This is the fifth Gartner Magic Quadrant where providers of pan-Western European mobile services for enterprises are compared. It is intended as a tool for large organizations to use when choosing mobile service providers in this region, especially for those sourcing across multiple countries. The content of this Magic Quadrant is highly relevant in light of the continuing trend for consolidated sourcing by multinational companies (MNCs), the growing concern about sourcing effectively priced solutions for domestic and international voice and data usage, and the desire to find service providers that see mobility as an enabler of corporate strategy.

As in previous versions, this Magic Quadrant includes mobile service providers with broad international coverage and some with a narrower focus. All are assessed at the group level (where applicable), not as individual national subsidiaries. It is therefore important to recognize that you cannot use this document to make direct comparisons between national subsidiaries of multinational providers and companies that compete in only one country.

Various factors contribute to a provider's position on the Magic Quadrant. Geographic reach (network "footprint"), sales execution and the "customer experience" are particularly important. Additionally, a wide network footprint — and the large subscriber base that often comes with it — influences other factors that contribute to a good overall service offering: these include the provider's product strategy, local and international tariff options, and customer support.

There are four providers in this year's Leaders quadrant: Vodafone, Orange, Telefonica O2 and Deutsche Telecom. As in previous years, you should not automatically choose one of these providers. Other providers may lack the wide geographic reach and broad and increasingly harmonized service portfolios of the Leaders, but they could be the right choice for specific needs in certain geographic areas.

For full Western European coverage, members of the FreeMove alliance (see Note 1) are a realistic alternative to Vodafone, thanks to the combined reach of their networks. Telefonica O2 also offers wide geographic connectivity, albeit by using third-party networks in places beyond the reach of its own networks.

The seven providers analyzed in this Magic Quadrant will meet the requirements of many enterprise clients, but only some may be suitable for organizations that have widely international needs and that buy services on a centralized basis. Equally, buyers pursuing a multi-supplier or federated purchasing strategy may want to consider a wider range of providers — including some that focus on a single country (or just a few countries) — that are not evaluated in this Magic Quadrant (examples are the incumbent operators Mobilkom Austria, Swisscom, TDC and TIM).

To stand the best chance of finding the most suitable provider for your needs, do not rely solely on this document. You should establish a "mobility center of excellence" responsible for ensuring that everyone in your enterprise receives the right mobile services and, possibly, access to a set of mobile productivity tools — all at an acceptable cost.

In 2010, pan-Western European mobile service providers enhanced their efforts to create a better service experience, strengthening processes around sales, delivery and support so that they were more consistent across the footprint. Additional capabilities have been added to customer portals (for reporting, tracking trouble tickets, service usage monitoring and so on); harmonizing service coverage and other capabilities across their areas of coverage. Lastly, but very importantly, all providers show an increasing understanding of their role in, and possibility to use, mobile services to support new enterprise strategies by aiding business model transformation and increasing productivity to achieve objectives such as reducing cost levels.

All seven providers in this Magic Quadrant have advanced their enterprise offerings in several ways. They are, for example, launching new initiatives in the area of vertical offerings and also machine to machine (M2M), making new efforts to facilitate the mobilization of business processes generally. To improve self-service tools, for example, tracking, usage reporting (voice minutes, data bites and cost); exploring more flexible and tailored pricing models, for example, company flat rates and terms and conditions, and to expand their geographical coverage specifically through the use of more closely tied partners which facilitate a more consistent offering. Like last year, flat-rate offerings are now more "granular" — that is, they now include time-capped packages such as hourly and daily offerings as well as pooled packages for groups of employees, for instance. Also, roaming offerings are becoming more varied and therefore more appropriate to varied user behavior and corporate requirements.

At the end of 2009, mobile penetration in Western Europe reached 126.1% as the number of mobile connections in the region exceeded 516 million. Growth continues to be propelled by the use of data cards and providers' efforts to persuade subscribers to use mobile, rather than fixed voice and data services.

