A Case Study of China Multimedia Mobile Broadcasting (CMMB)
A Case Study of China Multimedia Mobile Broadcasting (CMMB)
A Thesis Submitted to the Faculty Of Drexel University By Dongchen Zhang In partial fulfillment of the Requirements for the degree Of Master of Science June 2011
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©Copyright 2011 Dongchen Zhang. All Rights Reserved
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Abstract A Case Study of China Multimedia Mobile Broadcasting (CMMB) Dongchen Zhang Albert S. Tedesco, Supervisor, BA, MA, MAC
Beginning late in the 20th century, mobile broadcasting TV has been launched in many countries all over the world. Though it was expected to be one of the most promising technologies, each country still has its own situation, some are successful, and others are disappointing. Meanwhile, the mobile broadcasting TV is penetrating China rapidly because of the development of its special China Multimedia Mobile Broadcasting standard and network.
The worldwide mobile broadcasting TV markets are active due to technology development, business models maturity, and competition is aggressive. The potential size and
growth rate of the Chinese mobile TV market warrant examination of the wireless development
in and outside of the country. Here, we study specifically this unique growing standard – CMMB,
including the technology, the consumer demographics, and the business model. iv
Acknowledgment
I would like to thank my academic advisor, Albert Tedesco for his invaluable feedback
and guidance. Tedesco’s teaching and insights have been a great source of knowledge and ideas
for me both inside and outside of this project while at Drexel University.
I would also like to thank both Min Wang and Xinquan Fan. Miss Wang has given me a
lot of suggestions to improve the grammar and expression of this study. Mr. Fan helped me to understand the technical issues related to the study since he is an excellent engineer in electric engineering.
I would also like to express my deepest appreciation for Haizhao Yang, Director,
Broadcasting & Satellite Division, and Hubei Television Station. Mr. Yang not only guided me in critical understanding of the Chinese regulatory environment, but also helped me to obtain one copy of CBC’s Internal Manual that is one of the most important documents reviewed in this study.
Also, a special thanks to Mitch Barns, President, Nielsen Greater China, for his support
and kind words of encouragement during this study. Mr. Barns has given me some Nielsen
reports related to the subject that helped me to improve the study. v
Table of Contents ABSTRACT ...... iii ACKNOWLEDGMENT ...... iv LIST OF TABLES ...... viii LIST OF FIGURES ...... ix 1. INTRODUCTION ...... 1 1.1. Purpose of the Study ...... 2 1.2. Literature Review and Study Outlines ...... 3 1.3. Limitations and Ethical Considerations ...... 4 2. MOBILE BROADCASTING TV STANDARDS ...... 5 2.1. Competing Mobile TV Broadcasting Standards ...... 6 2.1.1 DVB-H ...... 6 2.1.2 DMB ...... 9 2.1.3 OneSeg ...... 11 2.1.4 MediaFLO...... 12 2.2. Standards Economics ...... 13 3. OVERVIEW OF CMMB INTRODUCTION ...... 14 3.1. CMMB Technology System ...... 15 3.1.1 CMMB Standard ...... 15 3.1.2 Channel Transmission Technology of CMMB system ...... 15 3.1.3 AVS-Audio Video Standard ...... 16 3.1.4 CMMB Backhaul System ...... 17 3.2. Key Technology of STiMi ...... 17 3.2.1 Signal processing procedures on the physical layer ...... 18 3.2.2 RS encoding and byte interleaving ...... 18 3.2.3 LDPC Encoding ...... 19 3.2.4 Bit Interleaving ...... 19 3.2.5 Constellation Mapping ...... 19 3.2.6 Orthogonal Frequency Division Multiplexing Modulation ...... 19 3.2.7 Timing and Frequency Two-Dimensional pilot Technology ...... 20 3.2.8 Beacon Technology...... 20 3.2.9 The Technology of Time Slot ...... 21 3.2.10 Frame Structure ...... 21 vi
3.2.11 Net Data Rate ...... 22 3.2.12 Mobile Receiving Terminal Technology ...... 22 3.3. CMMB Network ...... 22 3.4. Summary ...... 24 4.USER ACCEPTANCE AND EXPERIENCE ...... 26 4.1. Worldwide Mobile Broadcasting TV Subscriber ...... 26 4.2. User Features in China ...... 29 4.2.1 Mobile TV User Features ...... 30 4.2.2 Mobile TV User Cognizance ...... 33 4.2.3 Mobile TV Contents ...... 36 4.2.4 Comparative advantage of Mobile TV ...... 37 4.2.5 Mobile TV User Behavior ...... 38 4.3. Summary ...... 39 5. CONTENT ANALYSIS ...... 41 5.1. Content Analysis ...... 41 5.1.1 Short Duration and Small Screen ...... 41 5.1.2 Interactivity ...... 42 5.1.3 Individual Viewing and Mobility ...... 43 5.2. Introduction of CMMB Network Services ...... 44 5.2.1 Introduction of CBC Core Brand –“Jing Cai” (CBC, 2010) ...... 44 5.2.2 Jing Cai Radio & TV ...... 44 5.2.3 Jing Cai Navigation (CBC, 2010) ...... 47 5.2.4 Jing Cai Finance (CBC, 2010) ...... 48 5.3. Summary ...... 49 6. ENVIRONMENTAL CLIMATE & BUSINESS MODEL ...... 50 6.1. Environmental Climate ...... 50 6.1.1 Economic Growth ...... 50 6.1.2 Preferential Policy ...... 51 6.1.3 3G Construction ...... 53 6.1.4 Independent technology ...... 54 6.2. Business Model...... 54 6.2.1 Roles and players of the value chain ...... 54 6.2.2 General revenue model considerations ...... 56 6.2.3 CBC Business Strategies ...... 57 vii
6.3. Summary ...... 60 7. CONCLUSION ...... 62 7.1. The advantage of CMMB network ...... 62 7.1.1 Support from the Government ...... 62 7.1.2 Hybrid satellite/terrestrial networks ...... 62 7.1.3 Low end-user prices ...... 63 7.1.4 Cooperation Market ...... 63 7.2. Latest news ...... 64 7.2.1 CMMB-PC Terminal Industry ...... 64 7.2.2 New Service – Emergency Broadcasts ...... 64 7.3. Challenges and Suggestions to Ensure Success ...... 65 7.3.2 Mobile Operators ...... 65 7.3.3 Handset suppliers ...... 66 7.4. Limitations ...... 67 7.5. Recommendations for Future Research ...... 67 7.6. Conclusion ...... 68 APPENDIX A: OFFICIAL REGULATIONS OF NEW MEDIA OF THE GOVERNMENT OF P. R. CHINA ...... 70 APPENDIX B: SAMPLES OF CMMB RECEIVERS ...... 72 LIST OF REFERENCES ...... 73
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LIST OF TABLES
1. DIVERGENT MOBILE TV SUCCESS AROUND THE GLOBE (SOURCE: ARTHUR D. LITTLE) ...... 28
2. THE CHARGE OF CBC'S SERVICES. (SOURCE: CBC.CN) ...... 58 ix
LIST OF FIGURES
1. GLOBAL MOBILE BROADCASTING TV STANDARDS AND TECHNOLOGIES. (SOURCE: THE FUTURE OF MOBILE TV) ...... 6
2.HOW DVB-H SYSTEM WORKS. (SOURCE: CELLULAR.CO.ZA) ...... 9
3. HOW S-DMB AND T-DMB WORK. (SOURCE: LEE & KWAK (2005)) ...... 11
4. TECHNICAL STRUCTURE OF CMMB SYSTEM. (SOURCE: CBC.CN) ...... 16
5. SIGNAL PROCESSING PROCEDURES ON THE PHYSICAL LAYER. (SOURCE: XU, J. (2008)) ...... 18
6. COVERAGE OF CMMB NETWORK ENDED IN MARCH 2010. (SOURCE: CBC. CN.) ...... 24
7. PROJECTIONS FOR WORLDWIDE BROADCAST MOBILE TV SUBSCRIBER UPTAKE AND REVENUE GROWTH. (SOURCE:
ARTHUR D. LITTLE) ...... 27
8. NUMBERS OF USERS OF MOBILE TV WITHIN HALF A YEAR. (SOURCE: CNNIC.CN) ...... 30
9. THE AGE OF MOBILE TV USERS. (SOURCE: CNNIC.CN) ...... 30
10. THE GENDER OF MOBILE TV USERS. (SOURCE: CNNIC.CN) ...... 31
11. THE EDUCATION BACKGROUND OF MOBILE TV USERS. (SOURCE: CNNIC.CN) ...... 32
12. THE OCCUPATION BACKGROUND OF MOBILE TV USERS. (SOURCE: CNNIC.CN) ...... 32
13. THE AREA OF MOBILE TV USERS. (SOURCE: CNNIC.CN) ...... 33
14. HOW USERS KNOW ABOUT MOBILE TV. (SOURCE: CNNIC.CN) ...... 33
15. THE REASONS WHY USERS HAVE NOT CHOSEN MOBILE TV. (SOURCE: CNNIC.CN) ...... 34
16. THE WILLING TO CUSTOMIZE MOBILE TV IF DO NOT CONSIDER HESITATING REASONS. (SOURCE: CNNIC.CN) ...... 34
17. COMPARE THE REASONS WHY USERS HAVE NOT CHOSEN MOBILE TV. (SOURCE: CNNIC.CN) ...... 35
18. MOBILE TV CONTENTS THAT USERS SUBSCRIBED. (SOURCE: CNNIC.CN) ...... 36
19. CONVENIENCE TO OPERATE MOBILE TV. (SOURCE: CNNIC.CN) ...... 37
20. FACTORS OF MOBILE TV CONTENTS. (SOURCE: CNNIC.CN) ...... 37
21. USING ENVIRONMENT OF MOBILE TV. (SOURCE: CNNIC.CN) ...... 38
22. HOW LONG USERS CUSTOMIZE MOBILE TV EVERY DAY ON AVERAGE. (SOURCE: CNNIC.CN) ...... 39
23. SAMPLES OF JING CAI TV CHANNEL. (SOURCE: CBC.CN) ...... 47
24. SAMPLE OF JING CAI NAVIGATION. (SOURCE: CBC.CN) ...... 48
25. SAMPLE OF JING CAI FINANCE. (SOURCE: CBC.CN) ...... 48
26. GDP COMPARISON BETWEEN USA AND CHINA FROM 1980 TO 2009. (SOURCE: IMF) ...... 50
27. CHINA GDP GROWTH RATE FROM 2006 TO 2009. (SOURCE: NATIONAL BUREAU OF STATISTICS) ...... 51
28. MOBILE BROADCASTING TV BUSINESS MODELS IN ASIA AND IN THE U.S.A. (SOURCE: ARTHUR D. LITTLE) ...... 55
29. ACCESS NETWORK OPERATOR LED MODEL. (SOURCE: (SATTLER, 2008)) ...... 58
30. CONTRAST AND ANALYSIS OF 3 TELECOM OPERATORS. (SOURCE: NIELSEN MEDIA) ...... 60
31. SAMPLE OF CMMB EMERGENCY BROADCASTS. (SOURCE: CBC.CN) ...... 64
32. MARKET SHARE OF SEVERAL HANDSET SUPPLIERS IN CHINA. (SOURCE: MOTOROLA IN CHINA - FAILURE OF
SUCCESS?) ...... 66
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CHAPTER ONE: INTRODUCTION
With the development of the technology over these past couple of years, mobile phones as well as mobile handheld devices have evolved into a multipurpose platform for many different applications such as mobile internet device, handheld game console, digital camera, personal navigation and mobile television. Mobile television usually means television watched
on a small handheld device. It may be a pay TV service broadcast on mobile phone networks or
received free-to-air via terrestrial television stations from either regular broadcast or a special
mobile TV transmission format. Some mobile televisions can also download television shows
from the internet, including recorded TV programs and podcasts which are downloaded and
stored on the mobile device for later viewing (Wikipedia, n.d.).
The first technology considered here for mobile handheld devices is 3G technology.
International Mobile Telecommunications-2000 (IMT-2000), better known as 3G or 3rd
Generation, is a generation of standards for mobile phones and mobile telecommunications services fulfilling specifications by the International Telecommunication Union. Application
services include wide-area wireless voice telephone, mobile Internet access, video calls and mobile TV, all in a mobile environment. Compared with the older 2G and 2.5G standards, a 3G system must provide peak data rates of 200 Kbit/s at least, according to the IMT-2000
specification (Collins & Smith, 2000). But there are some major limitations of 3G systems. For instance, 3G networks can easily become overloaded when used to receive mainstream channels and other popular video services. Another one is that as the transmission of content occupies a portion of the band for each user connected, video services can only be offered on a pay-per-use basis (Epro.org, n.d).
