donderdag 18 november 2004

Vodafone pricing and strategy

Last week Vodafone announed their pricing strategy for Vodafine Live!. Their 'browse-for-free' walled garden approach is interesting and very much like Orange's flat rate strategy that sharply increased the usage of data-services. Although I feel very strongly against the walled garden approach in general, I do think this might work for the mainstream user in the short and mid term. But that very much depends on the content and services available in the portal. And here I feel i-mode has done a better job so far, even in Europe, since they make it easier voor small and creative service providers to access the i-mode user base. Again, I think it is the long tail that will generate the revenues, but there has to be one in the first place...

"As an example, if you're a Vodafone user and you'd like some current event news or sports results or on your 3G phone, you can get it free on the Vodafone portal or for a fee outside the portal. So not only do you have to go through the rather clumsy off-portal navigation, you have to pay for the privilege."

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