Vodafone is committed to “true convergence”, but this will not take place until there are changes to both regulation and content rights, said Europe CEO Philipp Humm.
In a keynote speech at the Cable Congress in Brussels, Humm confirmed that convergence…
Vodafone is committed to “true convergence”, but this will not take place until there are changes to both regulation and content rights, said Europe CEO Philipp Humm.
In a keynote speech at the Cable Congress in Brussels, Humm confirmed that convergence remains a strategic priority for Vodafone, saying it is “our future and one that we are committed to”.
Like other mobile players, UK-based Vodafone initially bought fixed- line assets as a defensive manoeuvre to avoid being pushed out by incumbents, Hummsaid, adding that it has nonetheless proven the right choice for customers.
While discounting has driven convergence in the past, with higher discounts prompting customers to take more products and services, Humm said this effectively destroys value, pointing to the incumbent telcos in Spain and Portugal as examples.
However, he said real convergence will not occur until customers are able to access all content and software on all their devices via the cloud. Vodafone is already moving toward an all-IP network and he expects other operators to follow suit.
In his view, there needs to be “intelligent regulation” to enable both in-market and crossborder consolidation. While the European Commission has recently been more open to consolidation, Humm said certain remedies designed to maintain competition, such as allowing rivals to enter the market via MVNOs, can in fact make matters worse.
As for content, Humm said operators need to convince owners to alter their business models to monetise customers rather than devices. In his view, content owners should allow customers to access material on multiple devices for a flat fee, saying that those which ignore customer wishes are doomed for failure.
He also said operators need better access to premium content, which drives traffic, and that regulation should not permit exclusive agreements which are detrimental to customers.
“We don’t want to buy rights; we want to distribute content,” he said, but noted that if others buy exclusive content, Vodafone will need to do so as well.
Humm said Vodafone believes that the fixed- line sector will play an important role in turning the European business around, although he noted that there is not a single solution for all markets.
As for future trends, he said the company is investing in the M2M space, including in automotive, energy monitoring and smart homes. He also expects to eventually see a big uptake of 5G, describing it as the “next wave”.
