Extract from Vodafonewatch, issue 2009.10. Click through for: the Executive Brief from this month’s report; the Issue Snapshot; or to contact us for more information about the full 70 page issue, this industry standard monthly report service, and ongoing subscription access.

Vodafonewatch has updated the Vodafone Group organisational chart it maintains (see chart below) and is in the process of enhancing.

Graphic: Vodafone Group corporate organisational chart, October 2009

Key changes from the previous published orgchart include:

• Terry Kramer has swapped his Group Strategy & Business Improvement remit for the Vice-President, Americas mantle, with his previous responsibilities no longer designated a top-level corporate function.
• The Group Human Resources (HR), Marketing and Technology functions now report directly to Vittorio Colao, the Group’s Chief Executive — previously, HR was under Kramer’s wing, while the other two functions were assigned to Michel Combes, the Europe Region Chief Executive. While this development could be seen as yet further consolidation of power by Colao, it might also highlight the importance of Marketing and Technology to several strategic priorities — Total Communications (convergence), mobile data (Mobile Plus), and cost control (and efficiency). It also seems to make even more personal Colao’s recent plaintive cry that Vodafone is not crimping investment on customer acquisition and new technologies (i.e. the future) as part of his enthusiastic and seemingly accelerating cost-cutting efforts.
• Wendy Becker (ex-Carphone Warehouse/TalkTalk) and Ronald Schellekens (Royal Dutch Shell) are visible in their relatively recent appointments as Group Chief Marketing Officer and Group HR Director, respectively.
• Although not explicit on the chart, Chief Technology Officer Steve Pusey is now an executive representative on the Group’s board of directors, where his responsibilities encompass supply chain, as well as technology. However, neither of the emerging markets regional heads, Morten Lundal and Nick Read, has shown up on the board, yet.

A number of operating companies (OpCo) have seen new Chief Executives appointed since the last version of the orgchart was published in Vodafonewatch, including:

• Australia – Nigel Dews, imported from 3 Australia as part of the local OpCos’ merger.
• Egypt – Hatem Dowidar, who swapped roles with Richard Daly, who now oversees the Partner Markets‘ strategic initiative.
• Ghana – David Venn, poached from Zain Zambia.
• India – Marten Pieters, another Zain veteran and an ex-Millicom director (where, incidentally, he seems to have been replaced by Vodafone’s previous emerging markets supremo, Paul Donovan).
• The Netherlands – Jens Schulte-Bockum, previously head of Terminals.
• Qatar – Grahame Maher, a serial Vodafone OpCo chief exective, leading the startup.
• Turkey – Serpil Timuray, poached from Danone Turkey.
• New to the orgchart are Vodacom’s five southern African operating companies, which are now indirectly controlled by Vodafone, and where Lesotho recently gained a new head (Kennedy Malik Melamu).

Cenk Serdar (arriving from Turkcell’s pioneering mobile value-added services operations) gains an honourable presence on the orgchart, through Central Europe and Africa region’s Mobile Money initiative, which appears to be gearing up with M-PESA’s addition of international remittances at Kenya’s Safaricom and the anticipated imminent expansion in Egypt and elsewhere (see separate reports), and partnerships with Citibank and Western Union. This could see Vodafone burnishing its tarnished reputation as an m-money leader.

Other fairly recent changes in the next corporate tier, where Vodafonewatch is in the process of building out orgchart coverage, include:

• Peters Suh’s move to head the Joint Innovation Lab (he previously led Vodafone Ventures).
• Patrick Chomet taking the mantle at Terminals.
• David Wheldon adding a CEO hat to his Global Brand Director role (with the creation of the tax-efficient Vodafone Ireland Marketing Ltd unit).

Request orgchart copies direct, submit updates

Please contact us if you would like to be receiving copies of the orgchart direct, as it is updated (which happens more frequently than the orgcharts are published in Vodafonewatch reports). Also available are Wall Charts and other new formats and variations.

We are always grateful for updates, additions and corrections to the orgchart, as well as feedback and direction on how to best optimise it for you and your organisation.

Orgchart (and other) requests and input can be submitted to:

• Your usual contacts at Vodafonewatch and Market Mettle.
• info@marketmettle.com.
• Other channels, including those listed online at marketmettle.com/contact.

ABOUT VODAFONEWATCH

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Issue: 2009.10
Covering: late-September to late-October 2009
Published: October 2009
Next issue: November 2009

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Snapshot of Vodafonewatch, issue 2009.10. 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 70-page issue, this industry standard monthly report service, and ongoing subscription access.

• Table of Contents
• Index
• About Vodafonewatch

TABLE OF CONTENTS

3 Group

3 Financial
3 Vodafone transfers ADRs to NASDAQ
3 Operations
3 Vodafone signs roaming agreement with United Hubbing
4 Marketing
4 Vodafone to place roaming ads on in-flight tray tables
4 Fulton — digital ad spend now “wider and deeper”
4 People
4 Vodafone corporate organisation update
5 Request orgchart copies direct, submit updates
6 Graphic: Vodafone Group corporate organisational chart, October 2009
7 Products and services
7 Vodafone 360 value-added services platform revealed
8 Comment: admirable ambition, or overreach?
9 M&A
9 Vodafone steps up development partner recruitment
10 Vodafone finally ends O2 iPhone monopolies
11 Partner Markets
11 Vodafone preps location-aware ad platform — report
12 Suppliers
12 Perfecto Mobile selected for widget testing
12 Vodafone adds Warner content to DRM-free offering
12 Vodafone in back-up partnership with EMC’s Decho
13 Technology
13 Vodafone and RIM launch second Storm
15 Regulatory
15 Operators’ roaming challenge seen as likely to fail
15 Society
15 Vodafone launches World of Difference UK
16 Foundation announces Wireless Innovation Project
16 Strategy
16 Colao highlights Indian lessons
17 USA — Verizon Wireless
17 Verizon execs join VZW in restructuring exercise
17 VZW targets iPhone with Android partnership
18 VZW to shun soft-launches for LTE
18 LTE Innovation Centre opens doors
19 VZW confirms unusual form Nokia device
19 Verizon to mandate data plans for some feature phones

20 Western Europe

20 France
20 Sofialys touts SFR’s mobile marketing uptake
21 France highlights
22 Germany
22 EC criticises digital frequency plans
22 Alcatel-Lucent, Vodafone team on smart meter project
24 Greece
24 Germany highlights
24 Hellas Online investors approve tie-up…
24 …but Vodafone employees protest transfer
25 Ireland
25 Vodafone expands green initiative to call centre
26 Italy
26 Netherlands
26 Highlights
26 Augmented reality start-up wins Mobile Clicks
28 Malta
28 Highlights
29 Portugal
29 Vodafone Portugal trumpets IPTV platform
30 Spain
30 Vodafone, Spanair update mobile ticketing service
31 United Kingdom
31 Vodafone seeks to sharpen legal team structure
31 Vodafone wins fixed-line deal with Rolls-Royce
33 Mobile broadband ads draw more flak
33 Vodafone completes affiliate network selection

34 Central Europe

34 Czech Republic
34 EC pressures Czech regulator on MTRs
34 Vodafone adds five new handsets, cuts prices
35 Hungary
35 Vodafone picks WeDo for revenue assurance
36 Poland — Polkomtel
36 Orascom eyes Polkomtel stake — government
36 Polkomtel seeking takeovers — reports
37 Romania
37 Highlights
37 Turkey
37 Vodafone picks new network maintenance vendor

38 Africa

38 Ghana
38 Ghana Telecom acquisition “illegal”
38 Union deal reached on redundancies — report
39 Vodafone to scrap nearly all exchanges
41 Kenya — Safaricom
41 First tranche of bond programme goes live
41 Safaricom selects Alvarion to widen WiMAX footprint
42 Safaricom brings dynamic discounting to Kenya
43 Safaricom launches cross-border mobile money transfers
44 Mobile savings opportunity being missed — researcher
45 South Africa — Vodacom
45 Vodacom issues profit warning, writes down Gateway
46 Government steps up pressure over MTRs
47 Mozambique — Vodacom
47 Vodacom ties with Sierra to offer vehicle-tracking

48 Asia-Pacific

48 Australia — Vodafone Hutchison Australia
48 VHA completes first phase of operational review…
48 …outsources directory enquiry service…
48 …and begins network integration planning
50 China Mobile
50 China Mobile passes 500 million-user mark
50 Wang eyes Asian acquisitions
51 China Mobile recruits e-reader content partners
52 China Mobile, NSN, test LTE femtocells
53 Fiji
53 Highlights
54 India –Vodafone Essar
54 Operators slash tariffs as competition intensifies
56 Chart: India selected mobile network connections (million), January to September 2009
56 Chart: India selected mobile network additions, monthly (million), January to September 2009
57 Vodafone targets Indian enterprise market
59 India — Bharti Airtel
59 Airtel-MTN merger talks fizzle out
59 Saga not over
60 Japan — SoftBank Mobile
60 SoftBank top again for net adds
60 New Zealand
60 Amway deal boosts Vodafone as B2B rivalry heats up
61 Incumbents submit new termination rate offers

62 Middle East

62 Egypt
62 Vodafone Egypt plans mobile remittance revamp
63 TE “forced to withdraw” from LINKdotNET pursuit
64 Qatar
64 Overseas call promotion clogs Vodafone network
64 Vodafone gains “more than 150,000″ customers since launch

65 Index

INDEX

A
Aditya Birla Group
- Idea Cellular, 16, 54-55, 57, 59
- – Indus Towers, 16, 55, 59
Africa, 5, 7, 13, 38, 41-42, 44-47, 59
- Congo, 45
- East Africa, 41
- Egypt, 5, 36, 45, 62-63
- Ghana, 5, 38-39, 45, 47
- – Government, 38, 45, 47
- – Legal, 45
- Kenya, 5, 41-45, 62
- – Central Bank of Kenya, 43, 62
- – Communications Commission of Kenya (CCK), 42
- – Government, 41-42, 45
- – Nairobi Stock Exchange, 41
- Lesotho, 5, 45
- Mozambique, 45, 47
- Rwanda, 43
- South Africa, 7, 13, 45-47, 59
- – Black Economic Empowerment (BEE), 45
- – Competition Commission, 11, 46
- – Government, 46-47, 59
- – Independent Communications Authority of South Africa (Icasa), 46
- Tanzania, 42-43, 45, 62
- Uganda, 43
- Zambia, 5
AIRCOM International, 42
Alvarion Ltd., 41
Amalgamated Telecom Holdings (ATH)
- Telecom Fiji, 53
- Vodafone Fiji, 53
Americas, 4, 13, 17-19, 26, 43, 51
- Canada, 28, 51
- Caribbean, 53
- United States of America (USA), 4, 13, 17-19, 26, 43, 51
Amway Global, 60
Anel Telekomunikasyon Elektronik Sistemleri AS, 37
Apple, 7-8, 10, 13, 17, 24, 50
- App Store, 8, 24
- iPhone, 7-8, 10, 13, 17, 24, 50
Arena Verlag GmbH, 22
Asia-Pacific, 50-51, 53
- Afghanistan, 62
- Australia, 5, 7, 13, 48, 51, 61
- China, 7, 17, 50-52, 59
- – China Central Television (CCTV), 52
- – Government, 50, 52
- – Ministry of Agriculture, 50
- – Ministry of Industry and Information Technology (MIIT), 52
- – Province/Municipality/Region, 52
- – - Beijing, 52
- – - Zhejiang, 51
- Fiji, 53
- Hong Kong, 51
- India, 5, 13, 16, 34, 48, 50, 54-57, 59
- – Cellular Operators Association of India (COAI), 55-56
- – Foreign Direct Investment (FDI), 54
- – Government, 54, 59
- – Income Tax Department, 20, 46, 63
- – Licence Circles, 54
- – - Andhra Pradesh, 50
- – - Madhya Pradesh, 46, 54
- – Telecom Regulatory Authority of India (TRAI), 56
- Japan, 54, 60
- – Government, 54
- Nepal, 64
- New Zealand, 7, 13, 51, 60, 61
- – Commerce Commission, 61
- Pakistan, 50, 64
- Philippines, 48, 62
- Samoa, 61
- Singapore, 51
- Sri Lanka, 64
- Taiwan, 50-51
- – Government, 50
AsiaInfo Holdings, 52
ASPire Group, 50
AT&T, 4, 7, 17
Automobile Association, 60
Axel Springer AG
- Affiliate Window, 33
Axiata Group Bhd (TM International)
- India (Idea Cellular, see also Aditya Birla), 16, 54-55, 57, 59
- India (Spice Communications, see also MCorpGobal), 57
B
Bank of Africa (BOA), 44
Bertelsmann Group
- Random House, Inc., 22
BestBefore Media Ltd
- Audioboo, 26
Bharat Sanchar Nigam Ltd (BSNL), 54-55, 57
Bharti Group
- Bharti Airtel, 16, 54-55, 57, 59
- – Indus Towers, 16, 55, 59
- Bharti Enterprises, 59
- Bharti Infotel, 59
Blackbetty, 22
Blyk, 20
BPL Communications Ltd
- BPL Mobile Communications Ltd, 57
- – Loop Telecom, 57
Brand Connections Global, 4
Bridge Security, 47
British Broadcasting Corporation (BBC), 38
BT Group, 13, 25
- BT Global Services, 13
C
Callpod, Inc., 9
Carlyle Group
- WILLCOM, Inc., 60
Carphone Warehouse, 5, 10
- TalkTalk, 5
Central/Eastern Europe, 5, 34
- Czech Republic, 34-35, 64
- Hungary, 35
- – National Communications Authority (NHH), 35
- Poland, 36-37
- – Electronic Communication Office (UKE, Poland), 36
- – Government, 36
- Romania, 7, 35, 37
- Russia, 7, 51
- Turkey, 5, 7, 16, 24, 34, 37
China Citic Press, 51
China Mobile, 7, 17, 50-52, 59
- 139.com, 51
- Mobile Market, 50
- Open Mobile System (OMS), 17
- Research Institute, 51-52
- Wang Jianzhou, 50
- Zong (Paktel/CMPak), 50
China Publishing Group, 51
China Telecom, 50
China United Telecommunications (China Unicom), 50
Chineseall.com, 51
Choice (Australia), 51
Cisco Systems, 5
Citigroup
- Citibank, 5, 43
Cloud, The, 8
Cogeco, Inc.
- Cabovisão SA, 29
Commission for the Protection of Competition, 11
Communication Workers’ Union (CWU), 38
Consultative Group to Assist the Poor, 44
Coronation Asset Management (Pty) Ltd, 59
Corporate Leaders Group on Climate Change, 25
CyTA, 11
D
dealgroupmedia UK Ltd (dgm), 33
Debitel, 20
Deutsche Telekom, 15, 22, 34-36
- Polska Telefonia Cyfrowa (PTC), 36
- T-Mobile International, 15, 22, 34-35
- – Czech Republic, 34
- – Germany, 22
- – Hungary, 35, 38
Diageo, 25
DIEHL Metering
- DIEHL Energy Solutions, 22
Digicel
- Fiji, 53
E
East African Marine System (TEAMS), 31
eircom, 25
EMC Corp., 12
- Decho Corp., 12
EMOBILE Ltd, 60
EPM Telecomunicaciones S.A E.S.P (UNE), 21
Ericsson, 7, 34
Essar Group, 7, 16, 41, 54-57, 59
- Essar Communications
- – Essar Telecom Kenya (Yu/ETK/Econet Wireless Kenya), 41
- ETHL Communications Holdings, 56
- Vodafone Essar (See also Vodafone), 7, 16, 53-57, 59
Etisalat
- Etisalat Misr (Egypt), 62-63
Europ Assistance Holdings Limited, 21
European Union
- European Commission, 22, 34
- European Court of Justice (ECJ), 15
F
Facebook, 8, 15, 24, 28, 31
Far Eastern Group
- Far Eastone Telecommunications Co., Ltd., 50
Fonterra Co-operative Group, 60
Ford Motor Company, 4
France Télécom, 10, 13, 15, 20, 36, 41, 62-63
- Orange, 10, 13, 15, 20, 36, 41, 62-63
- – France, 20
- – Mobinil, 62-63
- – Poland (see also Telekomunikacja Polska), 36
- – Telkom Kenya (see also separate entry), 41
- – UK, 10
G
Gemalto NV, 15
Ghana Telecom, 38
Ghosh, Asim, 56
Globacom Ltd, 38
Global Trust Bank (GTB)
- Global Holding Corporation Pvt. Ltd. (GHC), 38
Google, 7-8, 10-11, 17, 20, 24, 28, 37
- Android, 7-8, 10, 17, 24
- Google Mail (Gmail), 37
- Google Maps, 11, 17
- Google Search, 11, 20
- YouTube, 28
GSM Association (GSMA), 3
H
Hellenic Telecoms (OTE)
- COSMOTE, 25
High Tech Computer Corp. (HTC), 17, 28, 33, 34
Hutchison Whampoa, 5, 7, 26, 33, 48, 54
- 3 Group, 5, 33, 60
- – 3 Australia, 5
- – 3 UK, 33
- Hutchison Telecommunications Australia (HTAL), 5, 48
- – Dews, Nigel, 5
- Hutchison Telecommunications International Ltd, 48, 54
- VHA Pty. Ltd (Australia, see also Vodafone), 48
I
IE Market Research Corp., 21, 25-26, 28-30, 35, 37, 46
Indus Towers, 16, 55, 59
Intel, 25
Interpublic Group of Companies, Inc., 4-5, 9
Intracom Holdings
- Hellas On Line (HOL), 24
Investec, 59
J
Japan Telecom, 60
Johannesburg Stock Exchange (JSE), 45
JPMorgan Chase, 55
K
KDDI, 60
KenTv, 43
KGHM, 36
Kohlberg Kravis Roberts, 5
KPMG International, 25, 59
KPN, 22, 28
- E-Plus, 22
- KPN Mobile, 28
L
Lenovo, 35
LiMo Foundation, 8
M
Maxis Communication, Malaysia
- Aircel, 57
MCorpGobal
- Spice Communications, 57
Microsoft, 29
- Windows Live
- – Hotmail, 37
- Windows Mobile, 8, 10, 21, 37
Middle East, 5, 36, 43, 45, 62-64
- Egypt, 5, 36, 45, 62-63
- Israel, 41
- Qatar, 5, 64
- – Qatar Foundation for Education, Science and Community Development, 64
- – Supreme Council for Information and Communications Technology (ictQATAR), 64
- United Arab Emirates, 43
Mikati group, 59
Millicom International Cellular
- Tigo Ghana, 38
Mitsubishi, 39
Mobile One (Singapore), 59
MobileMonday Oy, 26
Mobinil (see also France Telecom and Orange), 62-63
Mobitelea Ventures, 41
mobypicture, 26
Morgan Stanley, 46
Motorola, 17, 37
MTN, 38, 42, 45-46, 59
- Ghana (Scancom), 38, 45
- South Africa, 45-46, 59
Mumsnet Ltd, 31
MyNameIsE (mynameise.com (Postmachina/madewithlove.), 26
N
NASDAQ, 3
Netia SA, 36
News Corp.
- MySpace, 24
Nokia, 7-8, 11, 19, 26, 34
- Ovi, 7
- S60, 8
Nokia Siemens Networks, 52
Nomura, 59
NTT
- DoCoMo, 54, 60
Numéricable, 20
NZ Communications
- 2degrees, 61
O
Oger Telecom
- Cell C, 46
Open Handset Alliance (OHA)
- Android, 7-8, 10, 17, 24
P
Palm, 10
Perfecto Mobile, 12
PKN Orlen, 36
Polkomtel, 36-37
- Plus GSM, 36
Polska Grupa Energetyczna (PGE)
- Polskie Sieci Elektroenergetyczne (PSE), 36
Portugal Telecom, 29
PowerTel, 21
PricewaterhouseCoopers, 25
Procter & Gamble Co., 4
Provident Capital Transfers Ltd, 43
PSI AG, 22
PTC, 36
Q
Qatar Foundation Consortium, 64
Qatar Telecom (Qtel), 64
Qualcomm, Inc.
- BREW, 18
R
Reliance-Anil Dhirubhai Ambani Group
- Reliance Communications (RCom), 50, 54-57, 59
Research In Motion, 8, 10, 13, 20, 24, 26, 28
- BlackBerry, 8, 10, 13, 20, 24, 26, 28
- – 9000 Storm (Vodafone-VZW), 13
RichWeb Media Ltd
- Broadband Expert, 33
Rolls-Royce Group plc, 31
Royal Dutch Shell plc, 5
Rummble Ltd, 26
Ryanair Ltd, 4
S
Safaricom, 5, 41-44
- Joseph, Michael, 41-43
- M-PESA, 5, 41, 43-44
- One Communications Ltd (Onecom), 41
- Ongea, 42
- Packet Stream Data Networks, 41
- Supa Ongea, 42
- Tiffin, Chris, 41
Safeway, 5
Samsung, 7, 19, 21, 34
Shanda Interactive Entertainment Ltd
- Shanda Literature Ltd, 51
Siemens, 25
Sierra Wireless, 47
Singapore Telecom, 16, 48, 54-55, 57, 59
- Australia (Optus), 48
- India (Airtel, see also separate listing), 16, 54-55, 57, 59
Sistema, 7, 51
- Mobile TeleSystems, 7, 51
SIV AG, 22
Slice, 51
Société Générale, 54
Sofialys, 20
SOFTBANK CORP, 60
- SOFTBANK MOBILE, 60
Sonaecom, 29
Sony, 4, 12
- Sony Music Entertainment, 12
Sony Ericsson, 7, 34
Spanair, 30
Sprint Nextel, 18
SPRX B.V. (Sprxmobile)
- Layar, 26
Stadtwerke Pasewalk, 22
Standard Bank
- CfC Stanbic Bank Ltd (Kenya), 41
Standard Chartered, 43
Symbian Ltd/Symbian Foundation, 8, 37
T
Tata Group
- Tata Communications, 57
- – Tata Indicom, 57
- Tata Teleservices, 54
Technology
- 2G, 3, 19, 38, 50, 52, 54-55, 59-60
- – CDMA, 19, 50, 54
- – EDGE, 60
- – GSM, 3, 38, 54-55, 59
- – PHS, 60
- 3G, 10, 18, 35, 48, 50, 52, 54, 60
- – CDMA2000 (EV-DO), 19
- – Evolved HSPA (HSPA+/I-HSPA), 33, 37
- – - 64QAM, 37
- – HSDPA, 10, 18, 21, 33, 35, 48, 50, 52, 54, 60
- – HSPA, 33, 37
- – HSUPA, 21
- – UMTS-TDD, 52
- 4G, 17-18, 52
- – 3GPP Long Term Evolution, 17-18, 52
- – Long-Term Evolution Time Division Duplex (TD-LTE), 52
- – Long Term Evolution (LTE), 17-18, 52
- – WiMAX, 41, 64
- BiDi, 30
- Billing, 7-8, 22, 35
- BREW, 18
- DRM, 12, 29
- DSL, 52
- Femtocell, 52
- Fibre, 20-21
- GPS, 18, 21
- IM, 7, 51
- IN, 7
- IP, 20-21, 29
- Java, 22
- Linux, 8
- M2M, 18, 22, 47
- microSD, 13, 19
- MMS, 20, 30, 35
- MP3, 21
- OSS, 13
- OTA, 12
- Personal computer, 7, 9, 12, 26, 35
- – Netbook, 12, 26
- Push-to-talk, 22
- R&D, 15
- SIM, 47
- Smartphone, 9-10, 13, 17, 19, 26, 28, 33, 34, 60
- SMS, 20, 24, 28, 35-36
- Spectrum, 22, 41, 55-56
- – 800 MHz, 22
- – 900 MHz, 22
- Symbian OS, 8, 37
- Telematics, 47
- TV, 4, 24, 29, 39, 52
- – IPTV, 29
- UICC, 15
- VoIP, 52, 63
- VPN, 21
- W-LAN, 13, 21-22, 26, 33
- Web 2.0, 13
- Widgets, 7-9, 12
- Windows, 8, 10, 21, 37
- – Windows Mobile, 8, 10, 21, 37
Telecom Egypt, 62-63
Telecom Italia, 9, 26
- HanseNet, 9
- Telecom Italia Mobile, 26
Telecom New Zealand, 60, 61
- Gen-i, 60
Telefónica Group, 7, 9-10, 15-16, 22, 30, 34
- Telefónica España, 30
- Telefónica Europe (O2), 10, 22, 34
- – Czech Republic, 34
- – Germany, 9-10, 22
- – Ireland, 9-10
- – UK, 7, 9-10, 15, 30
Telekom Austria
- mobilkom Austria, 34
Telekomunikacja Polska SA (TPSA, see also France Télécom)
- PTK Centertel Sp. z o.o., 36
Telenor ASA
- Pannon GSM, 35
- Telenor Pakistan, 50
- Unitech Ltd, 34
Telkom Kenya Ltd (Orange Kenya), 41
Telkom South Africa, 45
Telstra, 48
Terra Firma Capital Partners (TFCP)
- EMI Group Ltd, 12
Time Warner, 12, 20
TomTom
- Tele Atlas, 11
TradeDoubler, 33
Turkcell, 5, 62
Twitter, Inc., 8, 18, 24, 31
U
Ueberreuter Print GmbH, 22
Ulster Rugby, 25
Unilever, 4
Unitech Ltd, 34
United Hubbing Ltd, 3
VenFin Ltd
- Tracker Network (Proprietary) Limited (TRACKER), 46-47
V
Verizon Communications, 4, 7, 13, 17-19, 26, 52
- Seidenberg, Ivan, 17
- Strigl, Dennis, 17
- Verizon Wireless, 7, 13, 17-19, 26, 52
- – ALLTEL Corporation, 17
- – LTE Innovation Centre, 18
- – McAdam, Lowell, 17
- – Mead, Daniel, 17
- – Melone, Anthony, 18
- – Open Development Initiative (ODI), 17
- – Stratton, John, 17
- Vodafone Omnitel, 17, 20, 26
Virgin Media, 33
Vivendi, 7, 12, 15, 20-21, 36, 54
- Polska Telefonia Cyfrowa (PTC), 36
- SFR (Société Française de Radiotéléphone), 7, 12, 20-21
- – Neuf Cegetel, 20-21
- – - AOL France, 20
- – - Club Internet, 20
- – - Jet Multimedia, 21
- – - Manigne, Jeremie, 21
- – Tele2 France, 20
- Universal Music Group, 12
Vodacom Group, 5, 7, 11, 42, 45-47
- Beelders, Wally, 47
- Congo (DRC), 45
- Gateway Communications, 44-45
- The GRID, 11
- Group, 11, 45-46
- Lesotho, 5, 45
- Mozambique, 45, 47
- South Africa, 7, 45-47
- Tanzania, 42, 45
- Uys, Pieter, 46
- Vodacom Business, 47
- – Smartcall, 52
- Vodacom Service Provider, 52
Vodafone and Qatar Foundation, 64
Vodafone Group
- Africa & Central Europe, 5, 7, 12-13, 34, 38, 41, 45, 47
- – Africa, 5, 7, 12-13, 38, 41, 45, 47
- – Congo, 45
- – Czech Republic, 34-35, 34-35, 34-35, 64
- – Ghana, 4-5, 38-39, 45, 47
- – Hungary, 35
- – Kenya (see also Safaricom), 5, 41-42, 41-43, 42-45, 61-62
- – Mozambique, 45, 47
- – Poland (see also Polkomtel), 35-37
- – Romania, 7, 35, 37
- – South Africa (see also Vodacom), 5, 7, 11-13, 42, 45-46, 45-47
- – Turkey, 5, 7, 16, 24, 34, 37
- Asia Pacific & Middle East, 50-51
- – Asia, 50-51
- – Australia, 5, 7, 13, 48, 51, 61
- – - VHA Pty. Ltd (see also Hutchison Whampoa), 48
- – China (see also China Mobile), 7, 17, 50-52, 59
- – Egypt, 4-5, 35-36, 45, 61-63, 62-63, 62-63, 62-63
- – Fiji, 53
- – India, 4-5, 7, 13, 16, 34, 48, 50, 53-55, 54-56, 55-56, 55-57, 56-57, 56-57, 59
- – - Indus Towers, 16, 55, 59
- – Japan, 60
- – Middle East, 61-62
- – New Zealand, 7, 13, 51, 59-60, 61
- – Pacific, 53
- – Qatar (see also Vodafone and Qatar Foundation and Vodafone Qatar), 4-5, 63-64
- Ex-executives
- – Donovan, Paul, 5
- – Hofvander, Ann, 34
- – Sarin, Arun, 5
- Executives
- – Becker, Wendy, 5
- – Bento, Jorge, 29
- – Bond, Sir John, 5
- – Burger, Michel, 13
- – Campbell, Justine, 31
- – Chignell, Tom, 61
- – Chomet, Patrick, 5
- – Chowdhury, Mohammad, 62
- – Colao, Vittorio, 4, 10, 16
- – Combes, Michel, 4
- – Daly, Richard, 5
- – Dews, Nigel, 5
- – Don-Chebe, Albert, 39
- – Dowidar, Hatem, 5, 62
- – Dunnett, Andrew, 15
- – Epting, Lee, 26
- – Ericson, Erin, 11
- – Foley, David, 31
- – Fulton, David, 4
- – Ghosh, Asim, 56
- – Gordon, Simon, 3
- – Hasan, Amer, 9, 12
- – Hoepken, Thorsten, 22
- – Kelly, Peter, 31
- – Knook, Pieter, 12
- – Kramer, Terry, 4, 16
- – Lundal, Morten, 5
- – Maher, Grahame, 5, 64
- – Medcraft, Huw, 12
- – Mele, Mario, 34
- – Mullins, Annie, 31
- – Pieters, Marten, 5
- – Prasad, Shailendra, 53
- – Pusey, Stephen, 5
- – Read, Nick, 5
- – Schulte-Bockum, Jens, 5
- – Serdar, Cenk, 5, 62
- – Smithwhite, David, 3
- – Stent, Julia, 33
- – Strong, Pedro, 30
- – Suh, Peters, 5
- – Takkar, Ravinder, 57
- – Tamasi, Sandor, 35
- – Timuray, Serpil, 5
- – Turkington, Laura, 25
- – Venn, David, 5
- – Waters, Patrick, 15
- – Wheldon, David, 5
- Group, 3-7, 12-13, 15-17, 25-26, 28, 31, 34, 36-37, 41, 48, 50, 53-57, 59-60, 62, 64
- – Americas (see also Verizon Wireless), 4, 15-19
- – ASPire Group, 50
- – Marketing, 3-5, 7, 9, 11-12, 20, 25-26, 29, 33, 34, 43, 57, 60
- – - Rewards, 39
- – - vodafone.com, 11
- – - Vodafone Internet Services (VIS), 7-8, 12-13
- – - Vodafone Mobile Clicks, 26
- – - Wayfinder Systems, 11
- – One Vodafone, 12
- – Partner Markets, 5, 11, 51, 53, 59
- – - Austria (A1), 34
- – - Caribbean (Digicel), 53
- – - Japan (SoftBank), 60
- – - Russia and CIS (Mobile TeleSystems/MTS), 7, 51
- – - Singapore (Mobile One), 59
- – - Sweden (Telenor), 50
- – - United Arab Emirates (du), 43
- – R&D, 5, 7, 15
- – - Joint Innovation Lab (with China Mobile, SoftBank Corp., and Verizon Wireless), 5, 7-9
- – Strategy, 16, 31, 33
- – - Green Agenda, 25
- – - Mobile Plus, 4
- – - One Vodafone, 12
- – - Total Communications, 4, 29, 41, 45
- – Vodafone Foundation, 15-16, 64
- – - Americas, 16
- – - – Wireless Innovation Project, 16
- – - Group, 15-16, 64
- – - UK, 15
- – - World of Difference, 15
- – Vodafone Ventures, 5
- Products and services, 7, 57
- – At Home, 25
- – Broadband (Italy), 39
- – Casa, 29
- – Directory Assistance Service, 48
- – Family, 11
- – Find&Go (UK), 21
- – Free Minutes, 28, 37
- – International (UK), 64
- – Loaded, 34-35, 42
- – Location Nudge, 11
- – Log’n'Go (Romania), 35
- – M-PESA, 5, 41, 43-44
- – Mobile Broadband, 12-13, 33, 52-53, 62
- – Mobile Internet (UK), 7-9, 24, 26, 35, 37
- – Mobile Plus, 4
- – MobileTV, 24
- – Money Transfer, 43, 62
- – My Football, 9
- – My Web, 7
- – Student Play (Malta), 28
- – Terminals, 37
- – - BlackBerry, 8, 10, 12-13, 20, 24-26, 28
- – - Storm (Research In Motion), 13
- – - USB Modem, 37
- – - Vodafone 125 (ZTE), 24, 34
- – - Vodafone 236, 34
- – Vodafone 360, 7-9, 11
- – Vodafone at Home, 25
- – Vodafone Maps, 11
- – Vodafone Music, 33
- – Vodafone Music Store, 31, 33
- – Vodafone News, 9
- – Vodafone Parents, 31
- – Vodafone PC Backup, 12
- – Vodafone People, 7, 11
- Western Europe, 20
- – France (see also Vivendi/SFR), 7, 12, 20-21, 20-21
- – Germany, 4, 9-10, 12-13, 20, 22, 24
- – Greece, 9, 12, 24-25
- – Ireland, 4-5, 9-10, 12-13, 25, 61
- – Italy, 4, 9, 12-13, 17, 20, 26
- – Malta, 28
- – Netherlands, 5, 9, 13, 26, 28, 51
- – Portugal, 9, 29
- – Spain, 4, 9-10, 12-13, 30
- – UK, 4, 7, 9-10, 12-13, 15, 26, 30-31, 33, 43, 61
Vodafone Qatar Q.S.C., 5, 64
- Maher, Grahame, 5, 64
W
Warner Music, 12
Weather Investments, 24, 26, 36, 62-63
- Orascom Telecom, 24, 26, 36, 62-63
- – LINKdotNET, 63
- – Mobinil (see also France Télécom), 62-63
- – WIND Hellas, 24
- – Wind Telecomunicazioni, 26
WebTech Wireless, Inc., 47
WeDo Technologies, 35
Weglokoks, 36
Western Europe, 20
- Channel Islands, 59
- Cyprus, 11
- France, 7, 12-13, 20-21, 36, 41, 51, 62
- Germany, 4, 9-10, 12-13, 20, 22, 24
- – Bundesnetzagentur für Elektrizität, Gas, Telekommunikation, Post und Eisenbahnen (BNetzA, RegTP, FNA, or German Federal Network Agency), 22
- Greece, 9, 12, 24-25
- Ireland, 4-5, 9-10, 12-13, 25, 61
- – Government, 25
- Italy, 4, 9, 12-13, 17, 20, 26
- Malta, 28
- Netherlands, 5, 9, 13, 26, 28, 51
- Portugal, 9, 29, 35
- Spain, 4, 9-10, 12-13, 30
- Switzerland, 51
- Turkey, 5, 7, 16, 24, 34, 37
- United Kingdom (UK), 4, 7, 9-10, 12-13, 15, 26, 30-31, 33, 43, 61
- – Government, 31, 42, 61
- – Legal, 11, 15, 31
Western Union, 5, 43
Woobius Ltd, 26
Y
Yahoo!, 37
Z
Zain Group (MTC/Celtel), 5, 38, 41, 43
- OpCos (Zain/Celtel/MTC), 5, 38, 41, 43
- – Ghana, 5, 38
- – Kenya, 5, 41, 43
- – Tanzania, 43
- – Uganda, 43
- – Zambia, 5
- Zap, 43
Zhejiang Publishing United Group Co., Ltd, 51
Zon Multimédia (PT Multimedia), 29
- Zon TVCabo, 29
ZTE Corporation, 43

ABOUT VODAFONEWATCH

Vodafone and its rich web of OpCos — tracked and analysed worldwide.
A unique monthly report for the industry.

