Telstra backs away from DVB-H

From Rose Major in Melbourne

Australia's incumbent telco Telstra will not participate in further trials of DVB-H technologies following completion of a 375-handset trial in Sydney, ahead of its launch of a third-generation mobile network in 2007.

The decision could eliminate one of the potentially most important bidders for a mobile-television service under government consideration. DVB-H trials, conducted by Telstra and Macquarie subsidiary Broadcast Australia, started in July 2005, with 16 channels including ABC2, Nine, SBS, Fox Football, Fox Sports News, Sky News, Channel V, CNN and Nickelodeon. Nokia's 7710 handset was used.

Although officially noncommittal, with all technologies being "explored", Telstra is widely reported to be against pushing ahead with any further DVB-H activities. The company is choosing to concentrate instead on its 3G mobile network, scheduled for commercial operation in early 2007.

There have been 3G services up and running in Australia since 2003, with Hutchison's 3 service the largest, with over one million customers. Seventy per cent of customers accessed television content in 2005.

Telstra currently only offers an i-mode service. The news comes at a bad time for the government, which is due later in the year to announce its plans for two bands of digital-terrestrial television spectrum.

Communications minister Helen Coonan has stated that she would consider "new and innovative uses" for the channels, with mobile television specifically mentioned as having widespread support within the industry.

Telstra is one of the few companies in Australia with broadcasting know-how which is also large enough to market such a service. But the government seems in no hurry to decide what exactly it will do with the spectrum, let alone allocate it or get new services launched.