Unlike 3G networks, through which TV content is delivered and received in a
one-to-one mode, the mobile broadcasting technologies have enhanced the application
possibilities with mobile TV. These technologies enable truly one-to-many broadcasting,
allowing linear services and programs usually broadcast to fixed TV receivers to be received 2 through mobile phones and other handheld devices. And the cost is much cheaper as video services can be offered at relatively low cost and at a flat rate (Epro.org, n.d).
One of these mobile broadcasting systems is China Multimedia Mobile Broadcasting
(CMMB), which is a mobile television and multimedia standard developed and specified in
China. Learning more about the CMMB system and business model, the retailers, device manufacturers, service providers and content producers who are interested in the market, will know where the potential opportunities are and make an effort to succeed.
1.1. Purpose of the Study
The purpose of this study was to provide a better understanding of the mobile TV
business by discussing and analyzing various aspects of the China Multimedia Mobile
Broadcasting (CMMB) experience.
In May, 2005, South Korea launched its official mobile TV service which was also the first mobile TV business anywhere around the world. Since then, the research of mobile broadcasting TV has progressed tremendously all over the world. Researchers and educators have made studies in technologies, service delivery, social features, user’s experience, and business models. Some mobile broadcasting TV businesses are successful, achieved lots of subscribers, made market benefit, but there is no mutual business model suitable worldwide.
Also, despite the progress of mobile broadcasting TV in China research is still at the initial stages and the studies specializing in this market and country are even fewer.
In order to improve the understanding of status quo of mobile broadcasting TV in China,
special CMMB development, the researcher had access to a large number of documents and professional studies that introduced the development of mobile TV all over the world, and investigated information about CMMB standard and historical development.
Much of the fact-finding was done through studying numerous newspapers and trade journal reports both in and outside of China; some are as recent as websites, in order to 3 ascertain historical events. Interviewing individuals who are from the relevant companies and government agencies also contributed to this study.
This study fills the gap created by the lack of English studies by discussing the
CMMB standard, technology, and market. The researcher found that, although quite a number
of Chinese papers are devoted to the subject, few have been written in English.
As a result of this study, the retailers, device manufacturers, service providers and content producers who have already been involved in the market, will know better where their strengths, weaknesses, opportunities and threats are. Another goal of the study is to introduce this distinctive market – the Chinese market - to potential international business players as well as foreign related academic researchers.
1.2. Literature Review and Study Outlines
I begin the main part of this study in the following chapter by describing the current state of adoption of the four different technical standards around the world. These four different technical standards are mainly operated in Europe, South Korea, the United States,
and Japan separately.
In Chapter 3, I provide detail descriptions of historical events leading up to the launch
of CMMB standard in China, and I explain the core technology of the CMMB standard. I also present the construction of the CMMB network and its future prospect.
Chapter 4 is about the consumers. I talk about the situation of worldwide subscribers
of mobile broadcasting TV and how mobile TV operators can capture the mass market. A quantitative investigation in this chapter discusses the consumption behaviors exhibited by
target customers in China, and related consumption trends.
Chapter 5 is about content analysis. I discuss some basic features of mobile TV content
suitable for all worldwide mobile TV business. Then, the next section familiarizes the readers
with the information of CMMB network contents. 4
In Chapter 6, I discuss the environmental climate and business model in China. The environmental climate analysis helps the readers better understanding some of the unique features of the development of CMMB business in China. Meanwhile, I study the roles and players of the value chain of mobile TV and see who is poised to capture the most value given current industry structure.
In the final chapter of this study, I summarize my findings and make strategic
recommendations to inspiring business players who are interested in the Chinese mobile TV market.
1.3. Limitations and Ethical Considerations
This study is more focused more on the media and business aspects rather than technology. This study is not intended to make any technical evaluation of different mobile television broadcasting technologies. The technical descriptions and comparisons of competing technologies provided in this paper are solely provided to assist non-technical readers to follow
the core discussions, which are mainly on the subject of economics and business strategy. At
the same time, in discussing the events leading up to the introduction of CMMB services in the
Chinese market, in no way, do I attempt to evaluate the decisions and actions of the Chinese government, regulatory bodies and participating companies. By objectively providing the historical information, I endeavor to provide a useful business case study for introducing digital mobile TV broadcasting in the market. 5
CHAPTER TWO: MOBILE BROADCASTING TV STANDARDS
In 2005, South Korea became the first country in the world to have mobile TV when it
started satellite DMB (S-DMB) and terrestrial DMB (T-DMB) service on May 1 and December 1,
respectively (The Korea Times, 2005). BT in the United Kingdom was among the first companies
outside South Korea to launch Mobile TV in September 2006, although the service was
abandoned less than a year later (Meyer, 2007). The same happened to “MFD Mobiles
Fernsehen Deutschland”, who launched their DMB-based service June 2006 in Germany, and
stopped it in April 2008 (Briel, 2008). Also in June 2006, a mobile operator in Italy (part of
Hutchison Whampoa) launched their mobile TV service. But unlike their counterpart in
Germany, this was based on DVB-H (Faultline, 2006). Sprint started offering the service in
February 2006 and was the first US carrier to offer the service. In the US, Verizon Wireless, and more recently AT&T are offering the service (O'Brien, 2008).
Figure 1 shows the different transmission technologies, we could collect them as following map of global mobile broadcasting TV technologies and standards. 6
Figure 1: Global Mobile Broadcasting TV Standards and Technologies. (Source: The Future of
Mobile TV)
Currently, there are four prevalent formats known as DVB-H, DMB, OneSeg and
MediaFLO.
2.1. Competing Mobile TV Broadcasting Standards
2.1.1 DVB-H
From March 2008, DVB-H is officially endorsed by the European Union as the
“preferred technology for terrestrial mobile broadcasting”. The DVB-H technology, a declination
of the DVB standard, is the technology which is at the moment gaining more popularity in
Europe, although it is not the only available choice. One of its main strengths lays mainly in its
compatibility with the DVB-T standards that allows synergies in countries where DTT1 network have been extensively rolled out and digital terrestrial television has already reached a good degree of penetration (DVB Project Office, n.d.).
1 DTT, Digital Terrestrial Television, an implementation of digital technology to provide a greater number of channels and/or better quality of picture and sound through a conventional antenna (or aerial) instead of a satellite dish or cable connection (DVB Project Office, n.d.). 7
The objective of DVB-H is to provide efficient means for carrying these multimedia data over digital terrestrial broadcasting networks to handheld terminals. The main characteristics with regard to efficiency are considered to be constraints on power supply and varying transmission conditions due to mobility (DVB Project Office, n.d.).
A full DVB-H system is defined by combining elements in the physical and link layers as
well as service information (ETSI, 2004)2.
Link layer: (DVB Project Office, n.d.)
- Time-slicing3 in order to reduce the average power consumption of the terminal
and enabling smooth and seamless frequency handover.
- Forward error correction for multiprotocol encapsulated data (MPE-FEC) 4for an
improvement in C/N-performance and Doppler performance in mobile channels, also
improving tolerance to impulse interference.
• Physical layer: (DVB Project Office, n.d.)
DVB-T (DVB Terrestrial transmission standard (EN 300 744)) with the following technical elements specifically targeting DVB-H use:
- DVB-H signaling in the TPS-bits5 to enhance and speed up service discovery. Cell
identifier is also carried on TPS-bits to support quicker signal scan and frequency handover
on mobile receivers.
- 4K-mode6 for trading off mobility and SFN cell size, allowing single antenna
reception in medium SFNs at very high speed, adding thus flexibility in the network design.
- In-depth symbol interleave for the 2K and 4K-modes for further improving their
2 ETSI, European Telecommunications Standards Institute. EBU, European Broadcasting Union (DVB Project Office, n.d.). 3 Time-slicing consists of sending data in bursts using significantly higher instantaneous bit rate compared to the bit rate required if the data were transmitted using traditional streaming mechanisms (DVB Project Office, n.d.). 4 By adding parity information calculated from the datagram and sending this parity data in separate MPE-FEC sections, error-free datagram can be output after MPE-FEC decoding despite a very bad reception condition (DVB Project Office, n.d.). 5 TPS is a very robust signaling channel allowing TPS-lock in a demodulator with very low C/N-values (DVB Project Office, n.d.). 6 The additional 4K transmission mode is a scaled set of the parameters defined for the 2K and 8K transmission modes. It aims to offer an additional trade-off between Single Frequency Network (SFN) cell size and mobile reception performance, providing an additional degree of flexibility for network planning (DVB Project Office, n.d.). 8
robustness in mobile environment and impulse noise conditions.
• Service Information
The service information has terrestrial delivery system which includes DVB-H specific elements (DVB Project Office, n.d.).
• To support detection of DVB-H system services on a transport stream, the following applies:
The IP/MAC streams delivering services of the DVB-H system shall be announced on the
IP/MAC Notification Table (INT) carried on the actual transport stream.
• To support handover between transport streams with same network ID, the following
applies: If the coverage area of transport streams carrying DVB-H services, belonging to
the same network, and are intersecting, INT on such transport streams should
announce IP/MAC streams on each of the intersecting transport stream(s) carrying
DVB-H services.
• To support handover between transport streams carrying DVB-H services, and belonging to
different networks, the following applies: If the coverage areas of transport streams
carrying DVB-H services are intersecting, and these transport streams belong to
different networks, INT on such transport streams should announce IP/MAC streams on
each of the intersecting transport stream(s) carrying DVB-H services. 9
Figure 2: How DVB-H System Works. (Source: cellular.co.za)
2.1.2 DMB
Digital Multimedia Broadcasting (DMB) is a digital radio transmission technology
developed in South Korea as part of the national IT project for sending multimedia such as TV,
radio and data casting to mobile devices such as mobile phones. DMB was originally developed in South Korea as the next generation digital technology to replace the FM radio (Moon, 2006).
The world’s first official mobile TV service started in South Korea in May 2005, although trials were available much earlier. It can operate via satellite (S-DMB) or terrestrial (T-DMB) transmission (Taga, Niegel, & Riegel, 2009).
S-DMB is the satellite based mobile TV broadcasting technology originally developed by
Toshiba’s subsidiary MBCo and subsequently adopted by TU Media7 in Korea for the world’s
first large scale mobile TV deployment in May 2005. Contrary to popular belief, S-DMB’s
technical specification is quite different from those of T-DMB. It is based on a modified CDMA
7 TU Media Corp. is South Korea’s first mobile broadcast service company headquartered in Seoul, South Korea. Its name stands for “TV for you”. It was established in 2003 as a subsidiary of SK Telecom (Wikipedia, n.d.). 10
modulation and S-DMB uses the Ku-band8 to upload signal to the satellite and the S band9 for transmission of TV programs into receivers. Since it is a satellite technology, numerous gap-fillers are required to cover poor reception spots and indoor locations. The advantage of
S-DMB is that the network deployment over a large area can be done quickly—as seen in the case of TU Media—and it can carry a large number of channels. The biggest disadvantage is the initial capital expenditure associated with launching a satellite. Also the screen speed of 15fps makes it difficult to view fast moving sports events like ice-hockey and football. S-DMB is unlikely the choice of worldwide deployment since the system uses a frequency band that is not available in many parts of the world (Tae-gyu, 2005).
T-DMB utilizes band III (VHF channels 7-13) and L-Band (1452-1492 MHz) frequencies, for terrestrial. T-DMB uses MPEG-4 Part 10 (H.264) for the video and MPEG-4 Part 3 BSAC or
HE-AAC V2 for the audio. The audio and video is encapsulated in an MPEG transport stream
(MPEG-TS). The stream is forward error corrected by Reed Solomon encoding10 and the parity word is 16 bytes long. There is convolution interleaving made on this stream, and then the stream is broadcast in data stream mode on DAB. In order to diminish the channel effects such as fading and shadowing, DMB modem uses OFDM-DQPSK modulation. A single-chip T-DMB
receiver is also provided by an MPEG transport stream multiplexer. DMB has several applicable
devices such as mobile phone, portable TV, PDA and devices for automobiles. T-DMB is an ETSI
standard (TS 102 427 and TS 102 428) (Moon, 2006). See Figure 3 for illustration of S-DMB and
T-DMB systems.
