Katie Fehrenbacher of GigaOM reports about Modeo going into a “beta commercial launch” in NYC this coming week. Modeo has been hyping their DVB-H (Digital Video Broadcasting-Handheld) platform for a while but have suffered a set back when their CEO recently bailed. Still, Modeo represents the “open network” school, working with open platforms and handset manufacturers on a “standard mobile broadcasting” service that will enable operators and MVNOs launch their tailor made audio and video portfolio. Modeo is using radio frequencies, so in theory they can bypass the operators and ISPs altogether by working with handset manufacturers directly. No wonder Nokia has been their primary target.

On the other hand, Qualcomm is launching MediaFLO with Verizon this month. Qualcomm has traditionally equipped CDMA operators with more complete service delivery platforms which enable operators like Verizon build a sustainable advantage. While MediaFLO will probably not allow as much freedom and will be create an operational dependency on Qualcomm, it will relieve the operator of many project, product and operational decisions and challenges.

This is very similar to the “J2ME vs. BREW” debate. While J2ME is open, standards driven, universal and you name it platform, BREW has produced substantially more downloads per subscriber. Neither Nokia nor Vodafone have been able to match the Qualcomm / Verizon GetItNow success. History proves that operators prefer managing a catalog and enjoying economies of scale over building tailor made value add platforms. I don’t see this changing with interactive video and audio, on the contrary.