Vodafone Mobile Services Expansion: The Why

Vodafone has made three days of surprising announcements. Three of them for Web services soon to be accessible over their mobile network (MySpace, eBay and YouTube) and the other relating to the building out of their 3G networks in the future (analysis).

Vodafone Mobile Services Expansion: The WhyWe thought it would be worthwhile taking a look as to why this might be happening and why it’s come at this time.

Why the push?
Well, lots of other companies are moving in to tread on Vodafone’s toes – example – Virgin Mobile now with NTL/Telewest TV/broadband/telephone service – as all forms of communication converge.

Vodafone is pretty much a mobile only company. They’re trying to change this, through deals with BT to offer fixed-line broadband and similar offerings in Italy and Germany. In the converged game, they’re pretty weak.

This weakness is leaving their previous highly-profitable dominance of the mobile space threatened.

They’ve been aware of the benefit of differentiating their service through providing access to content for a while, but these recent moves mark a serious step forward.

Previously it’s been about them providing the means of accessing content from third parties, games, music, etc. These most recent deals are about access to services.

I know content is being accessed, a la YouTube, but they’re actually providing access to the service … one that happens to be providing content.

What’s the benefit?
There’s many advantages to Vodafone on this.

Short term it’s about making people associate Vodafone with being on the leading-edge – “Wow, they’ve got MySpace and YouTube!”

It’s unclear how far this benefit will extend into the future, as more phones become easier to browse the Web, where these services live.

eBay, MySpace and YouTube all have fanatical following. When people become embroiled in them, they _must_ find out what has _just_ happened. They’re a modern day replacement for TV soap-operas.

Obsessions like these drive people to choose mobile phones that enable them to get access – and Vodafone will be shouting this from the roof tops to encourage people to switch to them.

Interestingly, those three services are also used by a great deal of people who don’t have a strong technical understanding. People who don’t know that the whole Internet is available through the Web Browser on their mobile phone. This changing is just a matter of time.

Another short-term benefit for them is the amount of revenue they’ll end up generating. We imagine that it’s cost Vodafone a pretty penny to get exclusives from all three services, but this will be made up by the seriously boosted data charges that they’ll be clawing in.

MySpace is pretty rich with bandwidth hungry media – lots of photos, and many many pages to check. Same for eBay.

The real earner for them will be YouTube. You’ll struggle to find an application that uses as much data as video and with the ability to pass links to favourite videos, subscribers will be helping their friends run up big data charges too.

Vodafone Now Have YouTube

Vodafone Now Have YouTubeIs this now getting boring? Vodafone have announced another content access deal, this time with YouTube.

Well they certainly have the set in their hands now don’t they? – First MySpace on Tuesday, then eBay yesterday, and today YouTube.

What can you do with the service? Well, watch YouTube videos really. But it won’t be all of the videos, just “a daily selection of new videos,” chosen by YouTube and accessed through Vodafone Live! True, these can be very entertaining, but one of the delights of YouTube is the wide access to all of the content. The process of near-unlimited discovery, down some very strange rabbit-holes, will be lost through editorialised content.

To encourage the viral effect, subscribers will be able to forward links of their favourite videos to friends. No shock there.

One big benefit for YouTube will be Vodafone making it easy for mobile phone users to upload films that they’ve shot on their mobiles, up to YouTube.

The most interesting part of this lies in the following statement, “Vodafone and YouTube will continue to explore ways to enhance this offering and cooperate closely in the coming months.” The potential in this is considerable.

Vodafone will be rubbing their hands thinking about all of the extra potential income from the data charges of delivering videos to mobile handsets.

LG Shine (KE970) Is Released In UK

The long-awaited and drooled-over LG Shine is being added to their Black Label range today.

LG Shine (KE970) Is ReleasedAs I’m sure you’re aware it’s a looker … and you’ll not be surprised to hear that it’s shiny – mirrored in fact.

Swimming in Ooo-Errr-ness, the screen is mounted under the 2.2″ mirrored surface, beaming its full colour screen though the mirror when a call is received or the front is slid up. Blue light is emitted from the keys to make them usable in dark corners.

