Vodafone Partners with Nokia for Ovi, and More

On November 7th Vodafone Group announced an agreement with Nokia to launch an integrated suite of Vodafone services combined with Nokia Ovi Services on a range of Nokia handsets.

Recommended Competitive Responses

► European mobile carriers should learn as much as they can about the Vodafone/Nokia/Ovi agreement, and attempt to win the same kind of revenue-share benefits and related privileges. Clearly, the Vodafone Group leveraged its volume advantage in negotiating these terms, but carriers should find Nokia anxious to attract more near-term support from the carrier community.

► Competitors should anticipate application-centric new device challenges out of this Nokia/Vodafone relationship in the months ahead. It is probable that the partners will look to build a Vodafone-exclusive device for mobile navigation – an event which may take this relationship beyond Ovi.

► Competitors should note that this agreement will impact Vodafone’s mobile content profile among an elite group of high-end Nokia smartphone users initially, as Ovi’s mobile device portfolio is expected to be limited in the near-term.

► Competitors should anticipate this agreement to fruition in several Vodafone markets in the coming months. In particular, the partners have confirmed plans for exclusive device launches as early as Q1 2008.

| Client Access - Wireless Services - Europe | More information |

Google's Android Announcement Qualifies GPhone Fears

On November 5th a broad alliance of leading technology and wireless companies joined forces to announce the development of Android, an open and comprehensive platform for mobile devices. Google, T-Mobile, HTC, Qualcomm, Motorola and others have collaborated on the development of Android through the Open Handset Alliance, a multinational alliance of technology and mobile industry leaders.

Recommended Competitive Responses

► Mobile operators should be attuned to the software-driven trends of new device marketing. The iPhone is the ultimate marriage of proprietary hard and software, but 3Group’s new ‘Skypephone’ is little more than a software-embedded exclusive.

► Mobile operators should learn as much as they can about Google, Android and its mobile advertising roadmap. Understanding Google has never been more important.

► Nokia should plan to sign the lion’s share of mobile carrier advocates to Ovi within 2008, in anticipation of the Android challenge. The recent news of Vodafone’s support provides Nokia with a solid gold reference customer.

► Apple must deliver on a 3G/HSDPA-enabled iPhone by summer 2008. Google’s mobile aggression should force Apple to take European network compatibility demands seriously.

Recommended End User / Customer Actions

► European consumers should ignore this announcement, as it amounts to little more than a pre-announcement of an OS blueprint for devices which will not go on sale until the end of next year, at the earliest.

► It is by no means clear that an ecosystem for enterprise deployment of Android devices will develop with functionality and security comparable to what Microsoft, Symbian and RIM have developed. However, it would be foolish to count out Google’s efforts here, especially since a completely open platform could bring enterprises benefits not found on less customizable OS’s.

► Enterprises planning significant investment in mobile application development deploying over the next three to five years should download the Android SDK as soon as possible to begin the evaluation process. Enterprises with a shorter timeframe should keep an eye on Android, but their implementation timeframe dictates going with a more established platform and existing software and integration offerings.

| Client Access - Wireless Services - Europe | More information |

3 Group Goes on IM Offensive with 3 Skypephone

On October 29th 3 Group and Skype launched a new handset to allow users to make free Skype-to-Skype calls and send free Skype IM from the mobile phone to other Skype users, whether the recipient is mobile or PC-based. The 3 Skypephone is a 3G, Internet-ready device that features a central ‘Skype button’ for easy access to Skype chat and calling functions. The device will be launched in the UK on November 2, and then in other 3 Group markets in Europe in the run-up to the end-year season.

Recommended Competitive Responses

► All competitors should view the Skypephone as a major threat, warts and all. Despite the service’s key weaknesses (the high cost of roaming, the lack of Skype Out, etc.), 3 UK’s loud and flashy above-the-line marketing, combined with mass-market device subsidization and the highly attractive Mix & Match tariff plans, is indeed causes for concern.

► Competitors should claim that mobile VoIP may be ‘free,’ but its voice quality is expected to be horrible.

► Vodafone UK needs to revise its Best for Both tariff plans, because they fail to match up to the new trend towards minute/SMS quota flexibility, as expounded by T-Mobile UK’s highly successful Flext tariff (which attracted 2 million subscribers in 18 months of service) and this new 3 UK duplicate, Mix & Match.

► T-Mobile International now needs to turn its attention to IM Web’n’Walk enhancement, as the operator has fallen behind both the Vodafone Group and 3 Group in this area.

| Client Access - Wireless Services - Europe | More information |

T-Mobile Brings MyFaves to UK

On October 26th T-Mobile UK announced the launch of MyFaves, offering unlimited calls, texts and MMS to the end user’s designated ‘top five’ on any UK mobile network, at any time. The service will launch with five MyFaves device models, all fully subsidised together with one of three MyFaves contract subscriptions.

Recommended Competitive Responses

► Vodafone UK should now consider expanding its Vodafone Family offer to allow for off-net family member designations. Vodafone Family’s single largest caveat is that family/friend members must be Vodafone numbers. MyFaves challenges this.

► In the immediate term, O2 UK should reassert the marketing emphasis for its PAYG Number 1 offer, which rewards PAYG customers with free minutes to a chosen O2 mobile number in exchange for minimum top-up behaviour. In the mid-term, O2 UK should consider a strong subscription variant of Number 1.

► Competitors should expect T-Mobile UK to expand its handset device selection with MyFaves in the weeks after launch. In Germany, T-Mobile launched MyFaves with a choice of 12 devices, with additions set to appear before year-end. In the UK, T-Mobile customers are able to choose from over 20 different devices for other services. The initial UK device line-up for MyFaves is likely to grow.

| Client Access - Wireless Services - Europe | More information |