Telefónica España Shoots for Differentiation with Portable Mobile WiFi Hotspot Product

| Feb 17, 2009 | Enterprise Mobility - Europe | Show Update

| Analyst: Joel Stradling

Current Perspective: Positive/Neutral Vendor Importance: Low Market Impact: Low

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Event Summary

February 16, 2009 – Telefonica is to launch during H1 2009 a portable stand-alone device that accesses available cellular networks, including for example Telefonica’s HSPA network, to create a wireless LAN cloud that is capable of connecting up to five WiFi-enabled devices within ten metres. The MiFi 2352 base-station is to be provided by Novatel Wireless, and includes a Linux operating system to deliver mobile applications and media. Future releases will include automatic VPN connection and email synchronization.

Analytical Summary

• Current Perspective: Slightly positive on Telefonica Espana’s announcement that it will launch a new portable mobile WiFi hotspot service based on Novatel’s MiFi 2352 later in H1 2009, because the service provider is claiming it is the first to offer this innovative solution to score a point of differentiation. The initiative will expand the carrier’s enterprise mobile broadband portfolio, and the offer will have a number of compelling features, such as support for up to five WiFi-enabled devices per single MiFi 2352, location-based applications, content storage up to 16 GB, and for future releases email synch and automatic VPN connection, which all add value.

• Vendor Importance: Low to Telefonica Espana, because the carrier needs to try to keep ahead of its competitors that are aggressively selling enterprise mobile broadband based on typical USB and data card modem by coming up with a unique and compelling concept. However this is not a radical turnabout because the MiFi 2352 device is part of a range of mobile broadband access products being offered by the operator. Finally, this is a natural part of Telefonica Espana’s overall mobile broadband strategy whereby it needs to make the most of its HSPA investment by driving traffic onto the network via new products.

• Market Impact: Low on the Spanish enterprise mobile broadband access market, because the planned launch brings a new and unique message that puts pressure on rivals. But in fact the actual product launch is sometime in H1 2009, giving rivals a little time to explore their responses. Competitors are not currently talking about matching Telefonica Espana’s proposed MiFi 2352 product, and will have to move to react if it becomes clear in a short space of time that there is strong demand for such portable mobile hotspot devices.

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