The big three in broadcast mobile TV has been cut to two rather unceremoniously with Crown Castle International Corp. bailing on its Modeo L.L.C. business before it really even got its feet wet in the mobile TV space.
Modeo, one of only two DVB-H providers looking to capture interest among other carriers or partners, folded just a few months after releasing results from its New York City trial. Now, Aloha Partners L.P., which is building the HiWire L.L.C. network, stands alone as a competitor to Qualcomm Inc.’s MediaFLO USA network. HiWire’s Las Vegas trial recently got under way with a 24-channel lineup.
But, what does Modeo’s demise mean for this slow-cooking market?
Lessons to be learned
MediaFLO USA Inc. is still the only broadcast mobile TV provider that has scored major partner agreements and moved its service beyond the trial phase and into consumers’ hands. Even HiWire President and COO Scott Wills said no network will be built without at least one major partner.
“We are not going to build a network out until we get a partner,” he said, still adding that partners could range from major cable or satellite TV providers to a wireless carrier or new market entrant. Whether a company will survive without a wireless carrier partner is still to be seen.
“In the early stage of any industry you want to see everybody succeeding,” Wills said. “It’s unfortunate, but it’s not a surprise. There were a couple things that were working against them.”
Elusive partner arrangements were just the beginning, Wills said.
“I think Modeo had some of the right ideas, they just didn’t have the right spectrum to be able to do it,” he said. “The spectrum was not really ideal for mobile TV … it was literally going to cost them billions to build that network out.
“They didn’t have enough capacity and they didn’t have the right frequency or power levels,” he continued. “That hurt them. That combined with the fact that the mobile TV industry is very nascent right now. You have to be able to stick it out for several years.”
Wills has consistently highlighted HiWire’s spectrum holdings as its greatest asset. Aloha Partners has the largest holding of 700 MHz spectrum, which is licensed at 50,000 watts, giving HiWire a huge economic advantage, he said. “And when you’re starting a nascent business, that economic advantage really gives you a competitive edge.”
MediaFLO remains focused
MediaFLO USA Inc. President Gina Lombardi mostly withheld comments on Modeo’s fate, instead saying she and MediaFLO are focused on its own success and partner arrangements.
“Although MediaFLO USA can’t speculate on the fate of Modeo, our business remains unaffected,” she wrote in an e-mail in response to questions.
“What is clear to us is that even in these early days, the mobile TV landscape is evolving, and we are excited to take a leadership position in bringing true mobile TV to market,” she added. “Regardless of the competitive landscape, our focus remains the same: to continue to provide content and programming from the world’s best-known entertainment brands, to support Verizon Wireless with Vcast Mobile TV service in additional markets across the county, and to support AT&T’s launch of FLO TV service later this year.”
As for where things will go from here, Wills concluded: “The only thing we know for sure today is what has been done is insufficient to drive mass adoption. Mobile TV still has a ways to go to make it consumer-centric.”
