CTIA Wireless 2008

AT&T Announces MediaFLO Launch Again, This Time in May

| Mar 27, 2008 | Wireless Services - U.S | Show Update

| Analyst: Bill Ho

Current Perspective: Neutral/Negative Vendor Importance: Very High Market Impact: Low

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Event Summary

March 27, 2008 -- AT&T announced that it would launch AT&T Mobile TV in May. The mobile television service is powered by Qualcomm’s MediaFLO USA, and AT&T will feature two exclusive channels. In support of the service launch, AT&T will offer two devices, the LG Vu and the Samsung Access. The carrier did not include any device or service pricing in the announcement.

Analytical Summary

• Current Perspective: Slightly negative on AT&T’s pre-CTIA teaser announcement on the launch of MediaFLO service, because this is the second corporate announcement that promises service rollout. The initial announcement predicted service availability in late 2007 and now the target date is May 2008. While the month is more specific and two devices (LG Vu and Samsung Access) have been identified, service details and device pricing are sorely lacking, awaiting another announcement in May. To its credit, the carrier has announced that one of its two exclusive channels in the lineup will be Sony Pictures’ mobile movie offering (i.e., PIX).

• Vendor Importance: Very high to AT&T, because it needed to show that it can execute on its service promises. AT&T has a track record of delivering on integration challenges (e.g., AT&T Wireless GSM integration, backend billing and provisioning integration, TDMA sunset, etc.); however, services rollouts have encountered bumps on the road (i.e., Video Share, Cingular Music). Therefore, actually offering service in May, as pledged, will go towards re-building credibility.

• Market Impact: Low on the wireless services segment, because it is unclear whether MediaFLO has even gotten any traction with first-mover Verizon Wireless. It is also unclear what the real service differentiator for AT&T’s Mobile TV offering may be, as the MediaFLO channels are the same. AT&T will hang its prospects on two exclusive channels, one of which is Sony Pictures’ PIX channel; though Verizon Wireless has already countered that differentiation by launching its own two exclusive channels (i.e., an ESPN Radio audio channel and a Hispanic-focused Tr3s video offer from MTV) on the same announcement date.

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