What did we learn from 2G
mobile that we can apply to a
3G and post-3G multimedia
environment?
The Regulatory Environment for Future
Mobile Multimedia Services
ITU New Initiatives Workshop, 22nd June 2006
Dr. Tilman Makatsch
Public & Regulatory Affairs
T-Mobile International
Relevant factors for 2G success story
Competitive mobile market without regulatory intervention
 Uniform GSM standard
 Worldwide harmonized spectrum resources
 Cooperation between MNOs, vendors, NRAs and EU-Commission
 No regulatory intervention
lead to:
High quality voice and data services
Ubiquitous coverage and seamless interoperability
Worldwide roaming possibilities
Efficient use of spectrum
Competitive mobile mass markets
High penetration rates
Innovative services and attractive prices to the benefit of the end user.
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T-Mobile Public & Regulatory Affairs
June 22, 2006
From narrowband to broadband access
Mobile bandwidth evolution compared to fixed
ADSL
Customer
mobility
High
mobility
2G
3G
ATM
Evolution of 3G
GSM
GPRS
DAB
3G
developments
(LTE/NGMN)
UMTS
GSM/GPRS
Low
mobility
Portable
today
HSxPA
WLAN
DECT
HSPA
ISDN
UMTS
DVB
DECT
HIPERLAN/2
WLAN
Bluetooth
HIPERLAN
DAB
DVB
Fixed
ADSL
ISDN
ATM
LTE
NGMN
Asymmetric Digital
Subscriber Line
Asynchronous Transfer
Modus
Global System for
Mobile Communications
General Packet Radio
System
HSxPA – High Speed
Packet Access
Integrated Services
Digital network
Universal Mobile Telecommunications System
Digital Enhanced
Cordless Telecomm.
Wireless Local Area
Network
High Performance Radio
LAN
Digital Audio
Broadcasting
Digital Video
Broadcasting
Long Term Evolution
Nex Generation Mobile
Network
Data rate
9,6
32
Kbit/s
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T-Mobile Public & Regulatory Affairs
June 22, 2006
2
34
155
Mbit/s
3
Current business challenges and opportunities
Pressure from regulators and new competitors
Structural market developments
Competitive moves by market players
 Saturated markets due to high penetration
 New players entering the market
 Fixed-mobile substitution and converged
products/services
 Multiple access networks
 Impact of IP on voice and messaging
 Price-aggressive competition/no frills operators
 Increasing competition for existing customers
 Huge Investments of MNOs in licenses and
new network technologies (e.g. EDGE, HSDPA)
 Increasing relevance of data, internet and
multimedia services
 Market consolidation and M&A activities
Future market
Development?
Regu
la
tory
p
ressu
re
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T-Mobile Public & Regulatory Affairs
June 22, 2006
3G: T-Mobile’s Mobile Internet Strategy
Integrated Highspeed Network
• Surf the free Internet
• E-Mail communication
• Fast mobile data connections
• Attractive and simple tariffs
• Innovative handsets
• Optimised browser
WiFi
Wireless Highspeed Access in
Hotspots
UMTS/
HSDPA
(HSUPA)
High Bandwidth in
Urban Areas
GPRS/EDGE
Almost full
Coverage with
High-speed Data
Transmission
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T-Mobile Public & Regulatory Affairs
June 22, 2006
3G: Mobile TV by T-Mobile
Streaming via UMTS
T-Mobile
TVofferings
offering ininGermany,
T-Mobile
Germanye.g.
include
Sports: DSF mobile TV
Cinema TV: Short movie trailers, shows
 Music TV: latest music videos

T-Mobile shows 20 selected games of the FIFA
Football-World Championship 2006™ live on
UMTS-mobiles

Highlights, expert analyses and interviews for
all 64 matches right after the match in the
mobile Premiere TV channel

T-Mobile offers further information and
entertainment during the World Championship
such as MMS and SMS goal-ticker + downloads
 News: n-tv LIVE TV: Livestream of
n-tv news, lifestyle, sports, talkshows
Soaps: Every day at 12pm the complete
run as a preview
Weather: Livestream forecast with
regional focus
Best of Comedy TV
Sat1 Mobile TV: Shows and soaps
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T-Mobile Public & Regulatory Affairs
June 22, 2006
Next step: DVB-H and interactive mobile TV?
Mobile
Broadcast
Usage: mobile („on the move“)
Unicast for individual programms
Interactivity (bidirectional traffic)
High mobile penetration rates
Direct customer relationship and
approved marketing competence
but:
 System constraints due to point-to-point
 Capacity constraints





 Usage: fixed
 Broadcast for mass market
 Attractive varied TV programs/content
but:
 System not designed for mobile use
 No interactivity (point-to-multipoint)
Convergence
Interactive mobile TV
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T-Mobile Public & Regulatory Affairs
June 22, 2006
DVB-H Showcase in Germany
Federal complexity and unclear regulatory competences
 German DVB-H Showcase:
4 German MNO run DVB-H showcase during the Fifa Worldcup 2006
MNO show 16 TV and 2 radio channels on non-commercial basis
Due to complex federal system and spectrum allocation only permission for Berlin,
Hanover, Hamburg and Munich
MNOs aim at setting up platform consortium to offer nationwide services soon
 MNO must deal with 35 different independent regulatory authorities:
Technical Regulation: Federal Network Agency
Content Regulation:15 state Media Agencies, 16 state Chanceleries
Antitrust Regulation: Federal Cartel Office, KEK, EU-Commission
Risk of regulatory spill-over and double regulation!
 Additional EU initiatives blur planning security (e.g. TVWF Directive)
Creation of appropriate business models in danger!
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T-Mobile Public & Regulatory Affairs
June 22, 2006
Lessons learned from 2G experience
Setting the right regulatory environment

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





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Mobile industry is a fast moving industry with short product cycles.
High licensing costs impose major financial burden on MNOs
High risks for undertakings investing in new technologies/services/licences
MNOs willing to take risk based on resources and planning security
Requirements for successful development of mobile multimedia markets:
Harmonized EU-wide approach concerning use of digital dividend and allocation of
spectrum resources to avoid fragmented markets
No extension of regulation to emerging markets: regulation of new innovative
services would reduce incentives for innovation and investment
Enabling of industry driven solutions for interoperable technologies
Ensuring access to (premium) content
Enabling encryption and DRM systems
Cooperation of all relevant players including (public) broadcasters!
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T-Mobile Public & Regulatory Affairs
June 22, 2006
Thank you for your
attention!
Dr. Tilman Makatsch
Rechtsanwalt, Public & Regulatory Affairs
T-Mobile International AG & Co. KG
Landgrabenweg 151, D-53227 Bonn
Tel. +49 228 936 - 15213
Mail: tilman.makatsch@t-mobile.net