Vodafonewatch May/June — supplier activity summary
June 6, 2010
See Vodafonewatch 2010.05 for more details.
| OpCo | Supplier | Activity | Page |
| Vodafone Group | Ericsson | Enterprise identity management | 19 |
| Vodafone Group | IBM | Mobile health/supply chain management pilot | 14 |
| Vodafone Group | IBM | Enterprise identity management | 19 |
| Vodafone Group | MatSoft | Mobile health/supply chain management pilot | 14 |
| Vodafone Group | Narada Power Source | Environmental allegations | 17 |
| Vodafone Group | Netezza | Customer experience management | 19 |
| Vodafone Group | Nokia Siemens Networks | Customer experience management | 19 |
| Vodafone Group | Nokia Siemens Networks | Enterprise identity management | 19 |
| Vodafone Group | Nokia Siemens Networks | Health and safety award | 15 |
| Vodafone Group | Novartis | Mobile health/supply chain management pilot | 14 |
| Vodafone Group | npulse | Customer experience management | 19 |
| Vodafone Group | Quantella | Customer experience management | 19 |
| Vodafone Group | Sube | Customer experience management | 19 |
| Bharti Airtel | Novatium | Cloud computing | 54 |
| China Mobile | DMX Technologies | Managed security | 51 |
| China Mobile | Galleon Holdings | Mobile games | 50 |
| China Mobile | Nokia Siemens Networks | 3G/IMS equipment | 51 |
| Polkomtel | Visa | Mobile payments | 44 |
| Safaricom | Huawei | Mobile softswitch | 37 |
| Safaricom | Syniverse Technologies | Roaming support systems | 42 |
| SFR | VeryLife | Mobile health monitoring | 26 |
| Vodacom Group | Novell | Cloud computing | 46 |
| Vodafone Essar | Srinigar BPO | Call centre outsourcing | 53 |
| Vodafone Hutchison Australia | Nokia Siemens Networks | Network management | 49 |
| Vodafone Netherlands | Blyk | Mobile advertising | 30 |
| Vodafone Qatar | i‑conX Solutions | Interconnect billing | 63 |
| Vodafone Qatar | Mannai Corporation | IT systems | 63 |
| Vodafone Romania | F-Secure | Security software | 45 |
| Vodafone Romania | Huawei | UMTS900 rollout | 45 |
| Vodafone Spain | IT Soft | Bulk messaging | 31 |
| Vodafone Spain | Research in Motion | BlackBerry Enterprise Server Express | 31 |
| Vodafone UK | Herotsc | Call centre outsourcing | 32 |
| Vodafone UK | Paratus Communications | Public relations | 32 |
| Vodafone UK | Research in Motion | BlackBerry Enterprise Server Express | 35 |
| Vodafone UK | Teleena | Mobile virtual network enabling | 36 |
Vodafonewatch May/June 2010 — people movements
June 5, 2010
Summary of arrivals, transfers, and departures (see Vodafonewatch 2010.05 for more details).
| Company | Executive | Details | Page |
| Vodafone Group | Gareth Davies | Appointment | 12 |
| Vodafone Group | Steve Goodman-Monger | Appointment | 12 |
| Vodafone Group | Felix Malpartida | Appointment | 12 |
| Vodafone Group | Simon Murray | Departure | 11 |
| Vodafone Group | Natascha Schmidt | Appointment | 12 |
| Vodafone Czech Republic | Stephanie Jackson | Appointment | 12 |
| Vodafone Essar | Prabhat Ummat | Departure | 12 |
| Vodafone Ireland | Charles Butterworth | New role | 9 |
| Vodafone Ireland | Joreon Hoencamp | Appointment | 9 |
| Vodafone Spain | Nuria Alonso Estébanez | Departure | 12 |
| Vodafone Turkey | Deniz Akpece Offenback | Appointment | 12 |
| Vodafone UK | Rob Parsons | Departure | 12 |
| Vodafone UK | Daniel Raine | Appointment | 12 |
Vodafonewatch, issue 2010.05 snapshot
June 5, 2010
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Snapshot of Vodafonewatch, issue 2010.05. Click through for: the Executive Brief from this month’s report; an Extract from the issue; or to contact us for more information about the full 68-page issue, this industry standard monthly report service, and ongoing subscription access.
