Vodafone spells out what handset suppliers need to do

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Vodafone spells out what handset suppliers need to do

By CAROLINE GABRIEL

Published: 29 January, 2009

READ MORE: Vodafone | Handset

Vodafone has a clear idea of how to ride out the downturn - throw its weight around and ensure that the whole ecosystem gets in line behind its efforts to streamline its product range and therefore its costs.

Earlier this week CEO Vittorio Colao was in aggressive mood, sending clear signals to suppliers and competitors that Vodafone would work more closely with its partners Verizon Wireless and China Mobile to pool their already impressive purchasing and bargaining power that Vodafone has been pushing for several years, but in far more black and white terms - handset makers need to prioritize on the reduced number of standards that Vodafone intends to support, and produce devices at lower cost, but with a rich user experience and a heavier focus on a 'Vodafone' brand and look and feel.

Will Vodafone get its way? Its massive buying power, especially when combined with its two key partners, is hard to ignore for cellphone makers under pressure, and Vodafone will assemble other majors under its flag too, as it has been doing since setting up the Open Mobile Terminal Platform (OMTP) group in 2004. This was an early move by the operators to ensure they, not the vendors, took the upper hand in defining next generation standards, and so gained the economies of scale of a globally agreed set of base technologies. Operator differentiation would then come from the user interface and software/web experience, a trend that would, in Vodafone's view, make the cellco brand dominant over the hardware brand. The success of devices like the iPhone has been a blow to this world view, but the desperation of the phonemakers to keep sales buoyant should start to play into the hands of the operators again, in their ongoing tug of war for the devices upper hand.

According to reports, Lewis has reiterated calls for a reduced number of operating systems and a consistent approach to user interfaces. Android's place in this inner circle seemed assured when the giant cellco joined the Open Handset Alliance, though its commitment to Symbian is also strong, while LiMO and Windows Mobile, plus dozens of proprietary and embedded operating systems, may have a more uncertain future.

A Vodafone spokesperson told Mobile Today: "At a recent device conference that Vodafone UK held for manufacturers, we updated on our strategy to continue to take best in class devices that meet the cross section of customer types. This will mean that we will continue to focus on a narrower range of devices overall, avoiding duplication and improving in market execution and the customer experience."