last100 » Vodafone

Vodafone UK lands iPhone too but Apple unlikely to sanction a price war

Steve O'Hear — Tue, 29 Sep 2009 13:44:48 +0000

Following yesterday’s news that mobile carrier Orange are to begin selling the iPhone here in the UK, Vodafone have announced that they too are jumping on the Cupertino bandwagon, albeit not till early 2010.

And with O2’s two-plus year monopoly on Apple’s iconic device therefore well and truly broken, overpaid analysts and most of the tech press/blogosphere have been quick to predict a pending price war for the iPhone and associated tariffs this side of the pond. However, I’m still not convinced that this will be the case.

As I’ve already argued, the carriers need the iPhone more than Apple needs them, resulting in a classic case of divide and conquer. Orange and Vodafone could afford no more to sit by and watch their high end customers flock to O2 in order to get their hands on the so-called Jesus phone. Vodafone CEO Vittorio Colao has admitted as much, telling investors that not having the iPhone has hindered the ability for the carrier to remain competitive in the UK.

So instead of one carrier signing a pact with the devil, we now have three.

Remember Apple has already achieved what Nokia, the world’s largest handset maker, has been trying to do for years: completely own the customer relationship (think marketing, post-sale services and billing). Only, as The Register reports, Apple also appears to own the carrier relationship too.

Our understanding is that Apple not only reserves the right to get involved in pricing of handsets, but also expects “partner” operators to contribute generously to Apple-controlled advertising. This is on top of the ongoing revenue share to which operators around the world have signed up. Operators used to demand exclusivity before agreeing to such things, but such is the lure of the iPhone, that Apple can call the tune without having to offer the additional inducement of an exclusive deal.

Apple already offers the iPhone through multiple carriers in many countries, but the company is very careful to maintain control of the platform, regardless of the network from which their customers get their iPhones. Apple considers iPhone users to be Apple customers – network operators are just dumb pipes to Cupertino.

The end result of Apple ‘owning’ both customer and carrier relationships, says The Register, will be “near-identical offerings, differing only in the colours of the attached [carrier] logos”.

In other words, don’t expect an iPhone price war anytime soon.

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How I plan to use my HTC Magic Android phone

Steve O'Hear — Fri, 26 Jun 2009 14:08:55 +0000

Vodafone HTC Magic running on a SIM Zero contract on 3

As my obsession with mobile continues – the new frontier – I’ve made the decision to take out a second mobile phone contract. But with a twist. I don’t plan to make (or receive) a single call on handset number two. Instead, it will be used for data only (Web browsing, third-party Internet-connected apps and email).

Handset and contract number one will remain my trusty Nokia E71, with its fantastic physical QWERTY keyboard, superb voice call quality and reception, and huge battery life (3-4 days at a stretch). This will be my all rounder: voice, sms, email, BBC iPlayer, live radio streaming and occasional web.

Contract number two will power my shiny new HTC Magic, which runs Google’s Android OS. The phone is a Vodafone exclusive here in the UK but I picked one up on eBay – somebody’s unwanted upgrade – and the great thing about most Vodafone contract phones, as I’ve discovered, is that they come unlocked so that you can use them on any compatible network. In this case, I’ve signed up to a second contract with UK carrier 3.

Why choose 3?

The answer lies in their new “SIM Zero”, SIM-only 30 day rolling contract. Basically, it costs nothing per-month with no inclusive calls or texts – these are charged separately at fixed rates – but does allow you to pick from any of the available add-ons, in this case 1GB of mobile Internet (data) for just £5 per month. It will also be the SIM card that I’ll use most often when I’m sent a new phone to review.

The end result is that my all rounder, the Nokia E71 is costing me about £20 per month to run with an inclusive bundle of voice minutes, texts, free skype-to-skype, and 1GB of data. And my second handset – let’s call it my touch screen mini Internet tablet, the Android-powered HTC Magic – is costing me £5 per month to keep the lights on.

I know what you’re thinking, why not just carry one handset and save some money in the process. It comes down, in part, to the compromises of both devices. The Nokia E71 is super reliable – battery wise and reception – and has a keyboard I much prefer. The HTC Magic on the other hand has a superior web browser and much better over-the-air syncing with Google’s apps. And there’s the growing library of really cool third-party Internet-enabled applications and my general interest in Android as an up and coming mobile OS.

Besides, two or more mobile devices is just how I like to roll.

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Vodafone Music’s DRM-free move makes Apple and Nokia look bad

Steve O'Hear — Thu, 12 Mar 2009 15:08:13 +0000

Vodafone, which currently operates music download stores in over 20 countries, is to become the latest company to jump on the DRM-free bandwagon, announcing this week that it will soon be transitioning its music catalog away from the copy-protected WMA format to standard MP3s. Additionally, customers will be able to covert their existing Vodafone purchases to DRM-free versions at no extra charge, unlike Apple’s current iTunes arrangement where users wishing to ‘upgrade’ are effectively asked to pay twice.

That’s the good news as far as Vodafone is concerned. The bad: only three of the four major record labels are on board – Universal Music Group, Sony Music and EMI – with Warner, for now at least, refusing to join in the fun, and the whole DRM-free deal only applies to a la carte downloads not Vodafone’s MusicStation all-you-can eat subscription service.

Although DRM-free music downloads via the PC are just about the norm these days, until recently the majority of ‘over-the-air’ mobile offerings still employed some form of copy-protection technology. How times are changing. AmazonMP3 was recently chosen as the default music store on the T-Mobile G1, the first device running the Google-led Android mobile operating system, and the e-tailer has a similar arrangement with Palm for its upcoming Pre smartphone. Meanwhile, in January Apple’s iTunes Store completed its lengthy transition to a DRM-free format, including adding 3G ‘over-the-air’ music downloads to the iPhone sans DRM.

Nokia missing in action

As a side note: all of this DRM-free love is making Nokia look decidedly out of touch. Just yesterday, the handset maker announced that its music download store and ambitious ‘Comes With Music’ (CwM) all-you-can-eat subscription service is rapidly expanding to include more countries and support on three new music-focused phones, yet both the Nokia Music Store and CwM heavily rely on DRM. Although copy-protection technology is probably a necessary evil for CwM, at the insistence of the major record labels who, along with Nokia, are nervously moving into very new territory, for a la carte downloads it just doesn’t make sense. Until the Nokia Music Store drops DRM, I suspect more tech-savvy customers will continue to shop elsewhere, even if that means putting up with the inconvenience of ’side-loading’ music to their phone via a PC.

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