COMPLIMENTARY ADVISORY REPORT

Mobile Network Sharing Agreements: A Game Changer to Serve Enterprise Clients Better

| April 3, 2009 | Enterprise Mobility - Europe | Advisory Report

| Analyst: Rolf Schonhowd, Principal Analyst, Enterprise Mobility - Europe

The new multi-market network sharing deal between Telefonica and Vodafone appears to be a major new industry trend for key mobile operators to collaborate although we have already seen collaborative initiatives taking place such as the FreeMove Alliance. Since mobile networks first went live, mobile operators have used their networks for competitive differentiation similar to fixed players such as BT Global Services and Verizon Business.

However, as business customers both on a national and international basis are expecting higher levels of service from their mobile suppliers, new competitive elements are emerging such as multi-carrier networks agreements in order to deliver service level agreements (SLA) including solid performance guarantees. Hence, network sharing deals will play into these new elements to make networks equally fast, more reliable and available, with consequences.

The challenge will now fall on marketing and propositions teams to create new stories of differentiation; increased pricing competition is a likely to be a side-effect of that, too. Network sharing also creates an opportunity for operators to nurture a ‘green’ profile more aggressively. But most importantly, these deals highlight the extent to which operators are ready to challenge previously-held assumptions about the sanctity of retaining a distinct competitive profile. Just one year ago, a multi-market network sharing deal between two of Europe’s largest and most powerful Tier 1 competitors would have been inconceivable. However, today cost reduction programs are turning out to be the industry’s most frequently-deployed response to the ongoing recession. This report will bring out what is happening or likely to happen to obtain business benefits in the current market environment.

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| Client access - Report in Enterprise Mobility - Europe | More information

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