings a shopping cart overflowing with items to be processed. With respect to 3G spectrum, that overloaded shopping cart represents video - especially video clips longer than 60s.
Meanwhile, data services related to Web 2.0 supported by 3G networks, such as social networking and gaming, are becoming increasingly popular. As Web 2.0 activities continue to become ingrained in daily life, we can only expect mobile usage of these services to increase accordingly.
It's apparent that 3G network capacity is greatly affected by mobile video and interactive services, yet we can only expect the popularity of these services to continue to grow. So, it becomes critical to consider how 3G networks can most effectively serve their subscribers, and deliver an optimal user experience integrating voice, data and multimedia services. 3G's interactive capabilities are needed to support the usage of social networks and gaming, but not necessarily required to view video clips. Short data transmissions are not clogging up the network but rather the culprit is large files, such as full-length TV programs or movies.
An alternative to transmitting video content to mobile phones is called mobile broadcasting. Unlike 3G, it employs a dedicated broadcast or multicast network. Mobile broadcasting operates similarly to traditional television and radio broadcasts. The mobile broadcast network transmits content to any mobile device equipped with a receiver enabled to view the material with no limit to the number of viewers supported simultaneously. Additionally, mobile broadcast networks purpose-built for streaming video to mobile devices offer benefits such as high-quality images, and the ability to support large channel bouquets. However, these mobile broadcast networks do not offer a two-way delivery system.
Similar to traditional radio and TV, users do not interact directly with the operator for activities such as voting, or playing real-time games with other mobile users. This is where the use of 3G networks as a return-path for interactive data applications plays a pivotal role.
Mobile broadcasting and 3G are compatible and complementary technologies, whereas 3G networks can easily support Long Tail content which appeals to niche audiences, mobile broadcasting is the ideal delivery method for Short Tail content such as news, popular shows and sporting events that appeal to a mass consumer audience. Playing to their respective strengths, 3G networks should remain the backbone of an operator's voice and wireless data-service offering, while video and television is best off-loaded to a dedicated mobile broadcast platform. This arrangement can support the volume and type of traffic required for a scalable multimedia delivery service, while at the same time offering the 3G interactive capabilities that users crave and operators can monetize.
Video content is highly valuable from a business perspective as it engages an audience more effectively than static content. Furthermore, rich media content is more effective in prompting viewer interaction than static advertisements.
Finding a solution for mobile TV is critical, as wireless multimedia creates new revenue opportunities for ecosystem stakeholders. Wireless and multi-channel operators will be able to charge content providers to use their networks, content providers will benefit from advertising revenue, while handset manufacturers' sales of mobile TV-enabled devices will grow. Furthermore, 3G services such as selling ringtones and wallpapers from favorite TV shows will bring about additional revenue opportunities for the mobile TV value chain. While all of these stakeholders profit, they will also meet a growing desire amongst consumers to view what they want, when they want, and where they want.
The mass market adoption of mobile TV is imminent once the right business model and user experience are established.
Mobile operators have already undergone major investments to provide users with 3G capabilities and they need to start realizing revenue as soon as possible. If 3G services are offered in conjunction with mobile broadcast services, consumers will experience higher-quality interactive applications and mobile video, while new revenue streams will open up for the industry, simultaneously driving greater profits from both 3G and mobile TV investments. Striking the right balance between 3G and mobile broadcast services and approaching the two as complementary, not competitive offerings will fuel this demand and expedite the widespread success of mobile TV.
by May Yin Oh,
Senior Director of Business Development,
Greater China and India,
Qualcomm MediaFLO Technologies
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