Issue: 2009.10
Covering: late-September to late-October 2009
Published: October 2009
Next issue: November 2009

• Vodafonewatch is the only independent monitor of everything and anything to do with Vodafone Group, worldwide. Nothing else comes close.
• Thorough, impartial, accessible, and time-saving. Covering not just the world’s number-one mobile group and its many operating companies, but also providing coverage of its wider interests, including Verizon Wireless, Vodacom, China Mobile, SFR, Polkomtel, Safaricom, Partner Markets, and much more.
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• A unique source of valuable opportunities, knowledge, planning, strategy, and much more. Both tactical tool and strategic reference. An invaluable reference, input and even springboard for corporate planning, reporting, and meetings.
• A ‘must-have’ for sales teams focused on high-value sales, maintaining strategic relationships, and managing extended sales cycles. Just one nugget, insight, or validation can pay for the service many times over.
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• Copies of individual reports are available, priced from UKP 200 plus any applicable sales taxes (or around USD $300 / EUR EUR230, governed by prevalent foreign exchange rates). Contact sales@marketmettle.com to place an order or find out more. Multiple purchasing options available, including payment cards.
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Executive Brief from Vodafonewatch, issue 2009.10. Click through for: an Extract from this month’s report; the Issue Snapshot; or to contact us for more information about the full 70 page issue, this industry standard monthly report service, and ongoing subscription access.

1. GROUP: Vodafone announced it will transfer the listing of its American Depositary Receipts from the New York Stock Exchange to rival exchange NASDAQ. Vodafonewatch’s updated orgchart tracks the evolution of Vodafone’s structure and leadership. [pp.3,4-6.]
2. Vodafone made one of its most significant value-added service strategy changes for years with the launch of new web service platform Vodafone 360 . The offering, a replacement for the operator’s outmoded Vodafone live! portal, is geared towards building services around location, m-commerce, and social networking. The company hinted at upcoming plans around location-based marketing, and expanded its DRM-free content portfolio through a deal with Warner Music. Vodafone also announced a partnership with EMC subsidiary Decho to market a cloud-based data-recovery service, branded Vodafone PC Backup. [pp.7-9,11,12.]
3. Vodafone’s UK and Ireland OpCos agreed terms with Apple to finally bring the manufacturer’s iPhones to market, taking the devices’ penetration of Vodafone territories to 13. Also on the device front, Vodafone and Research in Motion announced the launch of the second-generation BlackBerry Storm 2 , although the deal appears less wide-ranging than the partnership on the device’s predecessor. Vodafone said the Storm’s criticised touch screen has “significantly” improved. [pp.10,13.]
4. Vodafone and its fellow challengers to the European Union’s roaming caps suffered a blow when the Advocate General at the European Court of Justice deemed the restrictions to be justified. [pp.15.]
5. The Vodafone Foundation launched the UK tranche of its World of Difference charity secondment programme, and a new round of its Wireless Innovation Project , which seeks out mobile technologies that can be used to solve “critical problems” around the world. [pp.15,16.]
6. Verizon Wireless (VZW) finally embraced Android through a strategic partnership with Google, and gave reassurances that its ongoing 4G rollout is on track. Meanwhile, a wider reorganisation by parent Verizon Communications saw the appointment of new marketing and operational chiefs at the cellco. [pp.17-19.]
7. WESTERN EUROPE: SFR partner Sofialys trumpeted user participation in the operator’s permission-marketing platform, while, in Germany, Vodafone is said to be working with Alcatel-Lucent on a smart-metering project for municipal utility Stadtwerke Pasewalk. In Greece, Vodafone’s strategic partnership with Hellas Online (HOL) gained backing from HOL shareholders, but not from some Vodafone employees. Vodafone Ireland highlighted environmental initiatives at its call centre. [pp.20-22,24,25.]
8. Augmented reality start-up Layar won Vodafone Netherlands and Vodafone UK’s Mobile Clicks application development contest, while Vodafone Spain and local airline Spanair updated their mobile boarding pass system. [pp.26,30.]
9. Vodafone UK announced a restructuring of its legal team, appointed Affiliate Window and TradeDoubler to handle its online affiliate marketing account, and, unusually, secured an all-fixed-line enterprise deal with Rolls-Royce. The operator’s mobile broadband advertising practices came in for criticism, however. [pp.31,33.]
10. CENTRAL EUROPE: Vodafone Czech Republic continued to refreshen its handset portfolio, with five new devices, while the local telecoms regulator came under European pressure on mobile termination rates. [p.34.]
11. Vodafone maintained silence over plans for its stake in Polkomtel as speculation mounted around co investors’ holdings. A bid from Egypt’s Orascom for a stake in the operator was mooted, while further reports suggest Polkomtel itself may be hunting acquisitions. [p.36.]
12. Vodafone Hungary selected Portugal’s WeDo to update its revenue-assurance system, while Vodafone Turkey handed Anel Telekomunikasyon Elektronik Sistemleri a network-maintenance contract. [pp.35,37.]
13. AFRICA: Controversy continues to dog Vodafone over the 2008 acquisition of Ghana Telecom, with the release of details from a government investigation into the deal. Nevertheless, the operator pushed forward its modernisation plans, reportedly reaching a union agreement over its redundancy programme, and revealing that it will decommission nearly all exchanges to improve network efficiency. [pp.38,39.]
14. Safaricom’s expansion plans continue in earnest, with: the launch of the first tranche of its bond programme; a deal with vendor Alvarion to expand its WiMAX infrastructure; and the long awaited introduction of cross border mobile money transfers following trials initiated with Vodafone and Western Union in 2008. Vodacom continues to suffer from both the economic downturn, writing down a significant chunk of late-2008 acquisition Gateway, and government pressure on mobile termination rates. The operator launched a new mobile tracking system in partnership with stolen vehicle recovery specialist Tracker. [pp.41-47.]
15. ASIA-PACIFIC: Vodafone Hutchison Australia made further progress in its post-merger rationalisation, reportedly completing the reselection process of head and state office employees. The company also distributed request for proposals on the integration of its two constituent firms’ networks. [p.48.]
16. China Mobile passed the 500 million customer-milestone, albeit at a much-decelerated rate of growth from recent years, and progressed preparations for both its upcoming e-reader launch and longer term 4G rollout. Chief Executive Wang Jianzhou reiterated ambitions to expand internationally, with an eye specifically on Asia. [pp.50-52.]
17. Concerns over growth prospects were also in focus in India, following domino-like tariff cuts from the major players, triggered by aggressive pricing by new entrants. Vodafone Essar targeted a new avenue for expansion by forming a division to focus on the business market. Rival and Vodafone investment Bharti Airtel had disappointing news on overseas growth prospects, announcing that merger talks with South Africa’s MTN had hit the buffers for the second time in as many years, thanks to regulatory barriers. [pp.54-59.]
18. Vodafone New Zealand proposed new concessions on MTRs, following pressure from the country’s Commerce Commission, but announced a major win in the enterprise segment. [pp.60,61.]
19. MIDDLE EAST: Vodafone Egypt said it will launch a new mobile money transfer service by the end of the year, as part of the promised revamp of its existing Vodafone Cash offering. Vodafone Qatar claimed to be taken by surprise by the popularity of an overseas call promotion, forcing the new entrant to double its international voice capacity. [pp.62,64.]

ABOUT VODAFONEWATCH

Issue: 2009.10
Covering: late-September to late-October 2009
Published: October 2009
Next issue: November 2009

Vodafone and its rich web of OpCos — tracked and analysed worldwide.
A unique monthly report for the industry.

• Vodafonewatch is the only independent monitor of everything and anything to do with Vodafone Group, worldwide. Nothing else comes close.
• Thorough, impartial, accessible, and time-saving. Covering not just the world’s number-one mobile group and its many operating companies, but also providing coverage of its wider interests, including Verizon Wireless, Vodacom, China Mobile, SFR, Polkomtel, Safaricom, Partner Markets, and much more.
• Our ‘watch’ titles are repeatedly described by clients and end-users as the single most valuable source of third-party intelligence. Considered invaluable by many high-achieving commercial teams and account directors.
• A unique source of valuable opportunities, knowledge, planning, strategy, and much more. Both tactical tool and strategic reference. An invaluable reference, input and even springboard for corporate planning, reporting, and meetings.
• A ‘must-have’ for sales teams focused on high-value sales, maintaining strategic relationships, and managing extended sales cycles. Just one nugget, insight, or validation can pay for the service many times over.
• Pricing typically USD $4k / EUR EUR3k / UKP £2.5k per year for a workgroup or small/midsize account, tailored to meet your needs and situation. Delivered electronically 10-12 times a year. Also available are back issues, which provide unparalleled reference and insight into major events, strategic initiatives, financials and KPIs.
• Copies of individual reports are available, priced from UKP 200 plus any applicable sales taxes (or around USD $300 / EUR EUR230, governed by prevalent foreign exchange rates). Contact sales@marketmettle.com to place an order or find out more. Multiple purchasing options available, including payment cards.
• Contact us for further information, including samples and evaluation trial requests. info@marketmettle.com / +44-20-7083-0055.

Mapping the activity and strategy of the UK’s largest telco. A unique monthly report for the industry.

• Executive Brief
• Extract
• Table of Contents
• About BTwatch
• Index

EXECUTIVE BRIEF

1. MAIN STORIES: BT is rumoured to be discussing at board-level a bid to acquire broadcaster ITV. While it could be just a rumour sparked by BT Non Executive Director Tony Ball being linked to the Chief Executive role at ITV, BTwatch considers there could be logic in a tie-up, if BT is willing to spin-off its Retail consumer business into a new entity alongside the television assets, to create an unshackled media player, in the hope of replicating the striking success of BT’s last spin-off, O2. [p.3.]
2. BT announced it is increasing its target for the number of sites to be passed by its fibre-to-the-premises network by the end of 2012, from one million to 2.5 million. The increase, which does not affect the telco’s overall target of having ten million sites with access to some form of fibre network, appears to have been driven by a need to reconsider FTTP testing in the wake of the collapse of the construction industry and, BTwatch suspects, due to communication provider customers of both Openreach and BT Wholesale showing significantly more ambition than BT itself. [pp.30-34,36.]
3. Ofcom is lifting regulatory restrictions on BT’s pricing of narrowband telephony products, opening the door for BT to more aggressively price and market bundles of previously price controlled fixed-line services to consumer and business customers. While BT promised a “price war” BTwatch suspects the relaxation of regulation will principally benefit defensive plays. [pp.10-11.]
4. BT Wholesale announced a five-year managed services contract to provide the fixed-line element of a converged communications solution for SME customers, to be launched by Telefónica O2 UK. BT will also design, manage, and operate a dedicated order portal and service management centre for O2 sales teams. [p.27.]
5. BT GROUP: BT saw its credit rating upgraded by Credit Suisse on expectations of further cost-cutting and a mid term revenue growth. The broker suggested that BT may ultimately have to consider the fairly radical step of compulsory redundancies. [p.4.]
6. STRATEGY & OPERATIONS: BT signed an MoU for a strategic cooperation with the School of Economics and Management at Tsinghua University in Beijing. During a forum in Paris, BT networks senior executive George Nazi reiterated BT’s view that long-term commercial models where service providers pay for quality of service on network infrastructure are essential. [pp.6,7.]
7. A business intelligence suite from JasperSoft is being used to support BT’s Statistical Data Warehouse, which is managed by Unisys. [p.7.]
8. BT RETAIL: BT Television and Online services Chief Executive Marc Watson conceded — inevitably — that BT would not reach its target of more than two million BT Vision customers by the end of 2010, from its current base of fewer than 450,000. The admission was exploited as an opportunity to have another dig at BSkyB prices for its premium content, but there was also recognition that BT has failed to effectively demonstrate the value of the service to consumers. [pp.8-9.]
9. An on-demand shopping channel was launched on BT Vision , offering a range of products in different shopping categories, which can be accessed and ordered around the clock. [p.9.]
10. BT Retail continued to reject calls for alleged illegal file sharers to have their internet services withdrawn, in the face of accusations from the British Phonographic Industry that it is failing to act against lawbreakers to protect its own profits. BT described the action demanded as an abuse of legal rights, impractical, and disruptive to legitimate use of peer-to-peer services, as the telco attempts to rebuild its privacy credentials following the Phorm debacle. BT also teamed with the Trading Standards Institute to call for stronger action on “slamming“, shortly after Ofcom unveiled proposals for a tougher code of practice. [pp.13,16.]
11. BT Business continued to build its range of services in the search sphere, with the launch of BT SearchSmart, a search engine marketing service for SMEs operated in conjunction with search agent Latitude. BT’s support for the supposed “21st century business card” .tel domain was highlighted by Telnic. [pp.14,15.]
12. BT GLOBAL SERVICES: Ex-Getronics executive Rogier Bronsgeest was named as President of BT Global Services’ Customer Service Operations, and will also sit on the BT Operate Executive Board. [p.17.]
13. Analysts Ovum placed BT Global Services at the top of its Enterprise Strategy Scorecard , praising the division for its customer service and product innovation. However, rivals were close on BT’s heels. [pp.18-19.]
14. BT won a two-year contract to provide IT helpdesk and support services to the Manpower employment services business, in Australia and New Zealand. [p.19.]
15. Liverpool Direct Limited, the BT public private partnership with Liverpool Council, was criticised in a report that suggested the finances of the venture are still unclear, eight years after its launch. [p.20.]
16. BT is said to be in talks with Indian energy company PowerGrid, with a view to using its fibre-optic network as an alternative to traditional network suppliers, for its multinational corporation customers on the sub-continent. [p.21.]
17. Local operator EXATEL was named a BT Alliance member in Poland. BT highlighted its 20 years of operations in the Spanish market, which has seen the local BT unit grow to report annual revenue of EUR500m, tens of thousands of business customers, and a position as the main challenger in the country’s enterprise data transmission market. BT also indicated it is seeing continuing success in its biggest market outside the UK — Italy — with significant contracts with BNP Paribas and Fiat recently renewed. [pp.21,22.]
18. BT Benelux launched a Carbon Impact Assessment service that considers the contribution of networked IT services to carbon emissions, and offers practical solutions to reduce energy consumption. New business-continuity solutions were also launched over BT’s 21CN global platform. [pp.24,26.]
19. eIQnetworks was selected to provide security monitoring and reposting services for BT iNet’s LAN customers. Storage solutions provider NetApp trumpeted its role in the new BT Virtual Data Centre service, intended to act as a single hosted platform for corporate customers’ IT resources. [pp.24,25.]
20. BT WHOLESALE: BT Wholesale announced a new rollout target for its ADSL2+ network, which will see it extend its national footprint from an expected 55% in spring 2010, to 75%-coverage by spring 2011. The new goal will see BT reach in 18 months’ time where many of its competitors are now, in terms of rollout. BT Wholesale is also planning price cuts to encourage greater uptake of upgraded broadband services. [p.28.]
21. OPENREACH: Openreach is extending trials of its Broadband Enabling Technology , which is a fixed-line solution delivering stable 1Mbps broadband speeds at distances of up to 12km from an exchange, and is believed to be in talks with the Scottish government on upgrading rural exchanges. [pp.29-30.]
22. The ongoing dispute between Openreach and its engineers over working hours saw reports that the access services division is to call in contract workers after employees rejected proposals agreed upon by BT and the Communication Workers Union. [p.36.]

EXTRACT

BT linked to ITV bid

There were rumours that BT Group is considering a bid for broadcaster ITV. Reports stemmed from a Sunday Express newspaper article citing unnamed insiders as suggesting the possibility is being discussed at board level at BT.

While BT remains in a weak position financially, the prospect of the company raising funds has been raised, although getting its house in order is more likely the priority rather than an acquisition (see separate report). The presence of BSkyB as a shareholder could also make a BT bid unlikely to be successful.

The speculation regarding a BT bid for the broadcaster, which has a market capitalisation of around £2bn, could have been fuelled by the presence of Tony Ball as a BT Non-Executive Board member. Ball, a former BSkyB Chief Executive, has been linked with the vacant Chief Executive role at ITV.

Tony Ball had been thought to be close to signing a contract to become ITV Chief Executive, but negotiations apparently stalled on terms and conditions.

Could a deal be beneficial to BT as a group?

While BT, like many telcos, has a questionable record in managing content, the acquisition could put the company on a stronger footing to compete with BSkyB and Virgin Media in UK consumer markets through control of ITV content.

Rather than an acquisition that would see ITV become part of the BT Group, another possible scenario, in BTwatch’s view, could be the creation of a new entity merging the consumer element of BT Retail and ITV to form a new, retail- and content-focused UK converged communications player, with its own independent management and focus.

The spinout of O2 Group during BT’s last financial crisis demonstrated what a sluggish under-performing consumer business could do when liberated from the demands of being part of a regulated incumbent; and it could be that BT management are pondering whether the same trick can be repeated. This would leave the stripped back BT to focus on access services through Openreach, managed services through BT Wholesale, and developing a viable long-term IT services and international networks business through the troubled Global Services unit.

While regulators and the government might even welcome such a move, in propping up ITV and creating a more viable national champion, pension liabilities could prove a huge hurdle.

[Further reference: BT considering bid for broadcaster ITV - report -- DM Europe, 8 October 2009; BT rumoured to be reviewing the option of buying ITV -- SimplifyDigital.co.uk, 5 October 2009; BT targets ITV takeover -- Sunday Express, 4 October 2009; Talks stall over top job at ITV -- Financial Times, 10 September 2009.]

TABLE OF CONTENTS

3 BT Group

3 Acquisitions and disposals
3 BT linked to ITV bid
3 Could a deal be beneficial to BT as a group?
4 City reports
4 Community
4 BT awards laptops to community projects
4 “…out of context…”
4 Rake on Ian Livingston and BT turnaround
4 Brokers’ reports
4 Credit Suisse upgrades BT
5 Regions
5 New South-West region head named
5 Tech Mahindra
5 Environment
5 BT holds exhibitions for “Wind of Change” project
6 Appointments
6 Executives
6 Fibre
6 Strategy and operations
6 Research
6 BT signs MoU with Tsinghua University
6 Ribbit
6 Ribbit to develop for Google Wave
7 Suppliers
7 BT suppliers feature in TechTrack 100
7 Strategy
7 BT opposes net neutrality
7 BT and Unisys select Jaspersoft

8 BT Retail

8 Advertising
8 Appointments
8 BT Television Services
8 Watson accepts BT Vision targets unreachable
8 BT accepts the inevitable
9 Broadband
9 BT Government
9 Echoes of BT Fusion marketing woes
9 BT Vision launches shopping channel
10 Pricing and tariffs
10 Ofcom narrowband ruling lifts ban on BT bundles
11 Community
11 Rivals unhappy with ruling, observers expect better value
11 BT promises “price war”, BTwatch yet to be convinced
11 Ofcom to conduct further work in unresolved areas
13 Competitors
13 Virgin Media considers VDSL2 rollout
13 Privacy
13 BT criticises file-sharing bans again, as BPI slams BT
13 BT pursuing the sensible PR approach this time
14 BT Business
14 BT Business launches SearchSmart
15 BT Business launches “Business Pulse” survey
15 Telnic highlights BT Business .tel support
15 BT Ireland
15 BT criticises Eircom court action
16 Regulatory
16 BT calls on Ofcom to tackle “slamming”

17 BT Global Services

17 Appointments
17 BTGS appoints Bronsgeest to customer service role
18 BT Global Financial Services
18 ELX links to Radianz infrastructure
18 BT closer to closing RadianzNet
18 Awards and accreditations
18 Ovum rates BTGS as “global leader of global leaders”
19 BT Health
19 Report not as rosy as it may first appear…
19 Contracts
19 BT wins two-year Manpower contract
20 Public sector contracts
20 LDL joint venture under fire
21 BT International: Europe
21 Virtual data centres planned for Italy
21 BT International: Asia
21 BT in talks with PowerGrid for broadband capacity
21 EXATEL named BT Alliance partner
22 BT highlights 20 years in Spanish market
22 BT renewing contracts in Italy
24 BT Benelux launches Carbon Impact Assessment service
24 BT iNet
24 BT iNet Selects eIQnetworks for security monitoring
25 Partners
25 NetApp trumpets virtual data centre role
26 Products and services
26 BT offers new business-continuity services

27 BT Wholesale

27 Managed services
27 Contracts
27 BT wins O2 contract for launch of SME fixed-line service
28 Products and services
28 BT to extend ADSL2+ footprint to 75% of country

29 Openreach

29 Customers
29 Union Street heralds 100th WLR3 order
29 Broadband
29 Openreach launches extended BET pilot
30 Fibre
30 TalkTalk joins fibre trials
30 murphx trumpets fibre trial role
30 BT in talks with Scottish authorities on exchange upgrades
30 BT accelerates fibre-to-the-premises plans
32 Suppliers
32 Carillion confirms BT contract
32 Lower costs enabling the rollout…
32 …but public funds still important
33 BT Wholesale customers driving demand?
33 Analyst reaction
34 Openreach announces FTTP trial sites
34 Communications provider private investment pondered
35 BT sets out FTTC timeline
36 Openreach provides FTTP pricing details
36 Employment
36 Hours dispute sees Openreach consider contract staff
37 OTA2
37 OTA2 updates for September 2009

38 Index

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INDEX

A
ACCA, 15
Advertising Standards Authority, 8
AT&T, 19
B
Baan Company, 17
Bharat Sanchar Nigam Ltd (BSNL), 21
Bharti Group
- Bharti Airtel, 21
BNP Paribas, 22
British Broadcasting Corporation (BBC), 8, 13
British Chambers of Commerce, 15
British Phonographic Industry, 13
BSkyB, 3, 8, 9, 10, 11
BT Group, 3, 4, 5, 6, 7, 8, 10, 19, 30
- Asia
- Tech Mahindra, 5
- BT Community Connections, 4
- BT Global Services, 3, 4, 6, 17, 18, 19, 20, 21, 22, 24, 25, 26
- BT Asia Pacific, 19
- BT Benelux, 24
- BT Frontline, 19
- BT Global Financial Services, 18
- BT Health, 19
- BT iNet, 24
- BT International, 21
- BT Italia, 21
- BT Radianz, 18
- BT Spain, 22
- Liverpool Direct Limited, 20
- Next Generation Contact Centre, 26
- RadianzNet, 18
- Spain, 22
- Virtual Data Centre, 25
- BT Innovation & Design
- Ribbit, 6
- BT Retail, 3, 8, 9, 10, 11, 13, 16, 35
- 1571, 7
- BT Business, 8, 14, 15, 35
- BT Fusion, 9
- BT Government, 9
- BT Ireland, 11, 15
- BT Local Business, 14
- BT SearchSmart, 14
- BT Tradespace, 15
- BT Vision, 8, 9
- Business Pulse, 15
- Terminate the Rate, 10
- BT Wholesale, 3, 5, 7, 27, 28, 29, 33, 35, 36, 37
- Wholesale Broadband Connect, 28
- Directors
- Ball, Tony, 3
- Rake, Sir Michael, 4
- Executives
- Alvarez, Luis, 22
- Bronsgeest, Rogier, 17
- Burger, Bas, 24
- Campbell, David, 34
- Cavestany Vallejo, Jacinto, 22
- Clark, Chris, 15
- Davis, Sally, 27
- Gayle, Andre, 7
- Karlowski, Pawel, 21
- Lalani, Hanif, 17, 18
- Livingston, Ian, 4
- Martin, Tom, 5
- Murphy, Bill, 14, 15, 35
- Nazi, George, 7
- Parker, Craig, 25
- Patterson, Gavin, 10
- Petter, John, 13, 16
- Ramji, Al-Noor, 6
- Rejali, Cameron, 28
- Reynolds, Jon, 5
- Robertson, Steve, 30, 32
- Sciolla, Corrado, 21
- Small, John, 29, 32
- Steed, Jacqueline, 6
- Sutcliffe, Graham, 24
- Sutton, Neil, 26
- Taylor, Kevin, 19
- Watson, Marc, 8
- Williamson, George, 32, 34
- Ex-executives
- Bross, Matt, 6
- Martinet, Mark, 8
- Scleparis, Stratis, 8
- Openreach, 3, 13, 29, 30, 32, 33, 34, 35, 36, 37
- Broadband Enabling Technology (BET), 29
- Ebbsfleet, 34
- ISDN2, 11, 29
- ISDN30, 11, 29
- WLR3, 29
- Strategy and Operations, 6
- 21CN, 6, 7, 26, 36
- BT Innovation & Design, 6, 7
- BT Operate, 17
Business Link, 15
C
Carillion, 32
Carphone Warehouse, 10, 11, 30
- TalkTalk, 11, 30
Cisco Systems, Inc., 9
Commission for Communications Regulation (ComReg, Ireland), 15
Communications Workers Union, 36
Core Communications, 7
Credit Suisse, 4
D
Datamonitor, 27
Design Council, 15
Deutsche Telekom
- T-Mobile, 7
Digital Britain, 29, 32
DTV Services
- Freeview, 8, 9
E
eIQnetworks, 24
Eircom, 15
ELX Futures, 18
Entanet, 7
Environment
- Wind turbines, 5
Epsilon, 7
Etisalat, 5
EXATEL, 21
F
Fiat SpA, 22
Football Association
- Premier League, 8
France Télécom
- Orange, 7, 19
- Orange Business Services, 19
G
Getronics NV, 17
Google, 6, 14
- AdWords, 14
Growing Business, 15
H
High Court, 15
Huawei Technologies, 6
Hutchison Whampoa, 10
I
IBM, 17
International Electrotechnical Commission (IEC)
- Broadband World Forum, 7, 32
ITV, 3, 8
J
Jaspersoft, 7
K
Kingston Communications (KCOM), 11, 27
L
Latitude, 14
Level 3 Communications, 8
Liverpool Council, 20
M
Manpower, 19
Microsoft, 25
Morgan Stanley, 33
murphx Innovative Solutions Ltd., 30
N
NatWest, 15
NetApp, Inc. (Network Appliance), 25
NGCC, 26
O
Ofcom, 4, 8, 10, 11, 16, 34
- Carrier pre-selection, 37
- LLU, 15
- Richards, Ed, 10
- Wholesale line rental, 29
Office of the Telecommunications Adjudicator, 37
- OTA2, 37
Olympic Games, 15
Ovum, 11, 18, 19
P
Phorm, Inc. (121Media), 8, 13
Phyworks, 7
PowerGrid, 21
R
Rational Software, 17
Reliance Communications, 21
Royal KPN, 17
Rural Coalition, 6
S
SamKnows, 35
Saudi Telecom, 5
Setanta, 8
- Setanta Sport, 8
South Tyneside Council, 9
T
Tech Mahindra, 5
Technology
- ADSL2+, 28, 33
- Broadband, 4, 5, 6, 7, 8, 9, 10, 11, 15, 16, 21, 27, 28, 29, 30, 32, 33, 34, 35, 36
- CRM, 26
- Fibre, 7, 13, 21, 30, 32, 33, 34, 35, 36
- FTTP, 30, 32, 33, 34, 36
- IP, 9, 30
- ISDN, 10
- MPLS, 21
- Project Canvas (BBC, BT, ITV, FIVE), 8
- SMS, 7
- SOA, 6
- VDSL2, 13
- VoD, 9
- VoIP, 30
TechTrack 100, 7
Telefónica, 7, 22, 27, 33
- Telefónica Europe (O2), 3, 7, 27, 33, 35
- Mobile Data
- Revolution, 6
- UK, 27, 33
telent plc (Marconi), 32
Telnic, 15
Tesco, 14
The Royal College of Nursing, 10
Trading Standards Institute, 16
Tsinghua University, 6
U
Union Street Technologies, 29
Unisys, 7, 17
Unite, 10
V
Verizon Communications, 19
Virgin Media, 8, 9, 13, 30
Vodafone, 6, 7, 27, 33
Vtesse Networks, 13
W
Worldwide Group, 7
Z
Zeus Technology, 7

Delivering valuable insight into the labyrinth that is Spain’s global telco giant. A unique monthly report for the industry.