Although all the providers in this Magic Quadrant have made progress since 2009, evolving enterprise requirements continue to present challenges, as well as opportunities. The center of the Magic Quadrant should not be thought of as a representation of the same fixed position each year, but imagined rather as a point that shifts in relation to the market's changing status and maturity. The enterprise market for mobile communications continues to develop, and enterprise requirements for mobility continue to grow in many areas. Beyond further mobilization of voice telephony, e-mail and, recently, data access, there are significant opportunities for mobile communications to help enterprises grow and transform themselves, the business models they pursue and the customers they serve.

Also this year, there are two main aspects to enterprises' interest in mobile services. The primary concern is to get visibility over usage and spend, and to reduce the cost of basic services such as voice telephony, messaging and data connectivity both domestically and while travelling. This year, we also note their increasing focus toward growth and innovation, and the use of mobile communications as "business enablers."

Obtain visibility of usage, spend and reduce the cost of mobile services. This means to obtain a clear view of what is bought and used; probably by consolidating the number of providers and securing more transparent and flexible pricing models, as well as better terms and conditions. Enterprises' sourcing behavior continues to show a tendency to consolidate the number of services providers. This is because such action helps maintain visibility over total usage and spend, while also facilitating identification of duplicate or unused services and thereby the elimination of redundant services where appropriate. The tendency to consolidate sourcing brings with it expectations from customers of lower prices, new service capabilities (such as fixed-mobile convergence and unified communications [UC] as well as mobile devices) and corporate Web portals that report on consumption, spending, inventory, central ordering and so on for all services (including those sourced from third parties and also fixed services), regardless of technology.

Using mobile communications as business enablers. Enterprises' demands in this area include applications — inevitably more complex in nature — that shorten their time-to-market; better customer service; applications that help with labor-intensive tasks; integration with other business-process-related applications, such as CRM systems; outsourced mobility, hosted messaging and collaborative services; enhanced remote access solutions; security and mobile device management (MDM) services and M2M offerings and some vertical solutions. Enterprises' interest in, and adoption of, such solutions correlates to their experience of basic services — a good experience of basic offerings increases interest and confidence in, more advanced ones. Therefore, for providers, exceptional execution of basic services is essential to be able to deliver more complex or transformational mobile services, for example, of business models. (This is the rationale behind making customer experience — an area of continued frustration for many enterprises — a continued important factor in determining a vendor's position on this year's Magic Quadrant.)

Many other trends evident in 2010 are expected to become even more pronounced in 2011. The most important are as follows:

An even stronger focus on the overall customer experience. Service providers work in many ways to improve the customer experience through several means such as simplifying the contractual process, ensuring common processes and portfolios across geographical footprint, enhancing the customer portals, etc. They are spending more time than ever to learning customers' likes, dislikes and expectations and to ensure that the entire organization understands this and work toward improvements. They use their findings to build stronger processes, ensuring consistency where applicable and appropriate, better product road maps and SLAs, and — to once again provide some more specific examples — to strengthen sales enablement tools so that the entire sales force work off the same platform with the same content, to use the RFPs to show the value offered/provided for example, in improving response times with clear examples also of reducing costs. Several operators also continue to strengthen their organizations and governance models to improve the overall customer experience for example, by creating one service road map including local and global offers or by compensating more employees on customer experience and loyalty. All these efforts reflect providers' growing recognition that sufficient service portfolios, prices and coverage are not enough to compete effectively — they know that customers' experience of services influences purchasing decisions even more significantly now than in the past and that customers increasingly want to buy from a vendor with a robust track record and commitment to excellent service.

