Mobile TV and video services could run up against capacity constraints on 3G networks within two years, according to a report by research firm Analysys.

Although 3G networks will carry the vast majority of mobile TV and video services for the next five years, 3G has limited capacity to support the substantial network traffic generated by video streaming.

The report concluded that, despite some mobile operators offering streamed TV and video content at highly attractive prices to encourage consumers to use the services, the heavy data consumption will demand careful management of service use, pricing and technology evolution.

Report co-author Dr Mark Keith said: "The capacity of a typical W-CDMA network could be exceeded as soon as 2007 if just 40 per cent of 3G users take up mobile TV and video services and each consumes only eight minutes of video per day.

"Broadcasting technology will be the only realistic means of supporting peaks in demand such as those created by major news stories and extended periods of mobile TV viewing."

The analyst urged operators to look more closely at the little-known 3G feature MBMS (Multimedia Broadcast and Multicast Service), which could be available from 2007. Dr Keith explained that this technology "has the potential to make 3G itself the most attractive broadcasting solution".

MBMS would save operators from investing in new technologies, notably DVB-H, DMB or MediaFLO.

MBMS is based on relatively small changes to the existing 3G standard and does not require additional spectrum or licensing. Perhaps most importantly, according to Dr Keith, it has the potential to "enable mobile operators to continue to control the mobile TV and video market".

But much depends on demand for video services, as MBMS requires operators to set aside capacity that could otherwise be used for voice, messaging or data services, and can only be justified if operators attract mainstream audiences to a small number of broadcasting channels.

Analysys stated that the fast growth of video services on mobiles in South Korea suggests that there will be a significant demand for services in the UK.

The analyst firm admitted that the current demand is hard to estimate because no figures for usage are currently available from UK operators, most notably from 3 which has strongly promoted video services since its launch.