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Wednesday, September 28, 2005
Cingular, RealNetworks OK video deal
Cingular Wireless, the nation's largest cellular carrier, will use a service from Seattle's RealNetworks Inc. called Helix OnlineTV to provide video programming on cell phones when it unveils that service by year-end, the companies said.
RealNetworks already provides Sprint Nextel and some Cingular subscribers with a limited video service called rTV. But Helix OnlineTV is different, said John Giamatteo, a RealNetworks' executive vice president.
"It's much bigger in scope," Giamatteo said.
He wouldn't disclose what Cingular will pay for the service or what the new service will cost Cingular's customers.
Spokeswoman Anne Marshall confirmed the TV-on-cell phone service will be available in 15 to 20 markets by year-end.
Voice service still accounts for about 95 percent of wireless revenue, with messaging, ring tones, Web browsing, gaming and other uses accounting for the remainder.
But non-voice revenue will jump to 13 percent, about $14 billion, by 2008, according to a study by the Yankee Group research firm.
Many companies are lining up to provide video to cell phones.
MobiTV is helping Sprint and Cingular customers view live television on their handsets.
Verizon Wireless earlier this year introduced V-cast, which includes what the company calls "mobisodes" -- clips lasting two to five minutes from CNN, "Sesame Street" and Comedy Central's "The Daily Show."
Qualcomm is working on a mobile broadcasting network that can deliver about two dozen high-quality TV channels to a cell phone.
High-speed data networks are essential to the delivery of video to cell phones.
Verizon Wireless has led the way with its rollout this year of a network called EV-DO.
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