US : Ovum’s recently published report entitled ‘Mobile Video Services: the Fourth Screen’ is a wake up call to all operator’s who still think of 3G & Video as future strategies.

Video is set to turn the mobile phone into the ‘fourth screen’ after television, cinema and the PC. But being the last in the pack is not an easy thing – mobile video needs to find an identity; a niche to exploit and grow.

Video is being introduced to subscribers in a fairly low-key way, for example including video clips in content range or in the options for multimedia messaging such as sports clips or download games, are examples of how this is currently operating. On the other hand, Video Calling is a clear differentiator between 2G and 3G operators, and the service is being promoted heavily in its own right by those operators offering it.

GPRS will handle messaging, downloads and (maybe) streaming. Some operators are not convinced that the quality of GPRS streaming is good enough for commercial services, whilst others have decided that it is, and are launching video streaming on their GPRS networks. For lengthier video and higher frame rates low network bandwidth is problematic and for realtime video services it is a show-stopper! Realtime video cannot be compressed very much on the fly, therefore services that involve such content must have more network bandwidth than GPRS can provide, this is when video calling and mobile TV need 3G networks.

There are cost implications in making video affordable to the mass market. Video-capable phones need many high-end features: lots of storage, fast processors, colour screens and cameras. These items do not come cheap and a video-capable phone will be a premium item for some time to come. So, in order to make video-capable phones affordable to the masses, operators will yet again need to consider subsidies. Most operators will need more convincing of the commercial viability and potential appeal of mobile video before they can be persuaded down that road.

The main reasons for operators bringing video services to market can be summarised in three words: ‘because they can’. It is generally the supply-side factors that have driven the mobile video market so far. The obstacles however are many: high prices, limited bandwidth, limited coverage, handset challenges and platform interoperability as well as low perception among end users and content owners.

There is some encouraging user research, and some mildly encouraging precedent, but the proposition that lots of people really want mobile video (enough to pay for it) is still far from proven.