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Vodafone Italy Says Ciao to Homezone Services| May 11, 2006 | Wireless Services - Europe - Southern Europe Analyst: Bena Roberts
On May 11th Vodafone Italy launched new fixed-substitution services to replace the fixed line. Vodafone Casa Zero offers 1,500 minutes of calls per month for EUR 9.99, and Casa Infinity offers free calls after the first minute for EUR 3 per month (capped at 500 minutes). Analytical Summary • Current Perspective: Slightly positive on Vodafone’s launch of Vodafone Casa (homezone) services in Italy. The services are different from those in Germany, but they do enable consumers to make calls from the home area at significantly low prices, which will open up the Vodafone network to new market segments. However, the pricing remains complicated, with additional connection charges and limitations on the number of minutes. • Vendor Importance: Very high to Vodafone, since fixed substitution is one of Vodafone’s goals. Vodafone Casa will nurture and educate the market on new types of products that can replace the fixed line in Italy. This will also pave the way for the operator to replicate to a greater extent the wide range of homezone services available in Germany. • Market Impact: High on the wireless market, since fixed-line use is in decline. TIM and TI are pushing services such as Alice and Tele Economy or SuperPhone to maintain interest in fixed and mobile services. Vodafone is telling consumers to drop the fixed line altogether and the Simply VSL device, for only EUR 5 per month, will fuel this concept. However, launching Vodafone Casa without a DECT-style device and at least two handsets was a mistake by the operator. Recommended Competitor Actions • TIM needs to continue with its push towards FMC consumer services such as the SuperPhone and Tele Economy. The operator must now extend its target market, select core groups of people to address with the FMC offer and start its target marketing. For example, students are a great first place to start. • TI needs to add more devices to its SuperPhone range. High-end, sleek designer devices will fit well into the Italian lifestyle, where image often comes before practicality. • Wind has just launched its MMS mail services for consumers. It should use the offer to start a new campaign offering wireless mobile Internet services to consumers. Instead of replacing the fixed line, it must start looking to IP, DAB-IP and VoIP services to tailor its offer.
• urrent Infinity users should sign up for Casa Infinity. They know how the service works and can now benefit even more in the comfort of their own home. • Prior to considering any offer in Italy, consumers must read the small print. Many offers that sound too good to be true are tarnished with new hidden costs. Wireless Services - Europe
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