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Press Release

PRICING AND MARKETING MOBILE TV MODELS SURVEY REVEALS GAP WITH CUSTOMER REQUIREMENTS

London, 29 November 2006 - A new report from BroadGroup Tariff Services (www.mobilepricing.com) based on a survey of operators worldwide, suggests that current Mobile TV pricing and marketing models fall short in meeting customer requirements. The new report, Pricing and Marketing Mobile TV, is based on interviews with mobile operators, and supplier organisations worldwide, and highlights the marketing and tariffing strategies of mobile operators and content providers around the world. The survey shows pricing packages for mobile TV is currently offered by 61 operators. Many technical and business model issues are yet to be resolved to facilitate mobile TV. However the report suggests that there is a real danger that consumers will prefer to watch TV and video on a portable device other than a mobile handset, or that content providers will sell directly to the end user who wants interactive, personalised and flexible services. 'The idea of simply watching the entire output of a particular TV channel on your mobile handset, offered by many mobile operators, is simply unattractive to users,' commented Margrit Sessions, Managing Director of BroadGroup Tariff Services. 'Instead, users want a much more customised service.' Findings based on an analysis of current tariffing bear this out. 50% of all offerings are based on a 1-Month subscription and with only Vodafone in Germany offering monthly bundles including minutes (60, 120 and unlimited) for both its Live TV! and Adult services. The report authors suggest that operators will need to be more creative to ensure bundled packages subsidise new handsets optimised for mobile TV, and also include mobile data costs. While operators are tending to offer low tariffs to encourage mobile TV adoption, the long term trend is a price decline. As such, advertising will become an increasingly important element of mobile TV revenues, but current expectations from mobile operators appear very ambitious. Advertisers remain unconvinced of the benefits, although they will experiment with several different business models. The report is designed to enable companies engaged in the mobile TV market to assess best practices and understand how market and business models will evolve. It also provides a detailed analysis of pricing currently offered for mobile TV services. BroadGroup Tariff Services regularly conduct pricing research covering mobile and wireless broadband services internationally.

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