Mobile Video Network Operators May Benefit From Broadband Caps
Broadcast mobile video network operators could benefit if more wireless carriers adopt mobile broadband usage limits as AT&T has, industry executives said. That’s because services like Qualcomm’s MediaFLO and the TV broadcasters’ mobile DTV don’t consume any bandwidth on the carriers’ network. But some are concerned consumers might avoid mobile video altogether if they're worried about exceeding the limits and don’t understand the distinctions between various mobile video services.
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Widespread adoption of metered billing systems for mobile broadband will hurt mobile video services that use 3G networks if it comes to pass, Sanford Bernstein analyst Craig Moffett wrote investors last week. “Customers would pause before clicking on that link you just sent of the squirrel on water skis,” he said. “And customers would openly rebel at the notion of being forced to watch video ads -- which they would now have to pay to sit through."
Mobile video service providers that don’t touch the carriers’ networks need to better educate customers about video options, said Vicki Mealer, senior director of product management for MediaFLO. “We've got to kind of go on the offensive and make sure folks know that there is an alterative” to viewing video over the carriers’ networks, she said. The company is working with AT&T to help its retail staff better educate consumers in stores about mobile video options and how they'll affect billing, she said. “We've done a lot more training in the point of sale stores. It’s really relevant right now because of these tiered data plans."
Still, the metered pricing could help spur all types of mobile video use, because more consumers may decide to buy video-capable phones with the cheaper data plans AT&T is offering. “We see AT&T’s pricing move as a positive,” MobiTV said. “Lower entry prices for data could lead to more people giving our services a try, ultimately fueling awareness and demand."
Inside Qualcomm, AT&T’s tiered pricing announcement was viewed as great news for MediaFLO, Mealer said. “We've been anticipating that for quite some time,” she said. “So now we just have to make sure the message gets out there and people know and understand that it’s really a safe thing to do and they're not going to get a big bill.”
Broadcast mobile video services will play an increasingly large role in carriers’ offerings, said Anne Schelle, executive director of the Open Mobile Video Coalition. “We've always talked about the fact that broadcast was a better distribution platform for video, just because of the bandwidth constraints that exist on a unicast network,” she said. More devices will include multiple chips, so viewers will be able to decide whether to watch broadcast, use a Wi-Fi connection or pay higher rates for video over a 3G or 4G connection, she said. “Offloading is definitely something we're going to see more of, and the broadcast distribution platform is another one, similar to Wi-Fi, that makes a lot of sense for coupling with any other distribution platform.”