Many mobile operators already offer TV and video services carried over their 3G networks. Concerns about network capacity and quality of service are driving operators to combine 3G networks with dedicated mobile broadcasting networks (such as DVB-H and MediaFLO), but these are not the only ways in which mobile TV content can be delivered: indoor wireless systems (such as femtocells and WLAN) and sideloading (when content is transferred from a PC or other device to memory in a mobile handset) have important roles to play (see Figure 1). These delivery systems could become competitive threats to their businesses, if mobile network operators (MNOs) do not embrace them.

Figure 1: Distribution methods for delivery of mobile TV and video content [Source: Analysys Mason, 2008]
Existing 3G macrocell networks provide a means of delivering mobile TV and video services by streaming broadcast channels and video-on-demand content to users over individual 3G data connections. This is an effective solution when the number of users is small, but has capacity and quality limitations, and cost implications, as the number of consumers increases. 3G enhancements, such as HSPA, HSPA+ and LTE for UMTS networks, and EV-DO Revision B and UMB for CDMA2000 networks, will relieve these problems up to a point, but will require time and money to be invested in order to come to fruition.
Broadcasting networks overcome the capacity limitations of 3G by transmitting the same programmes to all users over a common data stream. MNOs are considering a variety of broadcasting technologies, including DVB-H, MediaFLO, DMB and TDtv, and various commercial services have been launched. However, uncertainties about standards and spectrum allocations have hindered their progress. Also, broadcasting networks limit the range of content that is available, as users have to watch whatever is being broadcast when they tune in. Outside peak broadcasting hours, the programmes may be less appealing.
Indoor wireless systems, such as WLAN and 3G femtocells, offer an alternative means of delivering mobile TV to users when they are indoors, for example at home. Trials of DVB-H services have shown significant indoor usage of mobile TV services, and 36–50% of participants viewed mobile TV mainly at home, despite the availability of conventional TVs. MNOs could use femtocells to carry this indoor traffic, relieving their macrocell networks of substantial loads and potentially offering higher quality picture and sound than is possible with outdoor 3G and broadcasting networks.
Sideloading can be a highly effective way of delivering content that is not time critical, such as pre-recorded TV programmes (including documentaries, dramas, situation comedies and soap operas) and feature films. Users can choose their favourite content to load onto their devices at a very high quality level. They can then watch the content whenever and wherever they want. Compared to other mobile TV distribution methods, sideloading can provide guaranteed reliability in any location (even where wireless coverage is not available), with very high quality. Video content available on iTunes for sideloading to Apple iPods and iPhones is encoded at a data rate of over 1Mbit/s, which provides very-high-quality pictures and sound compared with the 128kbit/s used for some 3G streaming services.
MNOs may perceive sideloading and indoor streaming over WLAN as competitive threats, as these technologies make it possible to deliver content to mobile devices completely independently of mobile networks. However, it would be very dangerous for operators to ignore the customer appeal of these distribution methods. Instead, MNOs need to work out how they can use sideloading and 3G femtocells as part of an integrated mobile TV and video platform, in order to secure the maximum benefits for their businesses.
Critical Ingredients of Mobile TV: femtocells and sideloading considers the role of indoor wireless systems and sideloading alongside 3G macrocells (including HSPA, HSPA+ and LTE) and broadcasting networks (such as DVB-H and MediaFLO). The report analyses the capabilities and limitations of each technology and maps these against the factors that will influence customer choices on mobile TV services. By modelling typical 3G networks and service mixes, the report assesses which technologies are required to deliver a compelling service proposition and which may be unnecessary. It also examines how operators can best take advantage of the range of different mobile TV delivery mechanisms, some of which may not be in their direct control.