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China Mobile Favors Fee-based Model for Mobile TV Service

CCTime.com, 8/24/09

Yu Rongrong, deputy director of China Mobile Research Institute's business development division, recently revealed that China Mobile (NYSE: CHL; 0941.HK) and China Satellite Mobile Broadcasting Corporation (CSMBC) may sign an agreement in September to conduct official commercial trials of CMMB. Speaking at a summit on the development and integration of China's next-generation networks, Yu argued that China Mobile should commit to fee-based TD-SCDMA mobile phone TV services rather than a free model, as it may lead to a "vicious circle" as was the case in Korea, where mobile TV advertising created user resentment.

Yu said China Mobile's self-developed Mobile Broadcast Business Management System (MBBMS) leverages the combined advantages of broadcast and wireless connections to provide users with fee-based mobile phone TV services, and has the added virtue of being relatively mature, having already served 500 mln mobile users. She added that netbooks and 3G data cards will spur future development of CMMB-based mobile TV business, and that both parties would team up for a promotional blitz in late September and early October.

Editor's Note: China Mobile first began testing MBBMS, a management system for mobile video service, in 2007. For more information, please see "China Mobile Testing MBBMS Mobile TV," MD, 10/24/07 issue.

Keywords: Yu Rongrong mobile data China Mobile wireless China Mobile Research Institute CMMB CSMBC MBBMS mobile phone TV CHL TD-SCDMA 0941.HK netbook tariffs television data card commercial trial

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