Pricing options for mobile data services. Strong growth in adoption of mobile broadband offerings has led to further options for sourcing domestic and international usage. Examples are subscriptions including pooled-usage volumes (from domestic flat-rate to varied options for limited-use plus overage charges), time-limited offers of for example, a few hours or for one day, and also some prepaid offers. The option for corporate pooling of "gigabytes-included" arrangements that became more prominent during the past year, is still in use but not common. USB dongles and data cards are usually heavily subsidized, where this is allowed. Still not widely available (but still should be and is increasingly looked at) is the offer of different pricing models for different data services within a single bundled package — for example, a flat rate for mobile e-mail (with an option to include unlimited, daily or volume-capped roaming packages) alongside usage-based charging for other data-based services such as guaranteed performance or voice over Internet Protocol. High-Speed Uplink Packet Access technology, which provides multi-megabit-per-second uplink transmission rates, has been rolled out in only a few countries so far, but more countries will offer it in the next 18 months; this will increase the number of mobile data offers and associated pricing plans. Also Long Term Evolution is now part of commercial offerings in the Nordic countries and in trials in many other markets.

A growing enterprise focus on managing the "device estate." This trend is driven by a small but growing need to manage, control and secure mobile devices. To meet this need, all the providers depicted here and many others have now launched or enhanced MDM offerings, yet uptake is so far limited. This kind of offering will increasingly be adopted as part of the standard toolset and for some providers it is already bundled with some telecom expense management (TEM) solutions.

Continued focus on reducing roaming charges. Roaming charges account for a substantial percentage of mobile service charges in Western Europe. They continue to represent a significant cost item on invoices, for both mobile voice and data services. In fact, despite regulatory intervention, competition from providers and more attention when negotiating prices, they remain the largest mobile expense for many MNCs. This is despite regulation-driven reductions, which first came into effect in mid-2009 with a further stage in place as of mid-2010, keeping the cost of sending a Short Message Service (SMS) message at €0.11, but to make a call should now not cost more than €0.39 (compared to the €0.43 price cap set mid-2009), and no more than €0.15 to receive a call (down from the €0.19 price cap set mid-2009). The final set in this regulatory initiative came into effect mid-2010. As of July 2010, the data roaming limit was automatically set at €50 per day (at 80% of this limit, the provider notifies the user by SMS, and at 100% further usage is impossible unless the user notifies their provider). There are also options to set individual limits available from some providers. In addition, prices for wholesale data services have been cut to €0.80 from €1 per MB. However, prices continue to vary across Europe and, although they are generally still very expensive, they are falling further. With enterprises paying more attention to data-roaming charges as their use of mobile e-mail services and data cards increases, improved pricing offers are appearing — bundled and pooled arrangements available across regions, or time limited with caps, for example. This trend will be spurred by improved network availability and wider access to high-speed connections. Roaming charges are one area in which choosing one of the larger providers, or a member of FreeMove, may bring preferential rates.

The market for mobile telecom services — for consumers as well as enterprises — in Western Europe is expected to reach $180 billion in 2010. We expect it to grow to $195 billion by 2014.

This Magic Quadrant includes service providers based in Western Europe that meet the following criteria:

• Presence in three or more countries in Western Europe (for a definition of this region, see Note 2).

• Total subscriber base (businesses and consumers) of over five million in Western Europe.

• A business subscriber base of more than one million in Western Europe.

• Revenue from mobile services of at least €5 billion in the 12 months ending 31 March 2010 in Western Europe.

No vendors have been added to this year's Magic Quadrant.

No vendors have been dropped from this year's Magic Quadrant.

Product/Service: Nature and quality of mobile services.

Overall Viability (Business Unit, Financial, Strategy and Organization): Strength of the provider's business; extent of its financial success; whether it is investing, and in what; whether it has formed or is forming partnerships, and with whom; degree to which its senior managers are aware of issues and are driving the business forward; frequency of turnover of senior managers.

Sales execution/pricing: Degree of focus on recruiting, training, supporting and providing incentives for an enterprise-focused sales force, as well as proper segmentation and industry-based knowledge; whether the provider has launched services on time and as envisaged; extent to which it supports these services with strong customer care, accurate and timely billing, and an accounts team.