There’s already been over 200,000 of them sold on LG’s home turf, Korea, since November 2006 and LG is no doubt hoping for a similar, if not greater success in Europe.

The success of Ooo-Err phones is now much less assured, since the release of the LG Chocolate (the first in the Black Label range), as other manufacturers are trying to impress just as hard.

There’s bash in London tonight to celebrate the launch with Magician, sorry Illusionist (he’s a bit sensitive about that one), David Blaine, or Git Wizard as Marcus Brigstocke calls him.

LG Shine

Vodafone Europe Gets MySpace Mobile

Vodafone Europe Get MySpace MobileVodafone Europe has signed an exclusive deal with MySpace to get MySpace Mobile on their service.

Although currently exclusive, MySpace are remaining elusive as to the length of the agreement. When we asked, they declined to be drawn on how long the exclusivity with Vodafone would last, preferring to tantalise with “our ambition is to get MySpace on as many platforms as possible.”

MySpace addicts will be able to feed their cravings when not glued to the computers.

To tantalise potential subscribers further, Vodafone will pre-load it on to ‘selected handsets.’

Vodafone Europe Gets MySpace MobileMySpace did a similar deal in the US with Cingular back in December 2006. In that deal Cingular charged their subscribers an extra $2.99/month, plus data charges for the privilege.

At the time of going to press it is unclear if there will be a similar charging scheme with Vodafone.

The financial terms of the deal were not disclosed.

More details shortly.

Sony W880i Ai: Tuesday Euro Launch?

Sony W880i Ai: Euro Tuesday Launch?Sony Ericsson have let it be known via press invites that there’s a number of new handsets being released in Europe next Tuesday.

What they are and where it’s going on is currently being held close to the chest, but there’s rumours going around that one of them might be the W880i Ai.

There’s some shots purporting to be it floating around on a Swedish site called Mobil.

If the shots are to be believed, it looks mighty svelte, appearing only just bigger than a Bic lighter and as thin as you like.

It’s understood that it feels really solid, with a covering of metal conveying a feeling of quality.

We think it looks pretty hot, but the only thing that holds us back from near-total lust is the size and make up of the numeric keys, that have more than a passing similarity to a 1970’s calculator. Without having our hands on it, it’s unclear how friendly it will be to texting at high speed.

Specs are unclear, but it looks like two cameras, one facing forward, the other, a 2mpx facing back. Walkman branding makes it pretty clear it has music-ness included.

It looks like it’s 3G, which makes it all the more remarkable that it’s so tiny.

We’re really interested in its almost-neon-type interface.

Last, but not least, it looks like it’s heading to the US, as it’s got FCC approval.

Tune in next Tuesday for more details following the press launch, until then have a look at Mobil for more shots of it – and get a handkerchief to catch the drool.

Sony W880i Ai: Euro Tuesday Launch?

The official I Want My W880 site.

Well done to those at Mobil for the photo scoop and Thanks to Hugo for the pointer.

Mobile Internet Use Grows

Mobile Internet Use GrowsMobile phone users are increasingly getting jiggy with the wee buttons on their handset as new figures show mobile Internet access soaring.

According to the Mobile Data Association, UK mobile owners accessed the Internet nearly 16 million times throughout December 2006, adding up to a thumping rise of one million unique sessions over the previous month.

These latest figures mean that mobile users have accessed the web 45.6 million times in the past three months.

Mobile Internet Use GrowsAlthough the figures suggest we’re rapidly turning into perma-connected, perambulating Internet fiends, Thomas Husson, a mobile analyst at Jupiter Research was quick to suggest that much of the recent increase could be down to Christmas gift-giving.

Ol’ Tommy also reckoned that mobile data was “far from being mainstream,” although he expected an increase in data use as more people got their grubby mitts on internet-capable mobile phones, backed by better user experiences, user education, and cheaper prices.

