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Mobile World Congress 2010

Telefonica Thinks Outside the Box with 3Gbox Cloud Storage Concept


| Feb 17, 2010 | Consumer Services Europe
| Analyst: Natasha Rybak

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Event Summary

February 15, 2010 – Telefonica demos a prototype 3G USB modem, 3Gbox, at Mobile World Congress with potentially unlimited storage capacity based on cloud computing. Launch is forecast in about a year, beginning in Spain.


Analytical Summary

• Current Perspective: Slightly positive on Telefonica´s 3Gbox prototype, because it demonstrates that the company is thinking outside the box (so to speak) in terms of enhancing differentiation and offering more varied value add to consumers, as well as looking to leverage its network to do more heavy lifting on the user´s behalf.

• Vendor Importance:
Moderate to Telefonica, because the company is an innovator, and a product launch based on the 3Gbox concept would further enhance its cachet. Providing differentiated value add based on existing assets is central to every service provider´s survival, and Telefonica is clearly focused on development in this area.

• Market Impact: Low on the consumer services space, because the existing product is a prototype and no commercialised service is expected for about a year. Competitors should monitor Telefonica´s plans in this area, with the understanding that the company is looking to ´follow the customer´ as much as possible as it develops new services.


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