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Avoiding Bill Shock: Vodafone recognises new location technology

Posted By TelecomTV One , 13 October 2008 | 2 Comments | (0)
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Vodafone has got itself excited over a handset based location system for mobiles and has awarded the Australian company behind it, Seeker Wireless, its Innovation Partner of the Year 2008, award.

Seeker's location system can sit on any phone (so is not reliant on GPS) and while it isn't as accurate as the satellite-based system, it is far more accurate (6 - 8 times) than straight Cell ID which can only resolve location down to between 4-800 meters.

So another tool in the locker for location-based advertising?  Well, perhaps. 

But Vodafone seems to have more immediate goals. Like me, you may have wondered why the home zone concept, while launched and running apparently well in some territories, has never quite taken the world by storm like we thought it might back in the 1990s.

Home zone is the idea that a mobile operator could use cell location as a basis for offering cheaper calling within a nominated cell (where the subscriber's home was located). That way it could compete with the incumbent fixed line operator and win its customers' call revenues without cannibalising the lucrative mobility proposition at the heart of the business.

But it turned out that home zone technology didn't work.  At least not accurately enough. And accuracy is really important if you send out large bills.


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2 comments (Add Yours) - click here to sign in

(1) 13 October 2008 12:38:03 by Hugh Roberts

Strictly speaking, this isn't bill shock... its just bad billing, pure and simple. Bill shock covers situations where the customer's bill is accurate, but he/she didn't realise the true cost of the service(s) consumed, and was coined primarily to cover circumstances such as merged/converged billing (for multiplay) and subsequently was also applied to 3G data roaming (where no-one could really believe just how much the CSPs were expecting customers to pay for their data connection on the road. [The term may also have been used when the first telephone bills were sent out - but this was before my time!] Your commentary therefore masks an important point, which is that this technology may make the home zone delineation more accurate, but it won't (unfortunately) fix the billing issues if (and when!) they arise (as they almost cetainly will do... particularly if MVNOs become involved in exploting the same strategy.)

Incidentally, in many markets bill shock for converged services turned out to be largely a myth in the minds of the operators - consumers getting their phone/TV/internet in a single branded offering had rather more nous than was expected. They were, however, typically still shocked at how poor the billing - and particularly the resolution of billing problems - has tended to be in such circumstances.


(2) 14 October 2008 04:12:31 by Itsuma Tanaka

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