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DMB Potential for Telecom and Broadcasting

As the border between broadcasting and telecommunications blurs, DMB will become a key part of global broadcasters' strategies for future business diversification, and will provide tactical momentum driven by bundling of services.

According to Seoul-based ABI Research analyst Andy Bae, "In the context of the Korean market, DMB (digital multimedia broadcasting) may emerge as a multimedia and broadcasting sub-function for WiBro or WCDMA handsets, similar to the situation that developed with camera- and MP3-equipped phones as they became mainstream. The bottom line is that incumbent telecom operators � faced with falling voice and mobile Internet data revenue � have recognized the opportunity that bundling DMB and other services can bring, allowing them to enter broadcasting territory and generate new service revenue."

The long-term value for DMB users will lie in the content and the applications that can deliver differentiated, personalized broadcast media. "As DMB services are extended in a more pervasive way to future users who want to experience multimedia content," says Bae, "content suppliers' and program providers' presence in the DMB industry will become more important." Therefore, the new challenge facing DMB operators � aside from technical integration � will be a huge effort to provision sufficient amounts of compelling content.

After the commencement of S-DMB and T-DMB commercial services in May and December, 2005, European operators such as TF1 and the BBC are offering T-DMB pilot services with successful deployment experience and proven performance. ABI Research anticipates that in European regions, competition for mobile TV services will be fierce, with many technologies and vendors. Despite DVB-H's strong positioning in the region, Korean T-DMB will allow European operators to provide cost-effective solutions that also support compatibility with their DAB.

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