Vodafone Xone lures Silicon Valley start-ups
Research center will allow innovators to test and showcase new services on replica of Vodafone's European networks
Published: 12 September, 2011
READ MORE: US | Vodafone Group | Testing/Certification | Venture Capital
Major carriers are investing more heavily than ever before in their own R&D and innovation, as western operators start to emulate the research-heavy model - and the resulting technology control - of their Japanese and Korean counterparts. Vodafone has launched an R&D program in Silicon Valley, called Vodafone Xone, which will enable innovators and partners to trial new services using a mirror of the operator's global network.
Such ventures highlight some important trends. One is the shift of mobile innovation towards Silicon Valley, the heart of the computing and web world, as phones morph into full computers. This was signalled in 2009 when Ericsson established a major US base and laboratory in the California district and it has been emulated by several others.
Another is the cellcos' desire to differentiate themselves more aggressively via distinctive software platforms and services, in their fight to be relegated to the dreaded bitpipe role by the web majors. European operators, in particular, are learning lessons from their peers in east Asia, where carriers traditionally control the device and services agenda far more firmly than in the west. Firms like SK Telecom, China Mobile and NTT DoCoMo have huge investments in R&D centered on their own cloud services, user interfaces and other sources of revenue and competitive edge.
"We're keen to hear from all companies," a Vodafone spokesman told TotalTelecom. "There's no point putting boundaries on innovation … These guys have a lot of innovation but no access to our European networks."
The aim is to tap into local talent in the hi-tech area, which boasts thousands of start-ups and several major universities - especially ideas which lack the funding to enter the European market. That would give Vodafone first refusal on some services which could give it an edge over rivals in its increasingly saturated and competitive European heartlands. The main aim seems to be to scout interesting services for Vodafone operating units, though it could also invest directly via Vodafone Ventures. There will be no charge to participate in Xone.
The facility will enable partners to test new solutions using 2G, 3G, and LTE air interfaces, as well as an IP and IMS network - and in so doing, hope to catch Vodafone's commercial eye. The lab is also connected to the operator's live European networks via a dedicated backbone. It could also give participants the chance to attract the attention of Verizon Wireless, in which Vodafone is co-owner. The new center will be "closely aligned" with Verizon's Innovation Centers in San Francisco and Waltham, Massachusetts, giving selected start-ups access to Verizon's advanced LTE development network.
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