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iPhone frenzy

Operators vie for customers as Apple's product hits local stores

By Claire Compton
Staff Writer, The Prague Post
August 27th, 2008 issue

COURTESY PHOTO
After months of anticipation, the iPhone is out of the gates in the Czech Republic.
As all three major mobile providers use the product to lure in customers, their efforts to set themselves apart from competition has resulted in an influx of new technologies and services.
Ahead of the Aug. 22 iPhone release date by T-Mobile, Vodafone and O2 — the trio of major mobile operators on the local market — Vodafone announced the launch of two new technologies: a melody-identifying service operated in collaboration with radio Evropa 2, and a phone with a TV tuner that streams television via digital signals.
These offers have taken a backseat to the initial frenzy of the iPhone launch, which had the three companies rushing to distinguish themselves through advantageous service plans and the quality of their networks.
Vodafone, which technically led the pack when it opened online sales of the iPhone Aug. 21 at 10 a.m., said it sold 500 phones that day. “Our plan to not open shops at midnight to avoid discriminating against customers outside of Prague proved right,” spokesman Filip Hrubý said Aug. 22, hours after the launch. “Most of the 500 customers from yesterday are going to receive their mobile phones today.”
Hrubý said Vodafone owed its initial success to the flexibility of its offers. Prices for the iPhone were based on the selected plan, which can range from no-contract options to lengthier contracts with comprehensive data packages.
Although Hrubý was unable to provide concrete information regarding the popularity of individual plans, he anticipated customers would prefer the larger data plans. “We expect the iPhone will be interesting mostly for [midrange] to high-value customers who are used to more expensive plans and bigger monthly fees,” he said.
Tech race
Unlike Vodafone, O2 opted for the midnight opening route, inviting local celebrities to help unveil the product in its stores. Of the three companies, O2 is the only one to offer the iPhone on the 3G network.
Without a contract, the second-generation iPhone 3G costs 11,995 Kč ($724.77) for the 8GB version and 14,095 Kč for the 16GB version.
The product’s second-generation version offers the ability to hook up to the faster 3G network suited for large data plans, a distinction T-Mobile and Vodafone say is insignificant.
T-Mobile customers will use the iPhone on its 2G networks without a noticeable difference, according to spokeswoman Martina Kemrová.
The 2G network uses GPRS or EDGE technologies, she said, and will be able to run all the applications that come with the iPhone. “The 2G network will work just as well, we wouldn’t offer the iPhone if it didn’t,” she added.
Vodafone also uses the 2G network, but Hrubý said the company would like to see a shared 3G network in the future between all providers in the Czech Republic.
Despite assurances from its competitors that the iPhone functions similarly on other networks, O2 is pushing its 3G network as a selling point. “As the only 3G network operator on the Czech market ... we are giving our customers an exclusive opportunity to enjoy all the benefits that the iPhone offers,” said Telefónica O2 Czech Republic CEO Salvador Anglada.
To compete with the more advanced network technology offered by O2, Vodafone isn’t simply relying on the iPhone to bring in customers. The company’s Evropa 2 service allows customers’ phones to recognize and identify a melody by calling a designated number.
The product’s advantage is that it isn’t limited to any provider, an uncommon offer according to David Duron, Vodafone’s marketing director for private customers. “We are striving to break the rules in this regard,” he said. “Everyone who wants to know which musical hits are playing on their phones can use our [service].”
Vodafone also began offering an LG phone Aug. 1 that allows its customers to watch free programming from channels on the digital network, including Czech TV, which plays an integral role in the country’s ongoing switchover from analog to digital broadcasting.
T-Mobile is also offering customers various price plan options for the iPhone, including separately with no contract, a classic plan and even a pre paid option with its Twist pay-as-you-go program. The company will gradually offer further options allowing customers to use the iPhone’s various functions and software.

Claire Compton can be reached at ccompton@praguepost.com


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Reader's comments:

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[17:26 05/09/2008] : Ms. Compton fails to mention a very important problem with T-Mobile's offer.

They don't offer the 16gb model while both O2 and Vodafone do. The 8gb will be the first to be obsolete, probably within a couple of months. The first generation iPhone was offered in a 4 and 8 gb model, with the 4 gig version discontinued within the first several months.

T-Mobile fails to comprehend that the iPhone is basically an iPod with a telephone. The larger capacity means more music, video and other files can be carried. Frankly, I'm a T-Mobile customer and have been for years, but if I decide to buy an iPhone, and they continue with the mediocre support and selection, I'll be with a new company.
Paul Margulies
Prague
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