So DiBcom, a France-based semiconductor-for-mobile-tv company has received another $27 million in funding from its many investors, this time adding French bank NATIXIS. The company says it will use the money to continue improving its TV-streaming technology, and to spread faster internationally to phones, laptops, cars and other devices around the world.
We're speculating that the company timed this round with the recent news that the European Union's regulatory agency, the European Commission, has decided to favor the DVB-H (Digitial Video Broadcasting - Handheld) system, which rivals Qualcomm's MediaFlo and South Korea's DMB (Digital Media Broadcasting) systems. The three offer rival ways to stream remote data onto devices, which is especially important for telecoms trying to expand their mobile offerings. In contrast with the US and other countries, the EU agency favors a single-standard approach to decide how best to deliver mobile TV.
DiBcom has had a string of semiconductor innovations based around DVB-H, beginning in 2005. It has landed deals with mobile carriers in Europe, and with a broad range of consumer electronics firms. The company also says it has over 300 mobile TV trials underway across the world.
There will be stiffer competition in the US. DVB-H is prominently supported here through the Mobile DTV Alliance, which includes Nokia, Motorola, Microsoft, Intel and Texas Instruments. AT&T, Sprint Nextel, and Verizon, however, are using Qualcomm MediaFLO standard. The third rival, DMB (Digital Multimedia Broadcasting), which was born out of a South Korean national IT project, is not as big in the US, but is also spreading around the world.
And mobile TV itself is still a risk. While it is fine for analysts to make their projections, the mobile TV market has yet to take off significantly. It's unclear how many people are really wanting to watch full programming on their phones. Many may prefer user-generated content, like friends' video clips. Indeed, as the parent company of DVH-H based Modeo said in a recent filing:
Modeo's business has certain risk factors different from our core tower business, including an unproven business model, and may fail to operate successfully and produce results that are less than anticipated. In addition, Modeo's business may require additional financing which may not be available.
Besides NATIXIS, investors include: 3i, Cipio Partners, Convergent Capital, Credit Agricole Private Equity, Intel Capital, Partech International, SGAM Alternative Investments, UMC Capital, and WI Harper.