VOD Debuts UK’s SME Market

Vodafone (VOD - Analyst Report) UK has reportedly launched a converged fixed-mobile service (called "Vodafone One Net") yesterday for small and medium enterprises (SMEs) across the UK, helping them to more effectively manage their corporate communications. This follows the company’s successful launch of Vodafone One in June 2009 that offers bundled voice, data and fixed-line services for large businesses.

Vodafone One Net, which was previously launched in Italy and Czech Republic, marks Vodafone UK’s entry in the lucrative communications market for SMEs in the UK, representing an approximate £8 billion market opportunity.

The new combined service offers a single number for mobile and landline services, one voicemail number for all messages and one contract through a single service provider. Users can seamlessly switch between landline phones and their mobiles while in a call and will have the flexibility of paying a flat call rate per subscription for all calls. Vodafone One Net thus provides businesses the privilege to concentrate more on their customers rather than spending time on managing their communications.

For businesses with multiple office locations, the company will offer effective call management through a virtual switchboard which will route the calls to different locations via the most effective channels. Vodafone UK has plans to eventually incorporate Microsoft's (MSFT - Analyst Report) Office Communications Services (such as email and messaging) in its latest offering. Vodafone One Net will allow small and medium businesses greater cost control with up to 20% savings on the total communication bill.

Vodafone UK has also extended its collaboration with BT Group (BT - Analyst Report) which will enable it to provide fixed-line services to the SME market in the UK as a part of the Vodafone One Net offering. Under the five year managed service agreement, BT will offer IP-enabled fixed-line voice and broadband services to Vodafone UK. This will enable Vodafone to expand its service portfolio in UK without any huge investment to build its own fixed-line network.

Vodafone has a strong presence in the enterprise wireless market in the UK. The company is the second-largest player in the UK wireless market with roughly 24.7% share. However, its presence in the enterprise fixed-line services market has been lackluster to date.

Vodafone One Net enables the company to become a full-service provider for businesses in the UK, offering integrated mobile and fixed services. This will take Vodafone UK a step ahead in its bid to lead the domestic unified communications market for SMEs.

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