Vodafone says no to being “Dumb Pipe”, launches ‘Vodafone 360′ to battle Android, Apple, Nokia (w/ Video)

One of our readers across the Pond sent us a tip this morning (thanks Antonio!) that International mobile operator (aka carrier for our U.S. readers) launched a new mobile service platform called Vodafone 360.  While I can’t say that I’m surprised by this news, I am still a bit leary of where this “dumb pipe/smart pipe” idea is headed – not just specifically about Vodafone, but in general – but we’ll dig deeper into that later.

The company (along with many other carriers these days), is trying to avoid becoming what’s known as “dumb pipe” – a term used to describe an operator’s worst nightmare:  Serving voice and data to customers, and nothing more.  Wireless carriers don’t want to become a modern-day version of the “telephone company”, or fall into the old school “telco” mindspace of consumers out there.  This can be both good and bad in the sense, depending on how you look at it.

It is good for consumers who feel that everything they do on their mobile devices should come from their operator/carrier.  There will always people who want basic services, basic phones, and basic apps;  things that “just work”.  These people typically don’t care about smart/dumb, branding, manufacturers, platforms, or app stores.  They just want to be able to walk in to a carrier’s store, and grab a new phone. A platform like Vodafone 360 seems to target this market, as a “one-stop-shop!” for those who want Vodafone branded/managed services.  Most, if not all carriers already do this, providing basic apps for music, ringtones, and web browsing on feature (read: dumb) phones. Vodafone is looking to take this service platform to the next level, and that is where Vodafone 360 seemingly comes in.  Check out the video of the company’s announcement.

The first two Vodafone 360 devices will run the LiMo operating system, an Open Source mobile platform which like Android, is based on Linux.  This is an interesting choice of OS, but not completely surprising since it is backed by the LiMo Foundation, of which Vodafone is a member.

Now for the other side of this argument, and how it relates to Android and other smartphone platforms.  The consumers in this camp are about choice, and want to be as far away from carrier services as possible.  These folks want a “dumb pipe”, meaning they want their carrier provide them with voice and data service, but that’s it.   These users are the ones who hate carrier lock-in, and want to use the mobile device, OS, and app platform of their choice.  They want to get their goodies from elsewhere like the Android Market, Apple’s App Store, Nokia’s Ovi Store, or even from a 3rd party.  Carriers do not see any additional money from these customers – just their regular monthly bill or PAYG payments – and it worries them to death.

Not too long ago when everyone was using feature phones – before smartphones started to become really popular, and before all of the “App hype” –  carriers used to see a slightly larger chunk of change from people using their additional web services.  Of course, this was before 3G and unlimited data plans.  So now that technology has developed so quickly and is becoming more ubiquitous, the operators see a large and rapidly-growing number of people getting these services from places other than themselves, and they want a piece of the action to avoid becoming just the Telco.

So what does all of this mean for Android and other smartphone platforms?  Well, increased competition for one -though how much will certainly remain to be seen – but it could go much deeper than that.  What Vodafone and other operators are doing isn’t really anything “new” persay, they are just upgrading their current platforms trying not get lost in the shuffle with the “Big Boys”.  Sort of like teaching an old dog new tricks.

For those who may not know, U.S. carrier Verizon Wireless is actually joint venture of Verizon Communications and Vodafone Group, with 55 and 45 percent ownership respectively.  It has been rumored that Verizon Wireless will be launching their own multi-platform app store, and while details are scarce, the goal seems to be “all platforms, all apps, one app store – from the carrier”.  It makes one wonder what their ultimate goal is, and in this case, how much one company’s decisions influences the other.  If carriers like Vodafone and Verizon are really feeling the heat from all of the new web services out there, are they trying to go one step ahead to bring everything in under their own umbrella? Will users HAVE to go through carrier-specific app stores to get their goodies?  The possibilities are a bit frightening for the large amount of people in the World who want an “open network” that does not include carrier-branded web services, so it will be very interesting to see how this all shakes out.

Whether this is a successful strategy for Vodafone and other carriers will certainly be a hot topic of discussion in the near future, let’s get this conversation out in the open from a consumers perspective.

So we ask you, the mobile device consumer: Do you want carrier-branded-and-run web services and app stores, or do you want an open network on which to make your own choices as you see fit? We are very interested in your feedback on this, so let us know!

Source: GigaOm (via Antonio)

Filed Under: Android News • Vodaphone

Tags: 360, Android, app store, application, carrier branding, dumb pipe, limo, platform, service, smart pipe, Vodaphone, web services