EU backs Nokia-led mobile TV standard
BRUSSELS, July 18 (Reuters) - The European Commission backed a Nokia-led (NOK1V.HE: Quote, Profile, Research) mobile television broadcasting standard on Wednesday in a move that could spur growth in the fledgling but potentially lucrative sector.
The lack of a single technology has held back wider take-up for television on cellphones and the EU's support for digital video broadcast handheld (DVB-H) could be the decisive factor in the battle to establish a global standard.
The Commission said on its website that DVB-H "appears to be the strongest contender for future mobile TV deployment in Europe" and is already the most popular standard in Europe.
"The Commission therefore considers that DVB-H will form the basis for successful introduction and take-up of terrestrial mobile TV services in the EU," it said.
"It will continue to monitor the situation in the EU and may come forward with proposals in 2008 including, if appropriate, making this open standard mandatory."
The European Union executive made GSM (global system for mobile communication) mandatory as a mobile phone standard in the 1990s, opening the door for rapid growth in that sector in Europe. GSM is now the standard in many non-EU countries.
The choice is a blow for U.S. company Qualcomm (QCOM.O: Quote, Profile, Research) and South Korean vendors which have promoted their own technologies.
So far only DVB-H has a global presence, while South Korea, Japan, the United States and China are embracing local rivals.
Some of the other technologies are also making a play for the global market, preventing services being offered worldwide under a single standard.
Commercial DVB-H broadcasts have started in India and Vietnam, in addition to some European countries, while Malaysia, the Philippines and Indonesia are to open networks this year.
Qualcomm's vice president for business development in charge of the company's MediaFlo technology said the industry had been held up by the allocation of radio frequencies rather than by the lack of a single standard.
"I am baffled by this (decision)," Omar Javaid told Reuters in a prepared statement.
"Fundamentally, the real issue is not which standard the European Commission is backing -- spectrum is really what is preventing commercial launches."
Most people who watch TV on their cellphones use third-generation (3G) mobile networks, bringing in long-awaited data transmission fees to operators, but these limit picture quality and user numbers.
Mobile operators hope mobile TV could encourage users to spend an extra 5 to 10 euros ($6.90 to $13.80) a month, compensating for declining revenues from voice calls.
The lack of a single technology has held back wider take-up for television on cellphones and the EU's support for digital video broadcast handheld (DVB-H) could be the decisive factor in the battle to establish a global standard.
The Commission said on its website that DVB-H "appears to be the strongest contender for future mobile TV deployment in Europe" and is already the most popular standard in Europe.
"The Commission therefore considers that DVB-H will form the basis for successful introduction and take-up of terrestrial mobile TV services in the EU," it said.
"It will continue to monitor the situation in the EU and may come forward with proposals in 2008 including, if appropriate, making this open standard mandatory."
The European Union executive made GSM (global system for mobile communication) mandatory as a mobile phone standard in the 1990s, opening the door for rapid growth in that sector in Europe. GSM is now the standard in many non-EU countries.
The choice is a blow for U.S. company Qualcomm (QCOM.O: Quote, Profile, Research) and South Korean vendors which have promoted their own technologies.
So far only DVB-H has a global presence, while South Korea, Japan, the United States and China are embracing local rivals.
Some of the other technologies are also making a play for the global market, preventing services being offered worldwide under a single standard.
Commercial DVB-H broadcasts have started in India and Vietnam, in addition to some European countries, while Malaysia, the Philippines and Indonesia are to open networks this year.
Qualcomm's vice president for business development in charge of the company's MediaFlo technology said the industry had been held up by the allocation of radio frequencies rather than by the lack of a single standard.
"I am baffled by this (decision)," Omar Javaid told Reuters in a prepared statement.
"Fundamentally, the real issue is not which standard the European Commission is backing -- spectrum is really what is preventing commercial launches."
Most people who watch TV on their cellphones use third-generation (3G) mobile networks, bringing in long-awaited data transmission fees to operators, but these limit picture quality and user numbers.
Mobile operators hope mobile TV could encourage users to spend an extra 5 to 10 euros ($6.90 to $13.80) a month, compensating for declining revenues from voice calls.
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