Table of Contents
3 FY09-10 results
3 FY09-10: Europe decline stemmed; India challenged
3 Vodafone Group, financial highlights, FY09-10
4 ACE: Turkey turnaround takes hold
4 Growing pains evident in India
5 Non mobile voice revenue streams on the up
5 Future spending, saving trends outlined
6 Group
6 M&A
6 Egypt sale talks prove short-lived
6 Partners for much longer?
7 Options open in asset restructuring
8 Verizon CFO on VZW buy out, VOD merger, dividend
8 Certainly interested in VZW buy out…but only on right terms
8 Unconvinced about potential for a Vodafone Verizon merger
8 No VZW dividend for 2010
9 Vivendi plays straight bat on Vodafone buyout plan
9 People
9 Eire: Butterworth Group-bound, replaced by Hoencamp
11 Asia and Hutchison hand to exit Vodafone board
11 Hutchison ties being cut ahead of developing markets M&A activity?
12 People movement highlights
13 Contracts
13 Vodafone UK, VGE team on pan European customer win
13 Supplier recruitment highlights
13 Marketing
13 Vodafone to review branding again
14 Products and Services
14 Vodafone backed m healthcare pilot claims success
14 Products and services
14 Vodafone App Star winner announced
15 Suppliers
15 Suppliers given safety reminder
15 Vodafone extends TomTom ties via service revamp
15 Regulatory
15 Vodafone to present “Google Tax” plans to EU — report
16 Operators seek to squeeze Google/YouTube
17 Society
17 Vodafone implicated in Chinese environmental study
17 China scrutiny increasing?
19 Terminals
19 Technology
19 Vodafone seeks ID management, experience progress
20 Terminals
20 Mobile terminal highlights
22 Terminals
22 Strong upside suggested for Verizon iPhone
22 Group own-brand device portfolio refreshed
23 Terminals
23 Strong upside suggested for Verizon iPhone
23 USA — Verizon Wireless
23 Vodafone confirms Nexus One plans; VZW ditches device
23 Google wrong footed by disruptive launch plans
26 Europe Region
24 France
24 VZW pull-out adds to woes
26 Greece
26 France
26 SFR faces La Défense capacity crunch — report
26 SFR to roll out mobile health project in Nice
27 Germany
27 Vodafone nets third of digital dividend airwaves
28 Italy
28 Vodafone ties with Fastweb and Wind for fibre rollout
28 Ambitions reflect incumbent frustrations
28 TI doesn’t bite on involvement lure
29 Netherlands
29 Vodafone lands Vatican mobile contract
30 Spain
30 Netherlands
30 Blyk launches in Netherlands, using Vodafone network
30 Two year wait over
30 Portugal
30 Vodafone Portugal launches hi5 messaging service
31 United Kingdom
31 Spain
31 Vodafone Spain introduces low-cost BlackBerry ES
31 Council enables budget vote via Vodafone Red Box
32 United Kingdom
32 United Kingdom
32 Vodafone to charge for out-of-bundle data usage
34 Vodafone UK smartphone push makes progress
34 Vodafone debuts Visibility security service
35 Vodafone announces low-cost BES for SMEs
36 Vodafone partners with MVNO enabler Teleena
36 Vodafone and Talkmobile offer prepaid credit “overdraft”
37 Africa & Central Europe Region
37 Hungary
37 Czech Republic
37 Vodafone CR adds SME vehicle tracking tool
37 Kenya — Safaricom
37 Safaricom enlists Huawei in IP network shift
38 Kenya — Safaricom
38 Safaricom gets temporary stay on new competition rules
38 Watering down possible — Safaricom
39 Kenya — Safaricom
39 Competitive challenges mount, however
40 Kenya — Safaricom
40 Syniverse lands Safaricom roaming deal
40 Data push boosts Safaricom profit by 44%
