It is a hugely significant move because its is a validation of Nokia's Ovi strategy from one of the world's biggest operators. It amounts, at least in part, to an admission by Vodafone that the manufacturer brand may be as important as their own. This is something that operators have long sort to avoid. Operators were also seeking to protect their service based revenue streams and retain complete ownership of the customer.
In our earlier article on Ovi we outlined operator resistance as one of the biggest challenges facing Nokia. Initial evidence seem to bear this out with reports of several operators refusing to carry to relevant Nokia handsets and a generally frosty reception from operators as a whole. However with Telefonica and now Vodafone backing Ovi Nokia's strategy is gaining momentum. I would expect other operators to follow in the tracks on Vodafone and Telefonica over the next year.
The Vodafone announcement does not, of course, signal general acceptance, but it does show which way the wind is blowing. Vodafone may gain a first mover advantage, if the Ovi services prove to be popular with customers, and other operators will be well aware of that. Moreover the ability for operators, as a collective, to stone wall the ideas behind Ovi effectively disappears with this announcement.
Nokia may have had to pay a small price to gain Vodafone backing, the press release mentions that a number of the Ovi enabled Nokia phones will be exclusive to Vodafone, although there are no further details on this.
Extract from the press release:
Customers will get faster and easier access to all of Vodafone's Internet and entertainment services as well as all of Ovi from Nokia services on a wide range of handsets. Vodafone customers will be able to access the widest and most attractive choice of Internet services.Vodafone and Nokia will make it easier to access the Internet quickly at the click of a button. Customers will get the full suite of communications, content, Internet services and browsing, through seamlessly integrated Vodafone services on Nokia handsets.Vodafone and Nokia will also deliver greater choice in music for customers, by making both the Vodafone music service and the Nokia Music Store available on Nokia's 2008 handsets."We're pleased do be working with Nokia in leading the industry to bring customers a complete suite of Vodafone communications, browsing, content and Internet services" said Frank Rovekamp, Global Chief Marketing Officer, Vodafone Group. "This is a logical step for Vodafone to make, further improving our customer experience with many of the services already launched with leading Internet partners.""Web2.0 is all about social networking and enabling people to connect with each other in new ways. Bringing location and context awareness to web2.0 services is the next stage in the web development and Nokia multimedia computers enable people to participate to their favourite internet services on-the-go", said Executive Vice President and General Manager Nokia Multimedia Anssi Vanjoki. "We're excited to work with Vodafone to provide consumers with internet services like navigation, music, games and communities to make their life richer and more enjoyable, independent of time and place."