• Executive Brief
• Extract
• Table of Contents
• About Telefonicawatch
• Index

EXECUTIVE BRIEF

1. MAIN STORIES: Telefónica announced global trials of LTE technology featuring six vendors and pilots in six countries. Alcatel-Lucent, Ericsson, Huawei, NEC, Nokia Siemens Network, and ZTE will initially feature in the programme, which is part of Telefónica’s LTE partner selection process, and is intended to examine the potential of 4G technology, particularly for mobile broadband-based services. [p.6.]
2. Telefónica Group is to open new operational units in 15 European countries outside its current footprint, as part of efforts to establish itself as an integrated services provider to multinational corporations. [pp.7-8.]
3. Telefónica España announced the launch of mstore, a mobile application store featuring more than 1,000 apps offered at prices up to EUR19.99. The company intends to roll out the store across its mobile territories as it grows mobile broadband use. SME customers are also to be offered software-as-a-service business applications through a new online store operated by Telefónica and NEC Iberia, as part of efforts to position the telecoms operator as a managed services provider. [pp.11,14.]
4. José-María Pallete, head of Telefónica in Latin America, again trumpeted the importance of the region, and indicated that recent years’ growth has been built on stable foundations, while emphasising the continent’s young population, which is enthusiastically adopting new technology and leading innovation. [p.18.]
5. O2 did its best to be seen to shrug off news that rivals Orange and Vodafone will join it in selling Apple’s iPhone in the UK, with Chief Executive Ronan Dunne almost blasé about the separate prospect of his company’s market leadership being overhauled by the proposed Orange and T-Mobile tie-up. To prove ‘life goes on’, Telefónica Europe detailed launch plans for Palm’s innovative Pre handset in mid-October, with tariffs generally similar to the iPhone; and faith was reiterated in the market-leading value of the O2 brand. [pp.29-31,40.]
6. GROUP: Telefónica made a bid worth up to EUR2.5bn for Brazilian telecoms operator GVT, trumping an earlier offer from French media and communications conglomerate Vivendi. This new battle appears to have put an end to a planned collaboration with Vivendi to buy Spanish pay-TV player Digital+. [pp.3,20.]
7. After the recent announcement of its bilateral shareholding agreement with the Chinese operator, Telefónica became the sole overseas stakeholder in China Unicom, after South Korea’s SK Telecom agreed to sell back its interest in the operator. Telefónica does not appear to be as welcome a presence among the owners of Telecom Italia, however, with government ministers expressing concern about the incumbent remaining in Italian control, and other shareholders questioning the value of TI’s close links with its Spanish peer. [pp.3,4.]
8. ESPAÑA: Telefónica is launching tailored VDSL2 broadband products, supposedly as a consequence of its decision to scale back short-term fibre rollout. The company also marked the tenth anniversary of the launch of broadband in Spain, although: the operator appears to be struggling to maintain market share; is expected to see tougher competitive threats from unbundlers; and market penetration remains relatively low. In contrast, market statistics suggest the domestic mobile business is still competing strongly. [pp.9-10.]
9. Telefónica España Chief Executive Guillermo Ansaldo emphasised his company’s commitment to the domestic market, highlighting investment, which is proportionally rising in challenging conditions. He also suggested Telefónica would be prepared to consider spectrum re-farming as it strives to obtain a new allocation for mobile broadband growth, which is increasingly becoming the Holy Grail for the Telefónica OpCo. Huawei announced it had deployed a metro services solution for Telefónica España. [pp.12-13.]
10. Telefónica España introduced a new “Clientes” division, which is to become the focus for domestic strategy, marketing, and quality of service for business customers. New executive positions were also created for the management of regional operations in Andalucía, Asturias, and Galicia. [p.13.]
11. As the Spanish telco continues to address increased competition and restricted spending in recession-hit Spain, new tariffs and bundled offers were introduced for fixed line and mobile services, with additional flat-rate plans and service add-ons. [p.16.]
12. LATINOAMÉRICA: Telefónica is to offer the Nokia Messaging solution across Latin America, following an agreement with the vendor; the service is already available on the Movistar network in Ecuador. MoreMagic Solutions, a mobile transactions provider, agreed a contract to enable Movistar mobile accounts in Latin America to be topped-up at retail locations across the USA. [p.17.]
13. Ernesto Gardelliano was named Chief Executive for Movistar Argentina after his predecessor Federico Rava was appointed to a role in the new Clientes division in Spain. [p.19.]
14. Political factors are increasingly impacting on Telefónica’s ability to deliver triple-play services in Argentina, particularly plans for pay-TV. Apparent government antagonism towards a rival may be some consolation, however. Speculation continues as to whether more nationalisation of telecoms business in Venezuela is part of the Chavez government’s plans. In Brazil, a new state-owned fibre broadband network is under consideration. [pp.19-20,22,28.]
15. Telefónica in Brazil is to offer customers digital communications solutions from LG-Nortel, following an agreement with local distributor Olifone. [p.20.]
16. Soon after seeing restrictions lifted on the sale of broadband services in Brazil, it was reported that further action is being taken against Telefónica by consumer-protection authorities relating to failures of both wireline telephony and broadband services. [p.21.]
17. Vivo has now paid 90% of the money due for its Brazilian 3G licence. A Huawei backed study predicted mobile broadband would see annual growth of more than 70% for the coming five years in Brazil, albeit from a starting point below the global norm. [p.23.]
18. Movistar Chile called for more spectrum to be made available to established operators, as the regulator looks to attract new entrants. A new holding company will consolidate all Telefónica business units in Chile, replicating the restructuring example of Telefónica del Peru. [p.26.]
19. Telefónica in Mexico was awarded additional spectrum, as local authorities distributed under-used spectrum previously reclaimed from rival Iusacell. Movistar Mexico launched a voice to text service, as the regional roll out of the SpinVox-based solution continues. [p.26.]
20. The cost of calling mobiles from landline was capped in Colombia, while in Brazil fixed-line rate increases were cleared by Anatel. [pp.21,24.]
21. Telefónica del Perú said it is on track to reach the halfway point of a partially state-funded roll out of wireline voice and broadband services to remote areas of the country. The project is to provide connectivity to an additional four million people. The 3.5G rollout in Venezuela continued, with more regions added to Movistar’s coverage. [pp.27,28.]
22. EUROPE: Douglas Gregory was appointed to an EU lobbying role for Telefónica Europe. O2 UK, and its main domestic rivals, looked to have failed in an appeal to the European courts protesting EU-mandated price cuts. Regulators in the Czech Republic and Slovakia were pressed to introduce greater cuts to termination rates in their markets, and end asymmetry in Slovakia that currently favours the local O2 business. [pp.29,31,32,39.]
23. Critical Path highlighted its role in provisioning over-the-air mobile back-up services to TOCR. [p.32.]
24. O2 Germany completed the country’s “largest ever” live network upgrade, as Huawei replaced more than 5,000 base stations. The German unit also called for action to be taken in upcoming auctions, to make spectrum allocation more equal between operators. [pp.33-34.]
25. Rubberduck Media Lab highlighted its role in providing mobile TV services to O2 Ireland, amidst signs that the deal could be expanded to other Telefónica operating companies. O2 Ireland is expanding its retail presence through a chain of 35 franchised stores. [p.35.]
26. Manx Telecom is deploying Alcatel Lucent technology to enable the provision of triple-play fixed-line services, using what the vendor describes as “fibre to the most economic point” . [p.37.]
27. O2 UK enhanced its offerings to the SME sector with the launch of new converged solutions, featuring wireline, mobile, and consultancy services. [p.41.]
28. A new mobile brand, Giffgaff, is set to be launched by O2, which aims to create a user community that resolves its own support issues and contributes to management and growth of the service — thus supposedly achieving low operational costs. [p.42.]
29. O2 UK is offering music-recognition services in partnership with Shazam. [p.43.]
30. ASSOCIATES AND INVESTMENTS: China Unicom commercially launched its 3G network, and is also set to officially unveil the iPhone locally. Portugal Telecom is borrowing EUR200m as it invests in fibre rollout. Telecom Italia is seeing plenty of interest in its Telecom Argentina stake, and could raise more than EUR2bn from proposed asset sales. [pp.46-53.]

EXTRACT

OPERATIONS

Telefónica opens 15 new country offices

Telefónica Group announced the opening of new operational units in 15 European countries outside its current footprint, and launched a new suite of solutions for corporate customers, including the Telefónica Multinational Solutions web portal. The company said both developments were expected to enhance the integrated telecommunications services it offers Deutsche Post DHL (Telefónicawatch, 2009.01) and other multinational customers (MNCs) across the region.

Telefónica International Wholesale Services is overseeing the deployment of the new network infrastructure and offices, which are located in Austria, Belgium, Bulgaria, Denmark, Estonia, France, Greece, Hungary, Italy, Netherlands, Poland, Portugal, Romania, Sweden, and Switzerland. The rollout includes the provision of wide area network connectivity, centralised internet access, local area network (LAN) such as wireless LAN, fixed voice, mobile voice and data, and managed security, the company said.

” Telefónica’s global capabilities allow us to quickly and efficiently deliver both fixed and mobile solutions to multinational corporations anywhere in the world. The new offices and network infrastructure being deployed in Europe, supported by a new online experience and enhanced products and services, reinforces our commitment to this strategically important market segment. Telefónica is making good progress, and is executing in line with the strategy to expand presence and services to corporate customers already announced in December 2008. ”
– Matthew Key, Chairman and Chief Executive, Telefónica Europe.

The Telefónica Multinational Solutions web portal is claimed to have been designed to improve the online experience for customers. According to the company, the portal focuses on customer “pain points”, using case studies and “clear benefit-led language” to help improve communication with customers.

Telefónica also said it has made significant progress with the delivery of an enhanced Service Management Centre to support fixed and mobile services for MNCs, and that the Central Services Platform now offers: asset management; a customer portal; central management of systems and infrastructure; central reporting; device management; online ordering; SLA management; telecom expense management; and trouble ticketing.

” Providing a personalised customer service is an important aspect of Telefónica’s value proposition to MNC customers. The new service management functionality available in Europe is a competitive key differentiator that we can offer to our customers. ”
– Key.

Customers yet to emerge, however…

The Deutsche Post MNC deal announced in January 2009 was expected to mark Telefónica’s entrance into a new market already well-populated with major players such as AT&T, BT Global Services, Orange, and Verizon. While Telefónica did indicate at the time that it expected new deals to principally start coming down the pipeline in 2010, it had said that more news on deals was expected to emerge during 2009. However, since the Deutsche Post deal, no contracts of remotely comparable worth have been flagged.

The Telefónica move into the sector took analysts by surprise, and, even though the Group said it had the main skills and resources in place due to the acquisition of O2 in 2006, and that it had completed much of the work to support the contract, the lack of news of further deals suggests major businesses are yet to be convinced, despite probable favourable terms. Yet considering the standing start Telefónica is attempting to grow from, paired with its global reach and pragmatic management approach, Telefónicawatch is refusing to be cynical, and expects to hear more concrete news as part of the Investors Conference in October 2009.

[Further reference: Telefónica opens offices in 15 European countries and launches new web portal to support multinational corporations -- Telefónica, 14 September 2009; Telefónica expands in Europe -- BMI Emerging Europe Telecommunications Insights, 17 September 2009.]

Georgia suggests possible Telefónica entry

Giorgi Akhalaia, Chairman of Communications and IT Technologies at the Department of Economic Development in Georgia, suggested that Telefónica is considering entry into the Georgian fixed and mobile telecoms markets.

Currently, the fixed-line market in Georgia is dominated by United Telecom, but with 4.6 million inhabitants and 550,000 active fixed lines, fixed penetration stands at only around 12%. The GSM market has three players, Geocell, Magti, and Mobitel, and mobile penetration stands at around 80%. In the internet market, Caucasus Networks stands as the dominant player, but penetration is still in the single digits, implying significant scope for organic growth.

Although no further details were released, the story was apparently confirmed by Zurab Pololokashvili, Georgian Minister of Economy, who said that negotiations with Telefónica were in line with the Georgian government’s Action Programme for the period 2004-2009, which places telecommunications sector development among the government’s top priorities.

Telefónica itself has not yet given any indication of an interest in entering the Georgian market and Telefónicawatch suspects that, beyond a level of political posturing that often sees Telefónica linked to investments in countries hoping to expand their telecoms markets, talks are most likely around the building of a presence in line with the Group’s plans for delivering global services to multinational corporations (see separate report).

[Further reference: Telefónica in talks to launch services in Georgia -- Digital Media Europe, 11 September 2009; Georgian Communications Ministry claims Telefónica interest in national telecoms market -- Global Insight, 14 September 2009.]

TABLE OF CONTENTS

3 Telefónica Group

3 M&A
3 Telefónica and Vivendi end Digital+ bidding partnership
3 Associates and investments
3 Li ends PCCW control bid
3 Telefónica moves for GVT after Vivendi bid
3 Telefónica becomes Unicom’s sole foreign investor
4 Fossati ponders TI stake, doubts Telefónica benefits
4 Future of Telco SpA consortium still uncertain
4 Italian government still unsure about Telefónica TI stake
4 Telefónica ordered to sell Telecom Argentina stake
5 Community
5 Telefónica tops Dow Jones Sustainability Index
5 Employment
5 Telefónica ponders global employee share programme
6 Devices
6 Palm on Telefónica relationship
6 Networks
6 Telefónica Group commissions global LTE trials
7 Financial reports
7 Broker questions Telefónica valuation
7 Operations
7 Telefónica opens 15 new country offices
8 Customers yet to emerge, however…
8 Georgia suggests possible Telefónica entry

9 Telefónica España

9 Broadcasting services
9 Telefónica acquires production unit
9 Broadband
9 Telefónica marks ten years of broadband with VDSL
9 CMT cuts unbundled DSL prices
10 Community
10 Market statistics
10 CMT figures show Telefónica defending market share
10 Movistar outperforms established peers
10 Broadband continues gradual growth
10 Fixed-line declines and porting grows
11 Research points to Movistar market share decline
11 Mobile services
11 Movistar España opens mstore
12 Network
12 Rival Ono to launch MVNO on Movistar network
12 Huawei awarded Spanish Metro Ethernet contract
12 Telefónica willing to participate in spectrum re-farming
13 Partners
13 Telefónica trumpets Microsoft collaboration
13 Ansaldo emphasises Telefónica investment in Spain
13 Operations
13 New customer-focused division launched by Telefónica
14 Products and services
14 Aplicateca app store launched for SMEs
15 Telefónica offers free access to telepresence suites
15 Regulatory
15 Linares criticises EU regulation
16 Tariffs and pricing
16 Movistar updates tariffs…
16 …Telefónica triple-play offer also upgraded

17 Telefónica Latinoamérica

17 Regional deals
17 Telefónica to launch Nokia Messaging across LatAm
17 MoreMagic trumpets Latin America top-up deal
18 Regional strategy
18 Álvarez-Pallete on LatAm mobile broadband opportunities
19 Argentina
19 New Movistar Argentina head named
19 Political factors continue to impact Argentina telecoms
20 Brazil
20 Telesp signs 20,000 Speedy customers in five days
20 Vivendi bids for Telefónica rival
20 New audio-visual bill could affect Telefónica TV plans
20 Telefónica agrees joint venture with LG-Nortel in Brazil
21 Further action taken against Telesp over service levels
21 Anatel clears fixed-line rate rise
22 Brazil considers new state-owned fibre network
23 Brazil: Vivo
23 Vivo makes 3G licence payment
23 Mobile broadband to grow by 70%-a-year in Brazil
24 Chile
24 Telsur investor plan ups competitive threat to Telefónica
24 New holding company for Telefónica Chile
24 Movistar calls for new spectrum release
24 Colombia
24 Movistar Colombia sees new rate caps imposed
25 Ecuador
25 Nokia Messaging launched in Ecuador
25 Movistar Ecuador continues to lag behind Porta
26 Mexico
26 SpinVox solution launched in Mexico
26 Movistar benefits from reclaimed Iusacell spectrum
27 Peru
27 Peru spectrum auction reconsidered
27 Telefónica makes progress on rural telecoms rollout
27 Movistar predicts 85%-penetration in Peru
28 Venezuela
28 Rumours of Venezuelan mobile nationalisation plans
28 New BlackBerry Curve launched in Venezuela
28 Movistar continues 3.5G rollout

29 Telefónica Europe

29 Appointments
29 Gregory appointed to EU lobbying role
29 Devices
29 O2 sanguine on end of iPhone exclusivity
30 Exclusivity may be gone, but iPhone ‘halo’ may not have completely slipped
31 O2 unveils Palm Pre promotions
31 Regulatory
31 Telefónica Europe fails in roaming regulation block bid
32 Czech Republic
32 TOCR selects Phone Back-Up from Critical Path
32 EC pressures Czech regulator on MTRs
33 Germany
33 O2 calls on government to end spectrum inequality
34 Huawei trumpets German live network upgrade
34 Ireland
34 O2 eyes Smart acquisition
35 O2 Ireland unveils franchised store plan
35 O2 ties with Rubberduck for TV deal
36 O2 demonstrates self-sustaining mast
37 Isle of Man
37 Manx Telecom to deploy Alcatel-Lucent cabinets
38 Manx Telecom wins e-Gaming Disaster Recovery licence
39 Slovakia
39 Telefónica trumpets success of O2 Fér
39 EC calls on TUSR to speed MTR reductions
40 United Kingdom
40 Dunne bullish on O2 prospects post-Orange-T-Mobile deal
41 O2 launches “Joined up” service for SMEs
42 IEMR predicts strong EBITDA for O2 UK
42 O2 offers “unlimited” mobile internet bundle
42 O2 UK to launch new online SIM-only brand
43 IEMR predicts strong EBITDA for O2 UK cont’d
43 Mobile data use peaks when pubs close
43 O2 UK links with Shazam for music-discovery solution
43 O2 Media opens forum for industry feedback
44 O2 on data management and business intelligence
44 O2 places second in e-commerce review
45 O2 launches iPhone account management app
45 Mobile Commerce trumpets O2 Money role

46 Associates and investments

46 China Unicom
46 China Unicom 3G network sees commercial launch
47 iPhone launch date announced; exclusivity denied
47 Unicom to invest ahead of World Expo
48 Unicom awards ZTE order as 3G handset deals done
48 Handset subsidies rumoured to be under consideration
48 Unicom deploys Huawei unified network management
48 Revenue-split arrangements pondered for Wo Store
49 Unicom plans 2G micropayments
49 Unicom continues to see GSM growth, fixed decline
49 New charging systems planned for Unicom
49 Unicom plans high-definition video-on-demand
50 Portugal Telecom
50 PT launches fibre services, borrows EUR200m
50 PT fined for abuse of dominant position
50 PT fixed-line market share down as overall access grows
51 Telecom Italia
51 TI sales could bring in EUR2bn+
51 TI denies Media unit offers
52 TI sees plenty of interest in its Argentinian assets
52 TI appeals Telecom Argentina ruling
53 Nokia Messaging launched by Telecom Italia
53 TIM Brasil deploys Alca-Lu packet transport solution

55 Index

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INDEX

A
Academy Music Group (AMG)
- O2 Academy, 43
Acer, 34
Albion London, 42
Alcatel-Lucent, 6, 37, 53
Alegro, 25
América Móvil, 20, 24, 25, 52
- Comcel, 24
- Porta, 25
- Slim, Carlos, 24, 52
- Telcel, 26
Americatel, 27
Anatel, 20, 21, 22, 23, 51
Andrade Gutierrez, 52
Antena 3, 9
Apple, 29, 30, 31, 40, 46, 47
- iPhone, 29, 30, 31, 45, 46, 47
Asus, 34
AT&T, 8
Avenir, 40
B
Banco Bilbao Vizcaya Argentaria, 10, 27
Bebo, 41
Bernstein, 7, 30
BNP Paribas, 51
Brasil Telecom, 22
British Broadcasting Corporation, 35
BT Group, 8, 30, 31, 34, 41
- Openzone, 30, 31
- PlusNet, 40
Bubok, 10
Bundesnetzagentur für Elektrizität, Gas, Telekommunikation, Post und Eisenbahnen (Federal Network Agency for Electricity, Gas, Telecommunications, Postal Service and Railways, BNA/BNetzA/RegTP, Germany), 33
C
Cade (Brazil), 51
Carrefour, 48
Caucasus Networks, 8
Chavez, Hugo (Venezuela), 28
China Mobile, 46, 47, 49
China Telecom, 46, 47, 48, 49
Chunghwa Telecom, 48
Cicomra, 20
Cisco Systems, Inc., 15
Cloud, The, 30, 31
CMT (Spain), 9, 10
CNDC (Argentina), 52
Columbia Ventures
- Magnet, 34
Critical Path, 32
CRT (Colombia), 24
CSOB Group, 33
Czech Telecommunication Office (CTU), 32
D
Dell, 32
Deutsche Bank, 7
Deutsche Post
- DHL, 7, 8, 33
Deutsche Telekom, 40
- T-Mobile, 31, 32, 33, 39, 40, 43
- UK, 40
DHL, 7, 33
Digitel, 28
Digiweb, 34
Dopod, 46
Dow Jones Sustainability Index, 5
E
Ectrobrás, 22
Eircom, 34
Empresas Quiñenco, 24
Entel, 24
Ericsson, 6, 28, 35
ESB, 36
European Union, 9, 15, 29, 31, 39
- European Commission, 15, 32, 39, 52
- European Court of Justice, 31
- European Investment Bank, 50
F
Federal Network Agency, 33
Findi, 4
Fitel (Peru), 27
France Télécom, 12
- Orange, 8, 10, 12, 29, 30, 31, 39, 40, 41, 43
- Orange Spain, 12
Fundación del Espanol Urgente, 10
G
Geocell, 8
Gilat Satellite Networks Ltd, 47
Google, 46
- Android, 46
Grupo Clarín, 19, 20, 52
- FiberTel, 19
Grupo Santander
- Santander, 15, 18
GVT (Brazil), 3, 20
H
Hewlett-Packard, 14
HighBridge Constellation, 51
High Tech Computer Corp. (HTC), 46
Hits Telecom, 27
Huawei, 6, 12, 23, 34, 48
I
IBM, 29
IE Market Research, 11, 42
Intelig, 51
Intelsat, 9
ITV, 42
Iusacell, 26
J
JPMorgan Chase, 24
K
KKCG, 33
L
LAN, 7
Lega Pro, 53
Lew TelNet GmbH, 36
LG, 20
LG-Nortel, 20
M
Magti, 8
MasterCard, 41
McStay Luby, 34
Mediaset
- Berlusconi, Silvio, 4
Microsoft, 13, 14, 34
Millicom, 24
Mobile Commerce, 45
Mobile Interactive Group, 45
MobilKom, 32
Mobitel, 8
MoCo Communications Ltd, 41
MoreMagic Solutions, 17
Motorola, 28
MVNOs, 10, 12
N
NEC, 6, 14
NET, 22
NII Holdings, Inc., 24, 26
Nokia, 6, 17, 25, 28, 35, 53
- Nokia Messaging, 17, 25, 53
Nokia Siemens Networks, 6
Nortel Networks, 20
O
Ochre House, 41
Olifone, 20
Ono, 12
Orascom
- Wind Telecomunicazioni SpA, 53
P
Palm, 6, 28, 30, 31
PCCW, 3
Pegasus Capital, 52
Petrobas, 22
Portugal Telecom, 50
Prisa, 3
- Digital+, 3
Procon (Brazil), 21
ProInversión (Peru), 27
R
Raidió Teilifís Éireann (RTÉ), 35
R Cable, 52
Regions
- APAC
- China, 3, 46, 47, 48, 49
- Hong Kong, 3
- Japan, 15
- EMEA
- Austria, 7
- Belgium, 7
- Bulgaria, 7
- Czech Republic, 32, 33
- Denmark, 7
- Estonia, 7
- France, 7, 12
- Georgia, 8
- Germany, 31, 33, 34, 35, 36
- Greece, 7
- Hungary, 7
- Ireland, 31, 34, 35, 36, 37
- Isle of Man, 37, 38
- Italy, 4, 7, 19, 51, 52, 53
- Luxembourg, 4
- Netherlands, 7
- Poland, 7
- Portugal, 7, 50
- Romania, 7
- Slovakia, 39
- Spain, 3, 7, 9, 10, 11, 12, 13, 32, 53
- Sweden, 7
- Switzerland, 7
- UK, 5, 29, 30, 31, 32, 37, 40, 41, 42, 43, 44, 45
- Latin America, 17, 18, 26
- Argentina, 4, 13, 19, 20, 51, 52
- Brazil, 3, 7, 18, 19, 20, 21, 22, 23, 51, 52, 53
- Chile, 24
- Colombia, 24
- Ecuador, 17, 25
- Mexico, 18, 26
- Peru, 24, 27
- Venezuela, 28
- North America
- USA, 15, 17
Research In Motion, 28
- BlackBerry, 28
Royal Ahold N.V. (Koninklijke Ahold N.V.), 33
Royal KPN
- E-Plus, 33
Rubberduck Media Lab, 35
S
Samsung, 28, 35
Sapo, 50
SCT (Mexico), 26
Shazam, 43
Siemens, 6
SIMO 09, 13
SK Telecom, 3
Smart Telecom, 34
Sofora, 52
SomeOne, 42
Sonaecom, 50
Sony Ericsson, 28, 35
SpinVox, 26
Splendid Communications, 42
Subtel (Chile), 24
Supertel (Ecuador), 25
Symbian, 53
Syntagm, 44
T
Technologies
- 2G, 46, 47, 49
- CDMA, 46
- Edge, 35
- GSM, 8, 33, 34, 47, 49
- 3G, 10, 23, 24, 33, 35, 46, 47, 48, 49, 53
- 3.5G, 28
- HSDPA, 33, 35
- UMTS, 12, 32, 34
- WCDMA, 46, 47, 48
- 4G
- LTE, 6, 53
- Broadband, 6, 9, 10, 11, 12, 16, 18, 19, 20, 21, 22, 23, 24, 27, 33, 34, 36, 37, 40, 41, 42, 49, 50, 53
- ADSL, 9
- DSL, 9, 10
- VDSL, 9
- VDSL2, 9
- Cloud computing
- DaaS (Desktop as a Service), 14
- PaaS (Platform as a Service), 14
- SaaS (Software as a Service), 14
- Ethernet, 12
- GPS, 11
- IP, 9, 12, 16, 37, 49
- IVR, 43
- MMS, 32, 43, 46
- Mobile Broadband, 23
- Mobile TV, 35
- NFC, 49
- RFID, 53
- SIM, 41, 42
- SMS, 16, 26, 45
- TV, 9, 20, 32, 35, 50
- IPTV, 16
- WLAN, 7
- Wi-Fi, 30, 31, 46, 47
Telco SpA, 4
Telecentro, 52
Teleco, 23
Telecom Argentina, 4, 19, 20, 51, 52
Telecom Italia, 4, 19, 51, 52, 53
- Bernabe, Franco, 51
- Entel, 24
- HanseNet, 51
- Telecom Italia Mobile, 52
- TIM Brasil, 23, 53
Telefónica Group, 3, 4, 5, 6, 7, 15, 18, 24
- Associates and investments
- China Unicom, 3, 46, 47, 48, 49
- Portugal Telecom, 50
- Telco SpA, 4
- Telecom Italia, 4, 19, 51, 52, 53
- España, 9, 10, 11, 12, 13, 14, 15, 16, 17, 19
- Telefónica Clientes, 13, 19
- Executives
- Abril, Luis, 5
- Álvarez-Pallete Lopez, Jose Maria, 18
- Ansaldo, Guillermo, 11, 12, 13
- Bifaretti, Fabian, 26
- Calvo, Carlos, 13
- Cowdry, Sally, 45
- Devaney, Damian, 36
- Dowd, Ben, 41
- Dunne, Ronan, 5, 29, 30, 40
- Evans, Kylie, 42
- Fairman, Mike, 42
- Gamero, José, 27
- Gardelliano, Ernesto, 19
- Grau, Jaime, 17
- Gregory, Douglas, 29
- Gregory, Shaun, 43
- Haas, Markus, 33
- Hanway, Tony, 35
- Herrera, Fernando, 13
- Kane, Stephen, 38
- Karas, Jan, 33
- Key, Matthew, 7
- Kickartz, Manfred, 34
- Kuntze, Roland, 35
- Lada, Luis, 13
- Linares, Julio, 6, 15
- Loundes , Mike, 37
- Manzanares, Javier, 27
- Morgan, James, 44
- Poston, Richard, 29
- Rava, Federico, 13, 19
- Rocillo, Jose, 13
- Schloemer, André, 34
- Tetiva, Bohdan, 32
- Valente, Antonio Carlos, 20
- Ward, Matt, 43
- Watt, Colin, 5
- Latinoamérica, 17, 18, 25
- Argentina, 13, 19
- Brazil, 3, 20, 21, 22
- Chile, 24
- Colombia, 24
- Mexico, 26
- Peru, 27
- TIWS, 7
- Venezuela, 28
- Movistar, 10, 11, 12, 13, 16, 17, 19, 24, 25, 26, 27, 28, 53
- Argentina, 19
- Chile, 24
- Colombia, 24
- Espana, 10, 11, 12, 16, 17
- Mexico, 26
- Peru, 27
- Venezuela, 28
- Products and services
- Aplicateca, 14
- Giffgaff, 42
- Imagenio, 9, 16
- Joined up, 41
- Mail Movistar, 25
- Movistar Emoción, 11
- mstore, 11
- O2 Bluebook, 32
- O2 Load & Go, 41, 45
- pay-TV, 9, 50
- Professional Response, 13, 14
- Speedy (Latinoamérica), 20, 21
- Telefónica Europe (O2), 5, 6, 8, 29, 30, 31, 32, 33, 34, 35, 36, 37, 39, 40, 41, 42, 43, 44, 45
- Be Un limited (UK), 37
- Czech Republic, 32, 33
- Germany, 33, 34, 35, 36
- Ireland, 31, 34, 35, 36
- Manx Telecom
(Isle of Man), 37, 38
- Nucleus, 44
- O2 Group, 37
- O2 Media, 43
- O2 Money, 45
- O2 TV, 32, 35
- Slovakia, 39
- UK, 5, 29, 30, 40, 41, 42, 43, 44, 45
- Telefónica Servicios Audiovisuales, 9
Teléfonos de México (Telmex), 24
Telemar
- Oi, 21, 22
TeliaSonera
- Yoigo, 10
Tesco, 44
- Tesco Mobile, 44
Thrane & Thrane, 51
Tigo, 24
Time Warner
- AOL, 41
- CNN, 35
Travel Channel, 35
Trilantic Capital Partners, 51
TÚSR (Slovakia), 39
U
UBS, 3, 20
V
Verizon, 8
Virgin Group, 44
- Virgin Mobile, 44
Vivendi SA, 3, 20
Vivo Participações, 19, 23
Vodafone Group, 10, 11, 29, 30, 31, 32, 33, 34, 40, 41, 42, 50, 52
- Czech Republic, 33
- Ireland, 34
VTR, 24
W
World Expo, 47
Z
Zen Internet, 40
ZTE, 6, 48

Tracking innovative, strategic, operator-monetisable mobile value-added solutions. A unique monthly report for the industry.

