Mobile VAS|watch, issue 2009.09 snapshot
October 6, 2009
Issue: 2009.09
Covering: September 2009
Published: September 2009
Next issue: October 2009
Tracking innovative, strategic, operator-monetisable mobile value-added solutions. A unique monthly report for the industry.
EXECUTIVE BRIEF
- SMART DEVICES: O2 UK lost retail exclusivity for Apple’s iPhone , as the vendor appears to be moving to multi-operator distribution, with the surprise being that two rivals joined the fray. China Mobile is said still to be in talks to offer Apple’s iPhone , following claims that Apple’s partnership with China Unicom is non-exclusive. China Mobile is also reported to have adopted the Ophone brand for its OMS platform, with the intention of driving the Android-variant into entry-tier smartphones. [pp.2-4,6.]
- A wave of Android devices was announced by multiple vendors, indicating that the platform is on the brink of widespread availability. New smartphones were confirmed by HTC (a CDMA Hero variant and the entry-level Tattoo), LG Electronics (GW620, with an Ophone device for China Mobile also reported), Motorola (CLIQ and Tao) and T-Mobile/Huawei (Pulse/U8230). In addition, it was reported that INQ Mobile is to adopt the platform for touch-screen devices, that Acer may be close to releasing its first device, that HTC may have another CDMA model lined up (Desire) for Verizon, and that Archos may enter the segment. [pp.4,5,6,8,9,10,11,12,13,16,17,28,33.]
- Microsoft confirmed the October 2009 release of devices powered by Windows Mobile 6.5 , with 30 WM6.5 devices predicted to hit the market before the end of 2009. New WM smartphones were announced by HTC (Touch2), LG Electronics (GM750, GW550, and an unnamed unit) and Sony Ericsson (Xperia X2), while Samsung is to update its Omnia family with the new platform. Palm revealed it will no longer offer Windows Mobile devices. [pp.7,8,10,12,13,17,29,30,32.]
- HTC is said to have no intention to move into value-added services in the near future, although it has acknowledged the value of applications and services. [p.7.]
- Nokia held its annual Nokia World event, announcing multiple new products. The N97 mini was confirmed and the X6 joined the touch-screen smartphone range. The company also detailed its Booklet 3G smartphone, the headline feature of which was unfortunately a high price. [pp.18,19,20.]
- Nokia said sales of its N97 have outpaced those of its earlier N95 flagship smartphone, contrary to earlier reports claiming the device had failed to ignite the market. It was suggested that a lack of customisation potential may hamper operator take-up of the Maemo-powered N900 . [pp.19,20.]
- Palm announced transitional quarterly results, as its second webOS-powered device was unveiled — Pixi , which will initially be available exclusively through Sprint. [pp.23,24-26.]
- The Symbian Foundation inked an alliance with China Mobile, intended to drive adoption of Symbian OS in devices for the operator. Sprint announced plans to offer devices supporting Qualcomm’s Brew Mobile Platform , a departure for the company. [pp.32,33.]
- Vodafone Group was linked with Research In Motion’s BlackBerry 9700 , believed to be the vendor’s next 3G device. RIM’s quality control was again questioned, following reports of issues with the BlackBerry Tour terminal. RIM’s Q2 results disappointed investors and reinforced fears that the vendor’s prospects may have stalled. [pp.26,27,28.]
- O2 announced availability of Samsung’s i7500 Galaxy , the first Android device for both the operator and the vendor. Samsung was also confirmed as readying two LiMo Platform-based devices for Vodafone Group, again representing a double-first. [p.28.]
- MOBILE VAS: Vodafone Group unveiled Vodafone 360 , which variously been interpreted as an app store, integrated social-networking service, and umbrella for products and services intended to replace Vodafone live! South African operator Vodacom became the first Vodafone company to introduce My Web , the Group’s integrated customisable web and mobile portal. [pp.51,52.]
- América Móvil announced plans to roll out Nokia’s Ovi Store in multiple Latin American markets, although firm details of the plans were not confirmed. China Mobile is said to have got off to a strong start with its Mobile Market integrated content storefront; and it was reported that rivals China Telecom and China Unicom are set to launch their own stores. [pp.52,53.]
- Telefónica debuted its mstore in Spain, with the intention of rolling out a similar offering in multiple markets worldwide. In South Korea, SK Telecom opened its T Store , which it described as the “first mobile open market” in the country. 3 UK announced a partnership with Handango, to extend availability of Symbian OS applications. Samsung also joined the app store set. [pp.36,37,39.]
- Initial figures for Nokia’s Ovi Store failed to impress, with a number of issues seen hampering growth. Nokia began making available APIs for its Ovi portfolio, enabling software developers to write applications using various Ovi features and functionality. An update is planned for Android Market , addressing numerous problems previously evident in the store. [pp.35,37.]
- Vodafone Group inked a deal with Warner Music to offer DRM-free music content, meaning it now has contracts in place with all of the “big four” music distributors. Nokia was reported to have delayed the US launch of Comes With Music , although the vendor hit back by stating it had not announced a debut in the first place. [p.50.]
