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Nokia E-Series Phones Bypass Operators with WLAN capability
by Tom Byrd Business Development Director 
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. About Mako Analysis Mako Analysis specialises in providing realistic research, actionable advice and bespoke consulting to members of the global wireless communications industry. Our specialism in mobile communications is our strength as our organisation is deeply committed to this specific market segment. We are constantly looking across the globe and into the future for any and all opportunities and threats that will have an impact upon the wireless industry we see around us today. As a fiercely independent firm we accurately communicate this information via off the shelf and bespoke reporting as well as highly tailored consulting projects. We know where our strengths lie, our mission is to help find, refine and continue to expand the strengths of our customers by providing them with the very best research and advice that the mobile industry has to offer. www.MakoAnalysis.com |
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