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September 28, 2005

Mobile TV and video services viewed by operators as a means to drive 3G take-up and increase average revenue per user (ARPU) could run up against capacity constraints on 3G networks within as little as two years, according to a new report from market research group Analysys.

With currently under-used 3G networks, some mobile operators are offering streamed TV and video content at highly attractive prices to encourage consumers to adopt and use the services. However, warn the researchers, the heavy data consumption of these services demands careful management of service usage, pricing and technology evolution.

Although 3G networks will carry the vast majority of mobile TV and video services for the next five years, 3G has limited capacity to support the substantial network traffic generated by video streaming. According to report co-author Dr Alastair Brydon, 'The capacity of a typical W-CDMA network could be exceeded as soon as 2007 for example, if 40% of 3G users take up mobile TV and video services and each consumes only eight minutes of video per day.'