- The GSM Association named recipients of its Mobile Money for the Unbanked grants, backed by the Gates Foundation, with four operators receiving a share of the cash. Vodafone is believed to be preparing for a wider M-PESA rollout, according to information from one of its integration partners. [p.47.]
- T-Mobile Germany announced its social-networking aggregation tool, called MyCommunity, joining the list of operators offering similar applications. Nokia trumpeted a “lifecasting” application, and acquired Plum Ventures to strengthen its social-networking activities. [pp.54,55.]
- Verizon Wireless updated its GPS family-location services, also adopting the same brand as rival Sprint. A number of navigation hardware and software companies partnered with operators to deliver enhanced location-based services, with AT&T working with Garmin, T-Mobile extending its partnership with NAVIGON, and TomTom collaborating with Vodafone Italy. [pp.43,44.]
- Deutsche Telekom is believed to be eyeing the German DVB-H mobile broadcast market, where several companies have already tried, and failed. TIM launched Nokia’s Nokia Messaging consumer email service, while South Africa’s Vodacom updated its The Grid location-based social-networking service. [pp.40,49.]
- MARKETS AND TRENDS: IDC noted some positive trends in the Western European device market, based on its analysis of Q2 figures, although the researcher was not wholeheartedly optimistic. [p.59.]
- O2 UK noted that mobile internet use is peaking during the evening, driven by personal communications and social-networking applications. ABI Research forecast a sharp uptake in ‘mobile cloud’ applications, initially driven by location-based services. A Federal Communications Commission probe into “net neutrality” looks set to impact the US mobile internet market. [pp.60,61.]
EXTRACT
PORTALS: Vodafone 360 value-added services platform revealed
Vodafone Group introduced Vodafone 360, its new internet services platform, which it explicitly positions as a converged proposition for both mobile and personal computer users, and one not entirely closed to non-customers. This is by far the biggest output of the nascent, strategic and fast-growing Vodafone Internet Services (VIS) group.
Vodafone 360 appears to supersede both the tired Vodafone live! portal, replacing its walled (or chaperoned) garden approach, and make real the mobile group’s latest ‘smartpipe’ and added-value mobile data strategy — working to leverage intelligent network assets, global brand (reputation), and customer relationships.
Pitched as a ‘suite’, Vodafone 360 clearly recognises the emergence of social networking services (SNS) as a key driver of the mobile internet, providing a large and growing selection of integrated proprietary and third-party tools and services to enable customers to participate and stay in touch. However, it also goes much further, covering most other hot consumer value-added service (VAS) segments, such as applications (games, etc.), communication (instant messaging and SNS), media (music, photo, video, etc.), location (including mapping and navigation), and transaction (payment and billing).
There is also a store for applications and media, and a personalised landing page (My Web). Broad, cross-platform, integration and synchronisation (and backup) of applications and services appears another key selling point. Vodafone People appears to be a core, centralised ‘connected address book’ component that glues elements of the suite together, featuring presence- and location-awareness.
As anticipated, Vodafone looks intent on tightly integrating 360 with its flagship handsets, in a similar way to the introduction of live! This could help it challenge rival user experiences where application, device, and service ecosystem are controlled by a single player, such as Apple’s iPhone, Nokia’s Ovi, and (to a lesser extent) Google and Android. Accompanying the launch were two customised, LiMo based, 360-branded handsets from Samsung (see separate report), which apparently also support a beta version of the JIL widget middleware platform. At launch, the service is downloadable to over 100 supported handsets (seemingly all from Nokia or Sony Ericsson), and shipping pre-loaded on four Nokia devices.
The suite is scheduled to launch in eight of Vodafone’s European markets by Christmas 2009, with emerging markets and partners following in 2010. The Group is also updating its brand slogan to “power to you”. The group additionally launched a EUR1m competition, offering up EUR100,000 at country levels to widget developers. Vodafone previously said it was streamlining conditions for engagement with developers, to make it easier to write Vodafone-optimised applications that can be deployed across multiple territories.
Confusingly, the My Web brand was recently also deployed by South African subsidiary Vodacom (see separate report), where it appears more a rebrand of an updated Vodafone live! portal than a personalised home page component. However, this could be explained by 360’s initial focus on richer and mature markets, with Vodafone’s emerging markets operations currently seeming to have a quite distinct VAS strategy, presently headlined by m-payment.
Comment: admirable ambition, or overreach?
Vodafone 360 met with mixed response. Most appreciated its ambition, but many questioned the concept (asking, ‘what exactly is it: mashup, middleware, SNS integration, or something else?’), and whether Vodafone has a hope of pulling off this clear attempt to differentiate itself in the age of the ‘cloud’, Facebook, Google, iPhone, and Twitter.
Vodafone has previously made clear that is has developed a belated appreciation of openness, and is now aware that it can hope to be no more than a key partner (rather than controller) in the VAS market. Historically, this would have been impossible to stomach, but the group will now factor in both the huge opportunity currently envisaged for the mobile internet (which it desperately needs to tap, in order to offset saturation and decline in its traditional voice business), and the dominance of internet services players that makes them better partners than rivals. Vodafone has also become an advocate of standardisation — both for browser-delivered services and underlying device operating platforms.
