Mobile TV viewers flee
February 14, 2008
A survey of mobile subscribers in Europe and North America by M:Metrics study, commissioned by Tellabs, highlights a $270 million opportunity – but only if operators meet user demands for quality and reliability improvements in the coming 12 months. This conservative revenue projection is based on operators reversing an alarming trend: former mobile TV users grew 68 per cent in 2007, outpacing the growth of the total market (36 per cent).
After price, mobile users still cite quality and reliability as the second most important reason for their disenchantment. Yet those ex-users grant operators a clear window of opportunity: 60 per cent would pay to watch mobile TV again if service quality and reliability significantly improved in the coming year. By regaining just half the potential market lost due to quality and reliability issues, operators could secure the revenue projection.
“Users decide which new services succeed, not the industry,” said Pat Dolan, vice president Tellabs for EMEA, “It’s challenging for operators to make a living as mere pipe vendors,” added Dolan. “By offering mobile content users enjoy, operators can increase revenue. Yet this necessitates network enhancements, as acceptance of high-bandwidth services depends on the quality, reliability and capacity of the mobile backhaul. Tellabs is working with many operators in addressing these issues, and we are confident the industry will progress further.”