Nokia Gets Green Light for Intellisync Acquisition

On February 10th Nokia announced the completed acquisition of Intellisync, a leader in platform-independent wireless messaging and applications for mobile devices. Nokia has expressed its commitment to maintaining support for synchronization and mobile connectivity to applications on non-Nokia devices and multiple device platforms, such as Palm OS and Windows Mobile.

Competitive Concerns

► RIM needs to come out with a strong ‘lower-cost’ push e-mail strategy to counter the impact of this acquisition, as well as the new challenge imposed by Microsoft’s NOC-less push e-mail for Exchange 2003. The business signs are pointing to a new price-sensitivity in this market, which will expose RIM’s competitiveness.

► Ericsson should counter that the middleware market is currently facing a patent-claim crisis of confidence (RIM versus NTP, RIM versus InPro, Good versus Visto, etc.), and Nokia’s investment represents a risk.

► Visto, SEVEN, and others should hype their potential influence as an additional indirect channel and a great way to meet wireless operator customers in new markets. It is too early for Intellisync competitors to start burning their Nokia business cards.

Wal-Mart Set to Launch Mango Mobile in Europe

January 30, 2006 - Wal-Mart is set to launch a new mobile discount service called Mango Mobile in Europe. Anticipating a launch in Germany and the UK, Wal-Mart has teamed up with the Miami-based Facey Retail Solutions to launch both prepaid and contract services as well as SIM-free, affordable mobile devices. At present, Mango Mobile is operating as a reseller until the company confirms a wholesaler for prepaid minutes (which is likely to be E-Plus).

Recommended Competitive Responses

► Medion Mobile and Aldi need to launch in February with at least three different devices. In Europe, handsets are still the favoured way of upgrading devices, and SIM-locked Aldi Talks devices must be available.

► Discounters such as Klarmobil have started to launch contract tariffs and these are important to reduce churn in new, growing consumer segments. However, 24-month contracts remain unappealing and these competitors need to introduce flexibility on contract length.

► All low-cost consumer mobile providers in Europe should look to Switzerland as a case study of new market tariffs and ideas. For example, sunrise offers an extremely innovative contract with no monthly fee that can be manipulated to serve as a strong tariff across Europe.

Turin 2006: TIM Teams with Samsung to Trial Mobile WiMAX Phones at the Winter Olympics

On February 10th Telecom Italia Mobile announced that it was trialing WiBro technology (mobile WiMAX) with Samsung at the Turin Olympics. Samsung has designed new mobile devices using WiBro technology that offers speeds of 20/30 MB per second. This new technology will be available from 2007 and offers seamless connectivity on the mobile device.

Competitive Concerns

► As with all new technology, seamless services will not be possible until as early as 2007, even if devices are available.

► Trials are being conducted early and the first WiBro network is to be rolled out in Korea at the end of 2006, but it is still very early days. The technology promises great user experiences but only if the devices are small and appealing, and most importantly, affordable when launched.

► Mobile operators are already touting faster than 3G technologies such as HSDPA. With WiBro now added to the equation, consumers will become increasingly confused as to the correct upgrade path to choose.

DT Trials New Fixed/Mobile Convergence Product 'Dual Phone'

On February 6th Deutsche Telekom announced that it will launch a Dual Phone in Q2 2006. The device will offer function over DSL in the home, over GSM or WiFi. The price of the device is currently unavailable, but the device will be the second converged service to be launched by DT following T-Mobile’s mobile@home solution.

Recommended Competitive Responses

► As the number two fixed line operator in Germany, Arcor should intensify its cooperation with Vodafone to deliver a competing product offering.

► Competing DSL operators (e.g., Telefónica Deutschland, QSC, EWE Tel, etc.) should continue to intensify their relationships with their respective mobile counterparts (e.g., O2, Debitel and Vodafone). Where relevant, they should also begin to communicate their broader commitment to offering ADSL2+ across Germany as a combined fixed and mobile service.

► In the enterprise space, BT should continue to emphasize its relationship with partner O2 Germany, which allows it to offer an integrated data, IT and mobile service under its own brand, tariff and terms.

Recommended End User/Customer Responses

► Customers should consider Deutsche Telekom’s Dual Phone service when it becomes commercially available. Unlike other offers, the incumbent is offering a single device that can roam seamlessly between GSM and WiFi networks and it is likely to be supported with unique pricing.

► End customers looking for an integrated DSL/mobile service should also consider contacting O2/Telefónica Deutschland and QSC/Debitel as new fixed and mobile offerings are on the horizon. Unlike the proposed Deutsche Telekom offer, these packages will be offered alongside ADSL2+ providing a higher access speed of up to 25 Mbps (downstream).