Ready to rustle up a risotto of facts was Nick Lane, principal analyst at Informa Telecoms and Media, who calculated that there’ll be 797.6 million mobile phone subscriptions worldwide capable of web browsing by the end of 2007 (that adds up to 25% of all mobile phones, fact fans).

Mobile Internet Use Grows“The continued advancement of handsets means people are beginning to spend more time familiarising themselves with new services,” Lane added.

News, sport and weather updates are currently the big hitters for mobile users, although recent surveys have shown an increasing demand for location-aware services like maps and local services.

[via]

iTunes Illegal Declares Norway Consumer Watchdog

iTunes Illegal Declares Norway Consumer WatchdogNorway has declared iTunes to be illegal because it doesn’t allow songs downloaded from the online music store to be played on any other equipment except their own, today’s FT reported.

This is the first time, worldwide, for action like this to have been successful, despite bodies in other countries threatening the same, including France.

The decision by the Norwegian consumer watchdog, which the FT describes as “powerful” is based on Apple’s restrictive approach breaking their consumer protection laws.

Apple have until the 1 October deadline to make their FairPlay DRM schema available to other technology companies or face fines, or ultimately have the service shutdown.

iTunes Illegal Declares Norway Consumer WatchdogThe original complaint was made by Torgeir Waterhouse, senior advisor to the Norwegian Consumer Council. He told the FT that “he was in negotiations with pan_European consumer groups to present a unified position on iTunes’ legality.”

Worrying news for Apple, especially when they hear that Germany and France have joined Sweden and Finland. When added together, this comprises more than 100m European consumers.

Laptops Outsell Desktop PCs For First Time

Laptops Outsell Desktop PCs For First TimeNotebooks outsold desktop PCs in Western Europe for the first time, as Acer leapt ahead of Dell to grab second place in PC sales in Europe, the Middle East and Africa (an area known in da biz as ‘EMEA’).

The figures from research firm IDC show Acer sneaking into second place for the fourth-quarter 2006 sales, with Dell box-shifting activities hit by slow commercial demand and competition from top dog HP.

Michael Larner, IDC senior research analyst, commented that Acer’s growth was fuelled by competitive desktop offerings and surging laptop sales which saw the company retaining its position as the Lord of laptop floggers.

Top overall PC vendor HP enjoyed a successful autumn, with sales expanding by a hefty 62 percent over the quarter.

Laptop sales up
The total PC market in EMEA grew by 10.4 percent during the quarter, although increased laptop sales were countered by desktop sales declining by 5.7 per cent in Western Europe.

Laptops Outsell Desktop PCs For First TimeLaptop sales totalled 8.4 million during the quarter, against 8 million desktops, but corporate refresh cycles are expected to elbow desktop sales skyward in the second half of 2007 with Windows Vista expected to drive consumer – but not business – sales, as IDC’s Andy Brown explains:

“In general, enterprises are not moving to new operating systems, at least not until the first service pack, so we don’t expect to see a massive impact in the corporate space in 2007. Once issues of application compatibility are sorted, companies will start to consider it.”

Conversely, business desktop sales went up by 10 per cent here in Blighty-land, but IDC reckoned that this was down to the fact that us go-getting Brits tend to go through commercial desktop refresh cycles earlier than our European chums.

IDC

Skype: Calls To Landlines Go Flat Rate & Skype Pro Announced

Skype are on the move again, this time changing the way that they bill for calls to landlines.

Skype: Calls To Landlines Go Flat Rate & Skype Pro AnnouncedAs is their want, it will be brought to in Europe, then rest of world during 2007.

The new charging scheme does away with per-minute charges for SkypeOut calls to domestic landlines, replacing it with a connection fee. This fee changes depending on the currency, with Europe paying 3.9 Euro Cents and the UK being spanked 2.9 pence per call, against the current exchange rate equivalent of 2.56 pence. All of these prices exclude VAT.

Skype: Calls To Landlines Go Flat Rate & Skype Pro AnnouncedAfter the first five seconds of a SkypeOut call, the connection fee will apply.

