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Vodafone drops Live! brand as European cellcos regroup

By CAROLINE GABRIEL

Published: 16 July, 2009

READ MORE: Europe | Vodafone | O2 | Applications (Media)

Continued ...

Of course, Vodafone may shift its UK position by acquiring T-Mobile UK, or swapping it for Vodafone Turkey. The Deutsche Telekom unit still has to engineer its turnaround plan, even while negotiations are ongoing, and new UK managing director Richard Moat is reported to be treading a well-worn path - the iPhone. Although T-Mobile UK has a reputation for carrying quirky 'cult' phones like the Danger Sidekick, in the mainstream it has generally lagged behind its rivals in phone terms. Now insiders say that Moat is in talks with Apple for rights to sell the iPhone - lending weight to the assumption that O2 will lose its exclusive quite early next year - but could be in competition with Orange UK too.

These cellcos might be better to find their own crowd pleasing smartphone rather than engaging in a price war with O2 over the iPhone. Orange is set to make a splash in the autumn with the HTC Hero, while O2 is adding the Pre and Toshiba TG01. T-Mobile would do well to talk to LG about getting an exclusive for one of its string of upcoming superphones - carrier deals have not yet been finalized for the Chocolate 2 or the Louvre, for instance, both featuring cutting edge video and camera facilities.

While Telefonica O2 looks to spread its wings in terms of phones, it is also the most aggressive European cellco about an application on which many are pinning high hopes, mobile money. O2 UK is launching O2 Money next month, in partnership with the NatWest Bank, and will offer two prepaid debit payment cards targeted at students and teenagers, complete with a 'load and go' service that will be marketed as a "replacement for pocket money" and can be remotely topped-up by parents. This will be the first in a string of mobile wallet services from O2, which will be replicated in other European countries.

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