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'One Seg' Digital TV Broadcasting Begins for Mobile Phone Users

Posted on: Monday, 3 April 2006, 12:00 CDT

By Kyodo News International, Tokyo

Apr. 1--TOKYO -- A new type of digital terrestrial broadcasting started Saturday in Japan, enabling people to watch television programs in high-definition on their portable terminals like mobile phones and car navigation equipment.

For the new service, popularly known as "One Seg," broadcasters are using the remaining one of 13 segments of a channel.

They use 12 segments for normal digital terrestrial broadcasting.

Expectations for new business chances have been growing, but at the same time, analysts point to uncertainty over possible diffusion of the service as operators are struggling to create a profitable business model, with consumers required to buy applicable terminals.

While watching a TV program on their terminals, One Seg users can also receive related textual information on the screens. The "data broadcasting" system allows viewers to browse the Internet for further information by simply clicking a menu.

Users must pay data transmission fees for Web browsing, but it is free to watch TV programs.

Telecommunications company KDDI Corp. has already marketed its products applicable for One Seg viewing.

The operator of "au" mobile phones is cooperating with TV Asahi Corp. in launching an online shopping service that enables viewers to order products introduced on the broadcaster's shopping programs, using their handsets.

NTT DoCoMo Inc., the nation's top mobile phone operator, has allied with Fuji Television Network Inc. and Nippon Television Network Corp. in order to develop a new service that combines the communication functions of mobile phones and One Seg.

One Seg is initially broadcasting the same programs as TV stations. It is most likely there will be special programs only for One Seg, according to industry sources.

Viewers of the new digital broadcasting can watch TV programs on their mobile phones for 150 to 225 minutes, compared with 60 minutes on conventional analog broadcasting.

However, analysts say One Seg will not be making money right away.

Revenue sources for mobile phone companies consist of telephone call and data communication charges, but in the case of One Seg, no communication charges can be collected because TV viewing is free.

In addition, broadcasters cannot ask advertisers to pay additional advertising charges immediately after the launch of One Seg as they have to ascertain whether the new service will really become popular among consumers.

The major challenge for One Seg operators is to develop a business model that earns money while satisfying users, according to analysts.

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To see more of Kyodo News International, go to http://www.kyodonews.com

Copyright (c) 2006, Kyodo News International, Tokyo

Distributed by Knight Ridder/Tribune Business News.

For information on republishing this content, contact us at (800) 661-2511 (U.S.), (213) 237-4914 (worldwide), fax (213) 237-6515, or e-mail reprints@krtinfo.com.

9433, 9409, DCM, 9437, 4676, 9404,

Source: Kyodo News International, Tokyo

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