Global Insight Perspective | |
Significance | Vodafone Czech Republic has integrated Ericsson's IP Multimedia Subsystem (IMS) solution on its mobile network. |
Implications | The upgraded infrastructure will enable Vodafone to bring fixed-mobile convergence (FMC) services to the Czech market. |
Outlook | Ericsson's advanced IMS solution will power Vodafone's new services and applications, paving the way towards FMC services in the Czech Republic. |
The world's leading telecoms network equipment vendor, Sweden's Ericsson, will supply and integrate its IP Multimedia Subsystem (IMS) solution into Vodafone's Czech network, along with project management, network design and implementation.
The implementation of the IMS technology is an important step in Vodafone's Czech strategy towards the introduction of FMC services and evolution to all-IP operations. Ericsson's IMS product is an end-to-end solution that gives operators immediate revenue opportunities and enables seamless access to a wide range of new multimedia services across both fixed and mobile networks. Ericsson's IMS solution includes a converged IMS core infrastructure, as well as application servers and service enablers for common functions that can be reused by multiple fixed and mobile applications. Ericsson has won 39 IMS contracts for commercial deployment and systems integration and has performed more than 80 trials throughout the world.
Outlook and Implications
Next-Generation Services: Vodafone's roll-out of its IMS network in the Czech Republic is the operator's response to competitive conditions on the local market. Ericsson's IMS solution will enable Vodafone to provide FMC services and applications, including IP telephony and multimedia services, to its both fixed-line and mobile customers. In May this year, Vodafone signed a contract with Radiokomunikace, which enabled the mobile operator to resell broadband services and offer fixed-line broadband services using the ADSL technology, targeting corporate customers. The FMC services will complement the operator's mobile and broadband products. The new strategy means that Vodafone is positioning its Czech business in direct competition with incumbent Telefónica O2, which already bundles its mobile services with broadband access (see Czech Republic: 4 April 2007: Telefónica O2 Combines Mobile Voice Telephony and Broadband Access Services).
Next-Generation Network: Vodafone's investment into the IMS infrastructure replaced its plans to roll out a 3G mobile network in the Czech Republic. The operator cancelled the launch of its Czech 3G network in July last year, owing to high costs. Instead, Vodafone decided to utilise other more cost-efficient technologies as it embarked on a more cost-efficient next-generation network (NGN) strategy. Vodafone had previously chosen Ericsson for its cancelled 3G contract (see Czech Republic: 21 July 2007: Vodafone Scraps Czech 3G Network Launch and Czech Republic: 3 April 2007: Ericsson, Huawei Win 3G Network Deals with Vodafone).
European Scope: The Vodafone group has also been developing a similar strategy in its other European markets in France, Germany, Spain, Portugal and the United Kingdom, as it moves away from a pure-play mobile strategy in order to position itself as an integrated telecoms provider in Europe. Last week, it emerged that Vodafone was interested in buying the fixed-line assets of Tele2 in Italy and Spain. The company owns Arcor, a fixed-line operator in Germany, and has also moved to offer ADSL access services in Portugal. In Italy, it has an agreement with FastWeb for a broadband service in the country, while in the United Kingdom it resells BT broadband products (see Europe: 7 September 2007: Vodafone Eyes Tele2 Fixed-Line Operations in Italy and Spain, Spain: 4 September 2007: Vodafone Plans to Enter Fixed-Line Market in Spain, Germany: 28 May 2007: Arcor Starts IP TV Trials, Portugal: 25 June 2007: Vodafone Wades into Portuguese ADSL Market and Italy: 3 August 2007: Italian Regulator Approves Telecom Italia, Vodafone FMC Offer).