8 Ku-band is a portion of the electromagnetic spectrum in the microwave range of frequencies. The band is directly below the K-band. In radar applications, it ranges from 10.95-14.5 GHz according to the formal definition of radar frequency band nomenclature in IEEE Standard 521-2002 (Wikipedia, n.d.). 9 The S band is defined by an IEEE standard for radio waves with frequencies that range from 2 to 4 GHz, crossing the conventional boundary between UHF and SHF at 3.0 GHz. It is part of the microwave band of the electromagnetic spectrum (Wikipedia, n.d.). 10 In coding theory, Reed–Solomon (RS) codes are non-binary cyclic error-correcting codes invented by Irving S. Reed and Gustave Solomon. They described a systematic way of building codes that could detect and correct multiple random symbol errors (Wikipedia, n.d.). 11
Figure 3: How S-DMB and T-DMB Work. (Source: Lee & Kwak (2005))
As of December 2006, T-DMB service in South Korea consisted of, 7 TV channels, 12 radio channels, and 8 data channels. In October 2007, South Korea added broadcasting channel
MBCNET to the DMB channel. There were eight DMB video channels in Seoul and six in other metropolitan cities in 2009 (Wikipedia, n.d.).
As of April 2007, S-DMB service in South Korea consisted of 15 TV channels and 19 radio channels and 3 data channels. S-DMB service in South Korea is provided on a subscription basis through TU Media and is accessible throughout the country. T-DMB service is provided
free of charge, but access is limited in selected regions (Wikipedia, n.d.).
2.1.3 OneSeg
OneSeg is a mobile terrestrial digital audio/video and data broadcasting service in
Japan and Brazil. Service began experimentally during 2005 and commercially on April 1, 2006 in Japan. In Brazil the broadcast started in late 2007 in just a few cities. ISDB-T, the terrestrial digital broadcast system used in Japan and Brazil, is designed so that each channel is divided into 13 segments, with a further segment separating it from the next channel. An HDTV 12
broadcast signal occupies 12 segments, leaving the remaining (13th) segment for reception on
cell phones, laptop computers and vehicles. Thus, it’s named “1seg” or “OneSeg” ( NHK Science
& Technical Research Laboratories, n.d.).
ISDB is maintained by the Japanese organization ARIB. The core standards of ISDB are
ISDB-S (satellite television), ISDB-T (terrestrial), ISDB-C (cable) and 2.6GHz band mobile
broadcasting which is all based on MPEG-2 video and audio coding as well as the transport
stream described by the MPEG-2 standard, and are capable of high definition television (HDTV).
ISDB-T and ISDB-S are for mobile reception in TV bands. The concept was named for its
similarity to ISDN, because both allow multiple channels of data to be transmitted together (a
process called multiplexing) (FLOForum, n.d.).
2.1.4 MediaFLO
MediaFLO (Forward Link Only) is a proprietary technology developed by Qualcomm. It uses COFDM modulation and time slicing similar to DVB-H. It features a two-layer modulation in which a basic layer of information is modulated more robustly while the enhanced layer is used only when the receiving condition is good—resulting in better image quality and frame transition (Reuters, 2010).
The “FLO” in MediaFLO stands for Forward Link Only, meaning that the data transmission path is one way, from the tower to the device. The MediaFLO system transmits data on a frequency separate from the frequencies used by current mobile telephone networks.
In the United States, the MediaFLO system uses frequency spectrum 716-722 MHz, which was previously allocated to UHF TV channel 55 (ETSI, 2009).
In the current United States implementation, FLO is transmitted by a network of
high-power broadcast transmitters operating at effective radiated powers as high as 50
kilowatts. This allows for a coverage area of a transmitter to be as large as 30 to 40 kilometers
(19 to 25 miles) (IEEE, 2007). The activation of many of these transmitters was delayed because of the official end of analog TV broadcasting on channel 55 was delayed. Immediately following 13
the transition, the FLO network was expanded to several new markets, and coverage was
enhanced in some existing ones (FLO TV, 2009).
The transmission is an encrypted OFDM set of QAM signals sent on a 5.55 MHz channel
from 716-722 MHz (former UHF TV channel 55). The band was auctioned-off by the Federal
Communications Commission (FCC) and known as the “Lower 700 MHz Block D”. All of the
transmitters send the same signal and use the same frequency, forming a single-frequency
network. This allows the mobile to decode the signal from more than one transmitter in the
same way that it might if it was a multipath-delayed version from the same transmitter (ETSI,
2009).
In October 2010, Qualcomm announced it was suspending new sales of the service to
consumers. In December, 2010, AT&T announced that it will purchase Qualcomm's FCC licenses
in the 700 MHz band and FLO TV will be shut down in March, 2011 (Reuters, 2010).
2.2. Standards Economics
One key barrier to the global uptake of broadcast Mobile TV services is the deployment
of many different standards. Various companies including Qualcomm, Nokia, Motorola and
other wireless powerhouses are jockeying against each other to take the higher ground in the
battle of digital mobile TV. Their websites are littered with all types of apple-to-orange
comparisons claiming technical superiority of their own standards. All mobile TV standards provide all the basic functionality of mobile TV quite well. Any technical advantage is arguably subtle, and more importantly, not understood by the consumers. The mobile TV standard war will be, therefore, fought and won on the basis of total user experience, which will be discussed in chapter four particularly.
And again, the main purpose of this chapter is to provide the readers with some basic understanding of global mobile broadcasting TV. Each technology and market is worth deeply researching and studying, but they are not the subjects of this study. 14
CHAPTER THREE: OVERVIEW OF CMMB INTRODUCTION
During the Boao Forum for Asia11 in 2003, China began to launch mobile TV services, which was mainly used in the broadcasting mode. In 2005, the two main telecom companies had launched their cellular mobile TV services. Thereafter, the broadcasting companies also began to develop this business in China around this time. In October 2006, the State
Administration of Radio, Film and Television (SARFT) 12officially promulgated its own standard –
CMMB (China Multimedia Mobile Broadcasting), and subsequently broadcast its free CMMB mobile TV pilot in some major cities across the country. As of the 2009 Chinese New Year, the
CMMB mobile TV signal had extended to 150 cities and had more than 3 million users. Mobile
TV services are gradually entering into people’s daily life (Kai, 2009).
China Mobile Multimedia Broadcasting (CMMB) is based on the Satellite and Terrestrial
Interactive Multiservice Infrastructure (STiMi), developed by TiMiTech13. It has been described as being similar to Europe’s DVB-SH standard for digital video broadcast from both satellites and terrestrial repeaters to handheld devices (Xu, 2008).
11 The Boao Forum for Asia (simplified: 博鳌亚洲论坛; pinyin: Bo’ao Ya Zhou Lun Tan) is a non-government international organization, the Boao Forum For Asia (BFA) is a high-level forum for leaders from government, business and academia in Asia and other continents to share their vision on the most pressing issues in this dynamic region and the world at large (Wikipedia, n.d.). 12 The State Administration of Radio, Film, and Television (SARFT; simplified Chinese: 国家广播电影电视总局; pinyin: Guo Jia Guang Bo Dian Ying Dian Shi Zong Ju) is an executive branch under the State Council of the People's Republic of China. Its main task is the administration and supervision of state-owned enterprises engaged in the television, radio, and film industries. It directly controls state-owned enterprises at the national level such as China Central Television(CCTV)，China National Radio(CNR), China Radio International(CRI), as well as other movie and television studios and others non-business organizations. It is also responsible for censoring any materials that might be objective to Chinese government or cultural standards (Wikipedia, n.d.). 13 TiMiTech was co-founded by Academy of Broadcasting Science (ABS) of The State Administration of Radio Film and Television (SARFT) and a group of prestigious experts and professionals in wireless communication technologies in Feb. 2003. TiMiTech is focusing on digital TV transmission technologies (Wikipedia, n.d.). 15
3.1. CMMB Technology System
3.1.1 CMMB Standard
In October 2006, SARFT published the first part of CMMB standard (broadcast channel
frame structure, channel coding and modulation); in November 2006, SARFT published the
second part of the CMMB standard (multiplexing); in August 2007, SARFT released the CMMB
Standard-Part III (Electronic Service Guide); and in November 2007, it published the fourth part
of the CMMB standard (emergency broadcast).
SARFT is also planning to launch the rest of CMMB standard separately, such as:
sub-channel frame structure, sub-channel coding and modulation, video, audio, two-way
signaling service, data service broadcasting protocol, return channel transmission protocol,
transport information and navigation, e-mail, satellite station launching system technical
requirements, technical requirements for satellite ground systems; network monitoring
protocols, network monitoring system technical requirements, encryption and authorization;
user management, customer service systems, billing management, terminal features,
performance and configuration and the terminal software application programming interfaces
(CBC, 2010).
3.1.2 Channel Transmission Technology of CMMB system
CMMB technology system is using high-power S-band satellite signals to cover the entire country, adding terrestrial repeaters the same frequency the same time with the same contents to make up the satellite signal blind spots.
After the Ground Launch Center sent the signals to the S-band geostationary satellite,
the geostationary satellite forwarded out the signals while it received, then the S-band signals had been received directly by the ground receiving terminal. The satellite also sends the signals through the sub-road which was added to the transponder. The signals are capable of covering those satellite blind spots after the transponder processed (Rohde & Schwarz, n.d.).
Due to the geography of China: the vastness of the country and the barrenness of the 16
western inner land, most cities and most of the population are concentrated in the southeast
area. Thus, CMMB uses multiple transmissions- both satellite and terrestrial. This technology
allows more coverage and more users in a shorter period of time for the development of
mobile television, and also at much lower cost. Figure 4 is the technical structure of the CMMB system.
Figure 4: Technical Structure of CMMB System. (Source: cbc.cn)
3.1.3 AVS-Audio Video Standard
Audio Video Standard, AVS, is China’s own audio and video national standard with independent intellectual property rights, which is one of the advanced second-generation source coding and decoding standards. The compression efficiency of AVS audio and video is twice faster than the first-generation MPEG-2 standard and the capacity of programs load and transmission of the AVS system can be doubled (AVS, n.d.).
One of the main considerations of development of AVS is to increase independent core intellectual properties used in digital media technology. Proposed as a national standard in 2004,
AVS had a targeted royalty of 1 RMB (or about $0.10 USD) per player, which is much cheaper than the global dominant audio/video compression standards, MPEG and VCEG (licenses 17 ranging from $2.50 to $4). On 30 April 2005, after being introduced to the public, AVS standard video became the national standard. (Bao, 2009).
AVS has been in mutual conditions to a large-scale commercial application. IPTV,
terrestrial digital TV, mobile TV is the main relevant areas of AVS. CMMB technology system has decided to use AVS standard prior.
3.1.4 CMMB Backhaul System
The CMMB system uses satellite and terrestrial broadcasting models for mobile
multimedia broadcasting services. So far, the current CMMB system can only broadcast content in one-way and cannot interact with mobile phone users. But this does not mean the CMMB system is only a one-way receiver: it can use mobile communication network return mode to get backhaul and interaction. The terminal mobile handhold has mobile communication
module to mobile communication network and uploads user feedback. In addition to mobile
communication technology model, Wireless LAN is another mode to give back information to
the CMMB system (Bao, 2009).
3.2. Key Technology of STiMi
STiMi (Satellite Terrestrial Interactive Multi-service Infrastructure) system can work in
the range of 30MHz ~ 3000MHz frequency, and the physical bandwidth supports two kinds of
working patterns: 8MHz and 2MHz, that means the use of orthogonal frequency division multiplex (OFDM) with 4k/1k mode in 8 MHz/2 MHz channels and efficient error-protection mechanisms. Therefore, CMMB becomes the ideal standard to use which combines both satellite transmission and terrestrial transmission. (Xu, 2008).
18
3.2.1 Signal processing procedures on the physical layer
The data streams from top layer process independently such as RS encoding, byte
interleaving, LDPC encoding, bit interleaving and constellation mapping; then interact with
scattered pilots and continuous pilots which carry transfer indication information; finally, the
data come into OFDM frequency domain symbols. Then we scramble these symbols data, and
process with OFDM modulation, framing, up-conversion from baseband to RF (radio frequency),
and emit the RF to air at last. Figure 5 shows the signal processing procedures on the physical layer of STiMi system.
Figure 5: Signal Processing Procedures on the Physical Layer. (Source: Xu, J. (2008))
3.2.2 RS encoding and byte interleaving
The STiMi system assumes Reed-Solomon code as foreign key, and assumes byte
Interleaver as outer Interleaver. RS encoding and byte interleaving process use the method of
column input/output and row encode. RS code assume RS (240,K) code which length is 240
bytes as shortened code, this code is shortened from original RS(255,M) system code, where
M=K+15. K is the byte number of the information sequence in a code word, and then
Calibration byte number is (240-K). RS（240，K）code provides 4 work modes such as K=240,
K=224, K=192, and K=176. Input data writes to matrix by column in the form of byte, while the
K column is filled, encoding RS by row, when RS encoding of all rows is finished, and the system
output the data from matrix by column. 19
3.2.3 LDPC Encoding
According to the characteristics of handheld devices such as high receiving sensitivity,
mobility, and battery supply, STiMi system adopts the advanced channel error correcting coding
technology, LDPC (Low-density Parity-check Codes), to improve the anti-interference ability
and receiving sensitivity of the system, and to support the high mobility. Highly structured
HS-LDPC has the error-correcting capability close to the Shannon theoretical limits, and low
encoding complexity and decoding complexity. It can reduce the complexity of the
encoder/decoder of the hardware, benefit to chips accomplishment. Channel encoding LDPC
supports two encoding rates of 1/2 and 3/4.
