Mobile TV

Mike Short

Vice President, Research & Development - Group Technology , O2 plc

mike.short@o2.com

Transmission network

End-to-end system

Content

Research data

Identify/recruit 375 customers who reside and ‘roam’ in trial area

Supply handsets

Provide customer care

Research data

ARQIVA O2

Roles of Arqiva and O2

Commercial Confidential

Korea – Commercial Service– 300K subscribers forecast to grow to 6.6M by 2010 –

TU Media

USA– Spectrum allocated for two networks - commercial services in 2006

Italy– Commercial service 2007, TIM and Mediaset

Finland– License tender issued by Finnish Government to be awarded in early 2006

Worldwide Developments

Commercial Confidential

Pre-Trial research showed strong consumer interest - 56% said good/really good idea

23% said they would take up service within 12 months

Mobile phones are no longer just “phones”

– Creating content - cameras– Being entertained – games, music, tv– Multimedia devices

UK market for mobile content was £600m (2005)

Global Interest – evidenced by many trials worldwide and commercial service announcements (20+)

By 2010 there will be 3 billion users of ‘mobile devices’ and a good proportion with TV viewers [125millions (Informa); 250millions (ABI)]

Why trial Mobile Broadcast TV?

Recruitment

Network Build Testing

Trial

Triallist rollout29/30th Sept

Launch event 22nd Sept

Testing & recruitmentbegan 5th Sept

Mid-term update early 2006

Trial endSpring2006

Results Spring 2006

Analysis

Began May

Timeline – Mid-term update

One or Two-way radio

Media Rich Interactive Services– Web-links– Interactive content– Mobile Commerce

Regional Services or Targetted Advertising

More than 16 channels or “made for mobile” content

Advanced features such as ‘Catch-up TV’ and ‘See Me TV’

But … we also knew what the cellular demand was

This could all add up to a ‘Personal TV’ experience

What we couldn’t trial

Participating channels

Usage of service– Where, when, how often, how long

TV service’s appeal & acceptance– Number & type of channels

Adequacy of the trial services– Quality (picture and sound), reliability, coverage, enhancements

Take-up intentions– Likelihood and any barriers

Value and payment preferences– Explore subscription/pay as you go/pay per view etc

Market research

CableTV

15%

Current TV Service Received of Triallists

Commercial Confidential

5%

27%

18%

14%

4%

28%

4%

1 hour or less 2 hours 3 hours 4 hours5 hours 6 hours 7 hours+

Standard Analogue

32%

FreeviewReceiver

22%

SatelliteTV

32%

Average TV Viewing: 3.4 hours a day

Usage Levels – How Much (%)

Weekly Viewing

Over 3 hours per week

Viewing Durations

Average 23 minutes per session

Wide range of viewing durations

Includes short and long-form programmes

9

15

26 26

3

13

2

5

0

5

10

15

20

25

30

35

40

1-5 mins 6-10 mins 11-20mins

21-30mins

31-40mins

41-60mins

61-90mins

90+ mins

*How long on average do you watch the mobile tv service at any one time?

Usage Levels – Where (%)

36

2321

71 2 1 3

0

10

20

30

40

50

60

70

80

Home At work/uni

Bus Car Wait forothers

Pub On street Bus stop

Month 2

*Q Where do you use the service most often (%)?

Usage Levels – Time of Day

18%

10%

15%

7%9%

12%3% 2%

24%

Before 9am 9am - 12pm 12pm - 2pm2pm - 4pm 4pm - 6pm 6pm - 8pm8pm - 10pm 10pm - midnight Midnight - 6am

9am

6 pm

*Q When do you use the service most often?

Usage Levels – Time of Day

Viewing Peaks

Breakfast/Morning Commute

Lunchtime

Early Evening

*At what time of day do you watch the mobile tv service most often?

00:00

02:00

04:00

06:00

08:00

10:00

12:00

14:00

16:00

18:00

20:00

22:00

24:00:0

0

FinPilot Oxford T ria l

Category Champions (%)

16 channel line-up

Proving very popular

Evidenced by 83% satisfaction level

Channel Branding Important

‘Made for Mobile’ content needs more development

Most Popular Genres

News, Soaps, Music, Docs, Sports

Lunchbreak - favourite daytime soaps

44

36

32

25 25 24 22

16 15

11

0

5

10

15

20

25

30

35

40

45

50

News Soaps Music Docs OtherSports

Movies Comedy Football Childrens Drama

Programmes suitable to watch

Other Feedback

High Satisfaction Levels

83% satisfied or better with the service

Satisfaction Drivers

Choice of channels

High Picture and Sound Quality

Electronic Services Guide (ESG)

High Take-up Intentions

76% of triallists would take up service within 12 months at an acceptable price

This demonstrates that the majority of triallists are prepared to pay for a service

Other Feedback

Consumers also interested in:

Digital radio channels

PVR type functionality

Interactive services

Web links to broadcaster/other content

Number of Channels

16 channels is felt to be adequate choice

Next Steps

Trial Results

Release more results as the trial progresses

Government

Keep Government informed of our findings

Make spectrum issues clear to Government

Delivery partnership

Explore collaborative UK cross-industry co-operation

Conclusions

High satisfaction and clear consumer demand

Home usage has exceeded our expectations

Channel choice is a clear driver of usage

Today channel brands offer the strongest category champions

‘Mobile TV’ alone does not convey the demand we have seen in Oxford so far

‘Personal TV’ will take us beyond broadcasting as we know it today