Marketing execution: Gains in "mind share" or market share in the enterprise sector; level of support for enterprise-oriented events and conferences.

Customer experience: Level of churn; average number of complaints per customer; manner in which complaints are handled.

Operations: Extent to which back-end and network system deployments are upgraded and supported.

Market understanding: How well the provider understands the enterprise market; nature of its plans for execution; degree of recognition and acceptance of the provider's brand in this market.

Marketing strategy: Definition and distinctiveness of marketing message; clear segmentation; experience of vertical markets.

Sales strategy: Support for an enterprise-oriented sales group.

Offering (product) strategy: Understanding of which products, services, technologies and marketing approaches are needed to succeed in this market.

Business model: Balance of voice vs. data revenue, consumer vs. enterprise business, and prepaid vs. postpaid subscribers.

Innovation: Nature of upgrade path; whether the provider is first to market or lagging behind.

Geographic strategy: Support for international roaming for voice and data services — pricing, coverage and devices.

Leaders are mobile service providers that offer mature offerings, while also demonstrating the vision needed to sustain a leading position in the market as client requirements change. They invest in and focus on their offerings and the service experience they deliver in a way that can affect the market's direction. They have a proven track record in mobile voice and data services for enterprises, and they offer wide geographic coverage. They have also shown a commitment to invest in this business, which indicates that they are well placed for future success. Their products and services are relatively low-risk, but not necessarily the best for every customer.

Challengers execute well, but their vision and commitment to innovation in mobile voice and data services for enterprises are weaker than those of the Leaders. There are no Challengers in this year's Magic Quadrant.

There are no Visionaries in this year's Magic Quadrant. Visionaries are highly innovative, but they lack the Leaders' record of execution in mobile voice and data services for enterprises. Customers can expect state-of-the-art technology from Visionaries, but must monitor their commitment and strategy to assess the long-term viability of their products and services.

Niche Players' vision is relatively narrow. But customers whose needs correspond to the focus of these providers often find their offerings the most suitable.

KPN/Getronics (formerly KPN Managed Mobile Solutions), the incumbent operator in the Netherlands, also has operations in Belgium (Base) and Germany (E-Plus). International clients are served through KPN and Getronics. Around 300 of the largest Dutch organizations are serviced by Getronics, its System Integration division. KPN and Getronics typically focus on clients in the Netherlands, Belgium, Germany, the U.K. (KPN through a partnership with O2) and France (via a partnership with Bouygues Telecom). KPN recently improved its delivery capacity via a partnership with Telefonica and has contracted partners in Austria, the Czech Republic, Denmark, Greece, Ireland, Italy, Luxembourg, Norway, Portugal, Sweden and Switzerland. Altogether, KPN and its partners cover 16 of the 17 Western European countries identified in Note 2.

KPN/Getronics has most success with companies headquartered in the Netherlands and Belgium. Consider KPN/Getronics primarily if you have a significant user base in the Benelux countries or, to a lesser degree, in adjacent countries.

• KPN has leveraged the previous Sympac platform/services for domestic clients and has extended/upgraded its functionality significantly over the past 12 months. These solutions give KPN a solid foundation on which to compete, with flexible solutions designed to meet clients' individual needs and, at the same time, provide a self-care portal with strong capabilities in financial, fleet inventory and SLA reporting.

• KPN has capabilities as a mobile virtual network operator (MVNO) and can capitalize on core KPN assets, which gives it great flexibility in selecting partners. This includes the option to have multiple partners in a single country, so that it can tailor solutions to clients' needs.

• KPN has partnered with Jasper Wireless for M2M provisioning and has a single global SIM M2M solution that is very competitive within Europe.

• Simple tariffs for basic offerings — a single roaming charge for voice services, for example — together with TEM functions help enterprises to control their spending.

