Network coverage has advanced steadily since last summer, when the government provided free CMMB service in 37 selected cities to users with compatible devices, according to Mr Ironi. The service now has about 650,000 users.

The State Administration for Radio, Film and Television, which is the broadcasting industry regulator, is responsible for the nationwide operation of the technology.

It has established China Satellite Mobile Broadcasting Corp to handle the construction of the infrastructure and the service's business operations.

The company has projected that the service will have 10 million users by the end of this year and more than 50 million by 2010.

The service requires compatible handsets, which are not yet widely available throughout the Asia-Pacific region.

Because of the size and potential of the service on the mainland, Israel-based Siano said it recently closed deals to supply its chipsets to various domestic mobile-telephone makers - including ZTE Corp, Tianyu, CEC Telecom and Aigo - to meet the growing demand.

Mr Ironi forecasts that between 7 million and 30 million compatible devices will be sold on the mainland this year, following the government-led expansion of mobile television network coverage.

The government's proposal to bundle CMMB mobile television antennae with 3G mobile telephones based on the TD-SCDMA standard is expected to help boost the penetration of mobile television service.

China Mobile, the world's largest mobile-telephone network operator by number of subscribers, operates the country's TD-SCDMA 3G service.

'Mobile network operators need new features to lure users to buy a 3G mobile telephone,' Mr Ironi said. 'Having a mobile television function would serve as a good application to encourage subscribers to replace their handsets and upgrade their service.'

Consulting firm Frost & Sullivan has projected that mobile video service revenue in 12 Asia-Pacific markets, excluding Japan, will reach US$1.88 billion by 2013, a compound annual growth rate of 27.4 per cent from US$440 million in 2007.

The radio and film administration provided only eight basic channels from state-owned broadcasters, such as China Central Television, for the free mobile television service deployed last summer to support the Beijing Olympic Games.

This year, it aims to introduce new premium packages that users must pay for even as their basic package remains free of charge.

'There could be about 20 channels offered in the premium package; this could also include special data services such as real-time weather, stock quotes and traffic news,' said Mr Ironi.

The signal for the paid services will be delivered through a separate broadcast network to ensure quality and signal strength.

The government will also use the so-called conditional access technology to secure content when the premium channels start broadcasting.

Current mobile television-compatible devices need an encrypted receiver to get paid services.

TV on the go

Beijing to expand mobile television to 175 cities by June

By the end of the year, subscribers to the service is forecast to reach: 10m