CES: Modeo goes live in New York

LAS VEGAS--Though overshadowed by Verizon Wireless and Qualcomm’s large-scale unveiling of mobile TV service, Modeo today finally delivered on its promise of a live multicast wireless video network covering all of New York City.

The service won’t be a commercial one, though. Instead Modeo is conducting what it hopes will be a high-profile “beta service” in the nation’s largest city, distributing hundreds of digital broadcast video-handheld (DVB-H) handsets to trendsetters, media, corporate executives and even ordinary consumers, for a three-month trial in the world’s most grueling media market. At the end of the quarter, Modeo will compile data from tester surveys as well as feedback from potential partners and use that information to calculate its next move, said Michael Ramke, new president of Modeo.

“It’s New York—it’s one of the hardest places to build a network,” Ramke said in an interview at CES today. “If we can show it works here, we can make it work anywhere.”

Modeo is using the same DVB-H smartphone it originally commissioned from HTC for the beta trial, but Ramke said the major vendors are lined up to bring Modeo handsets into production once there are volume orders. Volume orders, however, would require a carrier customer, which Modeo so far has failed to attract. Modeo appears to be counting on the high-profile New York launch to stir carrier interest. Ramke said Modeo is shipping many of the devices preloaded with T-Mobile and Cingular Wireless SIM cards, giving those providers the ultimate demonstration of how the Modeo service would work on their networks.

Modeo wasn’t able to attract the volume of big media partners that Qualcomm did for MediaFLO, but it did land gems like Fox News and the Discovery Channel. And it has linked up with MusicChoice to provide a streaming music channel.

The New York build required roughly 60 broadcast sites using Modeo parent Crown Castle’s extensive cellular tower network. The number of towers, however, is rather high compared to the two-to-three towers Qualcomm claims it needs to cover a market with its Forward Link Only (FLO) technology at 700 MHz. Modeo uses a special 1.6 GHz frequency that was originally allotted for radio astronomy band that not only has lower propagation characteristics than the Qualcomm and fellow DVB-H competitor HiWire’s UHF bands, it also must be transmitted at a lower power, requiring a more dense footprint.

Modeo is currently petitioning the FCC for a waiver to broadcast at higher power, which could cut down on the number of towers necessary to cover a market. But Ramke said its competitors' claims of the difference in capital expenditures are exaggerated. Even if Qualcomm or HiWire could cover the basic radius of market with a three-tower build, they would still need to augment the network with infill repeaters to fully cover it.

“In a flat area, it might make a difference, but in a place like New York, there is really no difference because of the extreme topography,” Ramke said. “We’re asking the FCC to give us more flexibility, but it’s certainly not fundamental to our plans.”

Modeo’s plans are to build out in the top 30 markets in the U.S. for a cost estimated at $500 million. But Ramke said Modeo is no longer setting a specific timeline for that build out. It has secured tower rights in the markets it wishes to launch in, but the deployment schedule will depend on the results of this quarter’s beta run.