(27 January 2007 6:00 pm)

MUMBAI: American consumers are willing to pay enough for watching TV on mobile phones to justify what it would cost carriers to build a new broadcast network to guarantee quality service, according to just-released study.

The study by the Mobile Digital TV Alliance discusses the economic viability and consumer adoption of mobile TV and concludes that a successful proposition for mobile TV in the United States is high-quality video and service and flat rates of about $20 a month for unlimited viewing.

To meet those standards, the alliance suggests building a separate broadcast network, which would cost a carrier between $500 million and $2 billion.

“The Economics of Mobile TV,” authored by Yoram Solomon, discusses how open standards promote mature competition furthermore improving the economics of mobile broadcast TV, how mobile TV adds a new dimension of value to existing products; as well as why – contrary to popular belief – consumers will pay to use this added service.