3.2.4 Bit Interleaving
STiMi system use bit interleaving as inner interleaving. Bit sequence input into bit
interleaver with interleaving after LDPC encoded. Bit interleaver use block interleaver, the bit
sequence after LDPC encoded write into every row of the block interleaver from top to bottom,
until the whole interleaver is filled, then access from left to right.
3.2.5 Constellation Mapping
According to the features of CMMB, STiMi system supports three constellation
mapping encode modes such as BPSK, QPSK, and 16-QAM, which can use different encode mode to match different radio networks. This benefits the system to adapt to different transmission rate standards flexibly, and then divide the transmission network suitable for the various requirements of quality of various business services.
3.2.6 Orthogonal Frequency Division Multiplexing Modulation
Multi-carrier OFDM modulation supports space-ground single-frequency networking, so that the complexity of network can be reduced and frequency spectrum will be efficiently used. The fundamental of OFDM is transforming high-speed serial data to relatively low-speed 20
parallel data and modulating different carriers. This parallel transmission system greatly extends
pulse width of signals; gains highly robust against multipath effects, and overlaps spectrum of
the subcarriers. As these spectrum possess orthogonality in the whole symbol period, it not
only ensures that signals will not be restored distorted at reception, but also improves the
spectrum efficiency greatly. OFDM frequency symbol is composed of data subcarrier, discrete
pilot subcarrier and continuous pilot subcarrier. Discrete pilot carries no information, and is mainly used to assist receiver processing channel estimation, interferometric detection, and demodulation. Partial continuous pilot carries system transformation indication. On the bandwidth modes of 8MHz and 2MHz, effective subcarrier number of OFDM symbols is 3076 and 628 respectively.
3.2.7 Timing and Frequency Two-Dimensional pilot Technology
The domain responses of time and frequency of wireless channel is time varied, and it
must use the method of channel estimation to estimate the domain responses of time and
frequency, to correct and recover the received data. STiMi system adopts timing and frequency
two-dimensional pilot technology which based on multi-carriers OFDM modulation. This
technology not only ensures dependable channel estimation and balance in complex wireless
channel environment to gain better channel adaptation performance, but also reduces the
complexity of demodulation hardware, and benefits to chips accomplishment.
3.2.8 Beacon Technology
For OFDM, receiver must capture the frame and OFDM symbol synchronized before
correct demodulation. In order to ensure receiving signals as fast as possible in complex
wireless channel environment, and achieving the acquisition and synchronization of the system
as fast as possible, STiMi uses time domain spread spectrum beacon technology based on PN
sequence, which has the following features: short time of synchronization, great carrier
frequency anti-offset, great channel multipath anti-time-delay expandability. The method 21
greatly reduces the waiting time between turning the products on and receiving signals,
especially in case of emergency broadcast, which can ensure users receiving the information
rapidly and reliably.
3.2.9 The Technology of Time Slot
The essential of time slot technology is time fragment. Each broadcasting service will
occupy one or several time slots. While transmitting multi-channel multimedia signal
simultaneously, receiver decides whether to turn on high power devices such as antenna, tuner
and so on, according to the channel which user choose to watch. Therefore, it only receives the
necessary time slots to reduce the loss of terminal greatly and increase the endurance
effectively.
3.2.10 Frame Structure
STiMi system uses the frame structure based on time slot. On the physical layer, every
second is a frame; each frame includes 40 time slots (num.0-39). Each slot is 25 ms, includes a beacon and 53 OFDM symbols (modulation data block, num.0-52). The multiplex frame has application of flexibility, scalability, and fault-tolerance. This system can multiplex audio and video multimedia data services, and the multiplex stream has high transmitting efficiency, which meets the requirement of narrowband transmission of wireless mobile multimedia data.
The information and the service data are separated in the STiMi system: the redundant information and the channel dispatch control information are put in the pre-reserved high protective channel, which can adapt to the adverse circumstances of wireless transmission, and increase the receiving stability and fault-tolerance. The structure of STiMi multi-frame includes network information forms, continuous service multiplex set forms and short-time service forms, etc. Multi-frame has a head and several child frames, each child frame corresponds to different services. It can multiplex several services in one logic channel. One of the three data segments of multi-frame must be chosen, while the TV program must choose the video and 22
audio data segment, the EPG (Electronic Program Guide) can be put into video data segment.
Audio broadcasting service just chooses the audio data segment.
3.2.11 Net Data Rate
STiMi system can work well at the frequency range from 30 to 3000 MHz, Physical
bandwidth supports double modes of 8MHz and 2 MHz. The net data transmission rate of STiMi
carries supports from 2.046Mbps to 16.243Mbps (8 MHz mode), and from 0.409Mbps to
3.248Mbps (2MHz mode). In accordance, the spectral efficiency ranges from 0.255bps/Hz to
2.03bps/Hz (8 MHz mode), and from 0.205bps/Hz to 1.624bps/Hz (2MHz mode). MIIT14 has
distributed the 2.6GHz frequency channel and 25MHz bandwidth spectrum to CMMB, so that
CMMB can provide 25 TV programs, 30 radio programs and data services.
3.2.12 Mobile Receiving Terminal Technology
STiMi system has designed flexible terminal interface fully supported various types of
mobile receiver, though which carries communication modules or not. STiMi accredits to ways
combined with broadcasting, two-way interactive, and prepaid, so there is no need to
repeatedly encrypt at each program. It also adopts multifarious user management and
accounting system, which can meet the demand of multi-service operations.
3.3. CMMB Network
CMMB and its characteristics are designed to enable both mobile and stationary digital
TV reception with combined satellite and terrestrial broadcasting. For this purpose, a
nationwide CMMB network is to be set up in China; the network was already in operation in
14 Ministry of Industry and Information Technology (simplified: 工业和信息化部; pinyin: Gong Ye Xin Xi Hua Bu), established in March 2008, is the state agency of the People’s Republic of China responsible for regulation and development of the postal service, Internet, wireless, broadcasting, communications, production of electronic and information goods, software industry and the promotion of the national knowledge economy (Wikipedia, n.d.). 23 several cities during the 2008 Olympics. The receivers can receive the terrestrial CMMB signal
that is broadcast via transmitters as well as the direct satellite signal (CBC, 2010).
China Broadcast Corporation (CBC) specializes in mobile multimedia broadcast network
construction and the related support services in China. As the operator of CMMB network, it
established national operational system according to a “headquarters to provincial subsidiaries
to prefectural branches” model. To date, CBC has established operational teams and signed
provincial subsidiary agreements with over 30 provincial broadcast and television institutions. It
revealed that the company has completed CMMB network construction in 113 prefecture-level
cities nationwide in 2009 (CBC, 2010).
As of January 13, 2009, CBC had completed single-frequency network construction in
Beijing, Shanghai, Qingdao, Qinhuangdao, Guangzhou, Shenzhen, Changsha, Hangzhou, Hohhot,
Yinchuan, Shijiazhuang, Kunming, Wuhan, Chongqing, Fuzhou, Xi'an, and Nanjing with a total of
55 high-powered transmitters. Of these, Beijing has established a single-frequency network
composed of 8 high-powered transmitters, providing outdoor coverage of over 95% of areas
inside Beijing's 5th Ring Road.
In the end of 2009, Single-frequency network construction and planning is intensifying
in 15 other cities including Tianjin, Shenyang, Jinan, Nanning, Chengdu, Xining, Ningbo, Xiamen,
Harbin, Changchun, Taiyuan, Zhengzhou, Nanchang, and Urumqi. In addition, 23 new provincial
subsidiaries have been established currently. The CMMB network now covers 330 cities across
the country.
CBC’s achievement in the following years is: by 2012, the CMMB network will cover all
cities at or above the prefectural level and the top 100 counties. By 2015, the CMMB network
will reach over 90% of the population and have over 200 million subscribers. Indoor coverage
will also be optimized to ensure that people can receive a CMMB signal regardless of location
(CBC, 2010). Figure 6 is the map of coverage of CMMB network ended in March 2010. 24
Figure 6: Coverage of CMMB Network Ended in March 2010. (Source: cbc. cn.)
3.4. Summary
In this chapter, we introduced the basic information of the CMMB system and the
operating process of its coral technology – STiMi. We also presented the historical development
of the CMMB network. It’s clear to conclude that CMMB has its first impetus for further
development: technology, standards and platforms. But as a new mobile media, CMMB has just
launched its very beginning market operation. Capital, content and business model are
important factors to determine its success in the future.
Also, based on what we have learned from chapter two and chapter three, there is one
question probably going to be asked: In addition to those mutual mobile broadcasting 25
technologies, standards and business models all over the world, why China decided to research
and develop its own mobile broadcasting TV system independently? And what are the opportunities and threats those mobile TV businesses have to face inside and outside of China?
In the following chapters, we will explore these issues gradually. In chapter four,
research studies related to user acceptance and experience for mobile TV services, both in global and state area. The fifth chapter will focus on CMMB’s content model and business model, which including the importance of the participation of national authorities as a result of
the special situation of China. 26
CHAPTER FOUR: USER ACCEPTANCE AND EXPERIENCE
As mentioned at the end of the previous chapter, the technology seems to have finally
caught up to the consumer desire to receive multimedia content in handheld mobile devices.
This is a defining moment for the operators as it opens up an entirely new set of business possibilities. The industry participants must focus on optimizing the user experience. The technology can always be refined later based on the customer’s requirements.
4.1. Worldwide Mobile Broadcasting TV Subscriber
Mobile TV services based on broadcast networks have been launched in many markets
worldwide, but subscriber uptake and revenue growth was rather disappointing so far. At the
same time, Mobile TV via 3G streaming, a service offered by most mobile operators, has so far
not become more than a niche market. As a result, market players are increasingly critical of
Mobile TV services (Taga, Niegel, & Riegel, 2009). For instance, the most recent launches of broadcast Mobile TV in Europe show disappointing subscriber uptake so far: Switzerland, the
Netherlands and Austria all report only a few thousand subscribers 6-12 months after service launch – and the current recession is not helping (Taga, Niegel, & Riegel, 2009).
From one of the reports of Arthur D. Little (ADL), the company expects subscriber
Figures to not exceed 140 million worldwide and revenues from both broadcast and 3G
streaming Mobile TV to not exceed 4-12 billion US$ by 2011 (Taga, Niegel, & Riegel, 2009). See followed Figure 7, which are the projections for worldwide broadcast Mobile TV subscriber
uptake and revenue growth. 27
Figure 715: Projections for Worldwide Broadcast Mobile TV Subscriber uptake and Revenue growth. (Source: Arthur D. Little)
Mobile broadcasting TV businesses have gained multiple subscribers in many countries, such as Japan, South Korea and Italy. Though others are only in the early stages and have a quite limited market. Table 1 shows the detailed data of mobile broadcasting TV subscriber numbers all over the world.
15 Gartner and Arthur D. Little (ADL) are two consulting companies, and Informa is a company that designs and implements Internet websites and multi-tier E-Commerce Web applications. 28
Table 1: Divergent Mobile TV success around the Globe (Source: Arthur D. Little)
In Asia, Mobile TV has become a mass-market application in Japan and South Korea.
One key reason for this is that people in these countries are generally known for adopting new
mobile data services early (Taga, Niegel, & Riegel, 2009). In the other hand, though the total mobile subscribers are 616 million in the end of 2008 in China, the proportion was very low: just 3.8% mobile users have subscribed to the Mobile TV service.
According to (Taga, Niegel, & Riegel, 2009), all major broadcast Mobile TV networks in
Europe use the DVB-H standard. This could potentially lead to lower end-user prices. But the use of a common standard has yet not led to substantial subscriber numbers in all markets, as the common standard has not resulted in low subscription fees for the end-user. But mobile operators use Mobile TV to sell high-value service bundles and to increase customer loyalty.
In the US, Qualcomm made substantial investments in spectrum acquisition and
deployment of a nationwide broadcast Mobile TV network. Qualcomm acts as a wholesaler,
promoting its proprietary MediaFLO standard. Although US users are known as heavy
consumers of data services, broadcast Mobile TV has still only attracted 1 million users to date 29
(Taga, Niegel, & Riegel, 2009).
