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Displays Critical for Mobile TV Experience

Strategy Analytics released a report on the fledgling Mobile Television device market, �TV Phones: Integration and Power Improvements Needed to Reach 100 Million Sales.� The report predicts modest success for TV phones in 2006 and 2007, as handset vendors work through inevitable size, power, integration and price trade-offs in the next critical battleground of the post camera phone era.

Neil Mawston, the report author notes, �Our research indicates that 3-inches / 6.3cm diagonally is the sweet spot above which the propensity to watch mobile TV rises tangibly. However, this poses a real design challenge for vendors and a dilemma for mobile operators as they seek to balance the needs for stylish, compact devices for the mass market against the need for this larger display.�

Chris Ambrosio, Vice President of the Global Wireless Practice, adds, "Handset vendors can barely contain their excitement at replacement rate support and the potential for slowing annual ASP erosion offered by TV phones. Aspiring technology-focused vendors believe that they can gain an entr�e or improved position with the increasingly powerful set of mega operators. How long will the TV phone price premium last and what, if any, impact will TV phones have on handset vendor mid-range profitability are the critical questions which no-one seems to be voicing at this stage.�

The report notes:
* 2008 will be the inflection point for mobile television worldwide as Device, Networks, Applications and Government regulatory (DNAG) ecosystems components mature.
* DVB-H will be the most widely supported mobile TV technology with strong support from tier-1 players such as Nokia, Motorola, Sony Ericsson and Siemens.
* DMB-Terrestrial products from vendors such as Samsung and LG will be best positioned to grab the runner-up slot behind DVB-H.
* The inevitable standards fragmentation will dilute any significant profit uplift and limit technology differentiation opportunities from TV phones.
* MediaFlo will see modest success in the North American market as operators like Verizon Wireless seek to establish early brand preference for mobile digital TV.

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