More evidence that DVB-T, the technology that allows handsets to receive regular terrestrial TV signals, may have European operators rethinking their mobile TV business models. According to Forbes, picking up an interview in the Financial Times Deutschland, Vodafone (NYSE: VOD) Germany CEO Fritz Joussen has questioned the “viability” of offering pay TV on their handsets following the “surprise” entry of DVB-T handsets into the German mobile market.

Vodafone lost out last fall on a DVB-H mobile TV license, which it applied for along with Deutsche Telekom’s T-Mobile and Telefonica’s O2. The license was awarded instead to Mobile 3.0, a JV between German Mobile TV wholesaler MFD and publishing firm Neva Media.

The mobile operator said it will now concentrate on generating revenue by selling add-on services around mobile TV. For instance, it could sell a video clip or song aired on mobile TV. Jouseen was emphatic, however, that Vodafone wouldn’t be “supporting” any mobile TV offering if it meant that subscribers would have to pay for it—thereby running the “risk” they’d spend less on other services. The operator plans to sell DVB-T phones, as does T-Mobile.

What does this mean for DVB-H, the beloved technology of the EC? Mobile 3.0 is slated to launch a DVB-H mobile TV service in Germany on June 1, and to date, there’s no mention of price. Across Europe, however, DVB-H mobile TV services are typically priced around 15 euros a month. But with both Vodafone and T-Mobile throwing its weight and support behind DVB-T, it will be tough going for Mobile 3.0 and DVB-H—especially if Vodafone will only accept free TV for its customers.

• Can “Free” DVB-T Drive Mobile TV Uptake?