Free to Air Goes Mobile

Originally Published: January 2009

At the beginning of every year trend reports are released forecasting the year ahead. A frequent member of this list has been mobile TV. Again and again its rise and uptake by the middle market has been prophesized. Yet, at the beginning of the following year it appears back on a forecasting trend report ready for another try. Well this year looks to be the year to end this cycle. Mobile TV may finally become a viable option for the middle market (in the US, at least). So what changed?

Mobile TV became a collective goal.

At the International Consumer Electronics Show which ended last week in Las Vegas a group of American broadcasters announced that they would start broadcasting direct to cell phones. Among these content providers are major broadcasters like ABC, Fox, NBC and CBS. These companies have been joined by handset manufacturers: LG, Samsung, Zenith and Kenwood. All of whom are currently developing mobile receivers to pick up transmission from the stations. Rumor has it that AT&T is currently looking at selling the phones on their network. This initiative is due to launch at the end of this year in 22 cities across the US.

So, why will this work?

This will work because it is using the same business model as traditional free-to-air. The ad-supported business model is one most consumers understand. If they watch TV they live with it everyday. By simply mobilising TV directly the consumer can easily get their head around its use. The lure of it being apparently free (with advertising) will overcome one of mobile TV’s biggest obstacles in the past – cost. One of the biggest draw backs of content is the ‘unknown’ fee associated with viewing. Telco’s have tried to overcome this problem through snacking (Optus) or the leveraging internal assets (Telstra and free limited Bigpond/ Foxtel content). Yet, there are limitations to both these offers namely restricted access.

Mobilising the ad-supported model is the key to mobile TV’s success. It would be a win for the consumer who will not have to pay-to-view and for telco’s who can use it as an additional revenue stream through handsets or advertising. Hopefully, this year will move Mobile TV to the mainstream in the US and shortly to follow Australia.

Municipal WiFi (It’s Free)

Originally Published: July 2008

This is a continuation of the theme ‘free’, but from a different perspective. It raises some likely threats to big telecommunication companies about the future of WiFi (so pay attention). Currently, this is a phenomenon gaining prominence in the states, and it is gradually hitting Australia (see links).

Cities across the US (and world) are adding themselves to the list of places where anybody can access free WiFi (and I mean anybody, no catches). This is a new type of ‘free’, one not being instigated by a corporation looking to sell its wares for access (Starbucks) or funded by an ad supported business model (as with digital music). It is different because its primary focus is not on profit it is rather utilitarian: ‘(to make) high-speed internet access more available and affordable’.  What is important is that places embracing this new model of wireless broadband aren’t little and obscure. For example, Texas (Corpus Christi), California (San Francisco), Massachusetts (Cambridge), the Government of Lebu, Chilli, and Pennsylvania (Philadelphia).

This is not something that any of the big service providers saw coming …

This is happening partially because the larger US companies have failed to convert their costly deals with cities into a live network; but mostly because they have not adapted to the ‘new world’ where everyone is a participant (whether they like it or not).  For example, in San Francisco EarthLink’s internet deal would have cost the city in the vicinity of US$14-$17 million (this was a deal that failed and subsequently fell through). Frankly, the residents didn’t and still don’t care. Instead they are taking part in creating their own ‘wireless cloud’ for a quarter of the amount it would have cost with EarthLink.

The company which is making it work is a group of volunteers and a startup called Meraki. Meraki is a company set up by two MIT classmates (who also created their own wireless network in Cambridge, MA). How it works is that volunteers house Meraki Minis (or repeaters) that carry the wireless signal around the city. Therefore when someone joins, the network gets bigger (for free). This maybe how wireless broadband transcends to the masses. Interestingly, there is someone funding Meraki, but they are not passing the fee onto the users – probably not a big surprise that company is Google.

Meraki Website

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