The launch of ancillary terrestrial component (ATC) networks and complementary ground infrastructure marks the merge of the wireless world with the consumer electronics market, Internet service providers and digital video distributors. More importantly, ATC is seen by some as an opportunity for substantial growth in the MSS sector.
    In North America, two MSS operators, ICO Global Communications and MSV, are developing multi-mode mobile baseband chips that integrate satellite and cellular communication technology with Qualcomm to deliver handset devices to a demanding regional mass market. The chips, which are expected to be available beginning in 2010, will support the L- and S-band frequencies in which MSV and ICO operate.
    "There has been significant progress in the evolution of MSS over the past several years. Most notable are larger reflectors on more powerful satellites which enable a wider range of mobile devices with smaller antennas," said Christopher Doherty, director of media relations at ICO.
    Tom Surface, director of marketing communications for MSV, said the MSS sector will be successful if it follows smart rollout plans and business models. “MSS players must keep focused on addressing user needs, whether it is by enabling new mobile applications, reducing equipment size and enhancing features, or keeping services affordable. In the end, market demand will determine how many providers it will support and which combinations of companies make the best business sense," said Surface.
    Europe is following the U.S. example with similar technology rollout plans. Solaris Mobile, a joint venture between Eutelsat and SES Astra, plans to use the European S-band capability onboard Eutelsat W2A, launched in April, to begin offering mobile video services in the summer, when live sporting events drive massive audiences to video. U.S. companies are banking on the same success with video delivery to mobile devices. However, the path to MSS mobile products finding their way into mainstream market acceptance is not without obstacles.
    Doherty said one of the challenges that faces MSS companies in the ATC battle are frequency regulations. “The operating rules for the MSS spectrum (in the United States, for example, rules which govern ICO’s S-band spectrum) have been made more compatible with mainstream commercial wireless operators’ use of comparable mobility spectrum. As a result, there are more opportunities for mass-market MSS-based services," said Doherty.
    U.S. regulatory issues are stand in the way of mobile video providers. Tom Pollard, director of product management at Verimatrix, noted that customers are coming to the mobile television market from the side. They are consumers of both video services and wireless services, and mobile video is an enhancement of one or the other. Pollard pointed out some of the challenges ahead for the market, reminding the audience that studios will want to protect their content, which, at some point, means encryption. The studios do not want the same thing happening to them that happened in the music business, where consumers grew so accustomed to free digital file formats that encryption was seen as a deterent to potential new customers, ccording to Pollard.
    Kevin Boyle, a partner of the law firm Latham and Watkins, said the regulatory process does not move as fast as the technology it is meant to oversee. “Providing the same service, in this case, the delivery of video, voice and data, using a different physical and logical layer, provides different legal challenges for broadcasters,” said Boyle. “The rules for Internet service providers, regardless of whether they are cable, DSL or wireless, are the same, much to the frustration of the players in that space,” he said.
    Despite the challenges, the most important questions over the viability of the U.S. mobile market remain to be answered, but executives are optimistic, especially when it comes to mobile success with data services.
    Costis Papadimitrakopoulos, CEO and founder of Globo, said there are plenty of customers in the market to go around. “By 2012, over 80 percent of the world’s population will own a mobile phone, and 3.8 billion of those will have a mobile Internet connection,” he said. “Compare that to only 1.2 billion fixed connections and you can see the difference. The number of mobile connections looks set to rise to 5.6 billion over the next few years. The use of mobile Internet is expected to grow by more than 20 percent in the near future, and we are uniquely positioned to help consumers share this growth as it is the first solution to support any handset or service provider.”