BenQ-Siemens Launches New Brand, New Phones

On January 17th BenQ Mobile unveiled its new consumer brand, BenQ-Siemens. Three devices accompany the launch: the flip 3G EF81 device, the S88 image-centric device, and the super-thin S68.

Recommended Competitive Responses

► Motorola needs to build a UMTS RAZR. It might want to build UMTS versions of the SLVR and PEBL, too. And it really needs to get its products out before every single one of its competitors copies its designs!

► Sony Ericsson can try to take over Siemens’ old position at T-Mobile. This could be tough, because Siemens and T-Mobile have already built strong bridges.

► Nokia needs to keep on keeping on with the E-Series and N-Series. BenQ’s failure here is by not imitating Nokia’s high-end enthusiast/brand halo-oriented strategy.

► Kyocera can eliminate BenQ as a CDMA competitor for the time being. However, it should bulk up low-cost capabilities to ensure other Taiwanese and Chinese manufacturers don’t usurp its market position.

Recommended End User/Customer Responses

► T-Mobile USA can choose to simply consolidate its vendors, or pressure Sony Ericsson for price concessions in order to get back on the shelves.

► Cingular replaced Siemens’ low-end handsets with models from Nokia and Samsung; there is no need to change. For its UMTS rollout, the BenQ-Siemens EF81 is interesting, but Cingular should look first to Motorola for a UMTS RAZR, as well as to hungry Korean vendors like LG before inviting BenQ-Siemens back.

► Consumers looking for the best foreign phones to import and use on T-Mobile’s 1900 MHz network should look at Nokia’s stuff, not products from BenQ-Siemens.

Sky Becomes a Bigger Threat to Mobile Operators with Sky Mobile

On January 11th Sky launched Sky Mobile, offering consumers the chance to download a free application to view mobile content from Sky on a select number of 3G and GPRS devices. Content is free, but operators do incur GPRS transfer costs. Consumers can download the Sky Mobile software for their devices via Sky Mobile’s Web site..

Recommended Competitive Responses

► Vodafone is already in bed with the enemy and needs to make the most of it. It should offer wholesale Vodafone minutes to Sky if Sky wants to become an MVNO in the UK.

► 3 needs to enforce its special rates for off-portal services.

► Orange needs to review all of its TV content and repackage the services into smaller packages, offering one or two TV channels non-stop for GBP 3 per month.

► BT Movio and Virgin need to get their DAB TV services up and running as soon as possible.

Telefonica to Exit FreeMove

On January 12th Telefonica gave guidance that its mobile unit Telefonica Moviles will exit the FreeMove Alliance, in line with EC demands. The EC has made the exit of FreeMove a requirement for approval of Telefonica’s acquisition of O2 subsidiaries.

Recommended Competitive Responses

► The FreeMove Alliance must play down the impact of this event. Alliance members must work together to offset a growing suspicion that FreeMove’s days are counted.

► France Telecom must give more thought to the impact of its FreeMove membership on its NeXT goal. Can an integrated operator work effectively within an alliance of wireless providers?

Recommended End User/Customer Responses

► MNC customers in Spain managed by the alliance should push for comparable roaming terms. MNC customers should argue that they should not be made to pay for Movistar’s expansion ambitions.

Vodafone UK Launches Third Party Applications Programme

On January 12, 2006 Vodafone UK launched its third-party mobile applications programme to deliver business applications such as job scheduling or sales force automation tools, via the Vodafone UK network. Vodafone UK will evaluate and endorse new applications and provide support for customers in choosing suitable products. There are three levels to the programme offering Vodafone Branded, Preferred and Certified solutions catering for different levels of support, test and marketing by Vodafone.

Recommended Competitive Responses

► Other mobile operators in the UK should consider publicising their own applications programmes in a similar way. Whilst many applications are available on a number of networks, Vodafone’s initiative gives the impression it is the only player in the market.

► Mobile operators should collaborate on certification of mobile applications for use on any UK mobile network. Unless operators are prepared to offer exclusive terms, application developers will need to sell their application onto all mobile networks, hence quadrupling the effort involved and hence deterring smaller companies from developing mobile applications.

Recommended End User/Customer Responses

► Existing Vodafone customers should question the company as to its portfolio of approved applications for use on the UK network. Customers should also remember that they can treat mobile data as separate to voice applications and should therefore compare offers from all mobile operators.

► Application developers should question Vodafone as to the costs associated with its certification programme. Developers should also ascertain Vodafone’s level of commitment to marketing and joint sales support.

► Enterprise customers should question Vodafone as to the extension of this programme to cover other Vodafone network partners. With many companies looking for a pan-European approach to business processes and applications there is a need for applications to be deployed across multiple networks.

The NExT Step: France Telecom Accelerates Convergence Program

On January 19th France Telecom gave guidance on its NExT strategy. Accelerating the Orange metamorphosis and NExT strategy will have a profound competitive impact across multiple markets. The group is anxious to prove that recent poor financial results have not weakened its spirit.

Recommended Competitive Responses

► BT should anticipate a threatening evolution of Orange’s Business Everywhere, to include PTSN and DSL in the coming months.

► Vodafone UK should play up its new business application strength, notably via its new Business Application Program and own-branded application portfolio, such as Vodafone Device Management with Business Mail. This is an area in which Vodafone UK is beating Orange UK.

► Telefonica Moviles Espana should take note that this acceleration program includes Spain. Until now, France Telecom has shied from making concrete statements about its plans for Amena. Now they are in hand.

► Proximus should continue to be wary of a potential re-branding of Mobistar to Orange in 2006.

T-Mobile NL’s Flex Disappoints

On January 16th, T-Mobile will launch its new postpaid tariff, Flex. The consumer version of Flex exhibits an all-in monthly bundle structure, for voice, SMS and mobile Internet usage, with an in-built, self-adjusting tariff mechanism that ensures customers enjoy lower rates whenever they exceed the monthly bundle.

Recommended Competitive Responses

► KPN Mobile should add flexibility to Mobiel. Mobiel customers are currently restricted in the way they can downgrade tariff bundles, and this starts to look like a serious competitive disadvantage in light of the new Flex offer.

► Vodafone NL, Orange NL and T-Mobile NL should anticipate a flat-rate voice service launch in the near-term. Given KPN Mobile’s success with this model in Belgium and Germany, this is now merely a question of time.

► Orange NL should make more marketing noise about the flexibility of its Orange Free model, as well as the fact that it is the real market innovator in terms of extended credit carryover.

► KPN Mobile should launch a flat-rate voice offer in the Dutch market, similar to that of BASE Unlimited.