42 Safaricom to sell more bonds, boost expenditure
42 Network management, optimisation, and billing upgrades mooted
43 Safaricom expands into mobile banking for first time
43 Latent demand seen for mobile savings
43 M-PESA flourishing following independence
44 Romania
44 Mozambique — Vodacom
44 Poland — Polkomtel
44 Orascom buyout speculation resurfaces
44 Polkomtel trials NFC m-commerce services
44 Group NFC toe-dipping continues
45 Tanzania — Vodacom
45 Vodacom plans online marketplace — report
45 Romania
45 Vodafone trumpets UMTS900 launch
46 South Africa — Vodacom
46 Vodacom teams with Novell on cloud computing push
46 Turkey
46 Turkish regulator to probe Vodafone, rivals
47 Asia-Pacific & Middle East Region
47 Australia — Vodafone Hutchison Australia
47 Hutchison: cost saving from VHA merger ahead of target
49 China Mobile
49 2010 to see brand changes, focus on data capacity
49 NSN wins post merger network management deal
50 China Mobile
50 VHA “welcomes” NBN plan
50 China Mobile
50 Outsourcing contracts in play — report
51 China Mobile
51 IT, VAS, retail work mooted
51 NSN handed network frame agreement
51 Huawei “becoming more aggressive”
52 India –Vodafone Essar
52 Fiji
52 Vodafone Fiji begins M PAiSA pilot
52 Sedate VMT expansion continues
52 GSMA grant backs rival service
53 India — Bharti Airtel
53 Vodafone to maintain Fiji expenditure
54 India — Vodafone Essar
54 3G licence outlay adds to India challenges
54 India 3G auction: final results
54 Metro circles
54 ‘A’ circles
54 ‘B’ circles
54 ‘C’ circles
55 Japan — SoftBank Mobile
55 Operator/analyst reaction
57 New Zealand
57 Japan — SoftBank Mobile
57 SoftBank to trial TD LTE
57 New Zealand
57 Vodafone NZ mooted as TNZ’s new customer
58 Vodafone “oversteps mark”; prompts MTR U turn
59 Vodafone and Axia partner for broadband scheme bid
60 Qatar
60 Vodafone SMS system hit by glitch…
60 …as is internet service
60 Vodafone set to win government contract
61 Qatar
61 Vodafone enables international video calls
61 Qatar
61 Vodafone ties with developer on fixed line rollout
61 Market entrance eyed for July/August
61 Vodafone challenges Virgin Mobile Qtel deal
62 Vodafone deploys UMTS 900, updates on progress
63 i conX lands interconnect billing deal
63 Mannai enlisted for internal IP services
64 Index
Asia and Hutchison hand to exit Vodafone board
June 5, 2010
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Extract from Vodafonewatch, issue 2010.05. Click through for: the Executive Brief from this month’s report; the Issue Snapshot; or to contact us for more information about the full 68-page issue, this industry standard monthly report service, and ongoing subscription access.
Asia and Hutchison hand to exit Vodafone board
Vodafone announced that Simon Murray, a non executive Director of the Group, will step down from the board at the conclusion of its annual general meeting (AGM) on 27 July 2010.
Murray — a former Group Managing Director at Hutchison Whampoa — joined Vodafone in July 2007, with the company presumed to be seeking to exploit his Asia Pacific experience to help bed down investments in China, India, and elsewhere in the region, and avoid a recurrence of disappointment in Japan. He also sits on the Group’s executive remuneration committee.
Oddly, the Group’s latest statement regarding Murray was nearly identical to its first, suggesting a lack of application by its corporate communications team, or perhaps even an intentional snub.
