ICO Global Communications Ltd. debuted its new digital video broadcasting-satellite services to handhelds (DVB-SH) service in January. Alcatel-Lucent is providing the system architecture, design and installation for the mobile interactive media (mim) service, which will provide television, GPS navigation and emergency service to mobile devices via a Ku-band satellite.

The demonstration, conducted in Las Vegas in January, delivered Ku-band signals transmitted by a leased terrestrial tower to systems in both a moving sport utility vehicle as well as in an exhibition suite. “We were really happy with it,” says ICO CEO Tim Bryan. “The picture quality was really good, and the DVB-SH technology worked pretty much as advertised, or maybe even better as advertised.”

Bryan discusses ICO’s next steps for the multimedia service with News Editor Jessica Pearce.

Via Satellite: Were there any surprises during the demonstration?

Bryan: We had a more conservative estimate of video quality, coverage and propagation, particularly inside buildings and parking garages. I would say in pretty much every instance we were surprised that we did as well as we did, and we exceeded expectations. The only thing that came out that could be construed as negative was that the in-car analog screen and analog inputs really didn’t display the signal as well as a quality screen.

Via Satellite: What is the next step?

Bryan: We’ve got two or three really very important milestones coming up. The biggest milestone is that we have the launch of our first geostationary satellite over North America in March. That overshadows most of our other goals for the next three to six months. Another critical piece is that we’ve applied for the right to use our frequency both to and from the satellite as well as terrestrially. So we’ve applied for an ATC (ancillary terrestrial component) license. We’d like to make continued progress at getting ATC granted by the [U.S. Federal Communications Commission]. The third milestone is once the satellite is launched and operational, we plan to undertake an alpha trial. We’ll do similar things to Las Vegas but have all the channels as opposed to just one, and we’re doing it in two cities: Las Vegas and Raleigh/Durham, North Carolina.

Via Satellite: What is the timeline for deploying the service?

Bryan: We’re likely to offer services in early 2009. We have done considerable planning around that. Of course, the great differentiating feature of ICO is that when the satellite goes up and we’re ready to launch service, it’s available nationwide from day one. It’s not as if you have to build in every single city to get service up, so we’ll be able to offer nationwide service from the very get-go. It’s just that we’ll be developing a terrestrial network in the big cities to augment the service as we go through time. … In bigger cities your major marketing thrust will occur after you build some terrestrial network in those places. In some cities it takes a lot less time to build terrestrial network. In other cities it takes a bit longer. So it will likely be staged in a way that matches the construction of the terrestrial network.

Via Satellite: Many video services are available via 3G technology, where is the niche for ICO in the mobile market?

Bryan: This mim product creates a niche. I would hasten to add that ICO is one of few companies that has the ability to use spectrum both to and from a powerful satellite as well as terrestrially, which creates a little niche for ourselves in the wireless space that makes us a little different. Within mobile video, we think that we’re first, better and different. [We’re] first because we’re going to be the first [mobile satellite service] to launch coverage. [We’re] better because the video quality is much better. It’s displayed on higher screen sizes, and it just really enables a really high-quality video viewing experience as opposed to the experience a person gets looking at a very small handheld or cell phone. In addition to delivering it to larger screens, we’re different because our satellite is fully interactive. We can add interactivity to all our features where most other services are one way. So I would say that creates a niche for us that others are going to have a very hard time filling.

Via Satellite: Where does ICO fit in the wireless landscape?

Bryan: We have 20 megahertz of nationwide spectrum, which is spectrum that is every bit as valuable as other kinds of mobility spectrum. Then you add to that the fact that within a couple months we’re going to have a functioning two-way interactive satellite and the ability to use all that spectrum to and from the satellite as well. We think we can either on our own or potentially with partners create a set of services that wireless competitors can’t offer today such as dual-mode cell phones to be able to offer connectivity to satellite when you’re out of cell service. We think we have a lot of opportunities in front of us, but we’ve chosen to focus on mim.

Via Satellite: What is your business model?

Bryan: We have indicated that ICO mim is likely to be a subscription service sort of along the lines of XM [Satellite Radio] or Sirius [Satellite Radio]. ICO mim would offer satellite video as well as interactive navigation and roadside assistance on an interactive basis. At this point it’s really meant to be a single tier of service. Our view is what we’re developing for the alpha trial is not a specific mim device but a modem which will run all the other devices you have. At least initially we’ll make a modem that will power a lot of other devices and decode the signals. Eventually we believe that the technology will end up in the device rather than in the modem.

Via Satellite: What is your target market?

Bryan: I think particularly mobile families. This service is great for kids in the backseat and great for anybody involved with RVs or trucking. Obviously it’s a particularly good service for limos, taxis and shuttles. When you get into the portable devices it really starts applying to wireless consumers — people who want to be able to take their information and have it where they are.

The market for video generally is very robust and has proven to be very resilient and in high demand. All we want to do is to take what we know is a thriving market for a product that people want and give it to them on a mobile basis.

Via Satellite: What role will satellite technology playing in the mobile market?

Bryan: I think one of the services ICO can do on behalf of the satellite industry, since we’re going to be the first to be launched and the first to operate, is to focus people on the benefits that satellites bring to wireless services. Satellites are really good at coverage. They’re really good at providing a lot of services to a wide variety of people. Where satellites are only fair at is interactivity. So the real trick is to take what satellites are good for and demonstrate those qualities to the wireless industry. A lot of people are probably going to build Las Vegas, and a lot of people are going to build Los Angeles, but there’s very few people who can cover the drive from Los Angeles to Las Vegas. That’s one terrific benefit to the satellite. It covers all the bits in between as well as the urban areas.