With the increasing availability and improvements in broadband wireless, the demand for new services and devices that offer mobile video and other advanced content is on the rise.

 

Recent analysis from Frost & Sullivan (News - Alert) finds that as networks, devices, content creation and the delivery and protection of frameworks continues to improve in the U.S., the adoption of mobile video services will also increase.

 

Another recent study from QuickPlay Media (News - Alert) found 78 percent of survey respondents expected to increase their mobile TV or video use by 2010.

 

"High-speed networks, capable devices, and flat rate data plans drive market growth," commented Frost & Sullivan Senior Analyst, Vikrant Gandhi. "3G services are available in all major cellular markets and subscribers can virtually watch unlimited basic videos when they subscribe to the high-speed wireless data plans that cost $15 to $20."

In addition to mobile video services that offer subscribers information and entertainment, peer-to-peer services like mobile video telephony are also increasing the technologies popularity and driving adoption.  With these services, subscribers can use their mobile phone to call into a video chat session and communicate face-to-face with contacts, while they’re on the go.

According to Frost, mobile advertising also plays an important role in helping to increase the adoption of mobile video services.

In an interview with TMCnet, Jim Machi, Sr. VP of Marketing for Dialogic (News - Alert) said, “As 3G networks continue to develop, and as 3G (and video enabled) phones are deployed, it’s natural that consumers will want to take advantage of the video capabilities. This, in turn, will drive usage plan changes, perhaps bringing video calls in as part of the standard monthly usage fee, as opposed to having it as an add-on.”

In addition, Frost & Sullivan points to the need for mobile operators and service providers to offer the “right mix” of premium and basic mobile services in a unified experience. As well as they need for services need be cost justified and not confuse subscribers with multiple pricing plans.

"Mobile operators are constrained to expand their content catalogues but are unable to increase the data plan rates to justify the expansion," commented Gandhi. "At a certain 'tipping point', it could be unfeasible to continue doing this without exploring other sources of revenues such as mobile advertising."

"Mobile operators could classify mobile content into various tiers and match these to their customer demographics to determine the optimum mix they should have on their decks."