Nevertheless, despite its additional massive market presence and powerful allies, it remains unclear whether Vodafone actually has sufficient clout and agility to really call the market’s tune, with its Joint Innovation Lab (JIL) mobile widget and middleware alliance only starting to become commercialised in 2010, and years’ of efforts to lead device OS fragmentation looking fruitless, with the group itself still having at least four ‘preferred’ core platforms (BlackBerry, Linux, Symbian/S60 and Windows Mobile), plus a clear sneaking admiration for Apple’s iPhone, and a seeming inability even to settle on a single flavour of Linux (presently backing both Android and LiMo).
Vodafone currently sets great value by its brand and reputation, claiming these give it major advantage built on billing relationships and network assets, but this remains quite unproven in an age when SNS and devices have the cult followings, not operators.
[Further reference: Vodafone Announces Vodafone 360 -- Vodafone, 24 September 2009.]
Mobile VAS watch, issue 2009.07 snapshot
August 5, 2009
SMART DEVICES: It was Q2 results time, with solid numbers from Nokia, as LG Electronics and Samsung weathered the economic storm surprisingly well. HTC may be getting squeezed from its reliance on ageing Windows Mobile and nascent (but already competitive-looking) Android market segments. Sony Ericsson continued to bleed, and Motorola is unsurprisingly still struggling. [pp.10-12,15,16,18,25,26.]
Nokia’s second-quarter results indicated an interesting trend in its smartphone portfolio, with more prosumer-oriented Eseries units sold than consumer-focused Nseries devices — although the consumer 5800 XpressMusic continues to sell well. A social-networking-oriented smartphone was announced for AT&T, called Surge , which is also set for international release as the 6760 slide. Nokia played down speculation it is working on an Android smartphone; a play that could make sense at least as a medium-term response to the success of the iPhone and its App ecosystem. [pp.18-20.]
Mobile VAS|watch, issue 2009.06 snapshot
July 9, 2009
TOP STORIES: Apple confirmed the release of its long-anticipated next-generation iPhone , the iPhone 3GS , which failed to startle, being a largely incremental upgrade to the previous version. Early sales numbers were impressive. [pp.5-7.]
Mobile VAS|watch, issue 2009.05 snapshot
June 6, 2009
TOP STORIES: AT&T trumpeted its success in the smartphone space, with reports claiming it has a raft of devices in the pipeline powered by Android, BlackBerry, Symbian OS, and Windows Mobile. NTT DoCoMo announced a wide-ranging portfolio refresh, dominated by Linux and Symbian OS devices, but also including its first Android unit. [pp.5,5-6,17-19.]
Nokia officially launched the Ovi Store, with AT&T announcing its intention to support, but initial feedback indicated it was not polished enough at its commercial debut. Nokia is also ending its Ovi Share investments, having failed to gain traction in the saturated user-generated content space. Nokia Maps was updated, being rebranded Ovi Maps in the process. [pp.35-36,43,53.]
Mobile VAS|watch, issue 2009.03 snapshot
April 9, 2009
SMART DEVICES: Sony Ericsson warned of a poor first quarter, with device volumes expected to fall to 14 million from 22.3 million year-on-year, as weak customer demand and reduced channel inventories take their toll. Sony was again reported to be considering acquisition of Ericsson’s 50%-holding. [pp.28,29.]
Mobile VAS|watch, issue 2009.01 snapshot
March 19, 2009
TOP STORIES: Palm announced its long-anticipated next-generation device and operating system, respectively called Pre and webOS. While it is still early days, the market response was largely positive, although pricing will be crucial. [pp.22-24.]
Mobile VAS|watch, issue 2009.02 snapshot
March 9, 2009
SMART DEVICES: HTC announced its second Android device, with Magic set to be partially Vodafone Group-exclusive. Otherwise, there was little in the way of firm Android developments, although Huawei Technologies showcased an Android-powered smartphone. [pp.6,9.]
Smart Devicewatch, issue 2008.10-12 snapshot
December 27, 2008
TOP STORIES: Ailing Motorola announced its new strategy, saying farewell to Symbian OS and MOTOMAGX, with Android and Windows Mobile named as platforms of choice. The company has also tightened its geographic focus, concentrating on the Americas and certain APAC markets. [pp.9,71-74.] Read more
Mobile Serviceswatch, issue 2008.11-12 snapshot
December 18, 2008
CONSUMER: A raft of operators debuted refreshed mobile internet portals, including 3 Australia, mobilkom Austria, O2 UK, Qtel (Qatar), T-Mobile USA, Virgin Mobile UK, and Vodafone Czech Republic. A previously reported search alliance between Google and Verizon Wireless is apparently in jeopardy, with Microsoft set to take its place. [pp.20,21,19. Read more
Mobile Serviceswatch, issue 2008.09 snapshot
September 21, 2008
ENABLERS: Sprint named the partners to power location-based services using its planned WiMAX network, stating that the user experience delivered by the technology will be “largely location-centric”. AT&T trumpeted the integration of A-GPS into its network, enabling the delivery of new location-based services. [pp.33,31.] Read more
