LIME suspends mobile TV
JUST over two years after launching mobile television, predicting it would revolutionise the way people interact with mobile devices, LIME has suspended the service.
LIME reported the move in its financial statements for the year ending March 31, 2013, noting that the decision was made early May 2013.
It raises speculation as to whether the project is troubled for lack of subscription, or if LIME has just decided to revamp the service. The company, up to press time yesterday, had yet to respond to a Business Observer query seeking comment on the rationale behind the move.
Over US$100 million ($10 billion) went into developing the Digital Video Broadcast system that powers the LIME Mobile TV service. Developed in collaboration with cable company DC Digital, the technology provides customers with access to television and cable channels from their mobile phones.
The telecoms giant launched the Caribbean’s first-ever mobile TV service in Kingston in December 2010, declaring it “a mobile revolution” and offering premier television channels, including CNN, ESPN, Sportsmax, NBC, Hype TV and even a cartoon channel for kids.
“This is a historic moment,” said LIME Chairman Chris Dehring at the star-studded launch ceremony held at the Sportsmax Zone, jam-packed with media personnel, entertainers and politicians.
“Many of us here in Jamaica remember exactly when TV changed from black and white to colour. We also remember exactly when LIME introduced mobile phones to Jamaica,” declared Dehring. “The merger of these two technologies will also now be forever remembered as a seminal moment — when a mobile phone truly became more than just a phone.”
LIME TV has had its highlights. Jamaicans flocked LIME stores in January 2011 eager to purchase mobile TV phones to view reggae superstar Buju Banton’s Before the Dawn Concert, broadcast live on LIME Mobile TV from downtown Miami.
Its broadcast of Teacha’s Pet, featuring women competing to win the affection of dancehall superstar Vybz Kartel, also generated significant buzz, despite having to be cancelled due to the deejay being arrested for several charges.
What’s more, LIME struck a deal with exclusive local broadcast holder of the 2012 London Olympics, CVM TV, allowing the telecommunications provider to provide coverage of the Games on its mobile TV network.
Grace Silvera, LIME’s former regional vicepresident for marketing and corporate communication, said last year that the company’s strategy for mobile TV, centred on providing unique content, had “driven sales increases of as much as 50 per cent month on month”.
However, it remains unclear whether the buzz generated by mobile television has justified the investment.
Meanwhile, LIME Jamaica racked up losses of $5.5 billion for the financial year under review. Revenues fell by six per cent to $19 billion, but the company reported that mobile sales and subscriber base jumped by 14 per cent and 16 per cent respectively, boosted by its Talk EZ campaign which accompanied the company’s slashing of rates from $8 a minute to $2.99, two-thirds less than the price charged by its arch-rival at the time — it has since been eclipsed.
“Our Talk EZ and XL prepaid mobile plans established us the clear value leader in a tough economy where customers want the best deal. We are listening to our customers, and are aiming to provide even better value in the future,” said Garfield Sinclair, LIME Jamaica’s CEO.
However, LIME posted a 21 per cent decline in fixed-line revenues to $7.6 billion, offseting the gains made on the mobile side. Broadband, data and other revenues was flat at $6.2 billion.
LIME’s fixed-line sales have fallen five consecutive years from $12.5 billion in 2009 to $7.6 billion for the year under review.