” [Murray's] considerable knowledge of mobile telecommunications and his entrepreneurial spirit, coupled with his vast experience of the Asia Pacific region, will be a great asset. ”
– statement on Murray’s appointment, 2007.
” Simon Murray’s considerable knowledge of mobile telecommunications and his entrepreneurial spirit, coupled with his vast experience of the Asia Pacific region, have been a great asset. ”
– statement on Murray’s departure, 2010.
Hutchison ties being cut ahead of developing markets M&A activity?
Vodafonewatch wondered whether Murray’s departure — and the recent exit of ex Vodafone Essar Chief Executive Asim Ghosh, who also has Hutchison ties (Vodafonewatch, 2010.03) — might indicate that some distance is being placed between the two Groups ahead of possible M&A activity, whether friendly or hostile.
Possibilities include a move to buy Hutchison’s 3 operating companies, notably in Italy or the UK, or the remnants of its emerging markets operations, Hutchison Telecommunications International Ltd, from which Hutchison Essar in India was acquired during 2007.
Other previous transactions involving Hutchison include the Group’s acquisition of Mannesmann (2000) and the combination with Hutchison Australia (2009).
Conversely, Vodafone could be planning quite unrelated developing markets M&A activity, and so wish to be distanced from such high profile Hutchison hands. Possibilities here could include tie ups with an Africa, Central Europe, South East Asian, Middle East, or even Nordic group, with Axiata (Asia and India), Cable & Wireless (Caribbean and Europe), Digicel (Asia and Caribbean), Millicom (Asia, Africa and Latin America), mobilkom austria (Central Europe), and Telenor (Asia, Scandinavia, and Central Europe), all springing to mind.
[Further reference: Simon Murray to retire from Vodafone Board -- Vodafone, 14 May 2010.]
Vodafonewatch issue 2010.05 Executive Brief
June 5, 2010
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Executive Brief from Vodafonewatch, issue 2010.05. Click through for: an Extract from this month’s report; the Issue Snapshot; or to contact us for more information about the full 68-page issue, this industry standard monthly report service, and ongoing subscription access.
- GROUP: Vodafone Group released its FY09-10 results, with positive signs emerging of stemmed declines in Europe and a turnaround of fortunes for Vodafone Turkey. However, concerns over emerging markets’ prospects were heightened by a goodwill write-down of Vodafone Essar and Regional slowdowns. [pp.3-5.]
- Increasing expectations of future Vodafone divestments turned, unexpectedly, to Vodafone Egypt, with talks being held over a sale to junior shareholder Telecom Egypt. Although the discussions came to nothing, the move indicated that relatively well performing operations, and those that are majority controlled by the Group could be put into play as the Group seeks to boost its chronically under appreciated asset portfolio; not just minority interests such as SFR and Verizon Wireless. Egypt’s Orascom Telecom was also said to be interested in the VE holding, as well as being linked again with a buyout of Vodafone’s Polish partners at Polkomtel. [pp.6-9,44.]
- Charles Butterworth is to leave his position as Chief Executive of Vodafone Ireland, and return to the UK. He will be replaced by Vodafone Netherlands Enterprise Director Jeroen Hoencamp. Group non-executive Director Simon Murray is to step down, increasing suspicion that something may be afoot involving (or not) Hutchison Whampoa. [pp.9,11.]
- Another review is to be launched within Vodafone’s under scrutiny Group Marketing department — this time of Vodafone’s voluminous “global brand identity and guidelines”. The unit’s revolving door also continued to turn with two new appointments. [pp.12,13.]
- Vodafone’s bi polar relationship with Google saw the operator seek support for new fees for content providers, including the web services giant’s YouTube business, while also releasing a mid tier, own brand smartphone based on Google’s Android platform. The two companies’ partnership on Google’s Nexus One handset was also upgraded, marking a setback for the US company’s presumed goal of reducing operators to “dumb pipes”. [pp.15,16,20-22.]
