The Indian government is facing strong resistance from device makers regarding its plan to mandate the addition of ATSC 3.0 technology, also known as NexGen TV, which allows smartphones to receive live broadcasts of video without requiring wireless networks.
Several prominent companies from the device ecosystem, including Samsung, Nokia, Ericsson and Qualcomm, have opposed the government’s plans to equip smartphones with ATSC 3.0 as it will require changes in the hardware, which will push up the cost by as much as $30, as per media reports. The vendors also allege that live broadcasts can potentially impact battery life.
In addition, the Indian Cellular and Electronics Association (ICEA), which has Xiaomi, Vivo, Oppo and Samsung as its members, has also opposed this move. According to media reports, ICEA has also written to the government to emphasize the reluctance of the industry to adopt this technology. Further, the letter says that producing ATSC-enabled smartphones may upset the growing domestic manufacturing in the country.
“In the age of OTT, video on demand and live streaming over the internet, this is a step back when it comes to broadcasting content to mobile. ATSC will lead to an additional expense regarding hardware, software, as well as intellectual property costs from the device makers' point of view,” said Neil Shah, partner and co-founder of Counterpoint.
“Telcos are definitely going to oppose this as it negates the need for mobile data. ATSC 3.0 is also not very widely adopted in any other region. If the government’s plan to have ATSC 3.0 enabled smartphones does go through, it will take three to five years for the commercial implementation, and most people would be using mobile data by then,” said Ashwinder Sethi, principal with Analysys Mason.
“Since it will increase the cost of the device, it will be tougher for the device makers to sell it in the rural and remote areas, the prime target of ATSC 3.0. At the same time, it will shorten the mobile replacement cycle,” added Sethi.
The government believes mandating ATSC 3.0 in smartphones will help bring down network congestion in wireless networks. However, with the introduction of 5G and the ongoing expansion of 4G networks, there is little to no network congestion.
“The government is keen because they see the linear/live TV broadcast traffic can be offloaded using ATSC 3.0 standard and make content available for the 60% of rural population who possibly might find it challenging to pay for OTT or heavy data plans,” said Shah. “ATSC 3.0 can help in reducing the traffic load on the existing and future networks as video broadcasting is a heavy traffic item and help save operators on capital and operational expense."
The most crucial aspect is that India has one of the lowest rates for mobile data, and telcos also offer lucrative content packages to increase customer stickiness. So, it remains to be seen if a user would be keen to purchase a costlier device for live broadcast while they use normal data for other uses, including social media, messaging apps like WhatsApp and other applications.