As the dust from the digital TV transition settles, there are numerous industry groups jockeying for the newly freed-up TV spectrum above channel 51 (about 700 MHz) to implement various communications services.

One early "mining claim" was placed a few years back by Qualcomm, who now has exclusive rights to UHF channel 55 nationwide to broadcast its unique mobile digital TV service. Originally, it was known as MediaFLO, but now, it’s just called FLO (for Forward Link Only).

The FLO service is a multicast, bundling low-resolution mobile video programming from such diverse networks as Fox, CBS, NBC, ESPN, MTV, Nickelodeon, and CNN in an encrypted 5.5 MHz ODFM RF carrier. The service first launched in 2006, and picked up Verizon (VCAST) and AT&T Mobile as customers in 2007.

By all accounts, interest in FLO has been tepid. As a result, Qualcomm has decided to expand their reach and sell the FLO service directly through major retail outlets, including Best Buy, Amazon, and Radio Shack, along with regional chains P.C. Richard, J&R Music World, and 6th Avenue Electronics. This has been backed up with national TV spots selling the service. Is it worth the money?

The new foldout FLO pocket receiver, which uses a 3.5" LCD screen and claims 5 hours of battery life, is sold as a package deal for $250, along with a service contract. FLO’s advertised monthly subscription cost of $9 sounds attractive until you read the fine print and discover you’re locked in for 36 months, or $324. That’s an up-front commitment of $574 to get 12 channels of programming!

In contrast, you can purchase an Eviant 7" portable ATSC LCD TV for less than $110 at Amazon, Wal-Mart, and Radio Shack, and use it to watch ATSC (8VSB) digital TV programming from VHF and UHF stations anywhere in the country - for free. While you won’t have access to cable-only channels, there are still plenty of networks to choose from, including ABC, NBC, CBS, Fox, PBS, ION, CW, MyTV, etc.

Now, it looks like more bad news for FLO. Last Thursday, the Consumer Electronics Association announced they had successfully completed the "first ever ATSC Mobile DTV Plugfest" and that 15 companies participated in the four-day event, including Axcera, Dell, DTV Interactive, Elgato Systems, Expway, Grass Valley, Harris, JVC-Kenwood, LG Electronics, Pix Tree, Roundbox and Samsung.

Unlike FLO, mobile handheld digital TV (MH) is a free DTV service. It’s been standardized (A/153) and can be simulcast along with regular 8VSB transmissions, although different receivers are required to decode the signals as MH uses MPEG4 encoding exclusively, which is not supported in the latest crop of portable DTVs.

Several TV station groups and networks are already simulcasting MH programming on a trial basis in major markets, and are busy trying to figure out ways to implement and monetize it. (The list includes some of the networks now providing video content to FLO!)

One big advantage of MH is that it will carry local news, weather, traffic, and sports updates, something that FLO can’t offer. And a recent study conducted by Magid Media Labs for the Open Mobile Video Coalition (OMVC) revealed that 88% of respondents expressed an interest in viewing local news and content on a handheld device.

There are two big challenges to the success of MH. One is coming up with some sort of return path to the TV station for both audience measurement and delivery of targeted ads and promotions. Another challenge is convincing cellular giants Verizon, AT&T, and Sprint to allow MH reception capability on their phones - many of which are made by receiver manufacturers LG and Samsung.

Still, if customers remain unwilling to spend the extra dollars on FLO, the ‘Big V’ and ‘All Talk and Travel’ might just agree to sell combo phones with MH capability. The cellular market is so saturated that MH capability might be the next gimmick mobile service providers can use to raid each other’s customers. And those new phones would provide that upstream, low bit rate data link that TV stations need to secure advertising for these new MH services.

So…go with the FLO, or no? Do the math: FLO has perhaps a hundred channel 55 TV transmitters scattered around the country, all broadcasting the same 12 channels.

In contrast, there are over 1600 DTV stations that carry the free TV networks I listed earlier, plus another 250 Spanish-language affiliates and numerous multicasts of specialty networks like Universal Sports, LiveWell, AccuWeather, TBN, Retro TV, and HSN. Adding MH to the mix will give these stations a huge competitive advantage over FLO.

Like one of my friends says, "If it’s for free, it’s for me!"
____________________________________________________________
Going to CES? Check out MH for yourself at the CES Mobile DTV Tech Zone in the Central Hall.