The Korea Communications Commission(KCC) announced that it plans to initiate a cloud R&D project under a three-year plan, 2009-2011, tentatively named “Next-generation digital cable broadcasting service technology development in a cloud computing environment”, which is aimed at developing and building so-called “Cloud storage”, a subset of “Cloud computing”.

“Cloud computing” is the term used to describe the utilization of the internet for the purpose of storing and processing data using online technology services. For example, Google Docs allows users to upload documents, spreadsheets, and presentations to Google’s data servers. Users can edit files using a Google application. Users can also publish documents so that other people can read them, which means Google Docs is also an example of cloud computing. www. HowStuffWorks.com

“Cloud storage” is a subset of “Cloud computing” based on a model of networked data storage where data is stored on multiple virtual servers, generally hosted by third parties, rather than being hosted on dedicated servers.

The government expects that the cloud storage enables the cable TV operators to efficiently manage massive amounts of data for digital broadcasting contents and to save costs by having them avoid overlapping investments in independent infrastructure. It is also expected that it can be the advanced infrastructure for personal broadcasting services.

Source: Zeus Technology Ltd

The project will be controlled by Korea Institute of Science and Technology Information(KISTI) in cooperation with Taekwang systems, an IT solution provider and a subsidy of Taekwang group which owns T-broad, a cable TV system operator. And it is planned that 1 perabyte(1,000 terabytes) of storage in the cloud will be built by the end year of the project, 2011.

Korean Mobile TV operators are facing the biggest challenge never expected to happen at that time they decided to enter the terrestrial Mobile TV business, also known as T-DMB(Digital Multimedia Broadcasting) in South Korea, in which they eyed “Cash Cow”.

T-DMB service was started with a revenue model that relies solely on advertising, which was expected by the Korean government to keep T-DMB afloat. It, however, turned out to be wrong, and now T-DMB operators call on the government to allow them to create new revenue streams such as activation fees.

T-DMB operators have long suffered from sluggish advertising revenue regardless of a skyrocketing growth in the number of T-DMB viewers, which account for about a one-third of the nation’s total population almost getting closer to the number of cable TV subscribers. As we can see the table above, T-DMB’s ads revenue is only about 1.2% of cable TV’s revenue, which is too low, even considering average overall viewing rates of about one-tenth of cable TV’s. But, it doesn’t seem that the ads revenue will be increased by that reason because DMB advertisers are more concerned with the advertising exposure rate, rather than the viewing rate or time.

Advertisers understand that DMB users watch TV programs while on the move, and if ads come up, they usually avoid watching them. But, 2007 consumer behavior research report by KOBACO, Korea Broadcast Advertising Corporation, indicate that T-DMB viewers who watch the ads in which they are interested accounts for 33.7% of total responders, which is higher than 17.4% of terrestrial TV viewers.

This is a positive sign to DMB operators and certainly helpful for them to promote their advertisng effectiveness to the advertisers. However, Korean Mobile TV operators doesn’t have enough capital left to maintain their business so they may discontinue DMB service on subways, which costs them more than half of their current profits. It will be so hard for DMB operators to decide whether to stop service on subways since it may create vicious cycle in that most DMB users watch TV programs on the subway. So, it is seen that DMB operators need to find a wise way to overcome revenue shortfall.

KT, South Korea’s largest fixed-line and WiBro operator, has created new business opporunities combining WiBro with other services in ways to expand its WiBro market and increase users. Last year KT kicked off a trial run of its WiBro-based Mobile IPTV, which was successful. Now it is expected among Korean WiBro operators, KT and SKT, that their WiBro business will gain momentum with the launch of Mobile IPTV service after the roll-out of 4G networks capable of providing 100Mbps data transfer rates that mobile IPTV requires.

Mobile IPTV is widely regarded as an IP-based multimedia service platform that embodies a combination of ubiquity, IP, and personal. Through Mobile IPTV users will be able to make a phone call over the internet, watch TV programs or UCC videos on the web, and enjoy various interactive services in an all-in-one device having relatively high efficiency when compared to DMB.  

Source: Samsung Electronics

According to KT insider it is assumed that the numer of subscribers to mobile IPTV can amount to the number of mobile phone users, which is four times bigger than possible fixed IPTV subscribers. So, it is certain that mobile IPTV will be an attractive service platform for IPTV service providers to use.

Source: Samsung Electronics