Some countries will be cheaper, running at 1.7 Euro Cents, these currently include … Czech Republic (including Prague), Guam, Hungary (including Budapest), Israel (including Jerusalem), Luxembourg, Malaysia (including Kuala Lumpur), Puerto Rico and both Alaska and Hawaii in the United States.

This shift around isn’t a bolt out of the blue. Back in December a Skype Executive talked about these connection rates that became effective from 13:00 CET today.

The Skype Unlimited Calling plan in the US and Canada and the Talk for Britain campaign in the UK do not include a connection fee for national calls. Skype to Skype calls continue to be free and calls to mobiles will continue to be charged on a per minute basis.

Setup fees are usually bad news for people who make short calls, as the cost is front loaded, with the nattering classes gaining the biggest benefit from the flat rate.

Skype Pro
To have the privilege of a Skype Pro account punters will have to pay €2 per month. The new Skype Pro accounts also come with free Skype Voicemail and €30 off a SkypeIn number.

Skype Pro

The Venice Project: Overview

The Venice Project: OverviewThe rumours of Niklas Zennstrom of Sweden and Janus Friis of Denmark next project have been whirling around for about six months since sold Skype to eBay for $2.6Bn, the two are focusing their talents on TV with The Venice Project.

To date, the pair and their team have had a lot of success in disrupting industries. They’ve had a pop at the music business with Kazaa, the telephone business via Skype and now the television business. Time for the TV world to take note.

This weekend, the Financial Times has picked up on the story, re-igniting the media interest.

The Venice Project (TVP) employed their first programmer on 1 January 2006, so have had nearly a year to get the software to the point where it’s ready to be noticed. The beta release came out on 12 December and since then they have a reported 6,000 on the beta program.

The Venice Project: Overview

We suspect the FT piece was part of a carefully-managed media campaign, as TVP will need to start attracting the advertisers that will support the content being show for free to the users of TVP.

What does TVP do?
On their blog, the TVP team outline their desires/drivers for the project. The founding idea – TV isn’t good, so it needs fixing.

It’s not Skype TV as some publications have reported.

TVP is headquartered in Leiden in The Netherlands it also has other offices in Toulouse, France; London and New York. Its CEO is Fredrik de Wahl, and it looks like they’ve built up quite a few employees.

The Venice Project: Overview

The FT are reporting it will carry “near high-definition” programmes, while TVP speak about TV-quality.

We’ve seen some screenshots of the service and, even despite its early beta-stage, it looks pretty slick. The video runs in full screen, with a high quality image being shown. Additional content and EPG features are laid on top, with the video still viewable underneath.

Content for the beta-trial is coming from some pretty big names in the media business including Warner Brothers.

The adverts that are shown on the service, allow it be free. We understand from one of the beta testers that the adverts are not too intrusive and pretty short.

The Venice Project: Overview

It’s not just the P2P
On a simple level, TVP is software that enables the delivery of video content to individuals using P2P to ease the distribution, while radically reducing the price of getting it out there. Indeed most of the mainstream media are focusing their attention on TVP using P2P.

We think this misses the biggest change the TVP could bring about. Recommendation and tagging of content will make the content findable – one of the biggest headaches when the worlds content is available to a viewer.

Once programmes have been selected to watch, we understand that there will be tools to let people discuss the shows as they are going on – thus bringing a community around the TV shows. There are add on services that offer this, but its inclusion as an integral part of the system will make it second nature to contribute to.

It appears that TVP will avoid the need to apply DRM to the content as “the bits and bytes being collected on your computer are fragments of a stream,” as Fredrik de Wahl, the project’s chief executive told the FT. We can see that there is logic behind this, but doesn’t address the fact that, for the programme to be shown, they need to reside on the machine while they are being shown. In truth, all that needs to be achieved with the technology is to pursue the content owner to put their content on it.

The Venice Project: Overview

The Venice Project is definitely one to watch. We hope to get on the beta program soon, to give you a more in-depth view and understanding of its impact.

The Venice Project TVP

Images courtesy of Choose Chris