NTT Docomo beats KDDI in mobile TV license battle in Japan

A government panel has backed NTT Docomo’s bid on the grounds that its offering will be cheaper to the consumer.

Critics argue that NTT Docomo’s homegrown technology is not compatible with mobile devices from outside Japan. KDDI’s bid, using Qualcomm MediaFLO technology, was seen to be technically stronger but less cost-effective.

Media owners welcome the new mobile TV platform, praising the lower price to consumer and new revenue opportunities.

“Content providers can come on board at a lower price point and offer new services,” said one media owner. “We can also explore new revenue streams, until now all mobile TV (we’ve done) has been ad-supported.”

At Universal Music LLC Japan, Kazuhiro Shimada, corporate executive and general manager, new business development, said, “Until now Universal Music in Japan has been selling packaged music like CD’s and digital downloads direct to the consumer. Our music videos have been shown through distribution deals with TV channels like MTV. But this new mobile platform (NTT Docomo) offers the opportunity for content providers such as ourselves to distribute directly to the consumer, possibly with a channel of our own, maybe as a joint venture. We already make content available on You Tube via the Internet, but the new platform will make it possible to stream video content via the new mobile broadcasting service."

The mobile TV license - which will be awarded by the Ministry of Internal Affairs and Communications (MIC) on the recommendation of the Radio Regulatory Commission (RRC) - comes with 14.5 MHZ of the VHF spectrum that will become available when analog TV broadcasting ceases in July 2011.