4.2. User Features in China
Different cultures have different impacts on user behavior on Mobile TV and lead to different outcomes. In fact, if new mobile broadcast services are to be successful, questions regarding the relevance of the service to consumers need to be asked: How does the service improve users’ lives or help them? Why it is valuable to them? It is also important to consider the issues of when and where the usage will take place, as the mobile broadcasting services will most likely be used in different locations and times than fixed media (Kaasinen, Kulju, Kivinen,
& Oksman, 2009).
China Internet Network Information Center (CNNIC)16 has published an investigation -
“Report of Mobile Media User Research in China” on December 2008. Its several quantitative surveys can be used to help us to identify Chinese user needs and expectations, as well as information concerning the usability of the product (CNNIC, 2008).
The method of the survey was random telephone survey of mobile phone users:
Survey Area: Four major cities of mainland China:
Beijing, Shanghai, Guangzhou and Shenzhen
Survey Time: December 20, 2008 --- December 31, 2008.
Design sample size: 1200, the four major cities has 300 each.
Effective sample size: 1221
16 The China Internet Network Information Center (simplified Chinese: 中国互联网络信息中心; pinyin: Zhong Guo Hu Lian Wang Luo Xin Xi Zhong Xin), or CNNIC, was founded as a non-profit organization on June 3, 1997. CNNIC is the administrative agency responsible for Internet affairs under the Ministry of Information Industry of the People's Republic of China. It is based in the Zhongguancun high tech district of Beijing (Wikipedia, n.d.).
30
4.2.1 Mobile TV User Features
4.2.1.1 Numbers of users of Mobile TV within half a year
Figure 8: Numbers of Users of Mobile TV within half a year. (Source: cnnic.cn)
In 2008, Mobile TV could just being considered in its infant period in China since only
3.8% people were customizing it. After nearly one and half years developing, how does it go?
Major telecommunication companies and CMMB both improve their technologies, including
more mature 3G technology and Network as well as positive promotion and proceeding of
CMMB separately. Even more, CMMB, Telecommunication companies and Internet companies
are trying to cooperate to hasten scale of Mobile TV in China. Therefore, there are reasons to believe that there are many more users of Mobile TV in China nowadays.
4.2.1.2 The Age of Mobile TV user
Figure 9: The Age of Mobile TV Users. (Source: cnnic.cn) 31
Among Mobile TV users, 19-29 year old users accounted for a significant proportion of users (72.4%), followed by 30-36 year old users (14.9%). This certified that Mobile TV is also younger generation consume product in China, who are curious about new products and technologies at the same time have the capacity to pay more. Also, even though 19-23 years old users and 24-29 years old users are almost the same from the 19-29 young generation, the
utilization rate of 24-29 group is higher than 19-23 group as 4.6% to 4%, which we could think easily that 24-29 group have better economic capacity.
4.2.1.3 The Gender of Mobile TV user
Figure 10: The Gender of Mobile TV Users. (Source: cnnic.cn)
It’s easy to find that the participants of male users of Mobile TV are much more than
female users. We assume that male is always more interested in new/advanced technologies than female. 32
4.2.1.4 The Education Background of Mobile TV user
Figure 11: The Education Background of Mobile TV Users. (Source: cnnic.cn)
In the mobile TV users, a larger proportion has been in University or two (three) year
college with the rates 38.3% and 29.8%. High school diploma and the proportion of people use
mobile TV is also high, reaching 25.5%. This group of people have enough education to learn all the utility of Mobile TV and have time and energy to play with it.
4.2.1.5 The Occupation Background of Mobile TV user
Figure 12: The Occupation Background of Mobile TV Users. (Source: cnnic.cn)
This Figure tells us that the highest percentages of mobile TV users are students and
company employees who both have the proportion of 25.5%. Following are company
department managers and institution employees who have the proportion of 14.9% and 10.6%
respectively. Similar as education background, those people have better education and 33
economic capacity.
4.2.1.6 The Area of Mobile TV user
Figure 13: The Area of Mobile TV Users. (Source: cnnic.cn)
Guangzhou carries better development of Mobile TV business than other cities with
the proportion of users as 42.6%. The proportions of other cities of Beijing, Shanghai and
Shenzhen were 21.3%, 19.1% and 17% respectively. In fact, Guangzhou is the pioneer of
High/New Tech in China, including Mobile TV.
4.2.2 Mobile TV User Cognizance
4.2.2.1 How users know about Mobile TV
Figure 14: How Users know about Mobile TV. (Source: cnnic.cn) 34
Users know about Mobile TV most from Internet with 28.6%, followed by friend’s
recommendation with 25.7%. And positive advertising of telecommunication companies was
actually quite important for the promotion of Mobile TV because some people got information
from Mobile Company Information Desk and Message Advertisement as 17.1% and 16.2%,
which have a high proportion of 33.3% together. Therefore, positive promotion is still effective
way to extend Mobile TV market.
4.2.2.2 The reasons why users have not chosen Mobile TV
Figure 15: The Reasons why Users have not chosen Mobile TV. (Source: cnnic.cn)
4.2.2.3 The willing to customize Mobile TV if do not consider hesitating reasons
Figure 16: The Willing to customize Mobile TV if do not consider hesitating Reasons. (Source: 35 cnnic.cn)
From the survey we find the most important reason why people have not chosen to
use Mobile TV is cost, since 25% of users would be more worried about the high cost of mobile
TV usage fee. In fact, no Mobile TV receiver on their cell phone is another performance of high cost because cell phone inserted Mobile TV technology accessory usually has higher cost than regular cell phone. Average regular cell phone is 1000-3000 RMB while average Mobile TV cell phone is 3000-6000 RMB. Those two factors occupied almost half of the concerns. In fact, cutting cost will be definitely one of the key points to expanding the development of Mobile TV.
Otherwise, there will always be limitations.
Meanwhile, 16.5% of the people had never heard of Mobile TV, which means positive promotion may not done enough even though it has made some achievement. Also, 41% of the people would not consider using Mobile TV even if they were not worried about those temporary hesitating reasons which tell us how stubborn those hesitating reasons were.
4.2.2.4 Compare the reasons why users have not chosen Mobile TV
Figure 17: Compare the Reasons why Users have not chosen Mobile TV. (Source: cnnic.cn)
From this Figure we could know that if we could cut the cost of Mobile TV usage and phone, there will be more people willing to use this service. Again, cutting cost is one of necessary strategies the business participators have to adjust for mobile TV industry in China. 36
4.2.3 Mobile TV Contents
4.2.3.1 Mobile TV Contents users subscribed
Figure 18: Mobile TV Contents that Users subscribed. (Source: cnnic.cn)
The mobile TV contents users concerned about the most are news programs and sports
events which both shared 34% consideration. Entertainment programming is also a quite
important content followed by a ratio of 27.7%, and education content only causes 2.1% of the
users attention. Sports and entertainment programs are basically the mainstream of mobile TV
contents users (young and affordable users) focus on. Mobile TV news content has its own
features, such as timeliness, targeted, short, etc., hence, it’s becoming the most preferred
content logically. 37
4.2.4 Comparative advantage of Mobile TV
4.2.4.1 Convenience to operate Mobile TV
Figure 19: Convenience to operate Mobile TV. (Source: cnnic.cn)
For the convenience of mobile TV operation, the user feedback is quite agreeable, only
6.4% of users complain the operation is not convenient. For the development of mobile TV, this
is a delightful sign. In fact, the operation of mobile TV and content selection has become
mature after years of development. The rapid transmission and content compression also have
a lot of breakthroughs. All these lay the sturdy foundation of the rapid development of mobile
TV.
4.2.4.2 Factors of Mobile TV Contents
Figure 20: Factors of Mobile TV Contents. (Source: cnnic.cn) 38
From the content aspect, the important limits of the development of mobile TV are
image processing, image size and framing, etc. The users holding this point of views compared to 32.9%. 31.8% of the users complain there are too few channels, which also is a very important impediment. Another 21.2% of users believe that, with the comparison of traditional
TV and Internet TV, mobile TV content has no specific or unique highlights.
4.2.5 Mobile TV User Behavior
4.2.5.1 Using environment of Mobile TV
Figure 21: Using Environment of Mobile TV. (Source: cnnic.cn)
In the mobile TV application scenarios, 30.2% of users choose to watch mobile TV
between the rest time of work and study, and 23.3% of users are event-driven, who access
mobile TV to get the information when special or important event occurs. Due to car media and
bad cell phone signals, users prefer not to use mobile TV while they’re commuting. 39
4.2.5.2 How long users customize Mobile TV every day on average
Figure 22: How long Users customize Mobile TV every day on average. (Source: cnnic.cn)
More than half of the users consume their mobile TV device less than 15 minutes daily.
Though every mobile operator in different provinces has introduced various packages of data
plan, mobile TV remains a luxury good for average users. Another important factor of short usage time is the consideration of battery consumption. Mobile phone battery cannot support the prolonged use of mobile TV.
4.3. Summary
While mobile broadcasting TV business are not as good as had been expected in some countries, it is clear, that mobile TV business does have mass-market potential in China. In the last decade, in China, users acceptance and use of mobile services has grown rapidly. When it comes to using the mobile media devices, such as mobile TV, mobile videos, and Internet access, etc - (38% of Chinese mobile subscribers choose compared to 27% of American mobile subscribers), despite less advanced networks (Phillips, 2010).
There are a number of reasons why Chinese cell phone users don’t use as many data intensive applications such as mobile TV and content uploads: 3G launched less than two 40
years17; CMMB system is in its infancy; penetration of smart phones such as the iPhone and
Android is still low; the Mobile Application ecosystem remains fragmented, and social networking platforms are less developed (Phillips, 2010).
However, as mobile penetration is just crossing 50%, China’s fixed phone line connections are decreasing as more users “cut the cord” and access to the Internet via computers is less prevalent than in the U.S. (Phillips, 2010).
It’s positive to believe that, CMMB is going to have optimistic prospects. But again, only the appropriate business model and industrial development bring the market revenue. In
Chapter Five and Six, we’re going to discuss the research related to content analysis and business model.
17 On January 7th 2009, the Ministry of Industry and Information officially issued 3G licenses and the battle for 3G market led by the top three operators, China Mobile, China Telecom and China Unicom, was declared (China Daily, 2009). 41
CHAPTER FIVE: CONTENT ANALYSIS
5.1. Content Analysis
According to the end of the previous chapter, user demand of Mobile TV will grow significantly these years in China. And the users experience surveys show that one of the main critical aspects for the success of Mobile TV is content.
However, there are some new characteristics of mobile television, for instance, small screens and noisy surroundings, which bring new challenges to satisfy the consumer experience.
In fact, Mobile TV should not be considered as a substitute for traditional TV, but as a complement. Here are some keynotes of content for the success of this new device: short
duration and small screen, interactivity, individual viewing and mobility.
5.1.1 Short Duration and Small Screen
In many cases the first reaction of new Mobile TV users is “but the screen is so small!”
Whereas users want the screen to be as large as possible, they do not want their phones to be
too big. Larger image sizes and landscape-oriented use of the display might be preferred
(Knoche & Sasse, 2007).
We could compare the current situation to the early fifties of the twentieth century,
when television started to enter our homes. At this time, similar to now, the screen size was
dramatically reduced leading to a completely new scenario with new problems and challenges.
Due to different consumption scenarios and time schedules, a new concept for the content
production had to be made for television. Also, this needs to happen again for Mobile TV
(Buchinger, Kriglstein, & Hlavacs, 2009).
Due to short duration and small screen, the scenarios for Mobile TV need to be more
concentrated and compressed and the shot types are highly recommended to be medium to
close up. A good example is news. News is well suited to mobile phones, because the use of 42 mobile TV bursts often lasts less than ten minutes (Buchinger, Kriglstein, & Hlavacs, 2009).
On news channels, the content of the channel needs to be continually new: if the user
selects a mobile news channel, he/she is most likely to get what he/she expected. Other
channels may have to consider how well their broadcasting is fitting to the mobile environment.
The limited time of mobile television use has ramifications for both the type of content and the
way that people consume it. On the other hand, customized services which address specific
interests of individual users will become important (Kaasinen, Kulju, Kivinen, & Oksman, 2009)
5.1.2 Interactivity
Interactivity features in mobile TV have several possibilities extending from changing
channels to creating and distributing one’s own content. The mobile phone is a promising
platform for interactive services as people are already accustomed to engaging actively with the
device. The combination of mobile telecom networks and broadcast networks offers several
application possibilities (Hübel, Theilmann, & Theilmann, 2007).
