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Telstra Tunes Out Of Mobile Tv Trial

The Age

Wednesday August 2, 2006

By JULIAN LEE, SYDNEY

TELSTRA has pulled out of the first major trial of mobile television as speculation mounts that it is developing its own system to beam content direct to handsets.

The Nine Network, SBS, ABC, Foxtel and others have been part of the trial in Sydney of digital video broadcasting handheld technology by the Macquarie Bank-owned Broadcast Australia since July last year.

But Telstra has decided to withdraw amid speculation it might bid for one of two new digital licences able to carry up to 15 channels each and that could be used to deliver live television to mobile phones.

Telstra cited "a lack of regulatory certainty and clarity in this area generally": a reference to the fact that Communications Minister Helen Coonan has yet to give any further detail on the licences.

Telstra has conducted its own experiments with mobile TV at the same time as participating in the trial, which allows simultaneous transmission of television broadcasts to mobile phones and personal organisers.

Recent media reports have also named Macquarie Bank as a possible bidder for one of the new licences.

Telstra, or rather its BigPond division, has aspirations to be a media player in its own right. In the past executives have talked to Hollywood studios about buying films and programs to be served up via BigPond.

Services such as video clips and film downloads, already available through BigPond, would be offered to subscribers of Telstra's own third-generation mobile network.

Last night Telstra was keen to play down speculation of a move on mobile TV. A spokesman said it would continue to explore technologies that best delivered high quality to customers at the lowest cost. "Telstra and Broadcast Australia have built up a strong working relationship . . . Telstra will continue to build this business relationship outside of the scope of trial," the spokesman said.

Telstra shares closed 3? up at $3.85 yesterday.

© 2006 The Age

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