PARIS -- Satellite-delivered
commercial digital multimedia broadcast (DMB) services in South Korea and Japan
have produced sharply contrasting results since their introduction in mid-2005.
Program managers say the different results are partly due to regulations on cell-phone
towers and partly due to the industrial partnerships formed in each nation.
The early results -- a success in South Korea,
a struggle in Japan -- have fueled debate in the United States, Europe, China and
elsewhere about which model is most relevant for other regions that are
considering introducing the same kind of system.
The Korean
and Japanese services both use the MBSat-1 S-band satellite built by Space Systems/Loral
and launched in March 2004. The satellite features a 12-meter-diameter antenna
that is used to deliver television and radio programming to mobile telephones
and other portable devices.
To ensure
coverage where the satellite signal is blocked, thousands of signal boosters
are deployed on cell-phone towers and other locations. The resulting system is one in which
most users are more often linked to the terrestrial network through these ground
repeaters than they are directly to the satellite.
Similar
projects for broadcasting and two-way Internet links are being planned in the United
States, which has L- and S-band
systems under construction; and in China where Loral is building a satellite
for U.S. direct-television broadcaster EchoStar on
behalf of the Chinese government. Europe also is weighing a similar investment.
In South
Korea, TU Media leads a consortium of companies that includes television broadcasters and cellular-network operator
SK Telecom. They report signing up
750,000 subscribers in the 16 months since the commercial start-up of the service in May 2005.
Heetae
Shin, manager of global business development at TU Media, said the company is on
track to surpass 1 million subscribers this year and 2.5 million subscribers by
early 2008.
"We are a
little behind our original plan and we had some start-up difficulties," Shin
said in a Sept. 28 interview. "But customer satisfaction is good, and long term
we hope for 6.6 million subscribers. Obviously there are some assumptions in
this forecast regarding handset prices."
The
cellular phones and other pocket devices equipped to receive TU Media's
television broadcasts carry an average retail price of $700. Recent models have
been priced at between $300 and $800, depending on features, Shin said. The
service is billed at a rate of $13 per month.
In Japan,
Mobile Broadcasting Corp. manages the DMB service and has confronted issues that
have made a repeat of the Korean success story impossible up to now, according
to Yoshitake Yamaguchi, the company's acting managing
director.
Yamaguchi said Sept. 28 that the
company does not publish subscriber numbers but conceded that the market
reception "is still less than our previous projections." An industry official
said estimates are that paying subscribers number fewer than 25,000.
Yamaguchi
said Mobile Broadcasting Corp. thinks that its cash-flow, break-even point would
be achieved with a subscriber base of 1 million to 2 million users. "To reach
that point, [the company] must reach the 100,000-subscriber point as soon as
possible, " he said.
NTT DoCoMo
this spring began deliveries of the Moba-HO! DMB
terminal, and Toyota has modified its in-car navigation system for Moba-HO! and began offering it as
a dealer option in May, Yamaguchi said. Mobile Broadcasting Corp., he said, is
focusing on the automobile market for its services, but Japan's ANA airline is
offering Moba-HO! service on
commercial flights beginning in 2007, according to Mobile Broadcasting Corp.
Shin and
Yamaguchi agreed that differing regulations in Korea and Japan relating to
cellular networks partly explain the contrasting results.
Shin said Japanese regulations limit cell-tower power output to
1 watt -- which makes in-building penetration problematic. In Korea, however, terrestrial repeaters are able to provide power at
levels ranging between 1 and 60 watts, depending on their location.
TU Media and its partners have
installed 8,500 of these signal boosters so far, providing a
95 percent signal reliability to customers. It's not enough, he agreed,
which is why more towers are being deployed to raise signal reliability closer
to 99 percent.
The strong
link with SK Telecom, which is TU Media's largest shareholder, also has helped with
the adaptation of mobile devices for DMB.
TU Media
customer surveys have found that 65 percent of them use the service for video, and
35 percent for the radio programming also offered. Nearly three-quarters of the
users are between 20 and 40 years old. Shin said users under 19 are only 4
percent of the market in part because of the continued high cost of the
handsets.