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23rd November - Nokia's latest range of business targeted
mobile phones, the 'E-Series', are bundled with VOIP capability
via WLAN. This enables users to bypass the mobile network
altogether making cheap calls, which are good for businesses
but bad for operators. 'E' is for enterprise and Nokia has
firmly targeted this sector with their cost effective WLAN
enabled range.
It is estimated that for most Western European mobile carriers,
more than 35% of their voice minutes originate either from
the home or the office environment. When considering that
a growing number of homes and the vast majority of offices
now have WLAN capability the ramifications could be significant
for operators. Eroding voice traffic is not something that
is going to happen over night, but it certainly is something
operators have to address and deal with.
Nokia's E60, E61 and E70 mobile phones are directly marketed
at the enterprise sector. The E60 device is in the candy bar
form factor and has no camera, a feature that many businesses
do not want for cost and security reasons. The phone is reasonably
light at 117g and is smartly finished in silver and chrome.
The E70 features a fold out QWERTY keyboard which makes emailing
using Blackberry Connect easier; this phone has a 2 mega pixel
camera and weighs in at 127g.
Nokia are definitely pushing technology in a direction that
suits the business of the future, many of which are already
using VOIP in their offices. Nokia's solution potentially
delivers cost efficient savings from VOIP calls but also Nokia
claim employees will be more reachable with calls being routed
to mobile via WLAN from their desk phone. It also enables
employees to have a single voicemail, for both desk phone
and mobile phone.
Nokia have partnered with Avaya to deliver this solution.
The proposal is to sell the solution marketing it as an important
cost saving technology that will work without the need for
additional hardware installation. Nokia realise that many
companies are actively seeking ways to reduce the cost of
mobile calls. It is also clear that many companies are already
using VOIP for many of their fixed line calls. Adding a mobile
version of this technology would be simple and be ultimately
cost effective.
Mobile operators that do not yet have a WLAN strategy feel
rightfully threatened by Nokia's latest range. Nokia's traditional
customers are network operators, and they have to do their
best to keep these customers happy. They are right to expand
into new technologies, especially when they are saving end
users money. However, if by doing so they put pressure on
their customers vital life blood, in this case voice traffic,
they run the risk of upsetting their network operator partners.
Many networks operators have opted not to take the latest
E-series phones and rightly so if they feel that it will potentially
erode voice traffic. Network operators are not going to subsidise
a device that they are ultimately going to make less money
from on an ongoing basis. Nokia are going to struggle to sell
this device to many of their important customers and in conclusion
appear to be in a challenging situation. Develop a product
that your customers can make money from, but also a product
that saves the end user money. They are quite literally between
a rock and a hard place with this new range. Whilst not eroding
voice traffic overnight, network operators have to look into
the future and see that these devices are not good news for
their business, particularly if they have little or no WLAN
strategy that will generate revenue from this technology.
Report Written by Mako Analysis (www.MakoAnalysis.com)
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