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Orange Unveils ‘Unik’ - UMA-based FMC Service| September 26, 2006 | Wireless Services - Europe | Competitive Intelligence Report | Client Access Analyst: Emma Mohr-McClune
On September 25th FT Orange group made a series of announcements concerning the imminent arrival of its Unik or Unique services across the UK, France, Spain and Poland, from 5 October onwards. The services (to be branded ‘Unik’ in France and ‘Unique’ in the UK and Netherlands) offer consumers a single device service, with a single voice mail, address book and sales and support channel. The service is composed of an Orange broadband subscription, an Orange LiveBox, and Orange mobile subscription and a choice of three applicable, UMA-ready handsets (Nokia 6136, Samsung P200 and Motorola A910), to be priced at the EUR 100 ballpark. Analytical Summary • Current Perspective: Slightly positive on the imminent arrival of FT Orange’s Unik (or Unique) service in five key Orange markets. FT Orange has prepared the ground well for this service, with an immediately addressable installed base of 2.9 million Livebox users and 8.5 million consumer ADSL accounts across Europe. However, only Orange France has revealed its pricing model, and customer appetite for UMA-based FMC services is still unproven. • Vendor Importance: High to FT Orange, as the launch of the Unik service across the UK, France, Spain, Poland and the Netherlands is an important milestone in the operator’s pan-European convergence roadmap. Unik (or ‘Unique’ in the UK and the Netherlands) will be the first service to draw a line between FT Orange’s formerly distinct Livebox, Broadband and mobile strategies across its key European markets. • Market Impact: Moderate on the European consumer mobile market, as the arrival of ‘Unik’ in France and ‘Unique’ in the UK and the Netherlands will serve to strengthen FT Orange’s competitive force as a total communications provider, with multiple service strains across broadband, fixed and mobile telephony. FT Orange has invested heavily in its UMA project, and is set to be the first European operator to launch a FMC service across multiple markets. Recommended Competitor Actions • The Vodafone Group should consider a near-term launch of its flagship homezone service (as represented by Vodafone Germany’s Zuhause and Vodafone Italy’s Casa) in the ‘Orange’ markets on the Unik roadmap to offset FMC aggression. • T-Mobile NL should reserve all the marketing resources it can muster for its near-term ‘Thuis’ launch. • All competitors should consider a services future in which ‘location-based’ tariffs play an important role. To date, the ‘home environment’ has been the key target of both homezone and FMC UMA service launches, but this concept also has plenty of mileage in the SOHO space. Furthermore, there is no technical reason why the defined ‘homezone’ location (defined by O2’s Genion, Vodafone Germany’s Zuhause or T-Mobile@home as a 1-2 km radius from a designated GSM antenna) cannot be expanded to a larger geographical distance, such as a ‘city zone.’ • FT Orange’s competitors should anticipate the arrival of an Orange consolidated loyalty scheme, which allows users to collect and benefit from points accrued from multiple services. • Competitors should note that Unik/Unique is already demonstrating a roadmap to service bundling. Orange has been careful to accrue a portfolio device of three UMA-ready handsets optimized for music, TV/video and messaging/mail, respectively. Recommended End User / Customer Actions • The primary benefits of the Unik/Unique services are well spelled out within the service providers’ own marketing literature: A single handset, a single voice mail, single billing and support. The drawbacks, however, relate to IT complexity (the end user must self-install and self-manage a Livebox), weak handset choice and the hassle of churning away from multiple service contracts at the same, given moment. End users must be sure to look beyond the headline pricing proposition before making a purchasing decision. Wireless Services - Europe
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