DMB Service Starts With Uncertain Prospects

DMB Service Starts With Uncertain Prospects

2005-12-05

Models show LG-made PDAs that are capable of receiving terrestrial digital multimedia broadcasting (DMB).

The world¡¯s first free mobile broadcasting commenced last week in Korea, but its outlook is uncertain as a host of hitches are lurking in wing to trip up terrestrial digital multimedia broadcasting (DMB).
Korea¡¯s three major broadcasters _ KBS, MBC and SBS _ and two smaller licensees began transmitting airwaves for six video and 10 audio channels on Dec. 1.

The number would increase to seven video and 13 audio channels next month. Plus, eight data broadcasts will be added to the portfolio in 2006.

DMB enables people on the road to enjoy crystal-clear video, theater-quality audio and other data via in-vehicle terminals or on handheld gadgets like cell phones.

The video-on-the-move service is presently available in Seoul and the surrounding Kyonggi Province and broadcasters seek to make it a nationwide application next year.

Korea wants to go global with the homegrown broadcasting technology that was spearheaded by the government, which regards the offering as a future cash cow.

However, it is not all a bed of roses. There are thorns in the technology¡¯s narrow service range, low availability of proper handsets and its lack of mobile broadcasting-specific contents.

In particular, most user-friendly terminals _ DMB-enabled phones _ are not likely to hit the market this year because of opposition from wireless carriers.

Terrestrial DMB¡¯s major rival, satellite DMB, can set up stumbling blocks for it to emerge as a mainstream choice for go-anywhere TV.

In fact, fee-based satellite DMB that commenced operations in May has attracted 300,000 customers despite its monthly usage fee of 13,000 won and one-time subscription fee 20,000 won.

Information and Communication Minister Chin Dae-je, right, raises a glass of orange juice to celebrate the start of the terrestial digital multimedia broadcasting (DMB) at the KBS television station in Yoido, Seoul, in this Newsis file photo dated on Dec. 1.
Terrestrial DMB: Born to Go Global
Terrestrial DMB was upgraded from the digital audio broadcasting (DAB), the European technology tailored to transform analogue radio broadcasting to digital.

The new technique emerged in Korea through an attempt to find a national standard for digital TV among two candidates _ the U.S. system that does not guarantee service quality for mobile users and the mobility-friendly European one.

Korea adopted the U.S. formula, though it was not suitable for wireless reception. So, the nation sought a mobility-specific alternative through upgrading the audio-use DAB into video-capable terrestrial DMB.

The nation¡¯s strategy predicated on the casual notion that the U.S. system is devised for couch potatoes at home, whereas DMB caters to people on the move.

Currently, several platforms are staging an uphill battle to claim bragging rights on the mainstream technology for mobile TV services, which experts say are filled with untapped potential.

Included in the candidates are terrestrial DMB, DVB-H, which was developed by the world¡¯s top cell phone producer Nokia, and MediaFlo created by Qualcomm, the U.S.-based chipmaker.

Information-Communication Minister Chin Dae-je has stated repeatedly that the commercial start of terrestrial DMB here would help the Korean portable broadcasting system prove it is a leg above several rivals.

``When I attempted to promote terrestrial DMB overseas, I always lacked logical ground since Korea still has yet to start the service. The launch of commercial terrestrial DMB is inevitable to expand its presence across the world,¡¯¡¯ he said.

Korea especially hopes terrestrial DMB will be the final winner in Europe as countries there already have the infrastructure in place for DMB _ they facilitated DAB.

``Terrestrial DMB uses radio frequencies identical to those of DAB. As a result, European nations don¡¯t have to worry about spectrum availability with terrestrial DMB. That is our power,¡¯¡¯ Chin said.

By contrast, Nokia has had a hard time in securing frequencies for the full-fledged service of DVB-H. Adding difficulties, the giant must find the same spectrums in most European countries to raise a commercial viability of DVB-H.

In recognition of such strengths, more European nations are bracing for terrestrial DMB.

France plans to embark on a trial run of the service this month and Germany will follow suit next year in time with the World Cup, the world¡¯s biggest football gala.

In Britain, terrestrial DMB offerings will get underway in its capital London beginning next April.

Bumpy Road Ahead

The biggest downside of terrestrial DMB is that users will not be able to snap up the most convenient terminal _ phone-type gizmos.

LG Electronics, the world¡¯s fourth-largest handset maker, unveiled terrestrial DMB phones last year, but it is still uncertain when the model will hit the shelves.

LG and its cross-town rival Samsung Electronics, the No. 3 global player, combined to develop five terrestrial DMB phones but they have no channel to sell them.

``Korea¡¯s mobile operators are reluctant to market them because the debut of free takeout TV would prompt people to watch videos on their spare time instead of sending messages or enjoying games through cell phones, the activities that offer profits for the firms,¡¯¡¯ said Kim Hyuk, an official at the Special Committee for Korean Terrestrial DMB.

Reception of terrestrial DMB signals is currently possible with the latest laptops, in-automobile devices and gadgets.

But Kim said terrestrial DMB phones are the main device and delaying their introduction would substantially dampen the outlook of the just-launched service.

``The problem is that terrestrial DMB phones are not likely to come into the market this year. We are struggling to find out ways to address the current stalemate,¡¯¡¯ Kim added.

By contrast, satellite DMB boasts of 19 terminals including 13 cell phone types.

The lack of killer contents is another Achilles¡¯ heel for terrestrial DMB; the five licenses are just re-running the over-the-air programs instead of making mobile broadcasting-specific ones.

``For now, terrestrial DMB service providers have no lucrative business model as it remains to be seen whether companies will buy TV ads on them. If not, they would be in trouble,¡¯¡¯ said Kim Kyung-mo, an analyst at Mirae Asset.

It compares to satellite DMB, which fill 11 video and 26 audio channels with contents preferred by people on the go although the service is not allowed to air terrestrial broadcasting.

Plus, terrestrial DMB will not be serviced in shadow areas like the underground areas or in buildings for the time being. As late as next July, folks will be able to watch the services at the Seoul subway station.

``There are several terrestrial DMB licensees and they should reach an agreement for every decision. It is not a proper form for new technology to forge ahead in fast-moving society or to meet the seemingly endless needs from tech-savvy citizens. In that sense, the outlook of terrestrial DMB has dimmed,¡¯¡¯ Kim said.