Summary
The launch of Vodafone360 is the latest indicator of Peter Knook's influence on Vodafone since his joining from Microsoft 18 months ago. Vodafone Internet Services are now trying to present a consumer face for Vodafone that sees it capable of utilising investment in 3G and 3.5G Mobile Broadband.
The interesting element is that this will be the first two handsets in Europe that use the LiMo standard. One from Samsung and one from Huawei.
Analysis
The service that Vodafone are offering is little more that matching the INQ handset used by 3 in Europe which brings together a number of social networks on a simple handset rather than smartphone.
This means that Mobile Networks can gain better retention tools as the consumer stores data on the networks servers and so becomes less likely to churn. The consolidation of numerous address books into a single master list could mean that you are less likely to switch networks if only one holds the ultimate list. The big issue will be does the consumer trust Vodafone more than they do Facebook, MySpace, Google or Yahoo?
The other issue is within the general population just how many are interested in social network on their mobiles? The early adopters have decided that if they are to be mobile users of social networks then they will use some form of smartphone. So how do you get the masses to adopt something that at this moment they have no demand of?
The most interesting element of the new service is that it will use a new platform in LiMo. The use of Linux on a mobile in a form other than Android shows that Networks are still looking at some form of control of OS if they are to limit costs. Samsung and Huawei showed new handsets that offer an easy user interface when it comes to data services without the cost of smartphones. These devices are likely to attract customers thanks to the use of OLED as well as pricing.
These devices will launch in the important run up to Christmas and can expect to see Nokia and Android lose sales.
Ian Wood consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