- Vodafone came out well from Germany’s strategically crucial ‘digital dividend’ spectrum auction, spending marginally more than main rivals T-Mobile Germany and Telefónica O2 Germany, but appearing well set for future network deployment. By contrast, runaway bidding in India’s 3G frequency sell-off led to questions over the Group’s strategy in the country. [pp.27,54,55.]
- EUROPE REGION: SFR was reported to be experiencing mobile data capacity difficulties in Paris’s key La Défense financial district. [p.26.]
- Vodafone Italy announced ambitious plans for shared fibre optic network rollout with rivals Fastweb and Wind, although it remains to be seen what form the project will emerge following negotiations with the government and incumbent Telecom Italia. [pp.28,29.]
- Both Vodafone Spain and Vodafone UK launched support for Research in Motion’s recently introduced BlackBerry Enterprise Server Express offering for SMEs, while the latter OpCo also revealed two further, RIM supported business-to-business contracts, with waste management group Biffa and IT firm Northgate Information Solutions. [pp.13,31,34,35.]
- Vodafone UK took tentative steps towards a tighter policy on mobile data users that breach monthly ‘fair use’ allowances, although it is unclear how far it will go amid risk of a consumer backlash. Separately, the OpCo gave two further indications of a more open and innovative approach to mobile virtual network operator (MVNO) partnerships, tying with enabler Teleena to serve niche virtual partners, and working with CPW-owned MVNO partner Talkmobile to offer an “overdraft” facility to the company’s prepaid customer base. [pp.32,36.]
- AFRICA & CENTRAL EUROPE REGION: An aggressive media campaign helped Safaricom stave off introduction of new, potentially-stifling competition rules by the Communications Commission of Kenya, but, even so, the company warned in its annual results of heightening regulatory challenges, including mobile number portability and prospective termination rate cuts (while also facing prospect of more aggressive competition from Zain Kenya following its purchase by Vodafone’s arch-emerging market rival Bharti Airtel). Nevertheless, the FY09-10 results were a testament to Safaricom’s success over the past year in defending its dominant position, with profit increasing 44%. [pp.38-40.]
- Further, Safaricom is to increase capital expenditure in the current financial year, helped by plans for another bond issue due to take place in the July-September 2010 quarter. Part of its spending will reportedly be allocated to a shift towards Internet Protocol (IP) based infrastructure. [pp.37,42.]
- The operator also continues to innovate at pace around mobile remittance platform M PESA , moving into the mobile banking sector for the first time, as well as helping launch a gambling adjunct to the offering. M PESA accounted for almost 9% of Safaricom’s revenue over FY09-10. [p.43.]
- Both Vodafone Romania and Vodafone Qatar launched 3G services in the 900MHz frequency band, extending their ongoing respective network expansion and upgrade programmes, while Vodacom tied with Novell on its recently announced regional cloud computing push. [pp.45,62.]
- ASIA-PACIFIC & MIDDLE EAST REGION: Vodafone Hutchison Australia continued post-merger optimisation by handing a sizeable, seven year network management contract to Nokia Siemens Networks. The OpCo identified branding and network capacity as key focuses for the coming year. [pp.47,49.]
- Reports in India suggested sizeable outsourcing contracts could be put up for grabs by China Mobile in the coming months, as the under pressure operator seeks efficiencies. [pp.50,51.]
- New Zealand’s long-running mobile termination rate dispute rumbled on, with Vodafone New Zealand seemingly shooting itself in the foot with the launch of a contentious, on network call friendly, prepaid voice add on. The move prompted a potentially damaging change of heart by the country’s Commerce Commission on MTR policy. Better received was the OpCo’s teaming up with Canadian telecoms group Axia NetMedia, to bid for involvement in New Zealand’s Ultra fast Broadband Network programme. [pp.58,59.]
- Vodafone Qatar is to take legal action over a tie up between incumbent Qatar Telecom and Virgin Mobile, claiming the move breaches the terms of its licence. [p.61.]
