ABI Projects 32 Million Mobile Video Users in China in 2008

SINGAPORE, December 21: The Beijing Olympics will provide a
boost to the Chinese mobile content market, according to ABI Research, which is
projecting 32 million mobile video users in the country in 2008.

According to the research, about 27 percent of these
consumers will use broadcasting technology, and 73 percent will use unicast
streaming technology, while a number of viewers are likely to use both.

This year, the State Administration of Radio, Film, and
Television (SARFT) announced two handset-related standards: DAB [digital audio
broadcasting] and T-DMB [terrestrial digital multimedia broadcasting]. "It
is likely that local media groups and TV stations will deploy DAB initially,
and implement T-DMB at a later date," says ABI research director Jake
Saunders. "The Chinese government will give preference to a standard that
will be used in the 2008 Olympics, and DAB has been listed as one of the
broadcast services that will be available at the Beijing Games."

Saunders continues, "Although lack of content is still
deemed to be a bottleneck for mobile video in mainland China, the problem will
be solved in the next two years. The current content shortage is caused by the
limited number of handset TV SP licenses. When more companies obtain licenses,
competition will become the lubricant to drive up the market."

In neighboring Hong Kong, ABI Research forecasts
approximately 715,000 mobile video users in 2008, of which 99 percent will be
streaming users. In Taiwan, ABI Research forecasts that there will be over 1.5
million mobile video users in 2008, with 97 percent receiving content via
streaming.