Presenter’s Name Date Location

Click to edit Master titleBusiness Models for Mobile TV

Mehdi KADHI

Tunis, 29th & 30th April 2009

This document is confidential and is intended solely for the use and information of the attendee of this Event. Copyright 2008 S2M FZCO. All Rights Reserved.

2 ©2008 S2M FZCO.

Challenges and Key success factors for Mobile TV Network coverage and quality

Outdoor, indoor and in-car Significant costs of proper indoor and extra-urban coverage

Top quality and diverse content Mix of conventional and mobile specific Pan-Arab, local and international programming Interactive value added services

Wide choice of devices at affordable prices Mobile phones, portable media players, in-car devices, laptops,

etc.

Solid economic case – suitable return on investment High infrastructure, content, device and marketing costs Niche market potential Seek economies of scale through cost and risk sharing

Mutually beneficial business model Mobile operators (and other service providers), Content

providers, Device manufacturers, Technology vendors, Consumers

Joint and intensive marketing Subscription based vs. Free-advertising based service

Source: Teleanalytics

Mobile TV Adoption vs. Network Quality

3 ©2009 S2M FZCO.

6 pillars for Mobile TV

The business model cannot be dissociated from

technology, commercial and regulatory, all should be driven by Mobile TV key

success factors

4 ©2009 S2M FZCO.

S2M will launch an S-band satellite capable of delivering mobile TV services to the Arab world

South Korea: – 2005

China: – 2008

North America

– 2002

- sat. 2008

Europe

– sat. 2009

India: Devas Multimedia

Similar Systems in Operation or Under Development

S2M-1 Satellite

5 ©2009 S2M FZCO.

Sources & packages mobile content for delivery to S-band devices

Delivers content package to mobile operator for resale to its customer base

Promotes Mobile TV service, registers customers & distributes S-band devices & S2M decryption keys

Manages customer care & collects service fees

S2MS2M

Repackages S2M content & prices it for its own customer base

Creates new video, audio or data content specifically for mobile format

Delivers mobile broadcast content to S2M

Repurposes traditional video, audio or data content for use in mobile format

Manages encryption & broadcast of content over satellite network

S2M Advantages: Unique collaborative ecosystem

Deploys & operates mobile TV broadcasting platform

Content ProviderContent Provider Mobile OperatorMobile Operator

6 ©2009 S2M FZCO.

S2M Advantages: Share costs between several countries and several operators

Need to ensure suitable return on investment Significant investments required for Mobile TV Stringent network performance requirements High content costs Limited market maturity Uncertain market opportunity

A shared system would substantially reduce the cost of deploying and operating the service Neutral third party mobile TV broadcast service provider Service available to 40+ mobile operators in the region Service available to 200+ TV and Radio channels

S2M allows to share infrastructure, content and device costs between several countries and several operators

7 ©2009 S2M FZCO.

100+ compatible devices available in other markets

Attractive market potential for device manufacturers 350mm+ people under coverage 200mm+ mobile subscribers

35+ device manufacturers including Mobile handsets/ Smart phones/ PDAs In-car Audio/Video and Personal Navigation

Devices Wifi/Bluetooth/USB dongles Personal Media Players

Affordable dongles to kick start mobile TV adoption

S2M Advantages: Wide choice of devices at affordable costs

Device variety and Price RangesChina Example

Source: Teleanalytics, November 2008

8 ©2009 S2M FZCO.

S2M Advantages: Top quality and diverse content Leverage cultural and language similarities in Arab

countries

Arab countries share, to a large extent, the same content interests

A single platform covering the entire Arab region is best suited for the delivery of common channels

Efficiently acquire, develop and deliver shared content

Allows content customization to cater for specific interests on a country by country basis

Allows content differentiation for each operator

S2M media subsidiary for content aggregation, repurposing, reformatting and interactivity

9 ©2009 S2M FZCO.

S2M Advantages: Ubiquitous coverage

Hybrid solution Satellite for cost effective region-wide

coverage Terrestrial repeaters for indoor coverage EDGE/3G/Wimax/LTE for VOD and

interactive services

Cost effectively extend coverage beyond urban areas Urban as well as rural coverage Indoor, outdoor and in-car service

Satellite Mobile TV Infrastructure

1

2

3a

3b

3b

4

10 ©2009 S2M FZCO.

S2M Advantages: Harmonize frequency, technology and solution throughout the Arab region

Single technology, solution and frequency for all countries

Extend access to the service beyond national boundaries

Similar projects are under deployment in Europe to harmonize mobile TV solutions Solaris Mobile (Eutelsat and SES): satellite

launched in 2009 Inmarsat

S2M’s Geographic Reach

11 ©2009 S2M FZCO.

Interoperability One technology standard, one system and one frequency for all countries under coverage

Coverage Coverage everywhere including urban and rural areas outdoor, indoor and in-car and while traveling within the region

Infrastructure Substantial economies of scale in infrastructure

Costs are shared between several countries

Content Most efficient solution to deliver pan-Arab content

Regional as well as local programming

Devices Widest choice of devices at affordable prices

Business Model Mutually beneficial business model for mobile operators, content providers and device manufacturers

Technology Higher spectrum efficiency, commercially and technically proven

Existing or under deployment in S. Korea, North America, Europe, China, India

Summary of S2M advantages

Best customer experience for end-users, widest reach for content providers, most efficient economic model for operators

12 ©2009 S2M FZCO.

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