• Executive Brief
• Extract
• Table of Contents
• About Mobile VAS|watch
• Index

EXECUTIVE BRIEF

1. 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.]
2. 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.]
3. 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.]
4. 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.]
5. 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.]
6. 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.]
7. 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.]
8. 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.]
9. 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.]
10. 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.]
11. 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.]
12. 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.]
13. 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.]
14. 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.]
15. 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.]
16. 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.]
17. 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.]
18. 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.]
19. 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.]
20. 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.]
21. 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.]

TABLE OF CONTENTS

2 Smart devices

2 Apple
2 China Mobile apparently still in iPhone talks
3 App Store hits 2bn downloads
3 O2 UK loses iPhone exclusivity
4 “…out of context…”
4 Comment: perfect timing to ditch operator exclusivity
5 ARCHOS
5 ARCHOS 5 Internet tablet
5 ARCHOS unveils Android-powered PMP
6 Acer
6 Garmin-Asus
6 China Mobile
6 OMS renamed as Ophone; low-end targeted
7 HTC
7 No plans for services play, yet — HTC
7 Comment
8 HTC/Sprint Hero
8 HTC Touch2
8 CDMA Hero set for Sprint launch
8 Touch2 announced
9 HTC Tattoo
9 HTC/Sprint Touch Pro2
9 i-mate
9 Click debuts as Tattoo; entry-level Android
9 Sprint and Verizon debut dual-mode Touch Pro2
10 Verizon linked with future HTC device launches
10 Desire — more HTC Android/Verizon rumours
11 In Technology Group
11 In Technology Group trumpets Windows XP “smartphone”
11 INQ Mobile
11 INQ to join Android set
11 SingTel first non-Hutchison INQ partner
12 LG Electronics
12 LG Electronics GM750
12 LG Electronics GW550
12 LG Electronics LG-GW620
12 LG announces imminent Windows Mobile launches
12 LG debuts first Android device
13 Linux Foundation
13 Microsoft
13 Android device for China Mobile reported
13 Microsoft confirms October 2009 debut for WM6.5
14 WM7 subject of speculation
15 Ballmer concedes mobile mistakes, fightback — report
16 Motorola
16 Motorola CLIQ
16 First Android device confirmed by Motorola
17 Myriad Group
17 Motorola may still have WM devices in pipeline — report
17 NEC
17 NEC, Casio, and Hitachi confirm handset tie-up
18 Nokia
18 Nokia N97 mini
18 N97 mini confirmed; N97 software update in pipeline
18 Updated software
19 Nokia X6
19 X6 joins Comes With Music line
19 N97 sales robust, despite community criticism
20 Lack of customisation may hamper operator N900 sales
21 Nokia 7705 Twist
21 More Booklet 3G details revealed; price the only surprise
21 Verizon confirms unusual form Nokia device
22 “Luxury” handset to use S60 — report
22 Open Handset Alliance
22 Android 1.6 SDK debuted
22 Palm
23 Palm Pixi
23 Palm debuts next webOS device; Pixi for Sprint — again
23 Software updates
24 Palm announces poor Q1 results; no more WM devices
25 No more Windows Mobile (or Palm OS)
25 Additional funding plans
25 Comment
25 Qualcomm
26 Research In Motion
26 BlackBerry 9700 linked with Vodafone release
27 More Latin American App World rollouts announced
27 Essex codename for Wi-Fi Tour
27 Significant returns reported for Tour
28 RIM Q2: good, but not good enough
28 Samsung
29 Vodafone 360 H1 (Samsung)
29 Samsung Galaxy i7500
29 Samsung supplying LiMo devices for Vodafone 360
29 Galaxy i7500 debuts with O2
29 Omnia family set for WM6.5 upgrade
30 Sony Ericsson
30 Sony ericsson Xperia X2
30 LTE devices set for 2010 launch
30 Sony Ericsson confirms Xperia X2
31 Sony ericsson Xperia Pureness
31 SE aligns branding with Sony
31 New developer tools
31 Sony Ericsson unveils Xperia Pureness ‘anti-smartphone’
32 Toshiba
32 Symbian OS
32 Symbian inks China Mobile partnership
33 Sprint
33 Sprint to support Brew-powered devices
33 T-Mobile International
33 T-Mobile Pulse
33 T-Mobile takes Android to prepaid with Huawei device
33 Huawei Android devices set for wider release

34 Mobile VAS

34 Advertising
34 Mobile internet users failing to engage with ads
35 Applications
35 Nokia Ovi Store numbers fail to impress
35 Bolt-on acquisitions a possibility
36 Telefónica debuts Spanish app store
36 SK Telecom launches T Store mobile marketplace
37 Samsung joins app store set
37 Nokia begins rolling out Ovi APIs and SDK
38 Android Market update planned, addressing weakness
39 BlackBerry
39 Qualcomm targeting emerging markets with trading app
39 3 UK partners with Handango for Symbian OS apps
39 AT&T takes stake in Vlingo
40 Broadcast
40 DVB-H in Germany may live on, with T-Mobile in frame
41 Games
41 Companies
41 Orange-T-Mobile UK alliance to back ad-funded services
41 DoCoMo targets German content platform company
42 Healthcare
42 Content
42 Orange France trumpets “hyperbooks”
42 Data services
42 Verizon to mandate data plans for some feature phones
43 Location-based services
43 Verizon updates family location services
43 AT&T to power Garmin navigation service
44 T-Mobile extends NAVIGON location partnership
44 Vodafone partners with TomTom for Italian LBS
45 Nokia’s NAVTEQ acquires mobile ad player
45 LBS revenue to top $14bn in 2014 — ABI
46 M2M
46 Sierra Wireless and T-Mobile ink M2M MOU
46 Sprint partners with DataSmart for M2M
47 m-commerce
47 GSMA awards Mobile Money for the Unbanked grants
47 Vodafone planning wider M-PESA rollout
47 Belgacom’s PingPing to support online transactions
48 Bridging needed to link payment “islands”
48 Mobile banking moving into mainstream
49 Messaging
49 TIM signs as Nokia Messaging partner
49 Vodacom updates The Grid networking service
50 Music
50 Multimedia
50 Music
50 Vodafone inks final “big four” DRM-free content deal
50 Nokia delays US Comes With Music launch — report
51 Portals
51 Vodafone 360 value-added services platform revealed
51 Comment: admirable ambition, or overstretch?
52 Vodacom debuts refreshed Vodafone mobile portal
52 America Móvil to support Ovi Store in Latin America
53 China Mobile off to a flyer with Mobile Market
53 China Telecom and Unicom readying own content stores
54 Social-networking
54 Orange France revamps mobile portal
54 T-Mobile Germany debuts social-networking app
55 Nokia debuts “lifecasting” application
55 Nokia acquires Plum to bolster social-networking play
56 Technology
56 GSMA backs new mobile broadcast technology
57 Voice services
57 Mobile VoIP revenue to top $32.2bn by 2013
58 Operator content deals
58 Operator technology deals

59 Markets and trends

59 Smart devices
59 IDC notes positives in Western European device market
60 Mobile VAS
60 Mobile internet use peaking during evening — O2 UK
60 Mobile “cloud” services to reach one billion by 2014
61 US “net neutrality” rules could impact mobile internet

62 Index

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• Below is a free taster from issue 2009.09 (September 2009), including an Executive Brief, Extract, Table of Contents and Index, giving a valuable snapshot of the full report.

INDEX

A
ABI Research, 45, 60
Acer, 13, 15
Acuity Mobile, 45
Alcatel-Lucent, 39, 41, 56
- touchatag, 41
Al Jazeera, 58
AMD, 11
America Movil, 16, 52
Apple, 2, 3, 4, 14, 15, 23, 28, 35, 38, 41, 45, 51, 61
- App Store, 3, 4
- iPhone, 2, 3, 4, 14, 15, 28, 34, 36, 38, 41, 44, 48, 51, 61
- iPhone 3GS, 4
- iTunes, 23
ARCHOS, 5
- ARCHOS 5 Internet Tablet, 5
- Phone Tablet, 5
ARM, 13
Asurion Mobile Applications, 58
Atom Technologies, 47
AT&T, 2, 4, 26, 39, 40, 43, 48, 61
Audiovox, 40
AXIS, Indonesia, 47
B
Babajob.com, India, 51
Barcoo, 57
BBC, 58
Belgacom, 47
- PingPing, 47
Bell Mobility, 26
Bharti Airtel, India, 7, 42
BIGMaps, India, 51
Blyk, 41
Broadcom, 7
BSNL, India, 39
C
Capcom, 37
Casio, 17
Casio Hitachi Mobile, 17
CCTV4, 58
Cheng Uei Precision Industry, 40
China Mobile, 2, 6, 13, 32, 53
- Ophone, 6, 13, 32
China Telecom, 6, 42, 53
China Unicom, 2, 53
Chitka, 34
Cisco Systems, 22, 57
Colibria, 58
Compal Communications, 21
Conexus Mobile Alliance, 39
CTIA, US, 61
D
Dell, 6, 22
Deutsche Bahn, 37
Deutsche Bank, 28
Deutsche Telekom, 40, 41
- T-Mobile International, 3
- Germany, 3
- UK, 3
- T-Systems, 40
Di Xing Tong, 2
Dopod, 6
E
Electronic Arts, 37, 58
- EA Mobile, 58
Elevation Partners, 25, 26
EMI, 50
Ericsson, 13, 31, 56
ESPN, 58
Etisalat, UAE, 58
European Union, 5
F
Facebook, 16, 23, 54, 55
FCC, US, 61
Foxconn International, 2
France Telecom
Orange Group, 3, 16, 19, 41, 42, 54, 56, 57
- France, 3, 42, 54
- Moldova, 57
- UK, 3, 19, 41
Fujitsu, 56
G
Garmin-Asus, 6, 43
- nuvifone, 6, 43
- nuvifone M20, 6
Gates Foundation, 47
GetJar, 35
Google, 7, 8, 9, 10, 11, 15, 23, 38, 43, 44, 49, 51, 61
- Android Market, 9, 16, 22, 38
- Android (see also Open Handset Alliance), 3, 15, 28
- Gmail, 16, 49
- Google Maps, 9
- Google Talk, 49
- Google Voice, 61
Grooveshark, 50
GSM Association, 47, 56
- Mobile World Congress, 15
GTalk, 49
H
Handango, 39
Handmark, 37
Hewlett-Packard, 22
Hitachi, 17
HP, 13
HTC, 6, 7, 8, 9, 10, 13, 22, 34
- Galaxy, 28
- Hero, 7, 8, 9, 10, 22
- Imagio/Whitestone, 10
- Predator, 10
- Tattoo, 9, 10
- Touch2, 8, 9, 13
- Touch Diamond, 8, 10
- TouchFLO, 8, 9
- Touch HD, 7
- Touch Pro2, 9
- Touch (Vogue), 3
Huawei Technologies, 9, 32, 33
- U8230, 33
Hutchison Whampoa, 11
- 3 Group, 11
- Hong Kong, 39
- Ireland, 54
- UK, 3, 19, 39
- 3 Group
- INQ Mobile, 11
I
IDC, 59
i-mate, 9
Indian Society of Agribusiness Professionals, 39
Indosat, Indonesia, 39
INQ Mobile, 11
- INQ Mini 3G, 11
In-Stat, 57
In Technology Group
- xpPhone, 11
Intel, 13, 21
iSuppli, 2, 4
J
Jabber, 49
Javelin Strategy & Research, 48
Juniper Research, 59
K
KDDI, 17
Kodiak Networks, 58
L
Larva Labs, 38
Lenovo Mobile, 6
LG Electronics, 6, 12, 13, 15, 17, 59
- Chocolate, 13
- GM750, 12
- GW550, 12
- GW620, 12
- GW880, 13
- LG Application Store, 12
- S-Class, 12, 13
LG Telecom, 17
LiMo Foundation
- LiMo Platform, 11, 29
LinkedIn, 17, 23
Linux Foundation, 13
Lonely Planet, 37, 43
M
M2M DataSmart, 46
M-Com, 47
MEDIA BROADCAST, 40
MetroPCS, US, 30
Michelin, 43
Microsoft, 7, 13, 14, 15, 17, 47
- ActiveSync, 23
- Danger, 14
- Executives
- Ballmer, Steve, 15
- MSN, 49
- My Phone, 13
- Windows, 3, 15
- Windows Live, 49
- Windows Marketplace for Mobile, 13
- Windows Mobile, 3, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 17, 24, 25, 26, 29, 30, 31, 34, 37, 44
- 6, 15
- 6.5, 15
- 7, 15
- WM6.1, 9, 14
- WM6.5, 8, 12, 13, 14, 17, 29, 31
- WM7, 14, 17
Mobile 3.0, Germany, 40
Mobile Commerce, 43
Mobile Interactive Group, 36
mobilkom, Austria, 41, 47
Motorola, 13, 14, 16, 17, 22
- CLIQ/DEXT, 16
- MC9500, 14
- MOTOBLUR, 16
MTL, India, 39
Myriad Group, 16
MySpace, 16, 54
N
National Geographic, 37
NAVIGON, 43, 44
NEC, 17, 56
NEC Casio Mobile, 17
net mobile, 41
News Corp
- MySpace, 16, 54
NFL, US, 58
Nippon Telegraph and Telephone Corporation (NTT)
- NTT DoCoMo, Inc., 28
Nokia, 7, 18, 19, 20, 21, 22, 32, 35, 37, 38, 43, 45, 49, 50, 51, 52, 55, 56, 57, 59
- 5800 XpressMusic, 19
- 7705 Twist, 21
- Booklet 3G, 21
- cellity, 35
- Comes With Music, 19, 50, 52
- Erdos, 22
- Forum Nokia, 37
- Maemo, 18, 20, 22, 28, 37
- N95, 19
- N97, 18, 19, 52, 55
- N97 mini, 18, 55
- N900, 18, 20
- NAVTEQ, 45
- Acuity Mobile, 45
- Nokia Messaging, 49, 52
- Ovi, 18, 19, 35, 37, 43, 51, 52, 55
- Ovi Maps, 37, 43, 52
- Ovi Store, 18, 35, 37, 52
- Point & Find, 57
- S60, 18, 22, 37, 39
- Series 40, 18, 22
- X3, 18
- X6, 19
Nokia Siemens Networks, 56
NTP, 28
NTT DoCoMo, 17, 39, 41, 56
Nuance Communications, 57
Nvidia, 7
O
Oi, Brazil, 47
Open Handset Alliance, 22
- Android, 3, 5, 6, 7, 8, 9, 10, 11, 12, 13, 15, 16, 17, 22, 25, 28, 29, 32, 33, 34, 38, 44, 45, 51
P
Palm, 3, 11, 13, 22, 23, 24, 25, 26, 34, 41
- Palm Pre, 23, 24
- Pixi, 23
- Treo Pro, 25
- webOS, 11, 23, 24, 25
Pearson Longman, 37
Philips, 6
Piper Jaffray, 2
Plum Ventures, 35, 55
PressOK Entertainment, 36
Q
Qualcomm, 7, 9, 23, 25, 33, 36, 39, 40, 42, 46
- Brew, 33, 36
- vBay, 39
- Wireless Reach, 39
R
RCS Initiative, 56
Regions
- Americas, 3, 8, 16, 35, 46, 52
- Aruba, 27
- Bahamas, 27
- Brazil, 47
- Canada, 26
- Caribbean, 27
- Cayman Islands, 27
- Colombia, 27
- Costa Rica, 27
- Dominican Republic, 27
- Ecuador, 27, 58
- Jamaica, 27
- North America, 26
- Panama, 27
- Peru, 27
- Trinidad and Tobago, 27
- US, 2, 8, 9, 10, 11, 16, 17, 20, 22, 23, 26, 27, 30, 34, 45, 46, 48, 50, 58, 61
- APAC, 11, 12
- Afghanistan, 47
- Australia, 3, 14
- China, 2, 6, 10, 11, 13, 15, 19, 32, 35, 42, 53
- India, 3, 7, 10, 16, 28, 39, 42, 47, 50, 51
- Indonesia, 26, 39, 47
- Japan, 17, 39, 41, 49
- Korea, 17, 36, 56
- New Zealand, 3
- Philippines, 39, 47
- Singapore, 39, 58
- South Korea, 30, 36
- Taiwan, 15, 40
- Thailand, 39
- EMEA
- Africa, 16
- Austria, 44, 47
- Belgium, 44
- Denmark, 4
- Europe, 3
- Finland, 22
- France, 16, 37, 41, 44, 50, 54
- Germany, 4, 20, 25, 33, 40, 41, 44, 46, 50, 57
- Greece, 50
- Ireland, 3, 4, 50, 54, 58
- Italy, 3, 20, 37, 38, 43, 44, 49, 50
- Kenya, 47
- Luxemburg, 44
- Netherlands, 44
- Norway, 4
- Portugal, 35, 44
- Romania, 35
- South Africa, 49, 52
- Spain, 3, 16, 27, 36, 50
- Switzerland, 44
- Tanzania, 47
- Turkey, 3
- UK, 3, 4, 16, 31, 33, 36, 37, 39, 41, 44, 50
Reliance Communications, India, 47, 51
Research In Motion, 12, 14, 26, 27, 28, 36, 39
- BlackBerry, 3, 14, 26, 27, 28, 34, 36, 39, 45
- BlackBerry 83xx-/89xx-series (Curve), 28
- BlackBerry 95xx-series (Storm/Thunder), 28
- BlackBerry App World, 27
- BlackBerry Bold, 26
- BlackBerry OS, 28
- BlackBerry Storm, 26
- BlackBerry Tour, 27
- Onyx (9700), 26
Rogers Wireless, 26
Roshan, Afghanistan, 47
Rubberduck Media Lab, 58
S
Safaricom, Kenya, 47
- M-PESA, 47
Sagentia Group, 47
Samsung, 6, 7, 13, 15, 28, 29, 30, 37, 42, 59
- i7500 (Galaxy), 29
- Omnia, 29
- Omnia II (I8000), 29
- Omnia Lite (B7300), 29
- Omnia Pro (B7320), 29
- Omnia Pro (B7330), 29
- Omnia Pro (B7610), 29
- Samsung Application Store, 37
Sang Fei, 6
Selatra, 58
SFR, France, 50
Sharp, 14
Siemens, 56
Sierra Wireless, 46
SingTel, Singapore, 11, 56
SK Telecom, 36
- T Store, 36
Skype, 57
Smartbook AG, 25
SMART, Philippines, 39, 47
SoftBank, 17, 32, 49, 51, 56
- SoftBank Mobile, 17, 32, 49, 51, 56
Sony
- Sony Music Entertainment, 50
Sony Ericsson, 7, 13, 15, 30, 31, 59
- PlayNow, 31
- Xperia, 13, 30, 31
- Xperia Pureness, 31
- Xperia X1, 30
- Xperia X2, 13, 30, 31
SpinVox, 57
Sprint, 2, 8, 9, 10, 22, 23, 26, 27, 33, 43, 45, 46, 58
- Family Locator, 43
StarHub, Singapore, 39, 58
ST-Ericsson, 7
Swisscom, 41
Symbian Foundation, 11, 19, 20, 22, 32, 34, 37, 39, 49
- Symbian OS, 11, 19, 20, 22, 32, 34, 37, 39, 49
T
TAITO, 37
Technology
- 2G
- CDMA, 28
- GSM, 28
- 3G
- HSxPA, 28
- Android, 5, 6, 7, 8, 9, 10, 11, 12, 13, 16, 17, 22, 25, 29, 32, 33, 34, 38, 44, 45, 51
- ARM, 13
- Brew, 33, 36
- DMB, 40
- DRM, 36, 50
- DVB-H, 40
- Flash Lite, 5, 13, 19
- FLO, 40
- GPS, 5, 8, 9, 10, 11, 12, 13, 14, 16, 18, 19, 21, 22, 23, 29, 30, 33, 36, 43, 45, 55
- IM, 16, 49, 58
- IMS, 56, 57
- Instant messaging, 28
- Java, 31, 33
- Linux, 5, 11, 13, 17, 18, 22, 29
- LTE, 11, 30, 57
- M2M, 46
- MBMS, 56
- NFC, 41
- PTT, 58
- R&D, 28
- SIM, 4
- Symbian OS, 11, 19, 20, 22, 32, 34, 37, 39, 49
- Touchscreen, 28
- UMA, 57
- VoIP, 57
- Widgets, 16, 18
- Wi-Fi, 5, 8, 9, 10, 11, 12, 13, 14, 16, 18, 19, 20, 21, 22, 23, 27, 29, 30, 33, 37, 52, 54, 57, 61
- WiMAX, 11, 20, 30
- Windows Mobile, 6, 7, 8, 9, 10, 11, 12, 13, 14, 17, 24, 25, 26, 29, 30, 31, 34, 37, 44
- WLAN, 28
- x86, 13
Telecom Italia, 49, 50
- TIM, 49
Telefonica, 3, 16, 36
- Telefónica Europe (O2), 3, 29, 36, 41, 43, 58, 60
- Ireland, 58
- UK, 3, 29, 36, 41, 43, 60
- Telefónica Espana, 36
Telstra, 43, 56
- Whereis Navigator, 43
Texas Instruments, 5
The Carphone Warehouse, 19
T-Mobile International, 2, 8, 9, 16, 26, 33, 40, 41, 43, 44, 46, 54, 56
- Germany, 54
- MyCommunity, 33, 54
- Pulse, 9, 33
- UK, 33, 41
- USA, 2, 8, 16, 26
TomTom, 43, 44
Toshiba, 13, 15
TownHall Investment Research, 27
TrueMove, Thailand, 39
Twitter, 16, 36, 54
U
United Villages Networks, India, 39
Universal Music, 50
US Cellular, US, 58
- My Contacts Backup, 58
V
Verizon Wireless, 2, 9, 10, 17, 21, 22, 26, 27, 30, 32, 33, 35, 36, 40, 42, 43, 45, 46, 48, 58
- Chaperone, 43
- Family Locator, 43
- VZ Navigator, 43
Viacom
- MTV Networks, 58
Visa International, 47
Visto Mobile, 28
Vlingo, 39
Vodacom, 49, 52
- The Grid, 49
Vodafone Group, 3, 4, 12, 13, 26, 29, 32, 35, 43, 44, 45, 47, 50, 51, 52, 56, 58
- Germany, 12, 26, 50
- Italy, 26, 43, 44
- M-PESA, 47
- Qatar, 58
- Romania, 35
- UK, 26, 52
- Vodafone 360, 51
- Vodafone live!, 35, 51, 52
- Vodafone My Web, 51, 52
- Vodafone People, 51
Vonage, 57
W
Warner Music Group, 50
Wcities, 43
X
Xumii, 16
Y
Yahoo!, 23, 49
- Mail, 49
- Messenger, 49
Z
Zain, 39
- Saudi Arabia, 39
ZTE, 6, 32

Speaking at a Goldman Sachs conference, Vittorio Colao, Chief Executive of Vodafone Group, talked up the prospective spin-off benefits of Orange and T-Mobile’s proposed UK merger, but caused a few ripples by saying Vodafone is “re-looking” at its stake in Verizon Wireless. Also regarding mergers and acquisitions, Vodafone’s enthusiasm to increase its stake in Polkomtel was said to have cooled somewhat, possibly because of economic and regulatory conditions that saw the Polish operator’s net profit dip 9% in Q2 FY09. It was also suggested that Vodafone had not, despite previously reported interest, made a competitive bid for Telecom Italia’s German broadband arm, HanseNet. [pp.4-6,8,46.]

Also at the conference, Colao gave further indications that the company is planning to announce cost-cutting measures above and beyond its existing efficiency programme. [p.9.]

Vodafone was said to have secured a mobile licence in French Polynesia, following recent government negotiations, although the award was not confirmed. [p.7.]

Issue: 2009.08-09
Covering: 6 August to 21 September 2009
Published: September 2009
Next issue: October 2009

Vodafone and its rich web of OpCos — tracked and analysed worldwide. A unique monthly report for the industry.

• About Vodafonewatch
• Executive Brief
• Extract
• Table of Contents
• Index

ABOUT VODAFONEWATCH

• Vodafonewatch is the only independent monitor of everything and anything to do with Vodafone Group, worldwide. Nothing else comes close.
• Thorough, impartial, accessible, and time-saving. Covering not just the world’s number-one mobile group and its many operating companies, but also providing coverage of its wider interests, including Verizon Wireless, Vodacom, China Mobile, SFR, Polkomtel, Safaricom, Partner Markets, and much more.
• Our ‘watch’ titles are repeatedly described by clients and end-users as the single most valuable source of third-party intelligence. Considered invaluable by many high-achieving commercial teams and account directors.
• A unique source of valuable opportunities, knowledge, planning, strategy, and much more. Both tactical tool and strategic reference. An invaluable reference, input and even springboard for corporate planning, reporting, and meetings.
• A ‘must-have’ for sales teams focused on high-value sales, maintaining strategic relationships, and managing extended sales cycles. Just one nugget, insight, or validation can pay for the service many times over.
• Pricing typically USD $4k / EUR EUR3k / UKP £2.5k per year for a workgroup or small/midsize account, tailored to meet your needs and situation. Delivered electronically 10-12 times a year. Also available are back issues, which provide unparalleled reference and insight into major events, strategic initiatives, financials and KPIs.
• Copies of individual reports are available, priced from UKP 200 plus any applicable sales taxes (or around USD $300 / EUR EUR230, governed by prevalent foreign exchange rates). Contact sales@marketmettle.com to place an order or find out more. Multiple purchasing options available, including payment cards.
• Contact us for further information, including samples and evaluation trial requests. info@marketmettle.com / +44-20-7083-0055.
• Below is a free taster from issue 2009.08-09 (August-September 2009), including an Executive Brief, Extract, Table of Contents and Index, giving a valuable snapshot of the full report.

EXECUTIVE BRIEF

GROUP: Vodafone poached Cenk Serdar, Turkcell’s value-added service chief, to drive the roll out of its mobile money-transfer platform internationally, and is said to have appointed an unnamed multinational IT group to support the expansion. [p.3.]

Speaking at a Goldman Sachs conference, Vittorio Colao, Chief Executive of Vodafone Group, talked up the prospective spin-off benefits of Orange and T-Mobile’s proposed UK merger, but caused a few ripples by saying Vodafone is “re-looking” at its stake in Verizon Wireless. Also regarding mergers and acquisitions, Vodafone’s enthusiasm to increase its stake in Polkomtel was said to have cooled somewhat, possibly because of economic and regulatory conditions that saw the Polish operator’s net profit dip 9% in Q2 FY09. It was also suggested that Vodafone had not, despite previously reported interest, made a competitive bid for Telecom Italia’s German broadband arm, HanseNet. [pp.4-6,8,46.]

Also at the conference, Colao gave further indications that the company is planning to announce cost-cutting measures above and beyond its existing efficiency programme. [p.9.]

Vodafone was said to have secured a mobile licence in French Polynesia, following recent government negotiations, although the award was not confirmed. [p.7.]

Vodafone handed OMD a much sought-after, centralised media buying contract in a bid to more efficiently manage its international advertising expenditure. Vodafone also signed a three-year deal with EMC, to make the vendor its preferred storage provider in Europe, following a review of its requirements. [pp.10,15-17.]

VZW indicated that services based on its Joint Innovation Lab initiative with China Mobile, SoftBank, and Vodafone could be available from early-2010. Meanwhile, Vodafone is said to be preparing to launch an integrated social-networking service, called Vodafone People, using synchronisation technology from 2008 acquisition ZYB. [pp.11,13.]

Vodafone revealed plans to release an own-brand personal wireless cloud offering based on Novatel Wireless’s MiFi terminal, and boosted its own-brand consumer device line-up with the release of several new models. [pp.13,14.]

VZW furthered preparations for its upcoming Long Term Evolution (LTE) rollout, making data calls across two trial networks in Boston and Seattle, while Vodafone’s German, Romanian, Spanish, and UK arms all made further steps along the Group’s current more 3.5G-oriented infrastructure development path. NSN and Vodafone said they have successfully tested active antenna technology in Italy. [pp.18,28,29,36,41,49.]

WESTERN EUROPE: SFR announced that like-for-like revenue fell 0.3% in H1 2009, amid increased competition, lower voice revenue, and higher regulatory charges. Elsewhere, the operator signed a string of supplier contracts with: NSN for mobile backhaul; Netgem and Wyplay for Internet Protocol television platforms; and Steria for managed IT services. [pp.24-26.]

Vodafone Germany shelved its current IPTV offering while it develops a new, VDSL-oriented product for launch in 2010. The operator also expanded trials of mobile broadband delivery over ‘digital dividend’ frequencies, and opened up voice-over-Internet Protocol services to some of its mobile internet users. [pp.27-29.]

Vodafone Ireland’s strategic partnership with BT Ireland was approved by the Irish Competition Authority. TomTom and Vodafone extended their European collaboration on navigation services to Italy. After successful trials, Vodafone Portugal is to launch mobile broadband “experience management” software from US vendor Carrier IQ. [pp.31,32,35.]

Vodafone UK launched a converged offering branded Vodafone One Net , instigating a push into the SME market for fixed-line services. [pp.39,40.]

CENTRAL EUROPE: Vodafone Czech Republic secured an exclusive agreement to supply telecoms services to KKCG, a local investment group, and claims to have seen a positive response to recent discounting of mobile data connections. [pp.44,45.]

Polkomtel succeeded in quelling unrest among its prepaid airtime distributors, who had taken the operator’s vouchers out of circulation in protest over partnership terms. The operator also handed more work to Intec, as part of its ongoing convergent billing project. [pp.46,48.]

AFRICA: Plans by Vodafone Ghana to cut almost 1,000 more employees met with regulatory and union resistance, despite efforts by the operator to make the case for its streamlining programme. In Kenya, Safaricom continued its march on the broadband market with the takeover of data communications provider Packet Stream Data Networks. Separately, the operator said it is taking advice on a potential restructuring of its share base. [pp.51-55.]

Vodacom agreed a deal with Microsoft to offer managed, pay-as-you-go enterprise tools, and formed a new unit to cultivate emerging market-oriented services. [pp.59,60.]

ASIA-PACIFIC: Vodafone Hutchison Australia successfully negotiated state funding for its Tasmanian contact centre, which as a result will survive the operator’s post-merger rationalisation programme while two other facilities are axed. The operator also completed a long-running expansion of its 3G coverage, but became embroiled in a dispute between Optus and telecoms service provider Mediatel Australia. [pp.62,65.]

