Hierarchical modulation (HM) technique explained in DVB-H technology serves user with different quality of video data for TV on cellular phone. This newer modulation technique has shown good spectrum utilization with availability of HDTV and SDTV video-quality reception. SDTV quality is by default quality to receive in any channel condition while HDTV quality is restricted to healthy reception condition which is indirectly wasting spectrum up to certain extent. The proposed three-layer hierarchical modulation technique is solution to the limitation of previous HM technique with the compromise of video quality as SDTV only. The analysis of three layer HM is carried out on three gray scale video using MATLAB simulation for all possible channel scenarios defined by DVB-H and upcoming standard DVB-NGH. The improvement possibility is shown by addition of simple post-processingKeywords: Digital video broadcasting for handhelds, two levels HM with dual constellation mapping level 2, post processing
