Vodafone Italia’s Station Arrives

| May 29, 2008 | Consumer Broadband Services - Europe | Competitive Competitive Intelligence

| Analyst: Ben Tudor

Current Perspective: Positive
Vendor Importance: High
Market Impact: High

Event Summary

May 26, 2008 -- Vodafone Italia has unveiled Vodafone Station, an ADSL base station with a detachable UMTS/HSPA wireless broadband dongle. The device (and associated service) combines both fixed and mobile broadband and voice services. Vodafone Station provides ADSL access, WiFi, Ethernet and USB connectivity, and a detachable USB dongle that can be used to provide fixed wireless access as well as mobile connectivity for notebook computers. Importantly, Station will allow Internet access and voice services out of the box, without having to wait for DSL line activation.

Analytical Summary

• Current Perspective: Positive on Vodafone Italy’s introduction of the Vodafone Station device, as it builds on the company’s acquisition of fixed-line ISP Tele2 last year and utilizes lessons learned from Vodafone Germany’s Zuhause service. Another strong influence is Vodafone Portugal’s experience with ‘instant activation’ broadband services that used a 3G dongle while consumers waited for DSL line activation. Vodafone Italia has clearly done its homework with hardware partner Huawei here, producing a slick, easily understood device.

• Vendor Importance: High to Vodafone Italia, as the company is moving to address a lack of fixed-line products. It is interesting that the specifications for Vodafone Station include support for both HDTV and IPTV, as well as set-top box interworking requirements. Although Vodafone Italy has said nothing to suggest it, a move to a TV offering is likely, especially given that its two competitors in this space, Fastweb and Telecom Italia, both field TV products.

• Market Impact: High on the Italian Internet access market, as this multi-play offering is likely to force other service providers to step up their games. The expected introduction of WiMAX, as well as existing FTTH deployments by Fastweb and potential ownership changes at Telecom Italia, are also likely to conspire to change the market severely.

Recommended Vendor Actions

• Fastweb should polish its FTTH infrastructure and (eventual) WiMAX services and offer bundled deals against Station, emphasizing improved data services and pointing out the same ‘no line rental’ benefits as Station. The company has much to gain from FTTH and TV offerings.

• Telecom Italia should also emphasize the quad-play element of Unica. While Station is attractive, it has yet to offer a TV element.

• Telecom Italia should boost the number of handsets it can offer with Unica; at present, offering only the Nokia E65 is a limiting move, and it should look to boost this figure with more handsets from more manufacturers.

• Telecom Italia, Telecom Italia Mobile, Fastweb and Tiscali should step up moves to introduce WiMAX into the Italian market. This would level the playing field still further and cut back any advantage Vodafone gains with Station.

Recommended End User / Customer Actions

• Consumers should look at building their own bundles, especially if they have access to FTTH. Even better, they should consider holding off until the WiMAX introduction is given a deadline.

• Consumers should be very wary of mobile data claims and wait to see how well mobile data works in their area. ‘Instant activation’ is only instant when the HSPA module can connect.

• Consumers should wait to see the outcome of two issues: wrangling over control of Telecom Italia and the introduction of WiMAX. Once both of these are resolved, it is likely that stiff competition will ensue.

CLIENTS ONLY

Current Perspective

Competitive Positives and Concerns

Recommended Vendor Actions

| Client access - Full report in Consumer Broadband Services - Europe | More information

Top