China Mobile saw its first drop in net profit for ten years, and subscriber growth continues to slow, amid revived competition from rivals. However, the operator furthered its response to those challenges with the long-awaited opening of its Mobile Market application store, measures to stimulate 3G service development, and several new smartphone partnerships. Analysts suggested that China Mobile has overtaken Vodafone, to seize the mantle of world’s largest mobile group by revenue (it was already top, by customer numbers). [pp.66,67,69-71.]

Reports indicate that Vodafone Essar is planning to slash the size of its supplier roster, and consolidate its outbound call centre operations, as part of an ongoing drive for greater efficiency. India’s government gave 7 December 2009 as the new start date for its long-delayed 3G auction. Bharti Airtel and South Africa’s MTN were reported to have reached a preliminary agreement on their merger proposal. Airtel also announced a managed service agreement with messaging vendor Acision. [pp.72-77.]

SoftBank Mobile regained top-spot in terms of monthly net subscriber additions, after seeing a 27-month winning streak broken in July 2009. [p.77.]

Vodafone New Zealand rival 2degrees was perceived to have gained a warm welcome from consumers, after finally launching services. Vodafone agreed a partnership with satellite telecoms provider Farmside to target rural users. [pp.78,79.]

MIDDLE EAST: Vodafone Egypt renewed a contract to lease capacity on joint parent Telecom Egypt’s international gateway, but was warned by the regulatory authority over a promotion that apparently offered consumers over-generous pricing. [pp.80,81.]

Vodafone Qatar continued to expand its market presence, agreeing deals with ten new distribution partners and introducing prepaid and mobile internet services. It also claims to have reached 99%-population coverage – although indoor signals appear to be an issue, and much of its infrastructure is still made up of temporary towers. [pp.82-84.]

EXTRACT

New cost-cutting measures in the offing

Vittorio Colao, Chief Executive Officer (CEO) of Vodafone Group, confirmed suspicions that a potentially significant efficiency-related announcement is in the pipeline, supplementing the Group’s existing and seemingly already accelerated £1bn (EUR1.12bn) cost-cutting programme (Vodafonewatch, 2008.11-12 and 2009.01).

” We are reducing costs…and we are going to announce something else again in November [2009] to increase this cost-reduction effort, which I think will not disappoint investors. ” – Colao, speaking at Goldman Sachs’ Communacopia XVIII conference (see separate report).

Vodafonewatch previously speculated that the lack of an update on the cost-cutting programme in Vodafone’s Q1 FY09-10 results suggested the Group was saving up related positive news for subsequent earnings releases. Rumours have, for example, been circulating of upcoming major outsourcing arrangements, but Colao did not go into more detail, other than to say the Group has focused reductions away from commercial activities.

” I want to be very clear – because this is a very strong point – we have not capped commercial costs. Actually, if anything, we have increased commercial costs. We have not cut customer spending, [i.e.] customer-facing activities, and we have not cut capex related to increased improvement of technology. ”
– Colao.

Colao made a bullish pitch for Vodafone’s recent operational performance, and the resilience of the telecoms sector, but was more neutral on the wider economic outlook, saying there is “now more optimism” and that company is seeing improvements in some areas, but not in others (such as roaming, which has seen no improvement). He said that, while revenue may be okay, he was particularly concerned about the absence of improved corporate recruitment indicators (such as buying new BlackBerries) and the effects of unemployment in general.

” Maybe it’s not worsened any more, but I’m not seeing a big change, and employment for me – especially in Europe – is an important driver of household confidence and spending, so I would like to stick to my first-quarter position, saying that things have not worsened, and we watch very carefully what’s going on. “

” The next two quarters will see further adjustments reflecting the economic situation, but these will be smaller and converging. The basics of the real economy will then again become important — unemployment levels, consumption, debt levels, and the ability for industry to create value, which will discriminate both companies and markets. In our sector, the exciting growth of data services will continue, with better and better devices. Investment plans will continue, and infrastructure advancement will enable consumers and businesses to adopt new communications technologies. ”
– Colao.

[Further reference: Goldman Sachs Communacopia XVIII Conference webcast -- Goldman Sachs, September 2009; Chief executives relive the crisis -- Daily Telegraph, 14 September 2009; Vodafone CEO sees slight trading improvement -- Reuters, 16 September 2009.]

TABLE OF CONTENTS

3 Group

3 People
3 Vodafone enlists Serdar to expand mobile money arm
3 Vodafone Money Transfer to move to “global IT organisation”
4 M&A
4 Colao highlights plusses of T-Mobile-Orange UK merger…
5 …and reopens VZW speculation
6 Vodafone “cools on Polkomtel buyout”
7 Corporate
7 Vodafone secures French Polynesian licence — report
8 Vodafone makes “somewhat low” HanseNet bid…
8 …but reportedly eyes German cable operator
9 Financial
9 New cost-cutting measures in the offing
10 Financial
10 Partner Markets
10 Marketing
10 OMD lands Vodafone’s centralised media brief
10 Vodafone to overhaul brand messaging
11 Products and services
11 JIL “to launch in early-2010″
13 “…out of context…”
13 Vodafone launches Novatel’s MiFi offering
13 Vodafone plans integrated social-networking service
14 Society
14 Vodafone updates own-brand handset range
15 Suppliers
15 Vodafone consolidates European storage supply
15 Technology
15 Hitchcock highlights cost-conscious IT strategy
16 Synchronoss: Vodafone review continuing
18 USA — Verizon Wireless
18 NSN, Vodafone in active-antenna demo
19 VZW tests first LTE cell sites
20 Price cuts herald VZW smartphone revamp
22 FCC to probe mobile competition
22 Verizon COO to retire

23 Western Europe

23 Albania
23 Vodafone Albania penalised for abuse of market power
24 France
24 SFR earnings fall 7.1% on competition
25 NSN wins contract for backhaul upgrade
25 SFR selects Netgem, Wyplay for IPTV software
26 Steria wins EUR100m outsourcing deal
26 SFR takes over loss-making MVNO
27 Germany
27 Vodafone shelves IPTV offering…
27 …but plans VDSL-oriented substitute
28 Greece
28 Vodafone, Huawei, launch ‘digital dividend’ trials
29 Ireland
29 Vodafone offers VoIP add-on
29 Vendors complete packet core network upgrade
31 Vodafone showcases Connected Home devices
31 BT deal gets green light
32 Italy
32 TomTom partnership extended to Italy
33 Malta
33 Aramex lands second Vodafone deal
33 Vodafone denies obstruction accusations
34 Netherlands
34 Prepaid packages introduced for BlackBerry
34 Marvellous promotes Magic through urban game
35 Portugal
35 Vodafone deploys Carrier IQ analytics software
36 Spain
36 Vodafone rolls out HSPA+
36 Vodafone signs another ethnic MVNO
37 Telefónica takes action against Vodafone fixed-line offer
37 Vodafone to fight RTVE financing tax
37 Portability losses hit Vodafone Spain
39 United Kingdom
39 Vodafone launches converged product for SMEs…
40 …picks Virgin exec to push SME sales
41 Vodafone claims improved broadband speeds
41 Indoor coverage maps published for first time
42 Vodafone trumpets mobility deal with police
42 Vodafone reveals Mobile Clicks finalists
43 Vodafone plays down mis-selling complaints

44 Central Europe

44 Czech Republic
44 Vodafone lands deal with Czech financial group
45 Hungary
45 Vodafone claims success with data promotions
46 Poland — Polkomtel
46 Polkomtel net profit down 9.1% in Q2
46 Intec selected to extend convergent billing
48 Polkomtel drags feet on new portability rules
48 Polkomtel resolves airtime distributor dispute
48 Polish m-commerce platform planned
49 Romania
49 Vodafone launches HSPA+ upgrade
50 Turkey
50 Highlights

51 Africa

51 Ghana
51 Vodafone seeks to dampen redundancy protests…
52 …as unions threaten “unrest” over new lay-offs
52 Review of Ghana Telecom deal completed
53 Kenya — Safaricom
53 Packet Stream buy boosts Safaricom internet business…
54 …but Safaricom seeks to manage price cut expectations
55 Safaricom mulls share base overhaul
57 Michael Joseph on impact of mobile services in Kenya
57 South Africa — Vodacom
58 Mobile TV “not working” — Nation Media
59 Vodacom Business launches Microsoft hosted solutions
60 Tanzania — Vodacom
60 Vodacom launches incubator for emerging market apps
60 …brings Betavine to South Africa
60 Vodacom challenged to justify itemised billing fees
61 Democratic Republic of Congo — Vodacom
61 Vodacom highlights customer registration difficulties

62 Asia-Pacific

62 Australia — Vodafone Hutchison Australia
62 Tasmanian call centre survives after state support
63 Vodafone’s 3G upgrade completed
63 Ikon retains Vodafone media account
64 China Mobile
64 Vodafone “happy with” GRLmobile MVNO
64 …and backs gotalk venture
65 Vodafone dragged into Optus and Mediatel row
65 Merger boosts Hutchison financials
66 China Mobile reports first profit fall since 1999
67 IBM hints at outsourcing plans?
67 China Mobile debuts mobile app store…
69 …and seeks to galvanise 3G VAS creation
70 China Mobile extends OPhone family…
71 Fiji
71 …and inks Nokia partnership
71 E-readers in the pipeline
72 India –Vodafone Essar
72 Vodafone boosting Indian equity interest by 6%
73 Vodafone Essar equity
73 “…out of context…”
73 Vodafone Essar to consolidate call centres…
73 …and streamline supplier relationships
73 New start-date for 3G sell-off announced
74 India — Bharti Airtel
74 Highlights
75 Vodafone targets cinema-goers
75 Airtel ups cash element of MTN offer — reports
76 Currency fluctuations could also affect price
76 Finance said to be in place
76 Prospect of dual-listing raised
77 Japan — SoftBank Mobile
77 Airtel outsources MMS management, replaces supplier
77 SoftBank regains subscriber growth lead
78 New Zealand
78 2degrees launch prompts spike in porting
78 “Excessive profit-taking” alleged
79 Vodafone wholesale complaints upheld
79 Incumbents given termination rate ‘ultimatum’
79 Vodafone, Farmside partner for rural broadband push

80 Middle East

80 Egypt
80 Vodafone retains TE as exclusive wholesale provider
80 TE comes under pressure on pricing
80 Vodafone warned on price cuts…
81 …after shift in focus onto net adds
81 Vodafone Egypt to re-launch payment service
82 Qatar
82 Vodafone boosts channel partnerships…
82 …launches “travelling stores” and bank partnerships
83 Phased rollout continues with prepaid launch
83 …and Al Jazeera tie-up
84 Vodafone highlights network progress, despite issues

85 Index

INDEX

A
Abu Dhabi Group, 74
AccessKenya, 53
Acision, 77
Aditya Birla Group
- Idea Cellular, 39, 73, 75, 77
- – Indus Towers, 39, 73, 75, 77
Aegis Group plc
- Carat, 10
Africa, 51-55, 57-61, 74-76
- Congo, 3, 57, 61
- East Africa, 53
- Egypt, 3, 57, 80-81
- – National Telecommunication Regulatory Authority, 80-81
- Ghana, 51-52, 57
- – Government, 52
- Kenya, 3, 53-55, 57-58, 61, 74
- – Government, 52, 55
- – Nairobi Stock Exchange, 55
- Lesotho, 57
- Mozambique, 3, 57
- South Africa, 57-61, 75-76
- – Black Economic Empowerment (BEE), 57
- – Department of Communications (DOC), 60
- – Government, 57, 60-61
- – Independent Communications Authority of South Africa (Icasa), 60
- Tanzania, 3, 57, 60-61
Agile Software, Inc., 15
Al Hashemi Group
- Al Sarya Group, 82
Al Jazeera, 83
Al Meera Consumer Society, 82
Alcatel-Lucent, 67, 77
Amalgamated Telecom Holdings (ATH), 71
- Telecom Fiji, 71
- Vodafone Fiji, 71
Amdocs Ltd, 59
- OpenMarket, Inc., 59
Americas, 3, 18-20, 22, 32
- Caribbean, 7, 71
- North America, 28
- United States of America (USA), 3, 11, 18-20, 22, 32, 76
- – States, 4, 67
- – - New York, 4, 67
- – Voice of America (VoA), 58
Analysys International, 69
Apple, 20, 24, 26, 31, 41, 59, 70-71
- App Store, 59
- iPhone, 20, 24, 26, 31, 41, 59, 70-71
Aramex, 33
Archipelago, 33
Asia-Pacific, 7, 63, 69, 73
- Afghanistan, 3
- Australia, 10, 36, 62-65
- – Legal, 65
- China, 9, 11, 28, 54, 64-67, 69-71
- – Government, 28, 65-66
- – Province/Municipality/Region, 65, 67, 69-70
- – - Guangdong, 67
- – - Hainan, 69
- – - Jiangsu, 69
- – - Shanghai, 65, 69-70
- – - Tibet, 70
- – - Zhejiang, 69
- – State Administration of Radio, Film, and Television (SARFT), 69
- – - China Satellite Mobile Broadcasting Corporation (CSMBC), 69
- Fiji, 71
- French Polynesia, 7
- – Office des Postes et des Télécommunications (Office of Posts and Telecom), 7
- – - Tikiphone SA, 7
- India, 10, 62, 64, 71-77
- – Department of Telecommunications (DoT), 73-74
- – Foreign Direct Investment (FDI), 72
- – Foreign Investment Promotion Board (FIPB), 72
- – Government, 62, 73-74
- – Legal, 74
- – Licence Circles, 74-75
- – - Jammu & Kashmir, 74
- – - Kerala, 75
- – - Kolkata, 75
- – - Mumbai, 74-75
- – Telecom Regulatory Authority of India (TRAI), 74
- Japan, 77
- New Zealand, 7, 36, 78-79
- – Commerce Commission, 79
- – Department of Internal Affairs and Communications, 77
- – Telecommunications Carriers Forum (TCF), 78
- Singapore, 75
- Sri Lanka, 75
- Taiwan, 14, 66, 71
- – Government, 66
- Thailand, 4
- Turkmenistan, 11
- Uzbekistan, 11
AsiaInfo Holdings, 69
ASPire Group, 64
AT&T, 9, 18, 20, 22
Axiata Group Bhd (TM International)
- India (Idea Cellular, see also Aditya Birla), 73, 75
- Singapore (Mobile One, see also separate listing), 75
Axiom Telecom, 82
B
Barclays plc
- Barclays Bank India, 76
BestBefore Media Ltd
- Audioboo, 42
Bharti Group
- Bharti Airtel, 39, 72-77
- – Bharti Infratel, 77
- – Bindal, Atul, 76
- – Indus Towers, 39, 73, 75, 77
- Bharti Enterprises, 75
- Bharti Infotel, 74
- Comviva Technologies (Bharti Telesoft), 77
Bigballs Ltd, 43
Boomerang Publishing, 34
Bouygues Group, 25
Bridge Security, 51
British Broadcasting Corporation (BBC), 54
British Midland Airways, 54
BT Group, 4, 31, 39-40
- BT Wholesale, 39-40
C
Carlyle Group
- WILLCOM, Inc., 77
Carrefour Group, 82
Catalyst Communications Technologies, 22
CCS Insight, 4
Central/Eastern Europe, 44
- Albania, 23
- – General Directorate of Taxation, 23
- Armenia, 11
- Czech Republic, 44-45, 82
- Hungary, 44-45
- Poland, 6, 46, 48-49
- – Electronic Communication Office (UKE, Poland), 48
- – Government, 6
- Romania, 13, 36, 44, 49-50
- Russia, 11
- Turkey, 50
- Ukraine, 11
China Aviation Development Foundation
- China Airlines Ltd, 69
China International Capital Corporation Ltd (CICC), 65
China Mobile, 9, 11, 28, 64-67, 69-71
- C.M. Group Shanxi Co. Ltd, 67
- Fetion, 69-70
- Mobile Market, 67, 69
- Mobile Paper, 71
- Ophone, 70-71
- Wang Jianzhou, 66, 69, 71
China Telecom, 66-67, 69-70
China United Telecommunications (China Unicom), 66-67, 69-71
Choice (Australia), 63
Chordiant Software, Inc., 15
Cisco Systems, 5
Citigroup, 76
Clearwire Corporation, 6, 19
Comarch SA, 46
Commercial Bank of Qatar Inc., 82
CommScope, Inc.
- Andrew Solutions, 59
Computer Science Corp., 17
Convergence Partners, 58
Coronation Fund Managers Ltd, 75
Corporacion de Radio y Television Espanola (RTVE), 37
Crazy John’s (see also Vodafone Australia), 64
D
Dar es Salaam Water and Sewerage Corporation (DAWASCO), 61
Datang, 71
De La Rue plc, 5
Debitel, 24
Dell, 67, 70
Deutsche Telekom, 4-5, 10, 27-29, 40-41, 44-46, 48
- Polska Telefonia Cyfrowa (PTC), 46, 48
- T-Mobile International, 4-5, 10, 28-29, 40-41, 44-45
- – Czech Republic, 44
- – Germany, 28-29
- – Hungary, 45, 51-52
- – Netherlands, 4
- – UK, 4, 10, 40-41
Digicel, 7, 71
- Caribbean, 7
- Fiji, 71
- Pacific, 7
Distribution House, 82
Doha Bank, 82
Dopod, 67, 70
E
East African Marine System (TEAMS), 16-17, 34, 54
Eastman Kodak, 40
EFG-Hermes Holding Company (Egyptian Financial Group), 81
eircom, 29
Elephant Consortium, 58
Elso Mobilfizetés Elszámoló Zrt (EME), 45
EMC, 15
EMOBILE Ltd, 77
EPM Telecomunicaciones S.A E.S.P (UNE), 36
Ericsson, 11, 19, 28, 40, 63, 77
Essar Group, 10, 39, 53, 72-75
- Essar Communications, 53, 67, 74
- – Essar Telecom Kenya (Yu/ETK/Econet Wireless Kenya), 53, 67, 74
- Vodafone Essar (See also Vodafone), 10, 39, 72-75
Etisalat
- Etisalat Misr (Egypt), 80
European Union, 24
F
Facebook, 13-14, 43, 59, 63
Far Eastern Group
- Far Eastone Telecommunications Co., Ltd., 66
Farmside Ltd, 79
Fédération Internationale de Football Association (FIFA), 59
Fiberhome Telecommunication Technologies, 67
First Mobile, 23
Firstsource Solutions Ltd, 73
Fonterra Co-operative Group, 78
France Télécom, 4-5, 10, 13, 24-25, 37, 40-41, 46, 48-50, 53, 80
- Orange, 4-5, 10, 13, 24-25, 37, 40-41, 46, 48-50, 53, 80
- – France, 24-25
- – Mobinil, 80
- – Poland (see also Telekomunikacja Polska), 46, 48
- – Romania, 50
- – Spain, 37
- – Telkom Kenya (see also separate entry), 53
- – UK, 4, 10, 40-41
freenet AG (Mobilcom), 8
Frost & Sullivan, 70
G
Genpact Ltd, 73
GetJar.com, 50
Ghana Telecom, 51-52
Ghosh, Asim, 72-73
Globacom Ltd, 51-52
- Glo Mobile, 52
Goldman Sachs, 4-5, 9
Google, 34, 41-43, 49, 59
- Android, 34, 42, 49, 59
- Google Maps, 41
- Google Search, 41-42
- Google Talk (GTalk), 13, 59
Grand China Airlines Holding Co.
- Hainan Airlines, 69
Green Bay Packers, 20
GSM Association (GSMA), 14, 40
- Mobile Media Metrics (MMM), 40
- Mobile World Congress, 14
H
Hanwang Technology Co. Ltd., 71
Hellenic Telecoms (OTE)
- COSMOTE
- – Albanian Mobile Communications (AMC), 23
High Tech Computer Corp. (HTC), 34, 42, 45, 49
Hisense Electric Co., Ltd., 70
Hon Hai Precision Industry Company Ltd
- Foxconn Technology Group, 71
HSBC, 81
Huawei Technologies, 18, 28, 67
- Vodafone Station, 33
Hungama Digital Media Entertainment Pvt. Ltd, 71
Hutchison Whampoa, 4, 10, 40, 52, 62-65, 72
- 3 Group, 4, 40, 77
- – 3 UK, 4, 40
- Hutchison Telecommunications Australia (HTAL), 62-63, 65
- – Dews, Nigel, 62-63
- Hutchison Telecommunications International Ltd, 52, 62, 65, 72
- – Kasapa Telecom Ltd (Ghana), 52
- VHA Pty. Ltd (Australia, see also Vodafone), 62-65
I
IBM, 67, 77
Iliad, 25
In-Stat, 66
Indiagames, 74
Indus Towers, 39, 73, 75, 77
INFO-TV-FM, 48
Informa
- Ovum, 4
Institute of Electrical and Electronics Engineers, Inc., 69
Institute of Telecommunications Professionals, 84
Intec, 46
Intelenet Global Services Pvt. Ltd., 73
Interpublic Group of Companies, Inc.
- Initiative Media, 40
- McCann Erickson, 33
- Universal McCann, 63
Intertech, 82
ip.access, 41
J
Jamii Telecommunications Ltd (JTL), 53
Japan Telecom, 77
Johannesburg Stock Exchange (JSE), 57
K
KDDI, 77
KGHM, 6, 46
KKCG, 44
Knowles, Beyoncé, 58
Kordia, 79
KPMG International, 73
KPN, 28
- E-Plus, 28
L
Lebara Group
- Lebara Mobile, 36, 64
Lenovo, 67, 70
LG Electronics, 11, 19, 67, 70
LiMo Foundation, 13
Link Communications, Inc., 22
Lloyds Banking Group plc, 4
- – Insight Investment, 4
M
MACH, 49
Management Recruiters Global, 4
Marvellous, 34
MasterCard, 48
mChek, 76
MediaTek, Inc., 14
Mediatel
- Mediatel Australia, 65
Micro Provident Tanzania Limited (Faidika), 60
Microsoft, 20, 39, 59
- Exchange, 59
- MSN, 59
- Office, 39
- SharePoint, 59
- Windows Mobile, 11
Middle East, 3, 5, 33, 57, 74, 80-84
- Egypt, 3, 57, 80-81
- – National Telecommunication Regulatory Authority (NTRA), 80-81
- Qatar, 33, 82-84
- – Qatar Foundation for Education, Science and Community Development, 82
- – Supreme Council for Information and Communications Technology (ictQATAR), 84
- Saudi Arabia, 80
Millicom International Cellular
- Tigo Ghana, 51-52
Mitchell Communication Group Limited, 63
Mobile One (Singapore), 75
MobileMonday Oy, 42
MobilParkolas, 45
Mobinil (see also France Telecom and Orange), 80
Mobitelea Ventures, 53
MoneySavingExpert.com, 43
Motorola, 19-20, 70
MTN, 51-52, 57, 60, 75-76
- Ghana (Scancom), 51-52, 57
- South Africa, 57, 75-76
MWorks, 43
N
Naspers Limited (MIH Group)
- MultiChoice
- – DStv, 61
National Telecommunication Regulatory Authority, 80-81
Net Mobile, Germany, 83
NetGem SA, 25
News Corp.
- MySpace, 43
Nokia, 3, 41, 45, 67, 71
- Ovi, 67
Nokia Siemens Networks, 18-19, 25, 77
Nomura, 75
Nortel, 67
Novatel Wireless, 13
NTT
- DoCoMo, 77
Numéricable, 24
NZ Communications
- 2degrees, 78-79
O
Omnicom
- OMD, 10
- PHD, 63
Omnifone Ltd, 13
- MusicStation, 13
Open Handset Alliance (OHA)
- Android, 34, 42, 49, 59
Opera Software, 14
Orbitel Comunicaciones Latinoamericanas S.A., 36
Orion Cable GmbH, 8
P
Pacific Mobile Telecom (PMT), 7
Palm, 20, 70
PKN Orlen, 6, 46
Polkomtel, 6, 46, 48-49
- Bauc, Jaroslaw, 46
- Chill Bill, 46
- Plus GSM, 46
Polska Grupa Energetyczna (PGE)
- Polskie Sieci Elektroenergetyczne (PSE), 6, 46
Portugal Telecom
- TMN, 36
Proton Technologies, 49
Providence Equity Partners
- KDG Holding GmbH (Kabel Deutschland), 8
PTC, 46, 48
Q
Qatar Foundation Consortium, 82
Qatar International Trading and Investment Company (Qatcom), 82
Qatar National Import and Export (QNIE), 82
Qatar Telecom (Qtel), 82-84
Qualcomm, Inc., 19-20
- BREW, 20
R
Radio Maria Association
- Radio Maria, 61
red2 Ltd, 82
Reliance-Anil Dhirubhai Ambani Group
- Reliance Communications (RCom), 73-74
Research In Motion, 9, 11, 20, 24, 34, 37, 42, 45, 70
- BlackBerry, 9, 11, 20, 24, 34, 37, 42, 45, 70
- – 9000 Storm (Vodafone-VZW), 11, 20, 34
Roshan (Telecom Development Company Afghanistan Ltd), 3
Rummble Ltd, 42
S
Safaricom, 3, 53-55, 57-58, 61, 74
- Joseph, Michael, 53-55, 57
- M-PESA, 53, 55, 61
- One Communications Ltd (Onecom), 53
- Packet Stream Data Networks, 53-54
Safeway, 5
Sagentia Group, 3
Samsung, 13, 19-20, 67, 70
SAP, 26
Sea Shore, 82
SEACOM, 54
Service Stream Ltd, 62
Shanghai Stock Exchange, 65
Singapore Technologies Telemedia (ST Telemedia), 29
- STT Communications Ltd, 29
Singapore Telecom, 39, 62-63, 65, 72-77
- Australia (Optus), 62-63, 65
- India (Airtel, see also separate listing), 39, 72-77
SISA Information Security (Pvt) Ltd, 74
Sistema
- Mobile TeleSystems, 10-11
SOFTBANK CORP
- SOFTBANK MOBILE, 11, 77
Sonae SGPS
- Público, 35
Sonaecom
- Optimus, 36
Sony Ericsson, 11, 40
South Yorkshire Police Authority, 42
Spanco Ltd, 73
Starbucks Corp., 69-70
Starent Networks Corp., 19, 29
State Bank of India, 73
Steria Ltd, 26
Strategy Analytics, 8
STW Group Limited (see also WPP)
- Ikon Communications, 10, 63
Sun Microsystems, 29
Swisscom
- Fastweb, 33
Symbian Ltd/Symbian Foundation
- Symbian Foundation, 67, 70
Symmetricom, 69
Synchronoss Technologies, Inc., 16
T
Tanzania Electric Supply Company Ltd, 61
Tata Group
- Tata Communications, 64
TCL Communication, 70
Tech Mahindra, 73
Technology
- 2G, 14, 18, 20, 29, 32, 40, 46, 49, 51, 59, 63, 69, 71, 73, 75
- – CDMA, 20
- – EDGE, 46, 63
- – GPRS, 29, 32
- – GSM, 14, 20, 40, 49, 51, 59, 71, 73, 75
- – PHS, 77
- 3G, 13-14, 18-19, 25, 29, 37, 39, 41, 49, 53, 59, 62-64, 67, 69-73
- – CDMA2000, 73
- – Evolved HSPA (HSPA+/I-HSPA), 28, 36, 49
- – - 64QAM, 36, 49
- – HSDPA, 13-14, 18-19, 25, 29, 37, 39-41, 49, 53, 59, 62-64, 67, 69-73
- – HSPA, 28, 36, 49
- – TD-SCDMA, 69-71
- – UMTS, 34
- – WCDMA, 18, 20
- 4G, 6, 18-19, 66, 70
- – 3GPP Long Term Evolution, 18-19, 28, 49, 59, 66
- – Long Term Evolution (LTE), 18-19, 28, 49, 59, 66
- – WiMAX, 6, 19, 53-54, 59, 73, 82
- Billing, 11, 46, 60, 69
- Bluetooth, 14
- BREW, 20
- BSS, 46
- CRM, 11, 26, 35, 59
- DSL, 8, 27, 31, 33, 36, 39
- – ADSL2, 39
- – VDSL, 27
- Ethernet, 69
- Femtocell, 41, 78
- Fibre, 24, 53, 59
- Fixed-mobile convergence (FMC), 33, 39
- FM, 14
- GPS, 22, 40
- IM, 13, 29, 34, 59, 69
- IMS, 67
- IP, 24-25, 27, 29, 39, 41, 59, 67
- IVR, 46, 76, 81
- Java, 20
- LBS, 70
- M2M, 19
- MAN, 29
- MMS, 14, 35, 77
- MP3, 13-14
- MVNO, 26, 36-37, 40, 64
- NFC, 69
- Personal computer, 16
- Push-to-talk, 22
- R&D, 18, 70
- RAN, 18, 45
- RF, 18
- SIM, 32, 34, 36, 76
- Smartphone, 11, 20, 22, 34, 37, 41-42, 45, 49, 59, 69-71
- SMS, 7, 13, 35, 44, 57-58, 69, 75-76, 78
- Spectrum, 16, 19, 22, 28, 39, 48, 73
- – 700 MHz, 19
- Symbian OS, 67, 70
- Telematics, 51
- TV, 17, 19, 25-27, 48, 58, 69
- – CMMB, 69
- – DVB-H, 48
- – IPTV, 25, 27
- VoIP, 19, 29, 59
- W-LAN, 13, 20, 69-70
- Widgets, 11, 19, 60
- Windows, 11
- – Windows Mobile, 11
Telecom Egypt, 80-81
Telecom Italia, 8, 13, 32
- HanseNet, 8
- Telecom Italia Mobile, 13, 32
Telecom New Zealand, 78-79
- Gen-i, 78
Telecommunications Carriers’ Forum, 78
Telefónica Group, 4, 6, 8-9, 28-29, 31, 36-37, 40-42, 44
- Telefónica España, 36-37, 44
- Telefónica Europe (O2), 4, 6, 28-29, 31, 40-42, 44
- – Czech Republic, 44
- – Germany, 8, 28-29, 31, 44
- – Ireland, 6, 31, 44
- – UK, 4, 9, 31, 36, 40-42, 44
- Telefónica Moviles, 37
Telekomunikacja Polska SA (TPSA, see also France Télécom)
- PTK Centertel Sp. z o.o., 46, 48
Telenor ASA, 4, 45
- Pannon GSM, 45
- Total Access Communication PLC (dtac), 4
TeliaSonera
- Yoigo (Xfera), 37
Telkom Kenya Ltd (Orange Kenya), 53, 58
Telkom South Africa, 57-58
Telstra, 62
Tencent Holdings Limited
- QQ.com, 69-70
THAICOM Plc
- IPSTAR, 79
Time Warner, 24, 34, 54
- Boomerang, 34
- CNN, 54
TNS Media Intelligence, 44
TomTom, 32
Tujijenge Tanzania Ltd, 61
Turkcell, 3
Twitter, Inc., 13, 43, 59
U
Ubidyne GmbH, 18
UBS, 10
UEFA
- Champions League, 76
V
Verizon Communications, 3, 5-6, 9-11, 18-20, 22, 28, 32, 66
- Killian, John, 5
- Strigl, Dennis, 19, 22
- Verizon Wireless, 3, 5-6, 9-11, 18-20, 22, 28, 32, 66
- – ALLTEL Corporation, 5, 18
- – Melone, Anthony, 19
- – Stratton, John, 11, 20
- – TALKS, 66
- Vodafone Omnitel, 18, 32-33
Virgin Group, 25, 40
- Virgin Media, 40
- Virgin Mobile, 25, 40
- – UK, 40
Virgin Media, 39-40
- Virgin Mobile UK, 40
Visto, 14
Vivendi, 7, 9-11, 24-26, 39, 46, 48, 63
- Canal Plus, 26
- Canalsat, 26
- Maroc Télécom, 26
- – MobiSud, 26
- Polska Telefonia Cyfrowa (PTC), 46, 48
- SFR (Société Française de Radiotéléphone), 11, 24-26
- – Allemand, Pierre-Alain, 25
- – Mobisud, 26
- – - Mobisud France, 26
- – Neuf Cegetel, 24
- – - AOL France, 24
- – - Club Internet, 24
- – Tele2 France, 24
Vodacom Group, 3, 9-10, 57-61
- Beelders, Wally, 59
- Congo (DRC), 3, 57, 60-61
- The GRID, 59
- Group, 3, 10, 60-61
- Lesotho, 57
- Mozambique, 3, 57
- Shuter, Rob, 60
- South Africa, 57-61
- Tanzania, 57, 60-61
- Vodacom Business, 59
- Vodacom Emerging Market Collaboration & Innovation (VEMCI), 60
Vodafone and Qatar Foundation, 82
Vodafone Group
- Africa & Central Europe, 44, 51-53, 57-61, 74-75
- – Africa, 51-53, 57-61, 74-75
- – Congo, 3, 57, 60-61
- – Czech Republic, 44-45, 44-45, 82
- – Ghana, 51-52, 57
- – Hungary, 44-45
- – Kenya (see also Safaricom), 3, 52-53, 52-54, 53-55, 57-58, 61, 74
- – Mozambique, 3, 57
- – Poland (see also Polkomtel), 6, 45-46, 45-46, 48-49
- – Romania, 13, 44, 49-50
- – South Africa (see also Vodacom), 3, 9-10, 57-60, 59-61, 74-75
- – Turkey, 3, 49-50
- Asia Pacific & Middle East, 63, 73
- – Asia, 63, 73
- – Australia, 10, 36, 62-64, 63-64, 63-65
- – - Crazy John’s (see also separate listing), 64
- – - GRLmobile (Crazy John’s), 64
- – - VHA Pty. Ltd (see also Hutchison Whampoa), 62-65
- – China (see also China Mobile), 9-11, 28, 64-67, 69-71
- – Egypt, 3, 57, 80-81, 80-81, 80-81
- – Fiji, 71
- – India, 10, 39, 62, 71-72, 71-72, 71-73, 72-73, 72-73, 72-73, 72-74, 73-74, 73-75, 74-75, 74-75, 74-77
- – - Indus Towers, 39, 73, 75, 77
- – Japan, 77
- – Middle East, 5, 80
- – New Zealand, 7, 35-36, 78-79
- – Pacific, 6-7
- – Qatar (see also Vodafone and Qatar Foundation and Vodafone Qatar), 32-33, 81-84
- Ex-executives
- – Barron, Niall, 31
- – Basch, Robert, 44
- – Donovan, Paul, 29
- – Elder, Teresa, 6
- – Henderson, Shan, 6
- – Hext, Jane, 39
- – Horn-Smith, Julian, 5
- – Morrow, Bill, 6
- – Sarin, Arun, 5
- Executives
- – Becker, Wendy, 10
- – Borg, William, 33
- – Brislen, Paul, 78
- – Casey, John, 63
- – Chomet, Patrick, 11, 14
- – Colao, Vittorio, 4-5, 9-10
- – Darby, Gavin, 5
- – De Kroon, Erik, 6
- – Dews, Nigel, 62-63
- – Dowidar, Hatem, 80-81
- – Elder, Teresa, 6
- – Esener, Kuzey, 27
- – Fahy, Gerry, 29
- – Fleiter, Brendan, 64
- – Galle, Sebastian, 27
- – Ghosh, Asim, 72-73
- – Guindani, Pietro, 32
- – Henderson, Shan, 6
- – Hitchcock, Albert, 15, 17
- – Hlavinka, Pavel, 44
- – Horan, Daniel, 82
- – Kaškelyte, Inga, 44
- – Kelly, Fergal, 18
- – Kelly, Peter, 39-40
- – Kremling, Hartmut, 28
- – Langkamp, Stefan, 39
- – Laurence, Guy, 4
- – Maher, Grahame, 82, 84
- – McLennan, Tom, 13
- – Medcraft, Huw, 13
- – Mendes Dias, Joao, 35
- – Mundy, Jeni, 41
- – O’Leary, Anne, 31
- – Oliviera, Jose, 35
- – Portz, Michael, 83-84
- – Román, Francisco, 36-37
- – Rosenberger, Frank, 27
- – Rövekamp, Frank, 10
- – Senaratne, Avanthi, 71
- – Serdar, Cenk, 3
- – Shardlow, Rob, 40
- – Solomon, Liliana, 49
- – Vas, Mario, 35
- – Veys, Debbie, 7
- Group, 3-6, 8-11, 13-15, 18, 20, 32-33, 44, 46, 53, 62-64, 71-75, 77, 80-83
- – Americas (see also Verizon Wireless), 5, 11, 18-20, 36
- – ASPire Group, 64
- – Headquarters, 33
- – One Vodafone, 39
- – R&D, 11, 18, 70
- – - Competence Centre, 27
- – - Joint Innovation Lab (with China Mobile, SoftBank Corp., and Verizon Wireless), 11
- – Strategy, 4, 8, 29, 81
- – - One Vodafone, 39
- – - Total Communications, 57
- – Vodafone Foundation, 13-14, 44, 74, 82
- – - Group, 82
- – - World of Difference, 14
- Marketing, 3, 5-6, 10, 17, 27, 33-34, 37, 44, 49-50, 71, 74-75, 78-79, 83-84
- – Betavine, 60
- – Free Friday, 41
- – Go Tag, 34
- – Rewards, 40
- – Vodafone Internet Services (VIS), 14, 22, 48, 50, 83
- – Vodafone Mobile Clicks, 42
- – Vodafone One, 39-41
- – Who Killed Summer?, 43
- – Zoozoo, 74
- – ZYB (Imity), 13
- Partner Markets, 3-4, 7, 10-11, 71, 75
- – Afghanistan (Roshan), 3
- – Caribbean (Digicel), 7, 71
- – Japan (SoftBank), 11, 77
- – Russia and CIS (Mobile TeleSystems/MTS), 10-11
- – Singapore (Mobile One), 75
- – Thailand (dtac), 4
- Products and services
- – At Home, 28
- – Bonus Bank, 40
- – CallYa, 27
- – Card, 23, 50
- – Catwalk Collection, 14
- – Complet, 50
- – Connect for Good, 45
- – Data, 50
- – Easy Box, 31
- – Flexi, 18, 25, 83
- – Freedom, 83
- – In Business, 16
- – International (UK), 10
- – Internet Plus, 29
- – Invoice Stop (Turkey), 50
- – Last Minute Alerts (Portugal), 35
- – M-PESA, 53, 55, 61
- – Media Centre, 31
- – Mobile Broadband, 13, 25, 28-29, 32, 34-36, 41, 45, 49, 63-64, 78-79
- – Mobile Broadband Hotspot, 13
- – Mobile Connect, 49
- – Mobile Internet (UK), 3, 13-14, 25, 28-29, 34-35, 40-41, 45, 50, 69, 71, 83
- – MobileTV, 26, 48, 58
- – Money Transfer, 3, 81
- – My Web, 58
- – No Plans, 28
- – No Problem, 5
- – OneNet, 39-40, 44
- – Passport, 42
- – PhotoSharing (Portugal), 35
- – Red, 14, 83
- – Roaming Data Bundle (Australia), 45, 49
- – Small Business (UK), 40
- – SMS Balcony (India), 75
- – Steady Connect, 45
- – SuperFlat (Germany), 27, 29
- – Tablet Media Centre, 31
- – Terminals, 13-14, 34, 45, 49
- – - BlackBerry, 11, 20, 24, 33-34, 37, 42, 45
- – - Storm (Research In Motion), 11, 20, 34
- – - USB Modem, 13, 34, 45
- – - USB Modem Stick, 9, 34
- – - Vodafone 1240, 14
- – - Vodafone 125 (ZTE), 62
- – - Vodafone 236, 10
- – - Vodafone 340, 13-14
- – - Vodafone 540, 13-14
- – - Vodafone 541, 14
- – - Vodafone 840, 14
- – Vodafone Access Gateway, 41
- – Vodafone at Home, 28
- – Vodafone Business, 40
- – Vodafone Europe, 6
- – Vodafone One, 39-41
- – Vodafone OneNet (Czech Republic), 44
- – Vodafone People, 13
- – Vodafone Station (Italy), 33
- – Vodafone Target, 8
- – Vodafone Tuesdays (India), 75
- – WebSessions, 28
- – Wireless Office, 31
- – ZYB, 13
- Western Europe, 23
- – Albania, 23
- – France (see also Vivendi/SFR), 11, 24-26
- – Germany, 8, 11, 13, 16, 24, 27-29, 31-32, 44
- – - Arcor, 16, 27
- – Greece, 11, 28, 36, 44, 49
- – Ireland, 6, 29, 31, 44, 57
- – Italy, 11, 18, 24, 32-33, 44
- – Malta, 7, 33-34, 44
- – Netherlands, 4, 11, 32, 34, 42, 44
- – Portugal, 10, 32, 35-36, 44, 49
- – Spain, 11, 13, 36-37, 42, 44
- – UK, 4-5, 9-11, 13-14, 29, 32, 36, 39-43, 44, 78
- – - Yes Telecom, 40
Vodafone Qatar Q.S.C., 33, 82-84
- Maher, Grahame, 82, 84
W
WaveCrest
- gotalk, 64
Weather Investments
- Orascom Telecom, 80-81
- – LINKdotNET, 81
- – Mobinil (see also France Télécom), 80
WebTech Wireless, Inc., 51
Weglokoks, 46
Western Europe, 23
- Channel Islands, 75
- France, 7, 11, 24-26, 46, 53, 80
- – Autorite de Regulation des Communications Electroniques et des Postes (ARCEP), 25
- – Conseil d’État (Council of State), 25, 34
- Germany, 8, 11, 13, 16, 24, 27-29, 31-32, 44
- – Bundesnetzagentur für Elektrizität, Gas, Telekommunikation, Post und Eisenbahnen (BNetzA, RegTP, FNA, or German Federal Network Agency), 28
- – Government, 28
- Greece, 11, 28, 36, 44, 49
- Ireland, 6, 29, 31, 44
- – Commission for Communications Regulation (ComReg), 29
- – Competition Authority (TCA), 31
- – Government, 29
- Italy, 11, 18, 24, 32-33, 44
- Malta, 7, 33-34, 44
- Netherlands, 4, 11, 32, 34, 42, 44, 66
- – Government, 34
- – Ministry of Economic Affairs, 66
- Portugal, 10, 32, 35-36, 44, 49
- – ANACOM, 36
- Spain, 11, 13, 18, 36-37, 42, 44
- – Comisión del Mercado de las Telecomunicaciones (CMT), 37
- Turkey, 3, 50
- United Kingdom (UK), 4-5, 9-11, 13-14, 29, 32, 36, 39-43, 44, 78
- – Government, 39
- – Office of Communications (Ofcom), 41
Western Union, 3
Wipro, 73
Woobius Ltd, 42
WPP, 10, 63
- STW Group Limited (see also separate entry), 63
- Team Vodafone, 10
Wyplay, 25
X
Xantaro Deutschland GmbH, 29
XIAM Technologies Ltd, 20
Y
Yahoo!, 59
- Yahoo! Messenger, 59
Yulong Computer Telecommunication Scientific (Shenzhen) Co., Ltd, 70
Z
Zain Group (MTC/Celtel), 51, 53, 61
- OpCos (Zain/Celtel/MTC), 51, 53, 61
- – Africa, 61
- – Ghana, 51
- – Kenya, 53, 61
- – Tanzania, 61
- Zap, 61
ZTE Corporation, 10, 54, 67, 70

