Telefonica and KPN Unite in MNC Mobility Space

Event Summary

November 25, 2010 - Telefonica and KPN have signed a partnership agreement for multinational customers (MNCs) and will support MNCs’ mobility requirements in 20 countries. Under the terms of the agreement KPN will support Telefonica in Belgium and The Netherlands and Telefonica will support KPN in the UK, Ireland, Spain, Czech Republic, Slovakia, Mexico, Brazil, Argentina, Chile, Colombia, Venezuela, Peru, Ecuador, Uruguay, Guatemala, El Salvador, Nicaragua, and Panama. Germany, where both companies have competing mobile operations, is excluded from the agreement.

Quick Take

Analytical Summary

• Current Perspective: Positive on Telefonica’s partnership with KPN because its footprint for delivery of mobile services for MNC customers has further expanded to include The Netherlands and Belgium, taking the total up to 22 countries where Telefonica owns mobile operations and other partner network agreements. MNCs are looking for global consistency, central ordering and reporting and local billing for mobile services where appropriate, and Telefonica has taken another step forward in delivering this.

• Vendor Importance: High to Telefonica, because it has over 800 MNC customers and large outsourcing deals that involve fixed and mobile services, but needed to expand its footprint in delivering mobile services against competitors in the FreeMove Alliance and Vodafone Global Enterprise. Telefonica has improved its position to win additional MNC business through mobile services partnerships with operators such as Telenor, KPN, NTT DOCOMO, Telecom Italia and Verizon.

• Market Impact: High on the global managed mobility market, because Telefonica is a key player with customer strength in the UK, Germany, Spain and many major markets in Latin America. MNCs are increasingly outsourcing mobility services and the more competitive operators can be across a larger footprint the better for customers. The KPN agreement is win-win for both as KPN can offer its MNC customers mobile services in all Telefonica countries, building on their existing partnership on the fixed network side (e.g., MPLS interconnects).

CLIENTS ONLY

Competitive Strengths and Weaknesses

Response & Recommendations

Buyer Actions

| Client access - Full report in Mobility Services | More information

Top