“The iPhone could become the mobile video delivery device of choice for many consumers, by providing a compelling mobile TV and video proposition before mobile broadcasting networks, such as DVB-H become widely available”, says Mark Heath, co-author of the new Analysys Mason report iPhone Shows the Way for Mobile TV.

Many operators are offering mobile TV services, using 3G streaming, but these are constrained by lack of coverage, relatively poor quality of service and 3G capacity limitations (as 3G networks may only support relatively low penetrations of mobile TV users).

Market research shows that many iPhone owners have accessed TV and video content, with greater frequency than subscribers using other types of mobile handsets. With added 3G capability, the iPhone will bring the following highly attractive attributes to the mobile TV market.

While iPhone take-up has been relatively modest, with cumulative sales of about 5.4 million units by the end of March 2008, this is due to Apple’s initial strategies of constraining worldwide availability and launching exclusively with a single operator in each market. As Apple moves away from these restrictive distribution strategies, there could be substantial growth in the number of iPhones sold.

“If the iPhone is able to achieve significant worldwide market share, it will be well-positioned to have a significant impact on the way mobile subscribers purchase and watch mobile TV and video content,” adds Dr Alastair Brydon, co-author of the report.