Competition between mobile phone manufacturers will drive down costs of ATSC M/H devices and provide a wider variety of devices for users. In terms of content, although FLO TV tries to differentiate itself from ATSC M/H by showing programs from national networks, many of the local networks available via ATSC offer such programs. We therefore see these standards as competitive, not complementary.”

The report goes on to argue that although video via carrier networks will exist alongside broadcast mobile TV, mobile video user growth will be steeper because it enables greater content variety, more control for users, more niche programming, and greater opportunities for personalization and advertising. However, Smith points out that growth will be linear rather than exponential: “Viewing video on small devices out of home is new. It’s different from cameras and MP3 players on phones because people were already taking photos and listening to music on other devices whilst out and about. Nevertheless, mobile phones are things people always carry with them and use for a variety of activities - texting, social networking, mobile web and so on. The challenge for service providers is to create the kinds of services people want and to help people make the transition from what they are currently doing on their phones to something entirely new.”