Vodafone Strengthens Smartphone Strategy with Revised Data Roaming Options

Event Summary

November 29, 2010 - Vodafone announced simpler and lower pricing for using a smartphone whilst travelling in Europe, making it more affordable for customers to email, access social media sites and surf the Internet abroad.

Quick Take

Analytical Summary

• Current Perspective: Positive on Vodafone’s group-wide, smartphone data roaming initiative and associated campaign. As smartphone hardware pricing falls, this initiative addresses one of the last remaining pain points for smartphone adoption, and builds on the international success of the operator’s 2005-introduced Passport voice data initiative. Although not all the details are in, early launch details point to highly competitive pricing within initial launch markets.

• Vendor Importance: High to the Vodafone Group, as driving the penetration of smartphone users within its total customer base is a key, immediate term strategic objective, and this initiative supports that goal. Several of Vodafone’s key competitors revised their mobile Internet roaming rates just before the summer period; this competitive response, timed to align with the key smartphone sales period of the year, makes for an instant marketing advantage.

• Market Impact: High on the mobile media market, as any Tier 1 innovation in the area of smartphone services is of prime importance to all mobile operators looking to boost smartphone sales in the coming weeks. Although Vodafone’s new options bring nothing fundamentally new to the data roaming service market in terms of service model, the operator’s decision to align a ‘Feel free to use your smartphone abroad’ campaign with the end-year smartphone sales period is unique among the pan-European Tier 1s.

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Competitive Strengths and Weaknesses

Response & Recommendations

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