As mobile TV usage is characterized by short usage sessions and less intensive usage,
(Hübel, Theilmann, & Theilmann, 2007) claimed that mobile interactive applications should not
be merely transferred from another medium but they need to be developed for or adapted to
mobile environments. They suggest that the mobile EPG (Electronic Program Guide) could be
equipped with several add-on features such as reminders, reviews of programs by other users,
remote recording, voting, chatting and shopping. The mobile phone is especially suitable for
shopping as it enables authenticating the user.
Furthermore, viewers change their passive television viewing behavior towards an
active television viewing, similar to interactive television, where interactive services and applications are part of the routine television. Therefore, broadcast companies are interested in adapting their content to these new technologies (Buchinger, Kriglstein, & Hlavacs, 2009)
(Schatz, Wagner, Egger, & Jordan, 2007) pointed out that social mobile TV has future potential, and it will require both verbal and non-verbal interactive elements for joint 43
TV-watching experiences. They prioritize chat as the verbal element and suggest Joint zapping,
Share marks, Presence and Emotions as non-verbal elements. Joint zapping synchronizes the current channel of two receivers whereas Share marks enables seeing which channels peers are watching.
5.1.3 Individual Viewing and Mobility
The small screen of a mobile TV receiver makes mobile TV an individual viewing experience, rather than a communal viewing experience. Is it possible that this individualism in
TV watching is what people find attractive in mobile TV? Today’s consumers are surrounded by an overwhelming amount of multimedia contents in all shapes and forms. Do consumers require individual consumption of media since individual consumption is more efficient than communal consumption?
The trend of media entertainment tends to personalized content, which depends on user needs, tastes and preferences. Mobile phones are regarded as very private devices. The need of individualism was also expressed by the desire for mobile device configurations. The possibility to personalize content is one reason for the growing popularity of Mobile TV.
Traditional broadcast viewer numbers decrease because of a regular use of Internet or Mobile
TV. Another study showed that Mobile TV is attractive because people like to use their own
personal TV at home and because it can be used as a tool to get a closer interaction with
television content (Buchinger, Kriglstein, & Hlavacs, 2009).
However, the value of mobile TV seemed to be in personal use rather than in mobility.
People are interested on content customized to their tastes. The use of mobiles in the public
sphere has certain limitations (Hübel, Theilmann, & Theilmann, 2007). For example users may be worried about becoming absorbed in mobile multimedia content that requires their visual attention. They fear increased risks of accidents and lapses. In addition text legibility may be difficult when on the move. The possibility of listening to music or the radio while on the move is thus highly valued, because it does not need visual attention (Knoche, 2005). Last but not 44
least, viewers use Mobile TV in order to create privacy, but sometimes the situation is opposite.
In particular for young users, where the experience is shared and devices are lent.
5.2. Introduction of CMMB Network Services
China Broadcast Corporation (CBC) is mainly responsible for the construction and
operation of CMMB network under the authorization of the State Administration for Industry &
Commerce (SAIC) and SARFT. CBC uses radio and television coverage network to approach
mobile phones, PDA, GPS, MP4, notebook computers and various handheld devices. Through
providing radio and television programs, traffic navigation, stocks and other financial
information services, CBC media meet people’s needs of consuming mobile media and devices anytime and anywhere.
5.2.1 Introduction of CBC Core Brand –“Jing Cai” (CBC, 2010)
To coincide with the launch of its new national system, CBC launched “Jing Cai” as its
new media brand and has subsequently unveiled a number of new divisions, including: Jing Cai
Radio & TV, Jing Cai Navigation and Jing Cai Finance.
Under its various divisions CBC has launched several channels, introduced real-time
financial market and traffic information as well as constructed an emergency broadcast system
and other services in 330 cities across the country.
5.2.2 Jing Cai Radio & TV
Jing Cai Radio & TV is the mobile device using CMMB technology to broadcast radio
and television programs. At present seven channels of television programs are transmitted
respectively: CCTV-1 General, CCTV-3 Arts and Entertainment, CCTV-5 Sports, CCTV-News, Jing
Cai Film, one province-level channel, and one city-level channel. Here is some basic information
of the first fifth channels: 45
• CCTV-1 General (Wikipedia, n.d.):
CCTV-1 was launched on September 2, 1958. By satellites of Star 6B, Sino 3,
Asia-Pacific 6 and Star 9, its signals cover the whole country. CCTV-1 is the first running channel of China Central Television (CCTV), which is the primary channel of the Chinese television network, CCTV in the People's Republic of China. It has a mixture of all kinds of
TV programs. But given the importance of the status of its propaganda, CCTV-1 still plays its role as a government agency mostly (Wikipedia, n.d.).
Initially, the Publicity Department of the Communist Party of China Central
Committee issued directives as to what was appropriate for broadcasting and was not.
During reform in the 1990s, the Party adopted new criteria for CCTV: "affordability" and
"acceptability", loosening the previous central control. Affordability refers to purchasing ability of programs, and acceptability requires that a program has acceptable content. Now,
CCTV, including CCTV-1 balances its role both as a government agency and commercial broadcaster (Wikipedia, n.d.).
• CCTV-3 Arts and Entertainment
CCTV-3 Arts and Entertainment broadcasts officially nationwide 24 hours a day by
Asia-Pacific 1A satellite. CCTV-3 is due to strength the quality of arts column and programs with several of performing form such as music, information services, literature, dance, etc.
• CCTV-5 Sports (Wikipedia, n.d.)
CCTV-5, also known as CCTV-Olympic, is the main sports broadcaster in China.
CCTV-5 began broadcasting on 1 January 1995. CCTV-5 now broadcasts 24 hours a day, 7 days a week. It has extensive coverage of European football leagues (including UEFA
Champions League, Italian, Spanish, German and French leagues; however, it does not hold the rights for the English Premiership in recent years). CCTV-5 also has the exclusive rights in China to broadcast the World Cup, Olympic Games and Asian Games. It has many popular programs among Chinese sports fans (Wikipedia, n.d.).
• CCTV-News 46
CCTV-News broadcasts 24 hours a day with 24 news programs starting at each hour. Each news program provides the most recent domestic and international news and information to the audience, highlights the timeliness and amount of information to achieve and roll, progressive, newer reports. In addition to these 24 news programs, other news programs divided as the categories of contents, such as finance, sports, culture and international news.
Particularly, one thirty-minute evening news, Xinwen Lianbo ("News Simulcast"), is on the air at 7:00 PM Beijing Time. So far, it is the most known and watched news program in China which mainland Chinese watch to keep up with the government’s politics: all local satellite channels are required to carry CCTV’s 7 p.m. main news broadcast(in this case, both CCTV-1 and CCTV-News carry this program). An internal CCTV survey indicates that nearly 500 million people countrywide regularly watch this program. However, the Figure has slumped in recent years. The program has 10% of the ratings market, compared to 40% before 1998, and around 72.8 million currently watch Xinwen Lianbo (Wikipedia, n.d.).
• Jing Cai Film (CBC, 2010)
“Jing Cai Film” is the first handheld (mobile) TV professional movie channel, with special programs such as Flagship Film, Small Film, Star Express. Jing Cai Film started its pilot in October 1st, 2009 in Beijing. It broadcasts domestic animated films, art films, popular cartoons, documentaries, television movies, short films and so on.
• Local Channels
According to local user’s viewing habits, preferences and needs, those two local channels (one province-level channel, and one city-level channel) utilize CMMB network; integrating the high quality program resources of local TV channels, innovating new style and channel programming. The two local channels are targeted at the local service with terrestrial transmission. 47
Figure 23: Samples of Jing Cai TV Channel. (Source: cbc.cn)
5.2.3 Jing Cai Navigation (CBC, 2010)
Jing Cai navigation is an intelligent mobile traffic information service. It send real-time
traffic congestion situation, traffic flow information, traffic roads information to users by mobile
multimedia broadcasting network. For instance, it guides the user bypasses the traffic jams to achieve intelligent traffic guidance function. This feature not only improves travel efficiency, but also saves public energy and relieves traffic congestion.
Traffic navigation improved from traditional GPS which selects the shortest route to
“GPS + CMMB” model which chooses the best route with less traffic congestion. This helps
users to save time and energy. If you want to know more travel information on the road, you
can also click portable (car) carrying navigated television, " Jing Cai Navigation" can take
advantage of GPS + CMMB function, providing a comprehensive illustration for the surrounding shopping malls, attractions, supermarkets, hotels, theaters, parking and other related
information as well as other types of real-time information services. What’s more is that all such
information is sent by the CMMB network and received by real-time intelligent navigation device.
48
Figure 24: Sample of Jing Cai Navigation. (Source: cbc.cn)
5.2.4 Jing Cai Finance (CBC, 2010)
Jing Cai Finance broadcasts real-time stock market information to handheld devices
(mobile phones, GPS, MP4) through CMMB network. Users can not only watch the stock market
in real time, but also get technical analysis of stock data. Now provided services include real-time stock market (exchange) indexes and stock analysts report and information. Investors can get stock market information and financial news anytime, anywhere, such as stock exchange, stock options, stock market index, market trends, expert stock analysts. Jing Cai
Finance will introduce various market information and financial data including bonds, funds, foreign exchange, futures, gold, oil, food, Hong Kong stock market, Taiwan stock market, etc., and create a comprehensive financial business platform.
The operator of Jing Cai Finance, CBC cooperates with Shanghai Ruigao Information
Technologies Co., Ltd. to improve this device. There are dozens of terminal producers, and the service is opened in nearly 200 cities all over the country.
Figure 25: Sample of Jing Cai Finance. (Source: cbc.cn)
49
5.3. Summary
CBC is opened to introduce new services to support CMMB content. In addition to
transmitting current broadcast and television station programming, a variety of new media
products suitable for people on the go will be provided. CBC will continue to implement
innovative new cultural business models as well as develop new mobile broadcast technology,
mobile television programming, digital newspapers, periodicals and other content.
Obviously, CMMB network and CBC business is growing rapidly since it launched in
2006. One of the reasons is the support from Chinese government. In fact, the attitude of the
government plays an important role in the development of CMMB due to China’s national
conditions, which will be discussed especially in the next chapter. 50
CHAPTER SIX: ENVIRONMENTAL CLIMATE & BUSINESS MODEL
6.1. Environmental Climate
6.1.1 Economic Growth
The economy of China is the second largest in the world after that of the United States
with a GDP of $7.8 trillion (2008) when measured on purchasing power parity (PPP) basis. It is the third largest in the world after the US and Japan with a nominal GDP of US$4.3 trillion (2008) when measured in exchange-rate terms (USA Today, 2007). For the past quarter of a century,
China has been the fastest-growing major nation with an average annual GDP growth rate above 10%. China's per capita income has grown at an average annual rate of more than 8% over the last three decades drastically reducing poverty, but this rapid growth has been accompanied by rising income inequalities (USA Today, 2007). This fact makes the mobile broadcasting market in this country even more attractive. Followed Figure 26 and 27 show
China’s nominal gross domestic product (GDP) from 1980 to 2009 and China GDP growth rate from 2006 to 2009.
Figure 26: GDP Comparison between USA and China from 1980 to 2009. (Source: IMF)
51
Figure 27: China GDP Growth Rate from 2006 to 2009. (Source: National Bureau of Statistics)
6.1.2 Preferential Policy
As mentioned in the last chapter, traditional television stations such as CCTV have to operate under the strict Media broadcasting criterion. Chinese government gives mobile television and other new media much more flexible policies to improve their development. But still, media resources as the strategic resource of the country, are related to the security of national culture. The Propaganda Department’s scope is to control licensing of media outlets, and to give instructions to the media on what is and what is not to be said, especially about certain “delicate” issues, like Taiwan, Tibet, etc., that can affect state security, or the rule of the
Communist Party (Wikipedia, n.d.).
Therefore, for the media industry, the attitude of the government to private capital is
to allow and encourage it, but foreign investment is allowed while not encouraged. Additionally,
foreign capital into the field needs to follow very strict limits, such as a required amount of
investment in the beginning and limit to their percentage of shares. Currently, the main mobile
media companies in this industry are those whose backgrounds are in part connected to
government institutes. In this case, CMMB has the overwhelming advantage. 52
6.1.2.1 MIIT actively promote the 3G construction18
In July 2007, MIIT (Ministry of Industry and Information Technology of P. R. China)
published the “Eleventh Five-Year” plan, with an emphasis to positively promote the
development of 3G in the next 5 years. In the “Major Projects” section of the “Eleventh
Five-Year” plan, it said clearly "to continue to promote TD-SCDMA and other 3G technologies and related industrial applications; actively develop the baseband chip, RF devices, high energy battery and the core software and other key component parts; develop new generation of mobile communication systems and terminal key technologies; boost broadband wireless access technology and product development capacity; promote the management of related standards, and to establish China’s competition advantage in new media and mobile communications field.”
