(BusinessWorld via NewsEdge) Despite the splashy launch, Philippine cellular giant Smart's plan to offer mobile TV services is being met with skepticism by telecommunication and broadcast industry players.
With barely three months before the service debuts commercially, observers are saying it could be too early and risky for PLDT, Smart's parent firm, to take the gamble, especially with a bet worth some $50 million, the estimated amount of investments required over the next three years.
'This business is still a blue ocean and I would like to see some success stories first. It could be just a lot of hype because there is really no proof of concept yet to speak of,' Solid Group president and CEO David S. Lim said.
A holding company, Solid Group owns a 100% stake in myDestiny which offers both broadband Internet access and cable channels.
'If we go by the 3G trend, penetration has been slow. For this service, how much of their content will be interesting to a large number of consumers‾' Nielsen Media Research executive director Jay G. Bautista said.
Smart will be utilizing the broadcast franchise of sister firm Nation Broadcasting for the mobile TV service. PLDT group officials have said tests, using mostly foreign content, are ongoing in Metro Manila, Cebu and Davao.
To operate the mobile TV service, Smart said it will be using DVB-H technology.
'The biggest problem now for this service is there is no standard. There are suppliers, but technology remains proprietary. With no standard yet, the market and the content available will be limited,' Solid Group's Lim said.
Another issue for Smart is the availability of local content. PLDT Group officials have admitted that talks are still ongoing with the country's largest broadcast networks.
These traditional broadcasters are also said to be planning services for handheld devices.
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