Royston Hoggarth, Head of BT Global Services UK, is to leave the post after less than one year, to be replaced by Mark Quartermaine. It appears to BTwatch that Hoggarth and BT were merely marking time over the past year as the François Barrault-made appointment always appeared a mismatch. [p.28.]

BT Wholesale won a managed services contract with Vodafone UK that will enable the cellco to launch unified communications solutions for the SME sector. The deal, which builds on existing agreements between Vodafone and BT Wholesale, suggests continued success for the BT division’s managed services strategy, but could be bad news for the BT Business retail operation as competition in its sector intensifies. [p.33.]

BT Wholesale announced the introduction of Wholesale Broadband Managed Connect over IPstream Connect , a new offering that will enable its ISP customers to use a single backhaul link to deliver national broadband services based on a combination of legacy, ADSL2+, and fibre offerings from BT, which could accelerate adoption of BT’s next-generation services. [p.34.]

Carillion was awarded a £1bn networks installation and maintenance contract by Openreach. The construction and facilities management company will work on the contract with technology partner Telent, the company that emerged from the wreckage of Marconi. [pp.39-40.]

Issue: 2009.07
Covering: early-August to early-September 2009
Published: September 2009
Next issue: October 2009

Mapping the activity and strategy of the UK’s largest telco. A unique monthly report for the industry.

• About BTwatch
• Executive Brief
• Extract
• Table of Contents
• Index

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• Below is a free taster from issue 2009.07 (August/September 2009), including an Executive Brief, Extract, Table of Contents and Index, giving a valuable snapshot of the full report.

EXECUTIVE BRIEF

MAIN STORIES: Tim Whitley, BT Corporate Strategy Director, discussed the prospects for Digital Britain and BT’s fibre plans. He indicated that BT is confident of winning the NGN battle with Virgin Media due to the potential of apparently superior upload speeds promised by BT’s customised VDSL technology. Whether government funds will be available to spread the reach of fibre is uncertain after reports that the government’s proposed levy could be postponed, or dropped altogether. [pp.8-10.]

Royston Hoggarth, Head of BT Global Services UK, is to leave the post after less than one year, to be replaced by Mark Quartermaine. It appears to BTwatch that Hoggarth and BT were merely marking time over the past year as the François Barrault-made appointment always appeared a mismatch. [p.28.]

BT Wholesale won a managed services contract with Vodafone UK that will enable the cellco to launch unified communications solutions for the SME sector. The deal, which builds on existing agreements between Vodafone and BT Wholesale, suggests continued success for the BT division’s managed services strategy, but could be bad news for the BT Business retail operation as competition in its sector intensifies. [p.33.]

BT Wholesale announced the introduction of Wholesale Broadband Managed Connect over IPstream Connect , a new offering that will enable its ISP customers to use a single backhaul link to deliver national broadband services based on a combination of legacy, ADSL2+, and fibre offerings from BT, which could accelerate adoption of BT’s next-generation services. [p.34.]

Carillion was awarded a £1bn networks installation and maintenance contract by Openreach. The construction and facilities management company will work on the contract with technology partner Telent, the company that emerged from the wreckage of Marconi. [pp.39-40.]

BT GROUP: BT confirmed it is closing its graduate recruitment scheme from next year, with no clear indication of when it will return. It was noted that two of BT’s current board members are alumni of the programme. [p.3.]

BT is offering a new payment option to its pensioners that features higher upfront payments, but is not linked to inflation. The company defended its Pension Scheme as a valuable tool in keeping its skills base flexible. There were rumours that BT may sell off part of its pension fund in order to help cap its enormous liabilities in the area. [p.4.]

Regulator Ofcom is considering the future of next-generation networks in the UK, in light of BT scaling back and adapting its plans for 21CN in favour of a fibre rollout. BT’s new approach has meant new regulation may not be needed so urgently, but raises some uncertainty for communications providers and consumers. [p.5.]

STATEGY & OPERATIONS: BT announced that Kevin Marks, a former Google executive, is to join the company to develop web services and work with BT’s Ribbit business. [p.7.]

BT was critical of more draconian proposals from the new Digital Britain minister that would see customers who file-sharing illegally having their broadband service cut. [p.10.]

RR Donnelly was awarded a contract worth “hundreds of millions of dollars” to provide customer communications solutions for BT Group. [p.11.]

Computacenter announced that some of the work previously involved in its ongoing support contract with BT was to be returned in-house. BT suppliers TranSwitch and Virtusa said they were continuing to suffer, as BT restricts spending and 21CN work, but were confident investment would see improvements in 2010. [pp.11-12.]

BT RETAIL: BT Retail replaced Yahoo! with Google for search services for its BT Total Broadband offering, although it is to maintain its relationship with Yahoo! on email and content until 2011. There was some surprise that Microsoft’s Bing hadn’t picked up the deal. BT Business also developed its relationship with Google, becoming a reseller of Google AdWords to support its digital marketing portfolio for SMEs. [pp.13,23.]

As BT defended itself against a report from Ofcom-endorsed price-comparison website Simplify Digital, which questioned the value-for-money of BT’s broadband offering, the telco once again promoted its up-to-20Mbps broadband service, and the BT Accelerator interstitial plate. However, there were also claims that upgrading to the ADSL2+-based service could actually slow down access speeds for some customers. [pp.14-15.]

BT Vision launched a Bollywood content channel, and began a promotion offering a free Vision+ set-top box for customers taking content bundle subscriptions. Availability of ESPN Sports , which took over many of the sports rights held by insolvent Setanta, was confirmed on BT Vision. There were reports of BT discussing a subscription music download service with major record companies. [pp.16,18.]

The press reported that a row between BT and the Communications Workers Union was on the horizon over potentially revised working conditions in relation to jobs returning to the UK from India. BT called the press reports “incorrect and sensational” . [p.20.]

BT Openzone is partnering Wicoms, a network provider for the leisure industry, to provide Wi-Fi access at UK holiday sites. BT now claims more than half a million Wi-Fi hotpots across the UK and Ireland, and is seemingly making good progress towards a target of one million by the end of 2009. Whether the Wi-Fi network, probably largely comprising free BT FON users and BT Business Hubs with default public access channels, is actually making any money is unclear. [p.21.]

BT accused former mobile unit O2 UK of scaremongering over its claims of price rises that would accompany cuts in mobile termination rates, as part of the ongoing Terminate the Rate campaign. [p.22.]

BT subsidiary PlusNet announced a new range of voice and broadband services for SME customers. [p.27.]

BT GLOBAL SERVICES: Siemens Enterprise Communications awarded BT a contract to deliver and operate an international MPLS-based data network linking over 230 locations in 45 countries. BT highlighted the inclusion of its MobileXpress remote-working solution in the deal. BT Global Services also announced a two-year extension to its contract with Airbus in the UK to provide and manage a securely encrypted WAN. [p.29.]

Norfolk County Council awarded BT a £33m contract to provide data and voice services to 20,000 employees located at more than 1,000 sites, and again highlighted the MobileXpress component of the deal. BT is also to supply and manage an internet exchange covering the Council’s schools in a £7m deal, with Bluecoat Systems providing filtering solutions. [p.30.]

BT highlighted Cisco certification awards for several of its country units, with BT Australasia and BT Brazil securing Cisco Gold certification, BT Argentina and BT Mexico Silver, and several South American units achieving certification for unified communications, and routing and switching. [pp.31-32.]

BT announced that multilateral-trading platform operator Chi-X is to use BT Radianz Ultra Access to connect to investment firms in the City of London and clearing house LCH. Clearnet is also extending its Radianz deployment. [p.32.]

OPENREACH: David Campbell, Openreach’s MD for Next Generation Access, expressed confidence that demand for fibre was evident in the market, and said the division was gaining valuable insights into delivery of fibre-to-the-home through its Ebbsfleet pilot. [p.35.]

The FTTC pilot programme reached Glasgow ahead of schedule, in August, which BT attributed to efforts of Openreach, without mentioning the need to extend the pilot after setbacks in London tests. [p.36.]

The OTA2 announced that more than six million lines in the UK were now unbundled, with Wholesale Line Rental keeping pace. Progress is also being made on migration to WLR3 from WLR2, and on a product development roadmap from Openreach that gives communications providers a clearer view of the future market. [p.37.]

Adva Optical won a contract to provide its FSP 150 Ethernet product to support Openreach’s Ethernet Access Direct services. [p.41.]

EXTRACT

SUPPLIERS

BT awards RR Donnelley multi-million pound comms deal

Global integrated communications and print solutions provider RR Donnelley & Sons announced it had won a multi-year contract from BT Group to enhance the telco’s customer communication abilities, said to be worth “several hundred million dollars”.

The deal includes data processing, printing, fulfilment, and postal optimisation for all customer communications including bills, letters, and statements. The agreement also covers RR Donnelley’s colour “TransPromo” capabilities, multichannel delivery, and enhanced personalisation. The company will deal with the physical delivery of BT communications to Royal Mail regional distribution centres.

” Individualised communications are a vital component of our relationship with our customers. We look forward to leveraging RR. Donnelley’s process management expertise, their comprehensive experience, and the considerable investment they are making in new variable-colour printing capabilities, to improve the efficiency and effectiveness of our customer communications. ”
– Ian Duerden, Director of Billing, BT Retail.

” We are helping BT to significantly reduce costs, and also to leverage the power of TransPromo, particularly through the use of full-colour printing. This will be delivered through the unique technology platform that we have built precisely to provide these kinds of innovative solutions. We believe that this programme will place BT at the vanguard of TransPromotional communications in the UK. ”
– Mike Gordon, Managing Director of RR Donnelley’s Global Document Solutions.

The contract will be carried out by Donnelley’s Global Document Solutions arm in the UK.

In 2006, BT awarded RR Donnelley’s UK subsidiary Astron a £59m-extension to its existing document distribution contract with BT (BTwatch, 2006.06).

[Further reference: RR Donnelley awarded new multi-year contract by British Telecom -- RR Donnelly, 12 August 2009; RR Donnelley gets another big order -- Post Crescent, 15 August 2009; RR Donnelley awarded ‘multi-year' deal for BT -- Printweek, 21 August 2009.]

Computacenter announce cuts in BT contract

Following its recent announcement of an extension to its end-user support contract with BT Group (BTwatch, 2009.06), Computacenter updated on expected changes of details of the deal.

Two amendments of significance were flagged by the company, the first being the transfer of some of the work covered by the existing contract back to BT. Computacenter said that work equating to around 20% of the UK contract value would be returned to BT, as would corresponding staff. Secondly, no future UK capital purchases will be made using Computacenter Customer Specific Financing.

The non-UK element of the contract with BT — around 25% of the total value — was unaffected by the negotiations for the contract extension.

[Further reference: Computacenter half yearly report -2 -- Computacenter, 27 August 2009.]

TranSwitch expects BT revenue to flow

Speaking at the company’s Q209 results presentation, Ted Chung, Vice-President for Business Development at TranSwitch, a software solutions provider, indicated that his company could begin to see increased levels of revenue related to BT activity in 2010.

TranSwitch had a contract with Fujitsu, which is a 21st Century Network (21CN) supplier, and had apparently been expecting to see its equipment deployed as BT switched voice services to 21CN. TranSwitch had hoped to see units begin shipping before the end of 2007 (BTwatch, 2007.04).

” Unfortunately, it’s not a well-guarded secret that [BT] is — or really has been and continues to be — running behind their published deployment schedules. Our latest checks do indicate that the broadband rollout is continuing, and the voice migration from which we and our customers should really benefit, we believe should commence still in 2010. So while that’s not currently reflected in any of our numbers, nor our near-term projections, we are hopeful and optimistic that, starting in 2010, we can see some benefit from the UK. ”
– Ted Chung.

[Further reference: Q2 2009 TranSwitch earnings conference call -- final -- TranSwitch, 30 July 2009.]

Virtusa sees BT revenue decline

Virtusa, an IT outsourcing and consultancy company, announced continued declines in revenue generated from BT, for which it is a preferred supplier, but expressed confidence it would see the value of business with the telco rise in coming quarters, with growth evident in the second half of 2010.

According to the company, under the five-year contract it has in place with BT, there are minimum annual spend clauses, and BT is currently some way from being in line to achieve these minimums. Virtusa also noted that, with BT rationalising its portfolio of suppliers, it expected to benefit from contracts being concentrated among a smaller pool of vendors.

Virtusa’s BT revenue declined 24% sequentially in Q209 on a constant currency basis, but still represented 14% of the company’s total revenue.

[Further reference: Q1 2010 Virtusa Corporation earnings conference call -- final -- Virtusa, 30 July 2009.]

TABLE OF CONTENTS

3 BT Group

3 Employment
3 BT graduate recruitment scheme closed
3 Executives
3 Livingston profiled
4 City reports
4 Pensions
4 Pensions
4 BT offers new pension options
4 BT highlights pension inclusiveness
5 Regulatory
5 BT requests BT Basic exemption for Ebbsfleet
5 Tech Mahindra/Mahindra Satyam
5 Regulatory
5 Ofcom considers NGN future post-21CN
6 Tech Mahindra/Mahindra Satyam
6 Suppliers
6 BT to cut event services agency roster
7 Fibre
7 Fibre to boost VoIP prediction
7 Market statistics
7 O2 surpasses BT in customer connection numbers
7 Strategy & operations
7 BT Innovation & Design
7 Marks joins BT and Ribbit
8 Research
8 Adastral Park hailed as sales tool
8 Geddes on media trends
8 Digital Britain
8 Whitley conciliatory on Digital Britain prospects
9 Nationwide 2Mbps minimum speeds a realistic possibility
9 BT pins fibre hopes upstream
10 Ethernet profile continuing to rise
10 On the FTTC trials, and longer term rollout plans
10 NGN levy to be suspended until post-election
10 BT criticises government file-sharing ban proposals
11 Suppliers
11 TranSwitch expects BT revenue to flow
11 Suppliers
11 BT awards RR Donnelley multi-million pound comms deal
11 Computacenter announce cuts in BT contract
12 Suppliers
12 Virtusa sees BT revenue decline
12 Systems
12 BT on subscriber data management systems

13 BT Retail

13 BT Expedite
13 Broadband
13 BT Total Broadband replaces Yahoo! with Google for search
14 Fibre trials
14 BT Operate engineer first to receive consumer fibre
14 BT ups 20Mbps broadband push
14 Promotion follows negative press, again
15 Marketing
15 ASA upholds complaint against TalkTalk
15 ADSL2+ could slow some connections claim reports
15 BT disputes Simplify Digital report
16 BT Television Services
16 Bollywood movies reach BT Vision
16 BT runs BT Vision promotion
18 Payphones
18 Phone box “adoption” scheme expanded
18 BT Vision signs up ESPN for football coverage
18 Rumours of music subscription service from BT Vision
19 Payphones
19 Phone box “adoption” scheme expanded cont’d
19 Patterson calls again for wholesale BSkyB access
20 Project Canvas under fire from BSkyB
20 Contact centres
20 Union row may jeopardise job repatriation
21 Wireless networks
21 BT ties with Wicoms for holiday park Wi-Fi
21 BT claims progress in million hotspot ambitions
22 Tariffs and pricing
22 Tariffs and pricing
22 BT: O2 is scaremongering over MTR cuts
23 BT Business
23 BT Business becomes AdWords reseller
23 BT trumpets cloud benefits for SMEs
25 BT Ireland
25 BT welcomes LLU price cut
25 BT trumpets school grant scheme
25 BT Ireland
25 BT customer-transfer approved
25 BT criticised by rivals in Northern Ireland
26 Chris Clark: BT Northern Ireland performing well
26 Current position and longer term plans
26 Competition
26 New projects
27 PlusNet
27 PlusNet launches SME offerings

28 BT Global Services

28 Appointments
28 Hoggarth leaves BT after just one year
28 Comment: A job over before it started
29 Contracts
29 Airbus awards BT WAN contract
29 BT wins Siemens network contract
30 NHS contracts
30 BT supports mental health “eCLinics”
30 Public sector contracts
30 BT awarded £40m Norfolk council contract
31 BT International: Asia-Pacific
31 BT wins Cisco Gold certification in Australia
32 BT Global Financial Services
32 LCH.Clearnet selects Radianz solution
32 BT International: Latin America
32 BT LatAm units gain Cisco endorsement
32 BT Global Financial Services
32 Radianz wins European access contract

33 BT Wholesale

33 Contracts
33 Vodafone to launch SME charge with BT Wholesale
34 Products and services
34 BT launches single link for 21CN and legacy products

35 Openreach

35 Executives
35 Campbell on next-generation access
35 Campbell on the BT Ebbsfleet FTTP pilot
35 Demand for fibre
36 Fibre
36 BT starts Glasgow fibre trials after London setback
37 OTA2
37 OTA announces six million LLU and WLR lines
39 Suppliers
39 Openreach awards Carillion £1bn contract
39 Return of Marconi
40 Carillion on Openreach deal
41 Openreach deploys Adva FSP 150 Ethernet solution

42 Index

INDEX

A
Adva Optical Networking, 41
ADVA Optical Networking, 41
Advertising Standards Authority, 15
Airbus, 29
Analysys Mason, 7, 12
Astron, 11
B
Babcock & Brown
- Eircom, 25
Barclays, 18
Bluecoat Systems, 30
British Broadcasting Corporation (BBC), 20
BSkyB, 15, 18, 19, 20, 37
BT Group, 3, 4, 7, 8, 11, 37
- Asia
- Tech Mahindra, 5, 6
- BT Global Services, 3, 28, 29, 30, 31, 32
- BT Argentina, 32
- BT Brazil, 32
- BT Global Financial Services, 32
- BT International, 31, 32
- BT Mexico, 32
- BT Radianz, 32
- MobileXpress, 30
- Spain, 29
- BT Group
- Strategy and Operations
- Adastral Park, 8
- BT Pension Fund
- Hermes Pension Management, 4
- BT Pension Scheme, 4
- BT Retail, 10, 11, 12, 13, 14, 15, 16, 18, 19, 20, 21, 22, 23, 25, 26, 33
- 1571, 22
- BT Basic, 5
- BT Broadband, 14, 16, 19, 21
- BT Broadband Accelerator, 14
- BT Business, 13, 14, 21, 23, 33
- BT Consumer, 10
- BT Expedite, 13
- BT FON, 21
- BT Ireland, 25, 26
- BT Mobile, 29
- BT Northern Ireland, 26
- BT Openworld, 13
- BT Openzone, 21
- BT Payphones, 18, 19
- BT Total Broadband, 13, 14
- BT Tradespace, 23
- BT Vision, 16, 18, 19
- BT Yahoo!, 13
- Option 1, 27
- Option 2, 27
- Option 3, 27
- PlusNet, 27
- Terminate the Rate, 22
- Together, 34
- V-Box, 16
- Wireless Cities, 21
- BT Wholesale, 14, 33, 34, 37
- i-Plate, 9
- WBMC over IPstream Connect, 34
- Wholesale Broadband Managed Connect, 34
- Executives
- Alvarez, Luis, 29
- Baldwin, Sian, 34
- Bowen, Laurie, 29
- Bruce, Chris, 21
- Campbell, David, 35
- Chanmugam, Tony, 3
- Clark, Chris, 25, 26
- Davis, Sally, 33
- de Souza, Valdir, 32
- Duerden, Ian, 11
- Geddes, Martin, 8
- Gupta, Asish, 12
- Lalani, Hanif, 3
- Lindsay, Chris, 23
- Livingston, Ian, 3
- Lumb, John, 19
- Marks, Kevin, 7
- Murphy, Bill, 23
- Nicholson, Andy, 32
- O’Boyle, Kevin, 4
- Patterson, Gavin, 19, 21
- Petter, John, 10, 14, 22
- Quartermaine, Mark, 28
- Rangaswami, JP, 7
- Stagg, Nigel, 20
- Watson, Marc, 18
- Whitley, Tim, 8
- Ex-executives
- Barrault, François, 28
- Green, Andy, 28
- Hoggarth, Royston, 28
- Verwaayen, Ben, 3
- Openreach, 9, 10, 25, 35, 36, 37, 39, 40, 41
- Ebbsfleet, 5, 35, 36
- Ethernet Backhaul Direct, 41
- WLR3, 37
- Ribbit, 7, 23
- Strategy and Operations
- 21CN, 5, 11, 12, 34, 39
- BT Innovation & Design, 7, 8, 12
- BT Operate, 14
C
Cable and Wireless, 28, 37
Camping and Caravanning Club, 21
Carillion, 39, 40
Carphone Warehouse, 15, 37
- TalkTalk, 15
Central Bureau of Investigation (India), 6
Channel 4, 20
Chi-X Europe, 32
Cisco Systems, Inc., 31, 32
Coastfields, 21
Commission for Communications Regulation (ComReg, Ireland), 25
Communications Workers Union, 20
Computacenter, 11

