Cross-Network Video Shortcode Problems
Video on demand would seem like an obvious win for phone operators with 3G services. 3 and Vodafone are already running them, but only off their portals. 3 operates a walled garden, where it is impossible to go offsite. Vodafone allows the user to go offsite, but charges them for any data transferred, whereas it's free if you stay in the portal.
The BBC is running into problems with this. It has a public service mandate, so shouldn't favour one network over another. The BBC wanted to stream EastEnders highlights to 3G phone owners, who could subscribe using by texting into a shortcode to receive the content.
Video shortcodes are potentially a very useful way for brands to bypass the networks and get their content direct to customers. To reflect this, it has very wide tariff range. However, the networks are in no rush to make sure the shortcodes are valid cross-network.
Because of the lack of portability, an organisation wanting to take advantage of a video shortcode, could potentially need one per network. This makes it an unattractive proposition, as users have become used to cross-network shortcodes.
Due to these problems the BBC has decided not to launch their EastEnders service. Angel Gambino, controller of business development and emerging platforms at the BBC, voiced her frustration in this weeks New Media Age magazine.
We need to make sure that no one audience benefits from only one operator using an access mechanism. We're hoping to get single cross-network shortcodes so we can launch high profile content. Then there will be a massive ramp up of mobile video content available.
I think she's right, but data charges should also be addressed. A user already paying a premium to access their shortcode video content may be in for a nasty shock when their phone bill comes in, complete with the current extortionate data costs charged by the operators. For example, Orange charge 3UKP per MB for GPRS data, though I'm not sure on their current 3G costs. We all know how much the phone networks paid for their 3G licences, and so are desperate to make money from customers using the technology. However, at present it really seems they are suffocating the market, instead of letting it grow. Lowering the costs and getting cross-network compatibility in place, will really see the data market grow, and with it, the network's profits.