6.1.2.2 Progress of “Telecommunications Act”19
The Vice Minister Jiang Yaoping of MIIT said in November 2007, MIIT will speed up the
publication of the “Telecommunications Act”, which would provide a legal guarantee for the
development of the telecommunications industry (MIIT, 2008). The Minister Wang Xudong of
MIIT said at the 2007 National Information Industry Working Conference to “Actively promote
the plan for the full service of telecommunications companies as soon as possible to optimize
the structure of market competition.”
6.1.2.3 Industry self-regulation
In addition to the rules and regulations formulated by the government, industry
participants take the initiative to strengthen self-discipline and to establish awareness of the social responsibility of mobile media. People’s Network has launched initiatives to sign a
18 In the next section, business model, the research will illustrate why the construction of 3G network influences the development of CMMB business. 19 Currently, China still has no “Telecommunications Act.” Instead, there is the “Telecommunications Regulations of the People's Republic of China” to judge by. 53
“Convention of mobile media self-regulation”, and more than 10 mobile media companies have
signed this convention (MIIT, 2008).
6.1.3 3G Construction
The Chinese government issued Third Generation (3G) Mobile Network (herein after
“3G Network”) licenses to three telephone operators in January 2009. The 3G Network allows
mobile cellular systems the ability to add multimedia applications to mobile phones with
speeds ranging from 384 kbps to 2 mbps. The 3G systems were standardized as the IMT-2000 by the International Telecommunication Union (ITU). The Chinese government invested 280 billion Yuan investments into the 3G Network include network upgrades and expansions over the next two years. China Mobile received a license to deploy 3G Networks based on
TD-SCDMA, a home-grown 3G standard. Smaller rivals China Unicom and China Telecom were
granted licenses for W-CDMA (European version) and CDMA2000 (US version) respectively
(Wang, 2009).
. TD-SCDMA: was developed by the China Academy of Telecommunications
technology, in collaboration with Siemens, which since received acceptance as an
official IMT-2000 standard (Wang, 2009).
. W-CDMA: is an upgrade from GSM via GPRS or EDGE. It is an air interface found in
3G mobile telecommunications networks. W-CDMA is the higher speed
transmission protocol used in the Japanese FOMA system and in the UMTS system
(Wang, 2009).
. CDMA2000: is a hybrid 2.5G/3G technology of mobile telecommunications
standards that use CDMA, a multiple access scheme for digital radio, to send voice,
data, and signaling data between mobile phones and cell sites (Mu, 2009).
54
6.1.4 Independent technology
Science and technology have always preoccupied China’s leaders and indeed, China’s
political leadership comes almost exclusively from technical backgrounds and has a high regard
for science. Deng Xiaoping prominent (1904-1997, Chinese revolutionary, politician, pragmatist and reformer, as well as the late leader of the Communist Party of China) called it “the first productive force”. In recent times, with Hu Jintao (currently the Paramount Leader of the
People’s Republic of China), and Wen Jiabao (current Premier of the State Council of the
People’s Republic of China) and their predecessors Jiang Zemin and Zhu Rongji all being trained
engineers, China’s leaders have been described as technocrats. That’s why Chinese government insists on creating and developing its own 3G technology - TD-SCDMA and mobile broadcasting media technology – CMMB. This will ensure lack of adversity to the technology advances that the TD-SCDMA and CMMB networks will provide (MIIT, 2008).
6.2. Business Model
6.2.1 Roles and players of the value chain
The following main roles of the value chain have been identified (Sattler, 2008):
· Content provider: Providing content into TV channels based on a broadcast license if
necessary. This role can be performed by anyone owning a broadcast license, including traditional broadcasters, new mobile TV specific broadcasters or mobile operators (Sattler,
2008).
· Mobile TV network operator: Operating broadcast network. This role can be
performed by a broadcast network operator either based on an own frequency license or
providing the service for a third party which owns the frequency license (Sattler, 2008).
· Mobile TV service provision: Providing mobile broadcast service based on a platform license if necessary. The role of the mobile broadcast service provider is taken here to define a 55
service consisting of channels broadcasted for mobile reception.20 It is a new role in mobile broadcast business and one which did not exist in the classical mobile and broadcast businesses so far. To some extent it can be compared to a cable operator, packaging channels and other packets as well (Sattler, 2008).
· Handset distribution: Providing mobile TV service to customers and billing/charging
them. This role can be performed by anyone having access to customers (Sattler, 2008).
Many regulators around the world are preparing tenders for broadcast Mobile TV
licenses and can learn important lessons from the success or failure of past tender processes
and the resulting Mobile TV eco-systems. Arthur D. Little has benchmarked how the Mobile TV
license tender affects the set-up of a Mobile TV eco-system and how the eco-system along the
value chain affects end-user uptake (see Figure 28) (Taga, Niegel, & Riegel, 2009).
Figure 28: Mobile Broadcasting TV Business Models in Asia and in the U.S.A. (Source: Arthur D.
Little)
20 This should not be confused with the IPDC service provider, who is responsible for the technical service provision and whose role can be taken by the broadcast network operator or any third party (Sattler, 2008). 56
From this Figure, we could learn that South Korea and Japan show two business
models, each of which offers Mobile TV services free of charge to end-users without direct
involvement by mobile operators. These models have delivered the highest subscriber uptake
anywhere in the world. By contrast, the S-DMB satellite-based service in South Korea and the
MediaFLO service in the US are subscription-based and have shown only limited subscriber uptake so far (Taga, Niegel, & Riegel, 2009).
6.2.2 General revenue model considerations
Mobile broadcasting is a new service generating additional costs which should be
covered by corresponding revenues. Revenues can come from three main sources, namely from:
Taxes or license fees, Service fees (monthly, weekly, daily, one-off fee), and Advertising (Sattler,
2008).
Taxes or license fees for stationary TV are charged in a lot of countries, being the basis
for free-to-air services of public broadcasters. They may also be a basis for public mobile TV
services. Service fees are based on the additional value of mobile TV services and may be
gathered by companies owning subscribers as mobile network operators or pay TV broadcasters.
Different charging mechanisms may be used. A monthly subscription fee is considered the most
acceptable according to nearly all pilot market research. But pay-per-view or time-based
charging are other options (Sattler, 2008). Another option is an one-off service fee, e.g. to be paid when obtaining a mobile TV capable device in a retail store, enabling the buyer to access the mobile TV service for the whole live-time of the device. This especially may be applied for
unconnected devices. Additional customer revenues can be generated by interactive services
related to broadcast services. The charging models then are based on the models applicable to
the kind of interactive service used (Sattler, 2008).
Mobile broadcasting provides a new distribution channel for TV content including
advertising. Thus, selling air time to advertisers can be considered as an additional income
source for broadcasters (Taga, Niegel, & Riegel, 2009). This can be the main revenue source for 57 program packages containing content which is freely available through other distribution.
New potential for advertising may be opened up by combining broadcast ads with personalized advertising features using the interactive channel. Advertising revenues probably will become significant only at a later point in time when mobile TV service has achieved sufficient penetration (Taga, Niegel, & Riegel, 2009). Only a sufficiently large user base is relevant for advertising clients and the reason for them to invest into a new distribution way such as mobile TV.
6.2.3 CBC Business Strategies
6.2.3.1 Hybrid networks
CBC uses the strategy of hybrid networks. These combine a satellite-based service with terrestrial repeater networks. The satellite signal can cover an entire region and can provide a different set of channels for every country market. The terrestrial repeater network is used to provide good coverage in urban areas and indoors (Rohde & Schwarz, n.d.). The key factor for these services is the need for national regulators, in this case of CMMB standard, to align licenses for the required spectrum as well as the precondition that a consortium of mobile operators can secure financing for the massive investments for satellite launch or satellite transponder rental (CBC, 2010).
6.2.3.2 CBC Business Model
CBC’s business model is basically an access network operator led model. The access
network operator led model is a vertical business model approach. The access network
operator handles the role of mobile broadcast service provider as well as the role of the
distributor by managing the end-relationship with customers on service provision, marketing
and customer care. The business model is shown as follows (Figure 29). 58
Figure 29: Access Network Operator led Model. (Source: (Sattler, 2008))
Being in the role of mobile broadcast service provision, the access network operator
will define the specifics of broadcasting and service purchase and protection. The access
network operator will receive payments for the use of mobile broadcast services from
customers on subscription, prepaid or pay per view basis which requires either a stand-alone
billing functionality or some co-operation with a mobile network operator. Optionally payments
are made via the mobile network operator.
CBC’s services are based on connected devices. Revenues from interactive services are
a possibility, and they will require a separate billing procedure. See Table 2 for the charge of
CBC’s multiple services.
Table 2: The Charge of CBC's Services. (Source: cbc.cn)
Jing Cai TV Jing Cai Navigation Jing Cai Finance
Length of Time Standard Charge Discount Package Standard Charge Standard Charge
One Month ￥12 RMB ($1.7) ￥20 RMB ($3) ￥5RMB ($0.72)
Half a Year ￥72RMB ($10)
One Year ￥144 RMB ($20) ￥120 RMB ($17) ￥180 RMB ($26) ￥50RMB ($7)
Three Years ￥432RMB ($60) ￥300 RMB ($43) ￥398 RMB ($57) ￥120 RMB ($17)
59
6.2.3.3 Strategic Cooperation
Remember we mentioned in last section that how the construction of 3G is important
to the improvement of CMMB Business. Here is the reason why. Recently, CBC and China
Mobile were pleased to announce that they have agreed to jointly promote the development of
the CMMB + TD network. Drawing on CBC’s expertise with respect to program production and
broadcasting and China Mobile’s expertise with respect to customer service and marketing, the
companies intend to provide coverage to 90% of the population by 2015. China Mobile is promoting the launch of TD+CMMB mobile phones from many international brands, including
Motorola, Samsung, Nokia, LG, and Dopod, through R&D, handset and fee subsidies. Fifty (50) new TD+CMMB mobile phones are scheduled to be released this year.
Also, the CMMB network has received early support from many leading Chinese mobile electronics manufacturers including, Lenovo, ZTE, Haier, Konka and Aigo which have produced mobile phones, GPS devices, mobile TVs and other products specifically for CMMB (CBC, 2010).
. CMMB has been working closely with strategic partners, as well as potential operators,
globally. The following are a few examples (CMMB Vision, n.d.).
. CMMB Global Strategic Partners - Motorola:
Mobile TV Center established for CMMB in San Diego, USA
Supporting CMMB to be candidate to ITU Standard for Mobile TV
Jointly marketing MENA, USA, Indonesia, etc. Intel
Jointly submit CMMB for IEEE 802.16 Standard Proposal
Jointly developing CMMB-2 (Next Generation Broadcasting)
CMMB-embedded into Intel products like MID and Chipset soon
. CMMB has been actively promoted to global operators since 2007 including:
Middle East & North Africa: S2M Company as Operator to provide Mobile TV
services to the users in 22 MENA countries; TiMi & Motorola jointly as the
winner, now are working with S2M for final contract negotiation.
Europe: InmarSat plans to launch a S band Satellite to cover the entire of Europe 60
for Mobile TV services; CMMB is one of the major candidates. Also, Ukraine
National TV Station is considering adopting CMMB to offer Mobile TV
services.
Asia: the local operators in Philippines, Indonesia, Bangladesh, Mongolia, etc. are
considering taking CMMB as one of their Mobile TV standards.
Africa: the local operators in Mali, Tanzania, Ghana, etc. have contacted SARFT to
look for cooperation with CMMB Mobile TV services; etc.
The third Telecom industry reshuffle in May 2008 has consolidated the positioning of
China’s top three providers: China Mobile, China Telecom and China Unicom (China Daily, 2009).
These three companies are the main promoters of the 3G market in China. And China Mobile is
the clear leader with more than 70% market share. See Figure 30 as followed.
Figure 30: Contrast and Analysis of 3 Telecom Operators. (Source: Nielsen Media)
6.3. Summary
CMMB’s hybrid networks have the potential to reduce the operating costs and network
investments per subscriber. The networks cover an entire state region, typically spreading the
investment costs over several hundred million addressable mobile subscribers as well as limit
investment costs by re-using infrastructure and spectrum of mobile network operators (Taga,
Niegel, & Riegel, 2009). 61
Also, as what it has done with China Mobile, CMMB operators must adopt a
cooperative and win-win strategy, and achieve unified standard, network, market and operation.