D
Datamonitor, 6
Digital Britain, 8, 10, 14
- Lord Carter, 10
- Timms, Stephen, 10
DMSL, 21
Doncaster, Rotherham, and South Humber Mental Health NHS Foundation Trust, 30
DTV Services
- Freeview, 20
E
EMI, 18
Ericsson, 39
ESPN, 18
Etisalat, 5
- Etisalat DB Telecom, 5
- Swan Telecom, 5
European Union
- European Commission, 5
Eventia, 6
F
FON, 21
Football Association
- Premier League, 18, 19
Fujitsu, 11, 39
G
Genius.com, 23
Google, 7, 13, 23
- AdWords, 13, 23
Graduate recruitment, 3

H
Hutchison Whampoa
- 3 Group
- 3 UK, 22
I
Infonetics, 12
ITV, 20
J
JPMorgan Chase, 4
L
Lattice
- 186k, 34
M
Mahindra Satyam, 6
Marconi, 39
Martec International, 13
McMenemy Hill, 6
McNicholas Construction and Enterprise, 39
Microsoft, 13
- Bing, 13
Mobile Termination Rates (MTR), 22
MoMedia, 16
N
National Health Service (NHS, UK), 30
Norfolk County Council, 30
North Lincolnshire Council Digital Inclusion, 30

O
Ofcom, 5, 7, 14, 15, 19, 20, 22, 25
- Carrier pre-selection, 37
- Light User Scheme
- BT Basic, 5
- LLU, 25, 37
- Strategic Review of the Telecoms Sector, 25
- USO, 18
- Wholesale line rental, 37
Office of the Telecommunications Adjudicator, 37
- OTA2, 37
R
Rainbow Telecom, 25
Royal Mail, 11
RR Donnelley, 11
S
Salesforce.com, 23
Setanta, 18
- Setanta Sport, 18
Shemaroo Entertainment, 16
Siemens, 29
Siemens Enterprise Communications, 29
Simplifydigital.co.uk, 15
Skanska AB, 39
Sony, 18

T
Tech Mahindra, 5, 6
- Mahindra Satyam, 5, 6
Technology
- ADSL, 15, 34
- ADSL2+, 14, 15, 33, 34
- Biometrics, 8
- Broadband, 4, 8, 9, 10, 11, 13, 14, 15, 16, 19, 21, 22, 23, 25, 26, 27, 33, 34, 35, 36
- Ethernet, 10, 37, 41
- Fibre, 5, 7, 9, 14, 26, 33, 34, 35, 36, 39
- FTTH, 5, 35, 36
- FTTP, 35
- IP, 5, 7, 27, 30, 33, 34
- ISDN, 7
- MPLS, 29
- Near Field Communications (NFC), 8
- Next-generation access (NGA), 5, 35
- Next-generation networks (NGN), 5, 6, 10
- Private circuits, 5
- Project Canvas (BBC, BT, ITV, FIVE), 20
- Project Kangaroo (BBC, ITV), 20
- RFID, 8
- SaaS, 23, 33
- Subscriber Data Management (SDM), 12
- Time-Division Multiplexing (TDM), 5
- VDSL, 9
- Video-on-demand, 20
- VoD, 16
- VoIP, 7, 27, 34
- Web Services, 7
- Wi-Fi, 21
Telefónica, 7, 21, 22
- Telefónica Europe (O2), 7, 21, 22
- UK, 7, 21, 22
telent plc (Marconi), 39
THA Group, 6
TranSwitch, 11
Twitter, 25

V
Virgin Media, 9, 10, 18, 19, 22, 37
Virtusa, 12
Vodafone, 25, 33
- UK, 33
W
Wicoms, 21
Y
Yahoo!, 13

Statistics from the Spanish regulator the CMT suggested the decline in Telefónica’s fixed-line base is accelerating, with a record numbers ported to altnets, and a decline in the total number of lines in the country. In the Spanish mobile sector, MVNOs also continue to rise, winning over half of net adds in Q2, as Movistar’s market share shrinks. Telefónica is also failing to defend its domestic broadband market share. [p.7.]

In Brazil, regulator Anatel lifted restrictions on Telefónica selling broadband products, after it was satisfied network improvement programmes were in place. The suspension spurred Telefónica to embark on a substantial PR campaign to highlight improvements, announcing just ahead of the resumption of broadband sales that the Telefónica network had been extended to another 91 cities as part of a Sao Paulo region-wide rollout. [pp.14-17.]

Oracle was awarded a contract to provide inventory management solutions to Telefónica O2 Czech Republic. Ericsson landed a contract to supply an IMS core system and VoIP application server to Telefónica Germany. [pp.28,31.]

Issue: 2009.07
Covering: August 2009
Published: September 2009
Next issue: August/September 2009

Delivering valuable insight into the labyrinth that is Spain’s global telco giant. A unique monthly report for the industry.

• About Telefonicawatch
• Executive Brief
• Extract
• Table of Contents
• Index

ABOUT TELEFONICAWATCH

• Telefónicawatch delivers all the information on Telefónica Group worldwide in one place, and keeps it up-to-date in a uniquely thorough and digestible fashion.
• This ongoing report service encapsulates Telefónica’s three core divisions — España, Latinoamérica and Europe — along with its central functions, strategy, financial and operational performance, and numerous other units and interests (including China Unicom, Portugal Telecom, Telecom Italia, Vivo, Atento, TIWS, Terra, etc.).
• If Telefónica really matters to you — whether as a vendor, competitor, investor, regulator or any other major stakeholder — it pays to keep properly informed and there is simply no easier or better way to become and remain fully briefed.
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• Below is a free taster from issue 2009.07 (August/September 2009), including an Executive Brief, Extract, Table of Contents and Index, giving a valuable snapshot of the full report.

EXECUTIVE BRIEF

MAIN STORIES: Telefónica agreed to sell its stake in Meditel, its Moroccan joint venture with Portugal Telecom. The pair are to receive EUR400m each for their share in the company, which is being acquired by local investors. There were further rumours that a Telefónica acquisition of Telecom Italia’s German broadband business HanseNet was getting closer — rumours that could now gain credence as the Meditel sale generates funds. Telefónica was again linked with an acquisition of T-Mobile UK, a potentially pricier proposition. [p.3.]

Statistics from the Spanish regulator the CMT suggested the decline in Telefónica’s fixed-line base is accelerating, with a record numbers ported to altnets, and a decline in the total number of lines in the country. In the Spanish mobile sector, MVNOs also continue to rise, winning over half of net adds in Q2, as Movistar’s market share shrinks. Telefónica is also failing to defend its domestic broadband market share. [p.7.]

In Brazil, regulator Anatel lifted restrictions on Telefónica selling broadband products, after it was satisfied network improvement programmes were in place. The suspension spurred Telefónica to embark on a substantial PR campaign to highlight improvements, announcing just ahead of the resumption of broadband sales that the Telefónica network had been extended to another 91 cities as part of a Sao Paulo region-wide rollout. [pp.14-17.]

Oracle was awarded a contract to provide inventory management solutions to Telefónica O2 Czech Republic. Ericsson landed a contract to supply an IMS core system and VoIP application server to Telefónica Germany. [pp.28,31.]

GROUP: Vodafone’s Chief Executive conceded that Telefónica had benefitted from its exclusive deals with Apple for the iPhone in Europe, but Telefónica’s other imminent exclusive high-profile device, the Palm Pre, was said to have seen demand slump in markets where it is already available. [p.4.]

An executive search company indicated that it is recruiting on behalf of Telefónica for building out new infrastructure in Latin America, and in relation to the network-sharing agreement reached with Vodafone in Europe. [p.5.]

ESPAÑA: Telefónica succeeded in securing a legal order to prevent rival Vodafone from advertising fixed-line service deals, when the technology utilised is based on mobile infrastructure. [p.6.]

A Telefónica FTTH network reportedly launched in Spain, although only in Bilbao and a Madrid municipality. VDSL2+ services are also expected to launch commercially, which could see 30Mbps broadband products made more widely available. Vodafone is to use the Telefónica ADSL network to launch its own broadband services, covering 30% of the country. [p.8.]

Telefónica signed a distribution deal with Fnac, which will see the retail chain’s 19 Spanish stores sell Telefónica’s entire portfolio of products from Movistar Zones . It is notable in this instance that the Movistar brand is being used in relation to both fixed-line and mobile products. [p.9.]

Solutions provider Olista was awarded a contract to provide a mobile user-experience platform for Movistar España, which is expected to support growth of premium mobile broadband services. [p.9.]

A simultaneous translation service was launched by Telefónica in Spain, in conjunction with platform provider Dualia, and translation service TST. The new offering, which supports seven major languages, is to boost the telco’s integrated communications management solutions portfolio. [p.10.]

Mobile termination rates will continue to decline on a glide path in Spain over the next two-and-a-half years, with Movistar’s rate to be slashed by 40% by April 2012. A new tax, which could cost Telefónica 0.9% of its annual gross revenue, moved a step closer to passing into law. [p.10.]

LATINOAMÉRICA: Telefónica is reportedly looking for new partners to support the rollout of IPTV and video-on-demand services in Latin America, with a request for proposals for set-top box and headend suppliers issued. Cisco and Harmonic were named as companies being encouraged to bid for contracts. [p.11.]

Ericsson highlighted its role in providing revenue assurance services to Telefónica across Latin America, while BMC Software said it had helped the telco save money on IT system implementation in several territories. [p.11.]

In Argentina, Telefónica extended availability of its Trío bundled voice, broadband and pay-TV service, which is offered in conjunction with DirecTV, but protested the prospect of a rival operator offering a similar bundle. In Brazil, there were indications that internet television plans were developing, with decoders mooted that enable internet content to be viewed on a television. Video-on-demand was also heralded for the Brazilian market. [pp.12,17.]

ECtel announced it had secured a deal with Vivo that will see existing ECtel fraud-management systems upgraded, which for the first time are available in Portuguese. [p.18.]

Vivo saw a slight increase in its market share and its market lead, in July 2009. However, in Colombia, Movistar market share tumbled, dropping 1.5 percentage points in a quarter. Complications in GSM deployment and a failure of competitive pricing were blamed for the slump. [pp.18,19.]

Mobile ticketing company Mobiqa trumpeted its relationship with Movistar Chile, which has seen the UK-based solutions provider deliver mobile ski passes and concert tickets for Movistar events. [p.19.]

3.5G services were heralded by Movistar Ecuador, which claims to offer the fastest-available mobile broadband speeds in the country, although availability is limited. It was suggested that rollout of new mobile infrastructure will see the Ecuador unit spend 30% more than anticipated on capital expenditure in 2009. Movistar Panama was said to have effectively combated new entrants to the market through its 3G rollout, and the unit promoted its expanding 3.5G coverage and availability of video-calling. 3.5G services were launched in some areas of Uruguay, and deployment of the technology was also expanded in Venezuela. [pp.20,23,25.]

Movistar Guatemala highlighted its UMTS 3G deployment, which was undertaken with Ericsson following earlier CDMA200-based rollouts. Movistar Mexico is expected to acquire spectrum licences in upcoming auctions, enabling it to offer 3G services across the country. [pp.21,22.]

The SpinVox voice-to-text service is set to launch on the Movistar Mexico network. In Peru, Telefónica claimed more than 500,000 customers for its fixed-wireless service FoneYa , which offers contract and pre-pay residential phone services targeted at the urban outskirts. [pp.22,24.]

There was speculation suggesting shady political manoeuvring around a rumoured deal that has supposedly involved Telefónica investing in a shipping company in Venezuela. [pp.27.]

TELEFÓNICA EUROPE: O2 Zaloha, a mobile back-up service in the style of O2 BlueBook, was launched in the Czech market. [p.29.]

O2 Germany said it would not block VoIP services over its 3G mobile network, stealing a march on larger competitors that are also apparently pondering a move feared by the industry as a revenue cannibaliser. [p.31.]

O2 Germany launched new simplified DSL tariffs, with options for bundling additional services. A new SHDSL product is also to be introduced to the company’s wholesale portfolio. O2 Germany is to participate in NFC trials with German rail operator Deutsche Bahn. [pp.32,33,34.]

O2 Advertising Services, intended to offer targeted advertising services to brand-owners, was launched in Germany. O2 Media, the UK mobile advertising unit, appointed ex-Vodafone executive Shan Henderson to lead its sales team. [pp.33,38.]

Mobile TV was launched by O2 Ireland, with daily and monthly passes for content from RTE and BSkyB. The BlackBerry Managed Service also launched in Ireland. [pp.34-35.]

New mobile termination rates were set in Slovakia, which favour O2 as the smallest player. In the UK, BT Group accused O2 of scaremongering over the effect of termination rate cuts. [p.36.]

The O2 UK marketing department is being restructured, as the company focuses on developing its reputation for services. [p.36.]

Telmap was awarded a contract to provide its Navigator solution to O2 customers with GPS-equipped handsets. After a slight delay, the Samsung Galaxy i7500 Android-powered handset was launched in the UK. [p.37.]

ASSOCIATES & INVESTMENTS: China Unicom confirmed it is to offer Apple’s iPhone exclusively in China. Telecom Italia expressed confidence in its turnaround, but may be forced to sell its interests in Argentina due to competition concerns. Portugal Telecom profit was hit by termination rate cuts and increased domestic competition. [pp.43-46.]

EXTRACT

Telecom and Unicom to undertake $1bn share swap

As Telefónicawatch published, news emerged that Telefónica and China Unicom are undertaking a $1bn (EUR700m) equity swap.

Following the transactions, Telefónica will hold an 8.06% stake in Unicom (up from 5.38%), which in turn will hold up to 0.892% of the Spanish telco. Both companies have the option to pay in cash or stock, making it potentially cash-neutral. Unicom will issue new shares, while Telefónica may release existing Treasury stock.

As a consequence, Unicom appears set to become the only non-Spanish core shareholder at Telefónica. While Telefónica is the largest foreign investor in Unicom, it is not alone, with South Korea’s SK Telecom holding a stake of around 3.8%.

Telefónica currently has a market valuation of around EUR80bn, while Unicom is valued at around HK$250bn. The Chinese mobile market leader, China Mobile, is the world’s largest player, by both market capitalisation and customer numbers.

The companies also confirmed a non-compete agreement, restricting sale of shares to, or investment in, rivals. Additionally, further cooperation was agreed in the areas of procurement (including handsets), infrastructure, roaming, mobile services, multinational clients, and R&D.

” We are delighted with this alliance, which will bolster both of our companies’ leadership positions, giving us a combined global customer base of nearly 550 million. ”
– Cesar Alierta, Chairman, Telefónica Group.

Whilst Telefónica’s desire to raise its stake in Unicom to 10% has been long-flagged, and thus making this step relatively unsurprising, Unicom’s reciprocal investment is unexpected and so more interesting.

Observers will be left pondering the strategic implications of this now bipartite equity-backed strategic alliance, although the development should not be entirely surprising, since Telefónica’s (and peer Vodafone’s) one-sided investment in a China telco was already looking rather quaint. China’s telecom market and sector valuations have rocketed and can now overshadow Western players, making it only natural that Telefónica and Unicom should opt to recalibrate their partnership on a more equal-footed basis.

Further questions relate to how the rebalanced alliance will affect the partners internationally, such as expansion into new emerging markets, and technologically (the Chinese market is rapidly catching up here, too). It also leaves unanswered how equity holdings will evolve; there had seemed deep State reservations about larger foreign stakes in Chinese players, but this reticence might ease should relationships become more reciprocal. The shift also coincides with the relative maturing of the Chinese market (and economy, generally), with local players taking greater interest in their own international expansion. Indeed, closer partnership with Telefónica could prove commercially advantageous to Unicom on multiple levels, such as: helping to ease political hurdles that often face assertive Chinese investment overseas; and providing the opportunity to better serve Chinese entities themselves expanding overseas.

[Further reference: Telefónica and Unicom to swap $1 billion in shares -- Reuters, 6 September 2009; Telefónica, China Unicom to Swap $1 Billion of Stock -- Bloomberg, 6 September 2009; Spain's Telefónica increases China Unicom stake -- AFP, 6 September 2009; Telefónica and Unicom to exchange $1bn in shares -- Financial Times, 6 September 2009.]

Rumours of unusual investments by Telefónica Venezuela

A blog by Caracas Gringo, a commentator who claims to be a journalist, analyst, and guest lecturer on US-Latin America issues for government bodies, has reported on alleged deals undertaken by Telefónica in Venezuela, suggesting that the telco has invested up-to-$500m (around 25% of its non-repatriated funds) in a local shipping company.

The money for the investment was also apparently placed with a state-controlled bank, Banco Confederado, and was said to be under threat of insolvency. The moves were posited as a strategy devised by Telefónica leadership and both Spanish and Venezuelan politicians to stave off the threat of the government of Hugo Chavez renationalising Movistar Venezuela.

Caracas Gringo claimed he had been informed by banking sources that the shipping deal has been finalised, but did not have further details of the name of the business or the sums involved. The deal was reportedly finalised while Spain’s Foreign Minister Miguel Angel Moratinos was on an official visit to Venezuela.

The blog claimed that the rumoured shipping company acquisition is the third “major strange deal” undertaken by a Spanish company operating in Venezuela, which the blog claimed hinted at corruption in the governments of both Spain and Venezuela.

The blogger also claimed El Nacional newspaper had written an extensive newspaper report on the alleged Telefónica deal with Banco Confederado based on information gathered by the blogger, but which was withdrawn after printing prior to distribution following political pressure on the publishers, and because of the government involvement of some of its owners.

The veracity of the claims cannot yet be ascertained by Telefónicawatch.

[Further reference: Movistar (Telefónica), Banco Confederado and shipping -- Caracas Gringo, 6 August 2009; Banco Confederado: Another Bolivarian duck? -- Caracas Gringo, 8 August 2009; Antonieta, Bobolongo and Banco Confederado -- Caracas Gringo, 21 August 2009.]

TABLE OF CONTENTS

3 Telefónica Group

3 Associates and investments
3 Acquisitions and disposals
3 Telefónica to sell Meditel stake for EUR400m
3 Telefónica closing in on Hansenet acquisition
4 Suppliers
4 Telefónica deals give credibility to SpinVox claims investor
4 Devices
4 Vodafone’s Colao bemoans ‘iPhone effect’
4 Pre hits problems in USA
5 Telco SpA
5 Employment
5 Telefónica recruits for LatAm and Europe network builds

6 Telefónica España

6 Devices
6 Movistar criticised in MiFi review
6 Competitors
6 Telefónica order against Vodafone for fixed-line claims
6 Devices
6 New BlackBerry Curve launched in Spain
7 Market statistics
7 CMT reports on telecoms market growth
8 Network
8 VDSL2 services predicted for Spain
8 Telefónica broadband network experiences “massive collapse”
8 Network
8 Telefónica FTTH makes commercial debut in Spain
8 Vodafone to launch ADSL services on Telefónica network
9 Society
9 Telefónica signs equal opportunities pledge
9 Partners
9 Telefónica signs retail distribution deal with Fnac
9 Telefónica España selects Olista for mobile platform
10 Products and services
10 Simultaneous translation service launched in Spain
10 Regulation
10 Termination rates to continue decline in Spain
10 New TV tax on telcos a step closer

11 Telefónica Latinoamérica

11 Regional partners
11 Regional partners
11 Telefónica requests bids for set-top box contract
11 BMC highlights Telefónica role
11 Ericsson highlights Telefónica revenue assurance deal
12 Argentina
12 Argentina
12 Telefónica bundled pay-TV services offered across Argentina
12 New Trío ad campaign launched
13 Argentina
13 “Comunidad Movistar” discounts to include fixed-line calls
13 Movistar Argentina offers free account management
13 Telefónica notes broadband traffic rise
14 Brazil
14 Internet use continues to rise in Brazil
14 Telefónica objects to rival’s bundled services plans
14 Brazil
14 Speedy sales ban lifted
15 Brazil
15 Telefónica in Brazil wins award
15 Telefónica sees success in cutting cable theft
15 Telefónica Brasil highlights broadband upgrade efforts
15 Mesquita emphasises training
15 De Beer on Telefónica’s corporate commitments
16 Brazil
16 Calls for greater broadband availability in Brazil
16 Further enhancements to Telefónica procedures announced
16 Support for block lifting highlighted
17 Telefónica rolls out broadband to 91 more cities
17 Telefónica plans further steps towards internet television
17 Video-on-demand trailed at ABTA conference
17 Telefónica service complaints drop
18 Brazil: Vivo
18 Vivo confirms iPhone 3GS availability
18 RIM app store launched in Brazil
18 Brazil: Vivo
18 ECtel wins Vivo deal
18 Vivo sees slight market share rise
18 Vivo consolidates online services
19 Chile
19 Fundación Telefónica highlights educational role
19 Colombia
19 iPhone 3GS launched in Colombia
19 Chile
19 Mobiqa highlights Movistar partnership
19 Colombia
19 Movistar hit as mobile subscriptions slip in Colombia
20 El Salvador
20 Movistar Colombia offers additional minute bundles
20 Ecuador
20 3.5G launched in Ecuador
20 Additional investment expected in Ecuador
21 Movistar Ecuador offers incentives for personal data
21 Guatemala
21 Movistar trumpets investment in network with Ericsson
22 Mexico
22 Movistar Mexico aims for new spectrum licences
22 Movistar Mexico to launch SpinVox
23 Panama
23 Video calling promoted in Panama
23 Movistar Panama expands 3.5G coverage
23 Movistar succeeds in pre-empting Claro threat — report
24 Peru
24 Peru
24 Telefónica claims success for fixed-wireless in Peru
24 Uruguay
24 3.5G launched in Uruguay
25 Venezuela
25 Movistar highlights new LG handsets
25 Venezuela
25 3.5G network expanded in Venezuela
25 Movistar Venezuela launches SMS prize draw
26 Venezuela
26 Fundación Telefónica marks ten years in Venezuela
26 Telefónica plans submarine cable repairs
26 Movistar runs promotion for infrequent users
26 Movistar Venezuela launches electronic top-up promotion
27 Terra
27 Terra trumpets new partner deals
27 Rumours of unusual investments by Telefónica Venezuela

28 Telefónica Europe

28 Czech Republic
28 TOCR picks Oracle inventory management suite
29 Czech Republic
29 TOCR launches back-up service
29 TOCR trumpets success of O2 ZERO
30 TOCR offers discounts and support to flood victims
31 Germany
31 Germany
31 Ericsson lands IMS contract
31 Ericsson continues to build Telefónica links
31 O2 opens up VoIP access
32 Germany
32 O2 Germany simplifies DSL offering
33 O2 launches new targeted ad platform
33 O2 adds SHDSL to wholesale line-up
34 Ireland
34 O2 signs up for Deutsche Bahn NFC project
34 Ireland
34 O2 Ireland launches mobile TV
35 Ireland
35 Isle of Man
35 BlackBerry Managed Service launched in Ireland
35 O2 Ireland takes lead in contract customers
36 Slovakia
36 McGuigan named O2 Slovakia Chief Executive
36 United Kingdom
36 O2 offers “try-before-you-buy” broadband
36 Slovakia
36 New termination rates set in Slovakia
36 United Kingdom
36 O2 UK restructures marketing department
37 United Kingdom
37 O2 ties with Telmap for GPS navigation offering
37 Android handset launched by O2 UK
38 United Kingdom
38 Rumours continue over iPhone deal
38 O2 Media appoints new head of sales
39 United Kingdom
39 O2 surpasses BT in customer connection numbers
39 O2 names new Accelerator partners
40 United Kingdom
40 Pickering reveals career influences
40 O2 tenders for public affairs business
40 BT accuses O2 of termination rate scaremongering
41 United Kingdom
41 Pickering reveals career influences cont’d
41 Dunne bullish on SME, enterprise plays
42 Devices
42 UK: Be Un Limited
42 Be offers term-time broadband contracts
42 Be Un Limited highlights

43 Associates and investments

43 China Unicom
43 Telecom and Unicom to undertake $1bn share swap
44 China Unicom
44 Apple confirms Unicom iPhone distribution deal
44 China Unicom reports declining H1 net income
45 China Unicom
45 China Unicom to spend CNY 10bn on widespread 2Mbps broadband
45 Telecom Italia
45 Telecom Italia
45 TI beats estimates, bullish on turnaround
46 Anti-trust body calls for TI to sell Telecom Argentina
46 Telecom Argentina voting ban overturned
47 Portugal Telecom
47 Termination rate cuts hit PT financials
47 PT plans to acquire transmitter business

