No more Mobile TV for Telecom Italia Mobile

After the large investments made in 2006, one of the four biggest Italian mobile operators (TIM) has decided to stop its mobile TV services (based on Dvb-h technology) due to the limited penetration that these have experienced over the Italian market. Rumors reported by the Italian newspaper Repubblica, indicate that also Vodafone Italia is contemplating a similar decision and that investments on Mobile TV are no longer a priority. Discontinuing Mobile TV channels will free spectrum bands that TIM is planning to use for mobile broadband services (which penetration is exponentially increasing in Italy).

The reasons for such a flop could be quite a few. On one hand, the offered services were not very innovative: basically the operators were just offering for mobile devices the same channels and programs available over traditional TV, without adding any ad-hoc and new content. Then, the rapid diffusion of mobile internet has provided to mobile users many new services (such as on-demand video) that have potentially cannibalized the sales of Mobile TV. On top of that (this is just my opinion) there is a price / value problem: would you be really willing to pay 10 euro per month or so, in order to watch TV on a 2 inch screen?

What do you think?

And what do you think will happen in the rest of Europe?

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