Vodafonewatch, issue 2010.03 snapshot
April 22, 2010
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Snapshot of Vodafonewatch, issue 2010.03. Click through for: the Executive Brief from this month’s report; an Extract from the issue; or to contact us for more information about the full 80-page issue, this industry standard monthly report service, and ongoing subscription access.
Doubts posed over Sure Signal femtocell
April 22, 2010
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Extract from Vodafonewatch, issue 2010.03. Click through for: the Executive Brief from this month’s report; the Issue Snapshot; or to contact us for more information about the full 80-page issue, this industry standard monthly report service, and ongoing subscription access.
Doubts posed over Sure Signal femtocell
Questions have been raised over the performance of Vodafone UK’s Sure Signal femtocell offering, which has recently been re-branded and marketed with renewed vigour after a previous soft-launch (Vodafonewatch, 2009.06, 2009.12, and 2010.01).
The Register reported that the £50-£150 (EUR56-EUR168) proposition, which is promoted by Vodafone as a lifeline for signal-poor consumers and businesses, has been offering a “far from sure” service, with customers left facing “repeated disconnections and slowdowns of the service, as Vodafone struggles to integrate its mobile phone network with the internet”.
Tallying with Vodafonewatch’s own experience with the devices, the website said its Sure Signal had been “playing up for the last day or two, and Vodafone’s forums are now awash with users complaining of intermittent connection failure”.
Problems appear numerous and often difficult to pin-down, and, when deemed appropriate, are seemingly escalated to Vodafone’s ‘Pioneer’ team and supporting vendor Alcatel Lucent. The actual femtocells are made by Sagem. Problems are exacerbated by handsets connected to the femtocell failing to seamlessly hand back to Vodafone’s wide area network when the Sure Signal fails. Users are also nonplussed by the minimal amount of status and troubleshooting information; just a series of cryptic flashing lights with no browser interface.
A Vodafone spokesperson conceded that “some” customers “will have noticed changes in their Sure Signal service for short periods of time over the last few days during planned maintenance upgrades”. Only a few days later, however, Vodafone UK sent out a press release trumpeting the device’s ability to help small- and medium-size enterprises “stay connected to their customers”.
Comment: Vodafone dicing with reputational risk
So far, users seem surprisingly phlegmatic about the problems, which is fortunate for Vodafone, since they are likely to be over¬¬ represented by choice customer segments that the OpCo is desperately fighting to retain and poach, such as iPhone, BlackBerry and other smartphone and heavy voice users.
The current situation points to flawed marketing, with the service promoted as providing a ‘guaranteed signal at home’ (a laughable concept, to affected users) and discounted for higher¬ spending customers. This also comes at a time when Vodafone is seeing an influx of new customers from other operators, lured by introduction of Sure Signal, the iPhone, and keen SIM only tariffs, i.e. customers it should be fighting hard to delight and retain. A further risk is that ‘femtocell’ becomes synonymous with ‘failure’.
Consequently, the company might be wise quickly to move into damage limitation mode, perhaps refunding customers suffering problems, and ring fencing the initiative as an opt in ‘beta’ programme until issues are convincingly ironed out, which conceivably might not be until the next version. This approach could actually engender goodwill, since users appear to understand that innovative new services can suffer teething problems, and to be genuinely appreciative to Vodafone for pioneering a solution that meets their crying need for improved mobile voice and data connectivity in rural and other poor¬ signal areas.
[Further reference: Sure Signal not so sure -- The Register, 24 March 2010; Vodafone Sure Signal ensures 3G coverage 24/7 for UK businesses -- Vodafone, 26 March 2010.]