49 Index

INDEX

A
ABTA, 17
Academy Music Group (AMG)
O2 Academy, 37
Agence Nationale de Réglementation des Télécommunications (ANRT), 3
Aker BioMarine ASA, 29
América Móvil, 18, 19, 22, 23
Claro, 18, 23
Comcel, 19
Slim, Carlos, 22
Telcel, 22
Anatel, 14, 15, 16, 18
AnyDATA Corp., 25
Apple, 4, 34, 35, 38, 44
iPhone, 4, 18, 19, 34, 35, 38, 44
Ariadne Capital Ltd, 4
Asicom Mobile Solutions, 19
AT&T, 42
B
Banco Confederado, S.A., 27
Barclay Communications, 38
Bebo, 36
Beijing CandidSoft Technology Co. Ltd, 43
Benjelloun Group, 3
Finance.com Group, 3
RMA Watanya S.A., 3
Berliner Verkehrsbetriebe (BVG), 34
BMC Software, Inc., 11
BSkyB, 34
BT Group, 38, 39, 40, 41, 42
Bundesnetzagentur für Elektrizität, Gas, Telekommunikation, Post und Eisenbahnen (Federal Network Agency for Electricity, Gas, Telecommunications, Postal Service and Railways, BNA/BNetzA/RegTP, Germany), 31
C
Carphone Warehouse
TalkTalk, 42
Chavez, Hugo (Venezuela), 27
Chime Communications plc
Bell Pottinger Group, 40
China Mobile, 43, 44
China Netcom, 43
China Telecom, 43, 44
Cisco Systems, Inc., 11
CMT (Spain), 7, 8, 10
CNDC (Argentina), 46
Collins Stewart, 4
Conatel, 21
Confederación Española de Organizaciones en Favor de las Personas con Retraso Mental (FEAPS), 9
Consumers’ Association
Which?, 42
Credit Suisse Group CS, 46
Credit Suisse First Boston, 46
CSOB Group, 28
D
Deutsche Bahn, 34
Deutsche Post
DHL, 28, 41
Deutsche Telekom
T-Mobile, 28, 31, 34, 36
Germany, 31
DHL, 28, 41
Digicel, 23
DirecTV, 12, 14
E
EasyJet plc, 41
eBay
Skype, 31
ECTel, 18
Ericsson, 11, 21, 24, 31
F
Ford Motor Co., 28
France Télécom
Orange, 7, 10, 36, 37, 42
Fundação de Proteção e Defesa do Consumidor (PROCON, Brazil), 16
G
Gartner Group, 22
Global Crossing, 26
Google, 4, 37
Android, 4, 37
Groupe Bull, 18
Groupe Caisse de Dépôt et de Gestion (Groupe CDG), 3
Fipar-Holding S.A., 3
Grupo Clarín, 14
Cablevisión, 14
FiberTel, 14
H
Hansenet, 3, 45
Harmonic, 11
Hewlett-Packard, 25
High Tech Computer Corp. (HTC), 4, 23
Huawei, 25
Hutchison Whampoa
H3G
UK, 40
Hyundai Group, 25
I
Internet Advertising Bureau (IAB), 38
Intuition Publishing Ltd, 39
Isle of Man Bowls Festival, 35
K
KKCG, 28
Kyocera Corp., 25
L
Lew TelNet GmbH, 31
LG, 25
London Web Ltd, 39
M
Management Recruiters Global (MRG), 5
McConnell’s Advertising, 34
Microsoft, 32
Mobiqa, 19
MoCo Communications Ltd, 37
Morgan Joseph & Co. Inc., 4
Motorola, 30
MVNOs, 7
N
Ness Technologies, Inc., 28
NewBay Software, 29
News Corp.
BSkyB, 34
Sky, 34
Twentieth Century Fox Film Corporation, 27
Nielsen, 14
NII Holdings, Inc., 4
Nokia, 22, 23, 30, 31
Novatel Wireless, 6
O
Ofcom (UK), 39, 40
Olista Ltd, 9
Omnicom Group, Inc.
DDB Worldwide, 12
DDB Argentina, 12
ONO, 8
Oracle, 28
Organic, 45
Oystercatchers, 40
P
Palm, 4
Pantech Corp., 42
Portugal Telecom, 3, 47
Meo, 47
TMN, 47
PPR S.A. (Pinault-Printemps-Redoute)
FNAC, 9
Publicis Groupe
Starcom MediaVest Group (SMG), 34
R
Raidió Teilifís Éireann (RTÉ), 34
Rede Teledifusora Independente, S.A. (Reti), 47
Reed Elsevier
In-Stat, 43
Regions
Africa
South Africa, 32
Africq
Morocco, 3
APAC
Australia, 32
China, 32, 43, 44, 45
Hong Kong, 32
Japan, 32
Malaysia, 32
New Zealand, 32
Singapore, 32
Taiwan, 32
EMEA
Andorra, 32
Austria, 32
Belgium, 32
Bulgaria, 32
Croatia, 32
Cyprus, 32
Czech Republic, 28, 29, 30, 32, 34
Denmark, 32
Estonia, 32
Europe, 4, 5, 8, 28, 29, 32, 33, 34, 36, 38, 39, 40, 47
Finland, 32
France, 9, 32, 44
Germany, 3, 4, 10, 31, 32, 33, 34
Greece, 32
Hungary, 32
Ireland, 4, 29, 32, 34, 35, 39
Isle of Man, 35
Israel, 32
Italy, 3, 5, 11, 32, 45, 46
Liechtenstein, 32
Luxembourg, 32
Monaco, 32
Netherlands, 32
Norway, 32
Poland, 32
Portugal, 3, 11, 32, 47
Russia, 32
Slovakia, 32, 36
Slovenia, 32
Spain, 4, 6, 7, 8, 9, 10, 14, 18, 27, 29, 31, 32, 34, 43, 44
Sweden, 32
Switzerland, 32
Turkey, 32
UK, 4, 14, 29, 32, 33, 34, 36, 37, 38, 39, 40, 41, 42
Vatican City, 32
Latin America, 4, 5, 11, 14, 17, 19, 22, 23, 25, 27
Argentina, 11, 12, 13, 14, 18, 22, 32, 46
Brazil, 11, 14, 15, 16, 17, 18, 27, 32, 45, 47
Central America, 31
Chile, 11, 18, 19, 32
Colombia, 11, 19
Ecuador, 19, 20, 21
El Salvador, 20
Guatemala, 21
Mexico, 18, 22
Panama, 23
Peru, 11, 24
Uruguay, 24
Venezuela, 25, 26, 27, 32
North America
Canada, 32
USA, 4, 14, 32, 42
Research in Motion, 27, 39
Research In Motion, 6, 18, 35
BlackBerry, 4, 6, 18, 35, 39
Rotcho Ltd, 34
Royal Ahold N.V. (Koninklijke Ahold N.V.), 28
Royal Bank of Scotland
NatWest, 36
Royal KPN
E-Plus, 31
S
Samsung, 27, 37
Secretaría de Comunicaciones (Secom, Argentina), 14
Signals Telecom Consulting, 19, 23
Sindicato dos Empregados no Comércio (SINDEC), 17
SK Telecom, 43
Skype, 31
Slovakian Telecommunications Office (TU), 36
Sony, 23
Sony Ericsson, 23
SpinVox, 4, 11, 22
Sprint Nextel, 4
T
Technologies
2.5G, 20
2G
Edge, 20
3G, 6, 18, 21, 22, 23, 24, 31, 34, 44
3.5G, 20, 23, 24, 25, 28
HSDPA, 20, 24, 34, 35
4G
LTE, 43
WiMAX, 17
ADSL, 8, 11, 30, 33
ATM, 26
Broadband, 3, 6, 7, 8, 9, 11, 12, 13, 14, 15, 16, 17, 18, 20, 21, 24, 25, 28, 31, 32, 33, 36, 38, 39, 42, 44, 45, 47
Business/Operations Support Systems (BSS/OSS), 28
DSL, 8, 32, 42
FTTH, 8
GPS, 37
GSM, 19
IMS, 31
IP, 11, 12, 17, 28, 31, 38
IPTV, 12, 17
ISDN, 30, 32, 39
MMS, 29, 33
Mobile TV, 34
NFC, 34
NGN, 31
R&D, 43
SHDSL, 33
SIM, 29, 30, 32, 37
SMS, 24, 25, 26, 29, 32, 33, 44
TV, 10, 11, 17
UMTS, 21
VDSL2, 8
VoIP, 31
WLAN, 32
Wi-Fi, 25, 37, 44
Telco SpA, 3, 5, 46
Telecom Argentina, 14, 45, 46
Telecom Italia, 3, 5, 45, 46
Bernabe, Franco, 45, 46
HanseNet Telekommunikation, 3
TIM Brasil, 18
Telecom Plus plc
Utility Warehouse, 42
Telefónica Group, 3, 4, 9, 22, 43, 47
Associates and investments
China Netcom, 43
China Unicom, 43, 44, 45
Portugal Telecom, 3, 47
Telecom Italia, 3, 5, 45, 46
España, 6, 7, 8, 9, 10
Movistar, 10
Universal Service Obligation, 16
Executives
Abril, Luis, 9
Aherne, Karl, 34
Alierta, César, 43
Alvarez, Cristina, 9
Bargues, Andrés, 12
Bartholomew, Steven, 40
Botas Bañuelos, Antonio, 34
Cowdry, Sally, 36
De Beer, Mariano Sebastián, 15
De Salterain, Pablo, 24
Dunne, Ronan, 41
Earle, Jonathan, 39
Folgueiras, Andrea, 31
Goulu, Juan Federico, 20
Gregory, Shaun, 38
Henderson, Shan, 38
Hodgers, David, 36
Johnson, Alistair, 36
Karas, Jan, 29
McGuigan, John, 36
McMullan, Ilona, 39
Mesquita, Paulo, 15
Pickering, Ann, 40
Prokopik, Tomas, 28
Pruchnow, Johannes, 33
Rampling, Peter, 36, 37
Schneider, Frantisek, 28
Schüler, Lutz, 31, 32
Sedivy, Juraj, 36
Tetiva, Bohdan, 29
Whelan, Paul, 35
Whelan, Ronan, 35
Fundación Telefónica, 12, 15, 19, 25, 26
Latinoamérica, 11, 25
Argentina, 12, 13, 14, 46
Brazil, 11, 12, 14, 15, 16, 17
Brazil (TVA), 17
Chile, 19
Colombia, 19, 20
Ecuador, 20
Mexico, 22
Peru, 24
Venezuela, 25, 26, 27
Meditel (Morocco), 3
Móviles, 11
Movistar, 4, 6, 7, 9, 10, 11, 12, 13, 19, 20, 21, 22, 23, 24, 25, 26, 27
Argentina, 12, 13
Chile, 19
Colombia, 19, 20
Mexico, 22
Venezuela, 25, 26, 27
O2 Europe
Be Un limited (UK), 42
Products and services, 29
Aula365 Speedy, 13
FonoYa, 24
mobile ticketing, 19
mpass, 34
O2 Load & Go, 36
pay-TV, 11, 12, 14, 17, 47
Speedy (Latinoamérica), 13, 14, 15, 16, 17, 24
TRIO, 12
Xda (O2), 42
Telco SpA, 3, 5, 46
Telefónica Europe, 4, 9, 19, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42
Accelerator Partner Programme, 39
Be Un limited (UK), 42
Czech Republic, 28, 29, 30
Germany, 31, 32, 33, 34
Ireland, 34, 35, 36
Manx Telecom (Isle of Man), 35
O2 Advertising Services, 33
O2 Group, 39
O2 Media, 33, 38
O2 TV, 30, 34
Slovakia, 36
UK, 19, 31, 36, 37, 38, 39, 40, 41, 42
Terra, 13, 27
Teléfonos de México (Telmex), 22
Televisa, 22
Telmap Ltd, 37
Time Warner
AOL, 42
CNN, 34
Tiscali SpA, 42
Travel Channel, 34
TST (Training Services & Technologies), 10
TVA, 17
U
United Nations, 24
V
Virgin Group, 40, 42
Virgin Media, 40, 42
Vivendi SA
Universal Music Group (UMG), 27
Vivo Participações, 18, 47
Vodafone Group, 4, 5, 6, 7, 8, 10, 28, 31, 34, 35, 38, 43
Germany, 31
Ireland, 35
Spain, 8, 10
UK, 4
VVCP, 34
W
Walt Disney, 13
World Bank, 46
International Centre for Settlement of Investment Disputes, 46
X
Xansa, 40
Xfera, 10
Y
Yahoo!, 38
Yoigo, 7, 10
Z
Zen Internet, 42
Zenprise, Inc., 39
ZTE, 20, 25

Issue: 2009.06
Covering: H1 FY09 results and trends
Published: August 2009
Next issue: September 2009

Delivering valuable insight into the labyrinth that is Spain’s global telco giant. A unique monthly report for the industry.

• About Telefonicawatch
• Executive Brief
• Extract
• Table of Contents
• Index

ABOUT TELEFONICAWATCH

• Telefónicawatch delivers all the information on Telefónica Group worldwide in one place, and keeps it up-to-date in a uniquely thorough and digestible fashion.
• This ongoing report service encapsulates Telefónica’s three core divisions — España, Latinoamérica and Europe — along with its central functions, strategy, financial and operational performance, and numerous other units and interests (including China Unicom, Portugal Telecom, Telecom Italia, Vivo, Atento, TIWS, Terra, etc.).
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• Below is a free taster from issue 2009.06 (H1 FY09 results and trends), including an Executive Brief, Extract, Table of Contents and Index, giving a valuable snapshot of the full report.

EXECUTIVE BRIEF

H1 FY09 RESULTS: Telefónica published its results for the first half of 2009, which were generally received as being pleasingly “solid” . Reported revenue for the half year of EUR27.6bn was down 2% year-on-year, but, when considered on an organic basis, the company saw revenue growth of 1.4% for the period. Telefónica Latinoamérica was again the key driver behind the revenue performance, while Telefónica Europe also played its part, despite being hampered by the continued weakness of sterling. OIBDA and net income were slightly ahead of the levels predicted by analysts, with results of EUR10.9bn and EUR3.62bn, respectively. OIBDA was up 0.7%, excluding capital gains impact, and up 3% if currency movements were disregarded. [pp.3-5.]

Capital expenditure across the Group dropped by nearly 20% (16% in organic terms) as the company focused on maintaining operating cashflow and emphasised its commitment to being flexible in its spending to reflect the demands of the market and protect its balance sheet. Spending in Spain took a particular hit, falling 29.6%, as the company’s plans for fibre rollout slowed, and the economic downturn in the construction industry stifled demand for associated new infrastructure. [p.6.]

Telefónica’s customer base continues to swell, with the June 2009 total of 264 million being 7.6%-higher than a year earlier. Brazil was a major contributor to accesses growth as was the UK (considering the levels of market saturation), while net adds were also strong in Germany and Mexico, both markets where Telefónica OpCos still have relatively small market shares. [p.7.]

While the results were generally welcomed, there appeared to be uncertainty over what to expect from Telefónica in 2010, with the Board saying it anticipated performance within the bounds of its “stress test” of worst-case scenarios, but holding back on more detail until October 2009’s Investor Conference. [p.8.]

Telefónica España Chief Executive Guillermo Ansaldo indicated that trading conditions looked to be stabilising, although that was also the view expressed last quarter. Telefónicawatch was struck by the poor performance of the Spanish fixed-line business, particularly in relation to broadband and IPTV sales, where a complacent approach to growing the market seems to be returning to haunt the company. Mobile broadband was flagged as an area of growth for Telefónica, but with a significant element of fixed-broadband revenue cannibalisation potentially heralding further bad news for the wireline business. [pp.9-16.]

Telefónica Latinoamérica continues to be the growth engine of the Group, but, increasingly, observers are looking under the bonnet and expressing concern that the division is unlikely to be able to maintain current levels. Shaky performances were noted in key Brazil and Colombia units, accompanied by seemingly ever-present concerns of undue political influence in the region, focused this time on Venezuela, where Telefónica was pushed to defend its claims of success in the country in the light of the prospect of major associated currency write-downs. [pp.17-23.]

“Market momentum” was maintained at Telefónica Europe, where the UK performed strongly, and appeared only held back by local currency weakness, while the German unit’s turnaround continued to gather pace. However, in the Czech Republic, an uncertain view of the future led the unit to abandon revenue guidance, while confirming fairly gloomy OIBDA predictions. [pp.24-29.]

TRENDS & INNOVATION: Drawing on insight from Analysts at Market Mettle, and interviews with Telefónica partners, Telefónica’s prospects in three key areas of innovation have been considered. IPTV is a service that Telefónica has been attempting to build for some time, but appears in danger of losing momentum in Spain, and is hampered in Latin America by network and regulatory constraints, while its position within Telefónica Europe is uncertain. IPTV partner Alcatel-Lucent considers the technology could provide the interactive television service that consumers reportedly want, but warns that fibre investment is vital to providing a differentiating experience. It could be the case that IPTV becomes the second phase of Telefónica’s pay-TV plans, following a partnership approach with existing providers on other platforms that helps to gain a foothold in the market. [pp.32-37.]

For an integrated operator like Telefónica, converging technologies such as WiMAX and femtocells could become a key part of network coverage. However, how these services, which have the potential to cannibalise traditional revenue, fit in the company’s strategy is not yet clear. The potential for WiMAX deployment as a solution to network coverage provision in remote areas that lack fixed-lines is particularly striking and an area the company is already making strides in Latin America and Spain. Femtocell technology partner Ubiquisys highlighted the potential for new revenue streams from offering consumers unified communications in the home. [pp.38-41.]

Mobile commerce has been on Telefónica’s radar for several years now, but a coherent strategy has yet to fully emerge from the company. While recent months have seen the emergence of several small commercial offerings and trials in the area, it would appear there is some uncertainty as to the best direction forward in current market conditions. In the UK, O2 has made several forays into mobile ticketing and associated services, although partner Mobiqa has suggested that early efforts amounted to little more than a marketing ploy, and that the unit was “clogged up with initiatives” in the area. [pp.42-44.]

EXTRACT

Faltering fixed-line services a concern in Spain

There appeared to be some disquiet among the analyst community, with attention particularly focused on Latin America and Spain.

Most troubling for Spain is the slowdown in broadband and pay-TV, two segments that are substantially under-penetrated when considered alongside European counterparts.

The sluggish broadband market appears to be of particular concern, and can perhaps be attributed to Telefónica’s position as a fixed-line incumbent with considerable experience in managing the regulator. This may have led to a complacent attitude that restricts growth of the broadband market, while maintaining respectable market share and margins for Telefónica. However, as the recession in Spain continues, demand for broadband has slowed, and it may notable that in markets such as the UK, also affected by difficult economic conditions (although perhaps not to the extent of Spain), broadband has proved itself to be less of a luxury and more a day-to-day requirement.

Broadband penetration is also considered key to development of Telefónica’s pay-TV service in Spain, which is another segment suffering from local conditions. The company reacted to the economic crisis in Spain earlier in 2009 with competitive offers for fixed-line and mobile customers that have become unemployed, but, other than securing clearance from the regulator to make attractive offers to broadband customers migrating from a rival, Telefónica in Spain has failed to respond proactively to the slowing broadband market.

The operating company gives an impression that it is satisfied with its policy of competing on quality-of-service rather than price. Telefónicawatch wonders whether this view is an example of the lack of responsiveness the company has shown in the broadband market in Spain, possibly brought about by the requirement to make wholesale versions of its products simultaneously available to potentially more-agile competitors, which can negate the appeal of innovation.

The company is offering a summer promotion of fixed-line voice and 6Mbps broadband for EUR19.90-per-month, but it is unclear whether short-term offers for new customers will be sufficient to compete with aggressive new tariffs from rivals such as Vodafone, which is promising long-term low prices.

Spain: Mobile broadband: a threat as well as an opportunity?

Telefónicawatch was also interested to note that the Spanish unit is claiming that mobile broadband is slowing growth of the fixed-line broadband market. If it is the case that customers are turning to mobile broadband as an alternative to fixed-line services, as opposed to as a complementary service, this could be bad news for the future of the wireline business as a whole, and could be a spark for a accelerated abandonment of fixed-line services.

While Telefónica can position itself as an “integrated operator“, and say that it continues to benefit from customers adopting mobile broadband through Movistar España, the mobile market is notably more competitive, and Telefónica will not be able to exert the same levels of dominance.

” Obviously, what’s going on in Spain in the fixed-broadband side, the market is not growing, so, basically, we are taking share of a smaller market. That is due to two things in my opinion: one is the overall economic environment, which is tougher; and [two] also the surge of the mobile broadband, which is exploding and from which we are taking very good share of that market. As an integrated operator, that gain is a positive gain. ”
– Guillermo Ansaldo, Chief Executive, Telefónica España.

Telefónica’s own analysis apparently showed that around one-third of mobile broadband customers could be viewed as having cannibalised fixed-broadband, with an even split within that group between people who substituted fixed-broadband connections, and those who never had a fixed-broadband service. It was unclear whether this breakdown related to the market as a whole, or just Movistar España mobile broadband users.

Internet Protocol television service Imagenio is viewed as an important value-add for the wireline business, but the Spanish unit only managed a small increase in customers in Q2, coming off the back of a decline in the preceding quarter. While analysts considered that domestic rivals are performing strongly, Ansaldo said claimed it was the market as a whole that was declining and “not behaving very well”. The company also appeared to retreat from its target of reaching one million Imagenio subscribers in 2010, which would require a sharp increase in demand, with Ansaldo accepting that, “despite the fact 2010 is not yet tomorrow, it will be tough to get those numbers”.

Some scepticism over Latin American performance

The Telefónica results conference call for the H1 FY09 results saw particularly tough questioning on performance in Latin America, where political uncertainty remains and questions over commercial performance emerged.

Shaky fixed-line performances in Brazil and Columbia were noted, which the company hopes to address through network investment in the former, and revised commercial offerings in the latter.

Concern was also expressed about the ability of Telefónica to repatriate funds from Latin America to Spain, with particular worry expressed over cash balances held in Venezuela. Valbuena said there was “no particular issue” regarding remitting funds to Spain from most of the region, but he did admit that some dividend repatriation had been delayed in Venezuela. Meanwhile, a blog from an unnamed analyst and lecturer on South America, made unsubstantiated claims that Telefónica had invested funds in government-linked banks in the country, which were thought to be on the verge of insolvency, and had also invested in a local shipping business as a means of securing its future independence in the country under the government of Hugo Chavez, who has previously nationalised a number of businesses, including operator CANTV, in which Telefónica held a stake.

There was also an assumption from analysts that there would be a write-down on Venezuelan assets, as it was considered that much of the growth in the country was “driven by inflation, and supported by an artificially pegged currency”. However, the company said that, at present, there was no need to consider this action as the operating company was performing well, and that, so long as the group considers it could repatriate funds, it did not need to take action over a potential realignment of the exchange rate. Valbuena stressed that the company’s independent accountants and auditors were satisfied with this view, although he did himself appear to concede that a problem with the currency realignment could occur at some point in the future, saying “what we have been doing so far is warning the investment community that…the sustainability [for] very long [of] the trend of the exchange rate is not an easy thing to hold”.

In Brazil, Vivo has previously positioned itself as a provider of high-end services, building a customer base of profitable customers rather than just chasing volume. However, it is worth noting that recently, as has been the case in previous quarters, SIM-only customers contributed significantly to the unit’s new customers, which raises questions as to the true extent of its market share lead. Regional Chief Executive Álvarez-Pallete experienced a tense moment as he was pushed on Vivo’s loss of market share, maintaining it was “pretty stable”, while an analyst insisted it was declining, arguing that the executive’s version of events was different to the view of regulator Anatel and its market statistics. However, the spat appeared to be more a predictable difference in emphasis, than reliance on different information. The latest Anatel figures show a decline, with Vivo’s market share hovering at just over 29%, but an overall declining trend has still seen some months of marginal improvement.

Czech Republic puts a crib in Telefónica Europe performance

For Telefónica Europe, the results were generally well received, with questions from analysts focused more on how the level of performance would be maintained.

Telefónica Europe Chief Executive Matthew Key was predictably questioned about iPhone exclusivity, which were effectively batted away without revealing anything on the nature of the agreement with Apple in the UK and Ireland (although the degree of coyness could in itself be telling). Telefónica O2 UK is expected to see a 4%-hit to revenue due to mobile termination rate cuts in H2 FY09, amounting to a predicted 2%-cut in anticipated revenue for the whole year.

Germany was considered a particular success story, as recovery plans set in motion in FY07 continued to bear fruit. Nevertheless, there were concerns that the market in Germany is stepping up a level in terms of competition. Key was confident that performance could be maintained, however, highlighting the four “drivers of profitability” in the market. The success of the fixed-line Telefónica Deutschland business in moving into profit was flagged, along with increased direct sales, lower reliance on roaming, and attractive new customer propositions. Levels of operating income before depreciation and amortisation (OIBDA) growth, which were very high year-on-year at the end of FY08, are unlikely to be sustained, but underlying profitability was considered solid, and underlying revenue was also growing, after the effects of termination rate cuts in the market were excluded.

Telefónica Ireland was hard-hit by economic conditions, but it was in the Czech Republic, where the operating company still issues its results to the local stock exchange, that expectations can be seen to be clearly faltering. The company said it is focusing on improvements to operating performance and making more effective use of capital expenditure, in an effort to meet OIBDA guidance of 0%- to 4%-decline, and a 2%- to 5%-increase in operating cash flow. However, guidance for revenue was dropped, due to lack of clarity in the market going forward, apparently in large part due to uncertainty over likely information and communication technology work for the Czech government.

Analyst reaction

Despite the fact that Telefónica delivered revenue in line with analyst expectations, and OIBDA and net income above consensus estimates, the better-than-expected performance was not obviously reflected in the company’s share price, which rose just 1% (to EUR17.65) on the announcement, broadly in line with movements in the wider Spanish market.

In contrast to the upbeat tone of executives, there was a degree of mildly hostile scepticism from certain analysts on the conference call, with a number probing the company’s reticence to update FY10 guidance, questioning the validity of some quoted indicators in South American markets, and querying the general justifiability of executives’ self-congratulatory stance.

However, in subsequent press coverage, analysts seem to take a more balanced and broadly-positive position on the results, with a cautiously optimistic outlook.

” The cost-reduction efforts are very significant and encouraging. …The results prove the companies can protect cash and ensure dividend payments by reducing costs and investments. …Taking into account the current situation in the world’s economy, the results are outstanding. ”
– Alberto Espelosin, analyst, Ibercaja Gestion, commenting on the performance of Telefónica, BT and France Télécom.

Banesto, in a research note, described Telefónica’s second-quarter results as “solid”, but added they were overly dependent on Latin America and capital expenditure cuts. The bank said the results would likely support the stock over coming weeks, and suggested the company may announce a new share-buyback programme or improvements in its FY09 guidance in the autumn.

” Telefónica remains the choice name in the sector in my view. The shares have been one of the best large-cap performers this year, and should be well supported again today. ”
– Saeed Baradar, analyst, Société Générale.

[Further reference: Telefónica S.A. January-June 2009 results -- Telefónica, 29 July 2009; Telefónica H1 profit up 0.7 pct -- Reuters, 30 July 2009; Telefónica 2Q net dn 6.1% on year-ago asset sales -- Wall Street Journal, 30 July 2009; Telefónica, BT, France Telecom beat analyst estimates -- Bloomberg, 30 July 2009.]

TABLE OF CONTENTS

3 Telefónica H1 FY09 results

3 Telefónica Group
3 Overview
4 Telefónica, selected financial data, H1 and Q2 FY09
5 Regional
5 Telefónica Group, revenue, by region, H1 FY09
5 Telefónica Group, OIBDA, by region, H1 FY09
6 Telefónica Group, capital expenditure by region, H1 FY09
7 Customer numbers
7 Telefónica Group, customer numbers (‘000), Q2 FY09
8 Forecasts
8 Uncertainty over expected 2010 performance main area of concern
9 Telefónica España
9 Overview
9 Telefónica España, financial highlights, H1 and Q2 FY09
10 Customer numbers
11 Telefónica España, customer numbers (‘000), Q2 FY09
12 Wireline
12 Telefónica España, wireline financial highlights, H1 and Q2 FY09
13 Telefónica España, wireline revenues by type, H1 and Q2 FY09
13 Wireless
13 Telefónica España, wireless financial highlights, H1 and Q2 FY09
14 Telefónica España, wireless revenues by type, H1 and Q2 FY09
14 Telefónica España, wireless key performance indicators, H1 FY09
15 Faltering fixed-line services a concern in Spain
16 Mobile broadband a threat as well as an opportunity?
17 Telefónica Latinoamérica
17 Overview
17 Telefónica Latinoamérica, financial highlights, H1 and Q2 FY09
18 Customer numbers
18 Telefónica Latinoamérica, customer numbers (‘000), Q2 FY09
19 By country
20 Telefónica Latinoamérica, revenue by country, H1 and Q2 FY09
21 Telefónica Latinoamérica, OIBDA by country, H1 and Q2 FY09
22 Key performance indicators
22 Telefónica Latinoamérica, Key Performance Indicators, H1 FY09
23 Signs of scepticism over Latin American performance
24 Telefónica Europe
24 Overview
24 Telefónica Europe, financial highlights, H1 and Q2 FY09
25 Customer numbers
25 Telefónica Europe, customer numbers (‘000), Q2 FY09
26 By country
26 UK
26 Germany
27 Ireland and Czech Republic
27 Telefónica Europe, revenue by country, H1 and Q2 FY09
27 Telefónica Europe, OIBDA by country, H1 and Q2 FY09
28 Key performance indicators (KPIs)
28 Telefónica Europe, Key performance indicators, H1 FY09
29 Czech Republic puts a crib in Telefónica Europe performance
30 Atento Group
30 Atento Group, financial highlights, H1 and Q2 FY09
31 Analyst reaction

32 Trends and innovation

32 Where next for Telefónica?
32 IPTV analysis: Can Telefónica compete in the pay-TV market?
32 Introduction
32 Telefónica’s IPTV services
33 Telefónica España
34 Telefónica Latinoamérica
35 Telefónica O2 Europe
35 Czech Republic
35 UK
36 Ireland
36 Germany
36 Alcatel-Lucent — Telefónica’s Partner for IPTV
37 Bundles are important, but is IPTV investment justified?
38 FMC analysis:Where does it fit in Telefónica strategy?
38 Introduction
38 Telefónica looks to WiMAX as a potential remote solution
39 Intel supports importance of WiMAX in LatAm
40 Femtocells could boost 3G in Europe…
40 …Partner Ubiquisys pleased with trials
41 Conclusion — potential for addressing current weaknesses
42 Mobile commerce analysis: New ways to make money from mobile
42 Introduction
42 Mobile commerce and Telefónica
43 Mobile payments — waiting for market to catch up?
44 Mobile ticketing — Mobiqa unsure of Telefónica strategy
44 Conclusion — clear strategy yet to emerge

45 Index

INDEX

A
Airwave Safety Communications Ltd, 3
Alcatel-Lucent, 32, 36, 41
Alvarion, 38
Anatel, 19, 23
Anschutz Entertainment Group (AEG), 43
Apple, 29, 41
iPhone, 26, 29, 41
Atos Origin, 43
B
Banco Bilbao Vizcaya Argentaria, 42, 43
Banco Itaú, 42
Barclaycard, 43
British Broadcasting Corporation, 35
BSkyB, 35, 36
BT Group, 31, 35
C
CANTV, 23
Carphone Warehouse, 35
Chavez, Hugo (Venezuela), 23
Columbia Ventures
Magnet, 36
D
Deutsche Telekom
T-Mobile, 24, 26
E
Endemol N.V., 32
F
France Télécom, 31, 32
Orange, 32, 33
Orange Spain, 33
Freeview, 35
I
Iberbanda, 38
Ibercaja, 31
Intel, 39, 41
Inter-American Development Bank, 42
ITV, 35
J
Juniper Research, 43
L
Live Nation
Wireless Festival, 44
Lycos, 32
M
Microsoft, 36
Mobile World Congress, 40
Mobipay, 43
Mobiqa, 44
Motorola, 39, 41
N
NEC, 40
News Corporation
BSkyB, 35, 36
Nokia, 43
O
O2 Arena, 43, 44
ONO, 33
Organic, 5, 6
P
Portugal Telecom, 33
Prisa, 33
Digital+, 33
Project Canvas, 35
R
Regions
EMEA
Czech Republic, 7, 24, 27, 28, 29, 35, 41, 42
Europe, 3, 4, 5, 6, 15, 24, 25, 26, 27, 28, 29, 32, 33, 35, 37, 40, 41, 43
France, 31, 32
Germany, 7, 24, 26, 27, 28, 29, 36, 37, 43
Ireland, 24, 27, 28, 29, 36, 37, 42
Italy, 33
Portugal, 33
Spain, 4, 6, 7, 9, 12, 13, 15, 16, 23, 30, 31, 33, 37, 38, 41, 43, 44
UK, 7, 15, 24, 26, 27, 28, 29, 35, 36, 37, 40, 42, 43, 44
Latin America, 4, 15, 23, 30, 31, 34, 37, 38, 39, 41, 42, 43, 44
Argentina, 17, 18, 19, 20, 21, 34, 41, 43
Brazil, 7, 17, 18, 19, 23, 30, 33, 34, 39, 42
Chile, 7, 18, 20, 21, 32, 34, 37, 43
Colombia, 7, 20, 21, 43
Ecuador, 20, 21
Mexico, 7, 18, 19, 20, 21, 30, 43
Panama, 43
Peru, 7, 17, 18, 19, 30, 41, 43
Uruguay, 20, 21, 43
Venezuela, 7, 17, 18, 19, 20, 21, 22, 23, 30, 43
Royal Bank of Scotland
NatWest, 43
S
Smart Telecom, 36
Société Générale, 31
Sogecable, 3
T
Technologies
2.5G, 39
2G, 6
3G, 38, 39, 40
3.5G, 38
4G
WiMAX, 38, 39, 41
ADSL, 6, 7, 10, 11, 33, 34
Broadband, 6, 7, 9, 10, 11, 12, 13, 15, 16, 18, 19, 25, 26, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41
DSL, 26, 41
Femtocell, 38, 40, 41
Fixed-mobile convergence (FMC), 38, 40
GSM, 6
HDTV, 36
ICT, 39
IP, 32
IPTV, 32, 33, 34, 35, 36, 37
LLU, 7, 10, 11
Mobile Broadband, 16
NFC, 43
P2P, 14, 28
R&D, 32
SIM, 23, 25, 26
SMS, 14, 26, 28, 44
Wholesale line rental, 11
WLAN
Wi-Fi, 38, 39
Telecom Italia, 33
Telefónica Group, 3, 4, 5, 6, 7, 8, 38
Associates and investments
Iberbanda, 38
Portugal Telecom, 33
Sogecable, 3
Telecom Italia, 33
Atento, 30
España, 3, 5, 6, 9, 10, 11, 12, 13, 14, 16, 33, 34, 36, 37, 42, 43
Movistar, 16
Universal Service Obligation, 12
Executives
Álvarez-Pallete Lopez, Jose Maria, 19, 23
Ansaldo, Guillermo, 9, 16
Dev, Vivek, 41
Dunne, Ronan, 35
Fernández Valbuena, Santiago, 4, 8, 23, 24
Key, Matthew, 26, 29, 35
Linares, Julio, 6
Ex-executives
Viana-Baptista, Antonio, 42
Latinoamérica, 3, 5, 6, 7, 17, 18, 19, 20, 21, 22, 23, 34
Argentina, 20, 21
Brazil, 19, 20, 21, 34
Brazil (TVA), 34
Chile, 20, 21, 34, 37
Colombia, 20, 21
Mexico, 20, 21
Peru, 20, 21
Telefónica International Wholesale Services, 20, 21
Uruguay, 20, 21
Vivo (Brazil), 19
Móviles, 20, 21
Ecuador, 20, 21
Uruguay, 20, 21
Venezuela, 20, 21
Movistar, 16
Products and services
DUO, 10, 18
Imagenio, 16, 32, 33, 34
Mobile banking, 42
mobile payments, 42, 43
mobile ticketing, 42, 43, 44
MobiPay, 42
mpass, 43
O2 Wallet, 43
pay-TV, 7, 10, 15, 18, 32, 33, 34, 35, 36, 37
TRIO, 10, 18, 33, 34
Telefónica Europe, 24, 26, 27, 28, 29, 35, 36, 40, 43, 44
Czech Republic, 27, 28, 35
Fonic, 26
Germany, 24, 26, 27, 28, 36, 43
Ireland, 27, 28
O2 TV, 35
O2 Wireless Festival, 44
Telefónica Deutschland, 29
UK, 26, 27, 28, 29, 35, 40, 43, 44
Terra, 32
Ticketmaster, 44
Tiscali SpA, 35
Transport for London, 43
Oyster Card, 43
TranSys, 43
TVA, 34
U
Ubiquisys, 40
V
Virgin Group, 35, 36
Virgin Media, 35, 36
Visa Europe, 43
Vivendi Universal, 33
Vivo Participações, 19, 20, 21, 23, 33, 42
Vodafone Group, 15
VTR, 34, 37
Z
ZTE, 40