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Cingular Bows New Mobile Video Service

In another sign of phone companies moving into the content delivery business, Cingular today is announcing an on-demand TV service that will run over its new 3G wireless network. Called Cingular Video, the service lets users select short three- to five-minute clips from 18 different content providers, including NBC, ESPN, HBO, Fox News, and the Cartoon Network. The service will be available to Cingular customers who purchase an unlimited 3G data package. The data package costs $19.99 per month, and includes unlimited text, e-mail, and picture sharing, as well as the Cingular video service. HBO clips require an additional premium of $4.99 per month. Cingular currently offers a live TV service through MobiTV over its 2.5G network. That service costs $9.99 per month with an added price for data storage. Verizon Wireless and Sprint Nextel also offer video services--the former for $15 per month; the latter for $9.99 plus an additional fee of $10 to $20 per month for a data package. Mobile TV is a big gamble for phone companies; a recent study suggests that Americans may not be as interested in watching TV on their phones as the carriers may think: 75 percent of 1,000 people polled said they had no interest in mobile TV, says a survey by RBC Capital Markets.

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