Replies to post #151072 on InterDigital Inc (IDCC)

[nieves]

=DJ THE SKEPTIC: The Vodafone Shuffle
By Robb M. Stewart A DOW JONES NEWSWIRES COLUMN
LONDON (Dow Jones)--No one can accuse Arun Sarin of rushing to fit Vodafone into a new strategy. But he has taken an important step by owning up to the threats that may be lurking in the mobile operator's not-so-distant future.
Vodafone's reorganizing along three business lines: Europe, emerging markets and affiliates, and new technology. Management will be rejigged to match the new structure, including bringing the head of the Japanese unit, Bill Morrow, back to run the core European arm.
This isn't a sea-change, nor does it spell an end to the acquisitions that have disgruntled some investors, but it does hint at the future shape of Vodafone. A strategy update is expected to flesh out plans when Vodafone issues annual results at the end of May.
The new structure puts an emphasis on cutting costs where growth is stagnating and increasing profitability where growth can still be found. Of particular interest is a pledge to extend Vodafone's reach in new areas of technology, especially convergence and IP services.
There is no detail on what this latter push could entail - anything from acquisitions to partnerships are possible - but it's an open admission that Vodafone risks being sidelined if it doesn't come to terms with shifting tech trends.
Convergence and Internet-based telephony have been tough for established telcos to come to terms with. Some have elected to ignore the situation or downplay the risk to their business model from "emperor's new clothes." Others have been early adopters of a melding of fixed and mobile services.
Vodafone is perhaps more at threat than its peers because of its strictly mobile focus and a revenue stream overwhelmingly coming from basic voice services, despite efforts to migrate customers to 3G.
It's not clear how great a threat the likes of VoIP represents nor how quickly it will gain ground, but there are a number of big names behind the technologies involved.
Nokia has already unveiled a mass-market handset capable of switching between a mobile network and WiFi broadband. Its N6136 will support both WiFi and Unlicensed Mobile Access. Motorola has the A910, which will part of BT's Fusion line later this year. And 3 plans to make Skype's VoIP available on its network this year.
A real worry for Vodafone must be that one of the Internet titans, such as Google or Yahoo!, makes a push into the telecoms arena.
Vodafone's global footprint and brand play to its advantage, if it only can navigate a course amid new technologies. Facing up to the fact that there are potential challengers to its dominance is at least a positive step toward retaining its position.

(Robb M. Stewart, founder of the Skeptic column in 2001, has reported for Dow Jones Newswires since 1997 from Sweden and the U.K. Comments on this or other columns can be emailed to [e-mail])

(END) Dow Jones Newswires
04-06-06 0829ET
Copyright (c) 2006 Dow Jones & Company, Inc.