Vodafonewatch March/April 2010 — people movements
April 22, 2010
Summary of arrivals, transfers, and departures (see Vodafonewatch 2010.03 for more details).
| Company | Executive | Details | Page |
| Vodafone Group | Siavash Alamouti | Appointment | 4 |
| Bharti Airtel | Manoj Kohli | Transfer | 69 |
| Bharti Airtel | Sanjay Kapoor | Transfer | 69 |
| Safaricom | Michael Joseph | Departure (by end-2010) | 4 |
| SFR | Philippe Logak | Appointment | 25 |
| Vodafone Essar | Asim Ghosh | Departure | 61 |
| Tranzeo Wireless Technologies | Chris Burke | Appointment | 4 |
| Vhi Healthcare | Celine Fitzgerald | Appointment | 33 |
Vodafonewatch March/April — supplier activity summary
April 22, 2010
(See Vodafonewatch 2010.03 for more details)
| Operating company (OpCo) | Supplier | Activity | Page |
| Vodafone Group | StatusNet | Micro-blogging software | 11 |
| Vodafone Group | Innovation Factory | Idea management software | 13 |
| Polkomtel | Ericsson | 3G/HSPA infrastructure | 54 |
| Polkomtel | Nokia Siemens Networks | 3G/HSPA infrastructure | 54 |
| SoftBank Mobile | Ericsson | 3G/HSPA infrastructure | 70 |
| SFR | Gemalto | SIM cards | 25 |
| Verizon Wireless | Actsoft | Fleet management | 20 |
| Verizon Wireless | Alcatel-Lucent | Backhaul | 20 |
| Vodafone Essar | Arvato Mobile | Mobile application store | 64,65 |
| Vodafone Germany | Cinterion | M2M | 28 |
| Vodafone Germany | CSC | ICT solutions | 28 |
| Vodafone Germany | Decho | Online back-up | 28 |
| Vodafone Germany | Ericsson | Virtual PBX solutions | 28 |
| Vodafone Germany | Telegate | Directory services | 29,30 |
| Vodafone Germany | ZTE | R&D | 27 |
| Vodafone Greece | Huawei | HSPA+ infrastructure | 31 |
| Vodafone Italy | Nokia Siemens Networks | R&D | 34 |
| Vodafone Netherlands | Layar | Augmented reality software | 35 |
| Vodafone Portugal (Celfocus) | eGain Communications | Customer service software | 35 |
| Vodafone Portugal | Send it | Mobile ticketing | 35 |
| Vodafone Turkey | LCC International | Network monitoring | 54 |
Vodafonewatch issue 2010.03 Executive Brief
April 22, 2010
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Executive Brief from Vodafonewatch, issue 2010.03. Click through for: an Extract from this month’s report; the Issue Snapshot; or to contact us for more information about the full 80-page issue, this industry standard monthly report service, and ongoing subscription access.
- GROUP: Intel executive Siavash Alamouti is to step into Dr. Mike Walker’s shoes as Group Research and Development Director at Vodafone, following the latter’s decision to retire in 2009. In Kenya, Michael Joseph, head of Safaricom, is to step down “some time in 2010″. [p.4.]
- Speculation continued to heighten around the future ownership of Vodafone and Verizon Communications’ (VZ) Verizon Wireless joint venture, with VZ seen facing a looming quandary over dividend payments from the mobile operator as intra-company debt repayments come to an end. Rumours also continue to circulate over Vodafone’s minority interest in SFR. In Japan, SoftBank confirmed plans to invest in newly bankrupt personal handyphone provider Willcom, offering potential cost savings through sharing of assets. [pp.6,18,71.]
- Vodafone Global Enterprise secured two emerging market-oriented contract wins with logistics firm Deutsche Post DHL, helping to validate recent Vodafone investments in Africa and elsewhere, while Vodafone Germany, Vodafone Spain, and Vodafone UK all revealed new corporate customers. Libyan operator Al-Madar became the first North African member of Vodafone’s Partner Markets initiative, while Denmark’s TDC renewed its marketing alliance with the Group. [pp.5-8,29,36,40,44.]
