http://times.hankooki.com/lpage/tech/200507/kt2005072619341111790.htm
Cellevision Starts Breaking Into Daily Lives
By Kim Tae-gyu
Staff Reporter
A TU Media model demonstrates a satellite digital multimedia
broadcasting (DMB) phone, which beams TV signals into the phone.
The buzzword in the South Korean mobile phone market is
``cellevision,’’ the video-on-the-go services that deliver television
to cell phones.
Local handset makers continue to pump out new models that sport
mobile broadcasting capacity and cellevision services are catching on
with the nation’s tech-savvy users.
TU Media yesterday said more than 100,000 have signed up for its
satellite digital multimedia broadcasting (DMB) services in less than
three months after its commercial debut.
``This is an important milestone since our customer base indicates
that satellite DMB is taking firm root here in Korea,’’ TU Media
spokesman Heo Jae-young said.
Korea’s top mobile operator SK Telecom and its affiliate TU Media
launched the world’s first satellite DMB offerings with cell phones
in early May.
Satellite DMB enables people on the road to enjoy crystal-clear
video, theater-quality audio and data with handheld devices like cell
phones or in-automobile terminals.
TU Media currently offers nine video channels like drama, sports,
games, news, music and movie as well as 25 audio broadcasts. The firm
will add a pair of data channels next year.
The offerings are available at 20,000 won of one-time subscription
fee and the monthly rate of 13,000 won plus satellite DMB-enabled
cell phones.
``We aim at attracting 600,000 subscribers this year. Although it is
a tall order, we are optimistic that we can attain the goal
considering the continuing momentum awaiting us,’’ Heo said.
He added the increasing number of satellite DMB-capable phones, the
DMB expansion by mobile operators and the enrichment of the
broadcasting content would serve as building blocks of its success.
Glittering Array of New DMB Phones
Currently, only five satellite DMB-specific phones are available on
the market.
Included in the lineup are the SCH-B100, SCH B-130 and SCH B-200 of
Samsung Electronics, SB-120 of LG Electronics and IMB 1000 of SK
Teletech.
However, the number is expected to reach 15 late this year as the
country’s handset vendors, like the world’s third-largest producer
Samsung Electronics and fourth-biggest player LG Electronics, are now
competing to crank out more compelling DMB phone models.
``We plan to unveil about three additional DMB phones this year. We
expect the mobile broadcasting will be a mainstream function in the
near future,’’ LG spokesman Lee Hyoung-kun said.
Samsung, which is to introduce several more takeout TV phones this
year, also sees a similar upside potential in the new-fangled
satellite DMB services.
``We can tell for sure that all handsets will embrace the
broadcasting capacity in years to come although we don’t know exactly
when it will be,’’ Samsung spokesman Kim Hyun-min said.
Furthermore, Pantech Group, Korea’s third-largest mobile phone
manufacturer, jockeys to debut about three DMB phones this year,
which will make the total figure of broadcasting phones as many as 15.
Experts, including Mirae Asset analyst Kim Kyung-mo, point out
today’s convergence phones have crammed fancy features into them and
their next target is television.
``Cell phones have devoured a digital camera, an MP3 player and a
video recording function. Now the versatile digital toy is setting
its eyes on video services,’’ Kim said.
It should be good news for TU Media, which aims at returning to the
black in 2008 by expanding its customer base to 2.5 million and
passing through the cumulative breakeven point by 2010.
On a more positive note for TU Media, the nation’s smaller mobile
carriers of KTF and LG Telecom will kick-start the satellite-based
offerings next month.
Only business leader SK Telecom, also a parent firm of TU Media, has
thus far operated mobility-specific broadcasting on the cell phone.
Challenges Ahead
However, market observers caution against any early celebration
concerning the outlook of satellite DMB because a plethora of
competitors are lining up to become a mainstream format of video-on-
the-move services.
Its primary rival is terrestrial DMB, also a promising cross between
telecom and broadcasting just like its satellite counterpart.
Although both seem similar to end users, they are different in that
satellite DMB is based on videos beamed from a communication
satellite while terrestrial DMB works on over-the-air signals.
The biggest advantage of terrestrial DMB is that it is a free service
tailored toward providing over-the-air programs to all people on the
go while the satellite DMB is a fee-based commercial feature.
For now, however, terrestrial DMB seems not to be a serious
challenger because the homegrown service is stuck in several problems
even before making its debut.
The government picked six broadcasters to start terrestrial DMB in
March and they originally planned to embark on the feature in May in
time with its satellite-based rival.
However, the Ministry of Information and Communication issued
licenses as late as this month for several reasons and it is
uncertain whether its commercial service will be able to start this
year.
Yet, Samsung Securities economist Chang Sung-min argues people should
not downplay terrestrial DMB, which can pose a threat to the
satellite version, due to its notable competitiveness on being free
of charges.
``Other conditions being equal, people are unlikely to subscribe for
fee-based mobile TV if there exist cheaper of free alternatives,’’
Chang said.
Other rivals that can match satellite DMB are mushrooming next-
generation wireless services, such as the locally developed WiBro and
European-based high-speed data packet access (HSDPA).
Both platforms promise a real-life data transmission ability of up to
2-3 megabits per second (Mbps), the speed similar to that of the
current fixed-line broadband connection.
This means the 3.5-generation technologies, of which commercial
services are due for early next year, will provide an alternative way
to show TV programs on cell phones via the ultra-fast mobile networks.
``Satellite DMB does not have much time. It should scramble now and
preempt the market to become a primary format of cellevision,’’
Meritz Securities analyst Jeon Sang-yong said.
Content Does Matter
In this climate, many argue content is the key in the stiff race to
become the most viable model for mobile broadcasting.
``Eventually, the formats or companies that are armed with much
content will claim victory in the cellevision blitz,’’ Jeon predicted.
TU Media and SK Telecom understands the pressing need of obtaining
content and are today rushing to gain content for their customers.
For example, TU Media is posed to channel 700 billion won over the
next five years to secure more broadcasting content. And SK Telecom
acquired local entertainment company IHQ in March and took over YBM
Seoul Record two months later to obtain music content.
The operator is also in talks with domestic investment corporations
to establish a 75 billion won joint fund, which it will invest in the
entertainment industry.
``We are now negotiating with investment companies. We plan to funnel
approximately 25 billion won into building the fund,’’ SK Telecom
spokesman Park Jee-hoon said.
Up until now, TU Media has had a hard time in securing over-the-air
programs, which are by far the most popular among Korean watchers.
The country’s main terrestrial TV stations _ KBS, MBC and SBS _ still
vow not to permit TU Media to rerun their programs fearing the
emerging company may undercut their business.
However, encouraging signs have sprung up of late as TU Media has
made progress in enriching its lineups of video channels with over-
the-air programs.
In April, the Korean Broadcasting Commission changed its stance and
allowed the nation’s TV stations to rebroadcast their programs via
satellite DMB.
Under the approval, TU Media struck a deal last month with EBS to air
its educational content through mobile handsets and looks to expand
partnership with other TV stations.
``We will meet with other TV stations than EBS. We expect good
results so that Korean people who have nomadic mobility can watch
popular over-the-air programs at any time and at any place,’’ TU
Media’s Heo said.
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07-26-2005 19:3
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