Irish not yet keen on mobile TV: report
09-06-2006
by Maxim Kelly

Only 8 percent of Irish mobile phone users are willing to pay for mobile TV, according to new research from iReach.

However this figure more than doubles to 17 percent when existing 3G users were asked about their willingness to cough up for television broadcasts on their handsets.

The percentages in the iReach assessment are in stark contrast to a European survey released earlier this week. A study from Portio Research claimed that up to 50 percent of all European mobile users were interested in viewing mobile TV, and the same 50 percent said they would be willing to pay, on average, EUR10 a month for unlimited or "all you can eat" TV on their phones.

iReach also questioned their 2,000-strong Irish mobile phone consumer panel on whether they would pay for other mobile content services. Only 12 percent of 3G phone owners said they would pay for mobile e-mail. Analysts believe this lower figure is due to the fact that most people are used to receiving e-mail without charge at home or at work, but have been conditioned into expecting to pay for media-rich mobile services like mobile TV and music downloads.

Ultimately it will be the standard and "tastiness" of available content that will entice mobile phone users into paying for 3G services. The provision of more compelling content will, according to iReach, help to drive demand for handset upgrades, or "refreshes" as they are termed in the phone industry. The survey suggests that 24 percent of Irish mobile phone owners are planning to upgrade their phones following the continued roll-out of mobile TV over the next 12 to 24 months.

"Mobile operators need to continue -- and to improve -- their support of the rollout of more sophisticated handsets or they risk slowing down the takeoff of data-rich mobile services such as mobile TV," iReach advised in a statement.

The telecommunications market research firm believes mobile operators will have to face-up to challenges such as educating consumers about mobile TV. They will also have to convince users of basic mobile services to fully utilise their phones' capabilities beyond voice calls and text messaging.

"Moreover, compelling services, relevant content, and affordable services should top the agenda for mobile service providers if they are to achieve mobile TV [critical] mass," explained iReach. "Issues further down the road will also include digital rights management and broadcasting spectrum issues, along with... growing portfolios for content partnerships and more complex revenue management amongst a growing web of partner organisations."

Returning to the Portio study, the report further claims that whilst only 6 percent of Europeans have ever utilised video calling on their mobiles, roughly 60 percent said they would be interested in using and paying for it if the service was cheaper and easier to use. Video calling was of particular interest to teenagers, 85 percent of whom claimed that they would use such a service. The report also claimed that per video call, pre-paid subscribers are willing to pay more than their post-paid counterparts