CMMB need to fully cooperate with the local broadcaster, radio and television to promote the
integrated profits of all level players. It’s clear that this goal of win- win cooperation would achieve positive progress accelerated due to the government’s requirement and regulation. 62
CHAPTER SEVEN: CONCLUSION
We’ve discussed the overview of global mobile TV technology standards that are
making headways in to the marketplace in chapter Two. And from chapter three to six, the
research related to CMMB technology standard, Chinese users features, CBC content analysis,
and CBC business model separately.
As a new data device, mobile TV may have disappointed initial expectations in many other countries over the world. But there is still strong subscriber uptake in Japan, South Korea and Italy. And, it truly has encouraging potential to become a mass-market service in China.
7.1. The advantage of CMMB network
7.1.1 Support from the Government
Since the Chinese government deployed CBC to develop the technology and network of
CMMB, the company gained lots of support from state agencies such as SARFT, MITT, etc. The
CMMB standard became the only prior one which limited the freedom to select the optional broadcast mobile TV standards for the players. This seems to contradtict the fair competition of the free market which helps CMMB system become monopoly in the Chinese market during the short term. And we’ve described the political considerations and Chinese national conditions in the previous chapter. There is no doubt, the future market development of CMMB is absolutely guaranteed with such background.
7.1.2 Hybrid satellite/terrestrial networks
CMMB’s hybrid satellite/terrestrial network can cover entire nationwide regions,
leading to substantial economies of scale. This satellite/terrestrial network costs about 24
billion Yuan (3.5 billion U.S. dollars) to cover the entire national territory (including 2-3 satellites
and a large number of additional terrestrial transponders), and about 30 million Yuan (4.3 63
billion U.S. dollars) maintenance costs. And if simple using the terrestrial network to achieve
national coverage of transmission, the cost is as high as 89 billion Yuan (13 billion U.S. dollars); maintenance costs are more than 9 billion Yuan (1.3 billion U.S. dollars) (Xu, 2008).
7.1.3 Low end-user prices
Price was the most important factor for consumers when considering buying a new
device. According to our research, the costs of CBC’s mobile services are quite low and satisfactory to most users. Price would not become the reason users hesitate to subscribe the services. Furthermore, Good customer service is essential for business development. CBC
continues to perfect service methods and improve service levels, service quality and service
proficiency.
7.1.4 Cooperation Market
In order to achieve win-win results, CBC cooperates actively with various device
manufacturers, handset producers and service providers. The successful cooperation with China
Mobile is a typical example. CMMB is a broadcasting technology with advantages of wide coverage, relatively low-cost, multi-users, but lack of on-demand service and two-way interaction. On the other hand, mobile 3G technologies, such as TD-SCDMA, have improved in interactive, on-demand or instant messaging, but find it difficult and uneconomical to achieve video transmission in large-scale, wide coverage, multi-users. Therefore, it satisfied the interests of both players by providing mobile TV services via hybrid networks, combining mobile TV via
3G streaming and Mobile TV broadcast. The integration of the two networks fully complemented each other; the combination creates the maximized profits model.
64
7.2. Latest news
7.2.1 CMMB-PC Terminal Industry
March 12, 2010, “CMMB-PC Terminal Industry Development Forum” was held in
Beijing, CBC said it would combine CMMB network with the PC industry, and promote to built
CMMB module into PC, laptop, Internet and other terminal products, which IT products and
broadcast services will work closely together. CBC has issued preferential policy for the
development of the cooperation industries: the computer built with CMMB module has three
years free CMMB services (CBC, 2010).
7.2.2 New Service – Emergency Broadcasts
Recently, CBC launched its new service: emergency broadcasts. Emergency
Broadcasts is an important application of CMMB devices as well as an important part of the
national emergency broadcast system, and one important access of Government’s emergency
incident handling (CBC, 2010).
When national emergencies and unexpected events happened, CMMB emergency
broadcast system can provide emergency notification services to users (For free). Content will be as a text message basically, expanded support for audio, pictures, images, etc. Terminal users
will be forced to receive the emergency broadcast information. This service is in testing pilot
and expected to be fully operated in 2012.
Figure 31: Sample of CMMB Emergency Broadcasts. (Source: cbc.cn) 65
7.3. Challenges and Suggestions to Ensure Success
7.3.1 CBC (CMMB Network)
7.3.1.1 The usability and attractiveness of Mobile TV services
The usability and attractiveness of CMMB services to end-users need to be improved.
There are several levers to improve the attractiveness of CMMB services:
. Continuing to develop the density of the broadcast network.
. Trying to improve indoor reception.
. Providing Mobile TV services via 3G streaming/satellite and terrestrial
transmission and PC products.
. Continuing to cooperate with mobile operators including improving the
TD+CMMB model, and developing the CMMB-PC terminal Industry.
. Adding interactive services to increase the attractiveness of broadcast Mobile TV
business, such as Jing Cai Navigation, Jing Cai Finance, and CMMB Emergency
Broadcasts.
7.3.1.2 Improving the service and price to end-users
Service and price are two key factors to retain and increase consumers. There are several ways to do so:
. Reducing end-user prices is by including advertising into the Mobile TV channels.
. Enhancing the attractiveness of channel bouquets by providing “made for
mobile” TV channels.
. Improving display quality, enhanced video compression, battery life and energy
efficiency further improve the user experience.
7.3.2 Mobile Operators
In addition to providing the directly viewing service, mobile broadcasting TV services offer two important benefits as well. First of all, mobile TV helps mobile operators to acquire and retain customers for their core communication business. Secondly, mobile TV enables 66
operators to offload network traffic from their 3G networks to broadcast Mobile TV networks.
The cooperation strategy of China Mobile should help itself stay as the leading carrier.
But the other two telecom companies, China Unicom and China Telecom, still have the chance to integrate CMMB network to their own 3G business which needs to be done as soon as possible.
7.3.3 Handset suppliers
In terms of handset brands, Nokia dominates followed by Samsung and Motorola.
However, the real story is that the top international brands are losing share to local brands that
have designed low cost phones with features that appeal to Chinese consumers, such as extra
loud volume settings, funky shapes and designs and extra long battery life. Figure 32 shows the
market share of these handset suppliers (dotMobi, 2010).
2007 Handset China Domestic Sales Market Share
Others, 19.0%
Huaw ei, 3.2% Nokia, 30.9% , Bird, 2.3%
ZTE, 4.8%
Motorola, 22.5% Samsung, 9.6% Sony Ericsson, 7.7%
2001 2003 2005 2007 2008 Nokia 28.0% 11.6% 19.7% 30.9% 38.9% Motorola 32.0% 14.2% 12.1% 22.5% 7.5% Sony Ericsson 10.0% 5.0% 4.1% 7.7% 3.5% Samsung 6.8% 6.3% 10.4% 9.6% 19.7% ZTE n/a n/a n/a 4.8% 6.3% Bird 6.0% 12.1% 8.8% 2.3% <1 Huawei n/a n/a n/a 3.2% 1.6% TCL 2.8% 9.1% 4.6% <1 <1 Konka n/a 6.6% 5.0% <1 <1 Others 14.4% 35.1% 35.3% 19.0% 28.8%
Figure 32: Market Share of Several Handset Suppliers in China. (Source: Motorola in China - 67
Failure of Success?)
Unfortunately, for those international brands, they may face more challenges to embrace the Chinese market since the government’s requirement of the leading operator,
China Mobile to operate its own 3G technology (TD-SCDMA) is not used in other markets all over the world. On the other hand, many local brands would introduce CMMB and TD-SCDMA networks to their products more easily. The local brands do not have difficult choices as global device brands do about whether to develop devices for these unique standards for just one market.
7.4. Limitations
Although this case study helped to learn about the status quo of Chinese mobile
broadcasting TV, especially the development of CMMB network, there were several limitations
to the study. The first limitation related to the user experience. Though we have the
quantitative survey about the mobile TV users, we do not have any data information of the user
experience of CMMB network specifically. This kind of work needs lots of time, energy and workers which became impossible for the writer to achieve in such short time. A second limitation was the lack of introduction of terminal mobile products. The write found there were no typical mobile products (such as iPhone series) in CMMB networks. As a result, the writer chose not to describe this aspect particularly. The third limitation was no feedback from handset suppliers which would help to improve the understanding of business model of mobile broadcasting TV.
7.5. Recommendations for Future Research
Based on the results of the study, there are several recommendations for future
research. First of all, a quantitative survey about CMMB users’ feedback is highly recommended.
Geoffrey Moore (1999) in his bestselling book, Crossing the Chasm, argues that the most 68 important characteristic about marketing high-tech products is the “tendency of consumers to reference each other when making buying decisions.” The business players, no matter CBC,
China Mobile, or other device manufactures, service providers, content producers and retailers, need to understand customer’s needs, preferences, and habits, to improve services and products, to access more benefits.
Second in order to learn what’s the position of handset suppliers; future studies should
employ a survey or interviewing procedure to measure the point of view of handset suppliers.
Finally, since the development of CMMB network is happening as soon as this study is being finished, the data may be inaccurate. Future researches may need to make a fresh start to get more data and information.
7.6. Conclusion
In recent years, the rapid development of China’s economy has been the basis for all the industry to improve, and that momentum is expected to continue in the next few years. As such, Chinese consumers would wholeheartedly adopt technology and products, such as mobile broadcasting TV, which would be productive, popular and people connected.
On the other hand, Mobile TV remains a new and complex business at the crossroads of the media/TV and broadcast/telecommunication industries. The development of CMMB
network is in the beginning period and has lots of unstable and unknown impediments. The
good thing is the players in China market could learn more from other countries, both positive
experience and negative failure, to form their own successful business model. Cooperation exists in this market as well as competition.
One of the challenges for the Mobile broadcasting TV business to succeed is how to still gain profit margin after so many investments, especially while the industry is already at low subscriber numbers with low monthly subscription fees. The players along the value chain need to continue to work on improving the economics outlined. By using hybrid networks, they can 69 contribute to lowering the costs of opening and operating the network. They can provide less expensive Mobile TV-enabled handsets, for instance, by taking advantage of the falling prices of chipsets and of large displays. Thirdly, they can reduce the cost of content, by re-using existing content or by partially financing content costs through advertising.
In the end, it’s perhaps not surprising that there are positive prospects of mobile
broadcasting TV and CMMB network in China. This 1.4 billion-population country should play an important role in Mobile TV industry all over the world. 70
Appendix A: Official Regulations of New Media of the Government of P. R. China
中华人民共和国国务院令 第 292 号
《互联网信息服务管理办法》已经 2000 年 9 月 20 日国务院第 31 次常务会议通
过，现予公布施行。 总理： 朱镕基
二 000 年九月二十五日
中华人民共和国国务院新闻办公室 中华人民共和国信息产业部 第 37 号令 《互联网新闻信息服务管理规定》现予公布，自公布之日起施行。
国务院新闻办公室主任：蔡 武 信 息 产 业 部 部 长：王旭东 二 00 五年九月二十五日
国家广播电影电视总局令
（第 39 号） 《互联网等信息网络传播视听节目管理办法》经 2004 年 6 月 15 日局务会议通过， 现予发布，自 2004 年 10 月 11 日起施行。 局长： 徐光春 二 00 四年七月六日
国家广播电影电视总局 中华人民共和国信息产业部令 （第 56 号） 《互联网视听节目服务管理规定》经国家广播电影电视总局、中华人民共和国 信息产业部审议通过，现予发布，自 2008 年 1 月 31 日起施行。
国家广播电影电视总局局长：王太华 中华人民共和国信息产业部部长：王旭东 二○○七年十二月二十日
71
Appendix A: Official Regulations of New Media of the Government of P. R. China (Cont) PRC State Council Order No. 29221 "Internet Information Services" has been agreed by the 31st executive meeting of the State Council in September 20, 2000, and is hereby promulgated. Premier: Zhu Rongji September 25, 2000
PRC State Council Information Office & PRC Ministry of Information Industry Order No. 37 “Regulations of Internet News Information Services” is hereby promulgated and shall enter into force. State Council Information Office Director: Cai Wu Ministry of Information Industry Minister: Wang Xudong September 25, 2005
State Administration of Radio, Film and Television Order (No. 39) “Dissemination of information networks such as the Internet audio-visual programs management” approach by executive meeting in June 15, 2004, is hereby promulgated, and will effect in October 11, 2004. Secretary: Xu Guangchun July 6, 2004
State Administration of Radio Film and Television Ministry of Information Industry Order (No. 56) “Internet audio-visual program service regulations” is hereby promulgated by the State Administration of Radio, Film and Television and Ministry of Information Industry to consider, and will effect in January 31, 2008. State Administration for Radio, Film and Television: Wang Taihua Ministry of Information Industry Minister: Wang Xudong December 20, 2007
21 The English version is only for translation of the original official regulations, for reference only.
72
Appendix B: Samples of CMMB Receivers
73
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