- Cutthroat competition in the navigation sector saw Vodafone announce the “proposed closure” of Wayfinder, the location-based service business it bought only just over a year ago, prompting further questions over the Group’s mobile value added services strategy. [pp.11,13.]
- Verizon Wireless again painted a healthy picture of progress in Long Term Evolution (LTE) network field trials, in the cities of Boston and Seattle, and handed Alcatel-Lucent a contract to supply mobile backhaul infrastructure for the future 4G network. Vodafone’s less hurried LTE development plans continued, with Vodafone Italy claiming to have made its first data connection using “commercial” LTE equipment, and ZTE detailing plans to research LTE, and other technologies, alongside Vodafone Germany. [pp.19,20,27,34.]
- EUROPE REGION: SFR announced the roll out of a location-based advertising platform serving busy shopping areas in and around Paris, following trials, and is to pilot the distribution of “bio-sourced” SIM cards. [pp.24,25.]
- Efforts by Vodafone Germany rivals E-Plus and Telefónica O2 Germany to block the country’s much anticipated ‘digital dividend’ spectrum auction continued. Conversely, in the UK, Vodafone and Telefónica O2 have threatened legal action over spectrum issues arising from the now-approved merger of Orange UK and T-Mobile UK, in a move that could seemingly derail upcoming sales of frequencies in the country. However, a long-delayed auction of new radio frequencies in Netherlands is due to go ahead in the coming weeks. [pp.26,35,41.]
- Vodafone Germany’s directory assistance partner Telegate hinted that the OpCo is making early preparations for the launch of directory enquiry services for mobile phone numbers, following recent market liberalisation. Vodafone Greece moved ahead of other OpCos in the roll out of mobile broadband network enhancements, with the launch of HSPA+ MIMO in Athens. [pp.29-31.]
- Vodafone UK admitted recent connectivity problems with its Sure Signal femtocell offering, although better quality-of-service news came from an unlikely source: an O2 UK sponsored network performance study. The OpCo also announced a further round of job cuts. [pp.40,43,45.]
- AFRICA & CENTRAL EUROPE: Vodafone Czech Republic claims to have made available more than 2,500 tariff options, after launching a new pricing structure that enables customers to build their own plans. Vodafone Ghana continued efforts to modernise its business by committing staff to a corporate mantra called “The Vodafone Way”. [pp.47,48.]
- In Kenya, Safaricom’s mobile network and M-PESA mobile remittance platform are being used to support a scheme that seeks to widen access to crop failure insurance. However, M-PESA’s recently launched cross border transfer service is said to have got off to a slow start. [p.49.]
- The prospect of a conclusion to the saga of exit ambitions by Polkomtel’s local shareholders faded somewhat, with investors revealing divisions over previously mooted plans for a partial flotation. [p.53.]
- ASIA-PACIFIC & MIDDLE EAST: China Mobile beat expectations with a rise in Q4 FY09 net profit, but, with pressure on customer and revenue growth continuing to increase, and demands from its 3G rollout set to diminish, the operator suggested it will put a brake on capital expenditure in its home market. The company also highlighted the strategic importance it is now placing on value-added services, by paying around $5.8bn (£3.9bn/EUR4.3bn) for a 20% stake in local lender Shanghai Pudong Development Bank, in a move said to be geared towards mobile financial service rollout. China Mobile also reiterated plans to pursue growth abroad. [pp.55-58.]
- In Egypt, it was suggested that Telecom Egypt, Vodafone’s local partner, may bid for a fourth mobile licence in the country, adding to recent signs that a potential break up of the two companies’ alliance could be looming. Vodafone Fiji had its wrist slapped over anti-competitive dealership and SMS delivery agreements. [pp.59,60.]
The critical issue of availability of frequencies is coming to a head in India, with operators jostling to influence a regulatory review of spectrum allocation, and the country’s long-delayed 3G and broadband wireless licence auctions at last appearing imminent. Vodafone Essar is to bid in both sell-offs. [pp.61,62.]
