THE LOWDOWN ON THE JV
Q.WHAT IS THE STRUCTURE OF THE NEW JOINT VENTURE?
A.The new entity will be divided equally between Everything Everywhere, Vodafone and O2. The networks will themselves be customers of the new company and say it will be “open for business” for firms including smaller network 3 and online rivals like Google and Facebook.
Q.SO HOW WILL IT MAKE ANY MONEY?
A.The company will act as a central point of contact for the network operators. It will provide a single structure for banks wishing to offer mobile payments in the UK and will negotiate advertising rates for the three networks.
Q.AND HOW WILL IT WORK?
A.It will be an app. Through this you will, in theory at least, be able to link credit cards, loyalty cards and other promotions including Orange Wednesdays. Location-based services could also be used to flag up nearby offers.
Q.WHAT DOES THE COMPETITION LOOK LIKE?
A.Mobile commerce (m-commerce) is hot right now. Google has been a very early adopter, realising just how lucrative mobile advertising can be. Visa is also developing its own technology. The networks’ plan to store the information in a Sim sets it apart. Whether it will be enough is yet to be seen.