• KPN has a weak presence in Germany (through E-Plus) and in some other countries where its partners are not leading operators. These countries include Austria and France.

• KPN lacks an integrated remote access solution for Wi-Fi, third-generation (3G) cellular and fixed-line (DSL and dial-up) communications.

• This provider has no currently no direct presence or partners in Finland.

• The lack of own assets outside three countries results in a strong dependence on partners when designing competitive roaming packages.

Orange merits a position among the Leaders because of a continued strong commitment to sharpen its focus on customers, expand its network and improve its service portfolio.

Using its own resources, Orange competes in seven of the 17 Western European countries: Belgium, France, Spain, Switzerland, the U.K. and, to a lesser extent, Austria (it has a 35% stake in One, which is now branded Orange) and Portugal (a 20% stake in Sonaecom, which operates under the brand name Optimus). At the end of 2009, Orange had 61 million subscribers in Western Europe (including prorated figures for countries where its operations are not run by wholly owned subsidiaries), compared with its global total of 132.6 million. The total number of subscriptions for all providers in Western Europe was 517 million.

As a member of FreeMove, Orange reaches 16 of the 17 countries of Western Europe, directly or through the FreeMove Alliance, while Ireland is covered separately. Orange plays a leading role in a third of all FreeMove contracts and in the majority of recent ones.

Orange UK and T-Mobile UK, subsequent to an agreement in 2009, have merged their respective U.K. businesses into a joint venture named Everything Everywhere and network integration is well under way.

Consider Orange if your users are predominantly in countries where Orange has its own operations. If your needs are truly pan-European, consider Orange as the leading provider in a FreeMove offering.

• Orange's has now integrated its MNC unit which focuses on its top 300 accounts into Orange Business Services and created a Global Mobile Solutions Group with full profit and loss responsibility covering all aspects of enterprise mobility.

• Orange has strong abilities to meet the needs of international organizations that are not quite as large as the big MNCs, across its coverage area.

• Orange continues to invest to improve its focus and position in the M2M communication market and has established a sizeable center of excellence.

• The value-added services offered by Orange works on FreeMove partner networks as well as other partner networks in addition to Orange's own footprint.

• Orange offers a remote access solution with an impressive list of roaming partners, making it second to none when it comes to number of hot spots.

• Orange's ability to cover key markets such as Germany and Italy depends on FreeMove, which means it exercises less direct control.

• There are no harmonized SLAs across Orange's coverage area.

• Orange's product portfolio is largely homogeneous but availability of services is sometimes staged across its coverage area — for data roaming offerings, for instance, although progress toward full harmonization is continuously made.

• Orange users in the U.K. may experience service degradation as the network, as well as the account organization, in the U.K. is integrated into the Everything Everywhere joint venture.

Deutsche Telekom maintains its position in the Leader's quadrant. Its capabilities around execution have been strengthened and its visionary status improved through a well-articulated view of market trends and resulting customer requirements.

Deutsche Telekom has its own networks in four Western European countries: Austria, Germany, Greece, the Netherlands and, through a joint venture with Orange, also in the U.K. However, in the Netherlands and the U.K., Deutsche Telekom's mobile subsidiaries focus on the consumer segment.

T-Mobile UK and Orange UK recently merged their operations. The expected date for complete integration is mid-2011.We have been through this names twice with DT and this is the way they want it, T-Mobile UK per se doesn’t exist anymore as it was merged with Orange UK. It wasn’t Deutsche Telekom which merged so cant changed.

T-Mobile US has expanded its focus to include growing its MNC business and is also now part of FreeMove. T-Mobile US is still a separate from the rest so needs to be stated such as.

Multinational customers are served through Deutsche Telekom's participation in FreeMove, which extends the company's reach to 16 of the 17 Western European countries, the exception being Ireland. Deutsche Telekom also has extensive operations in Eastern Europe.

Consider Deutsche Telekom if your user base is strong in Germany and surrounding countries, or if you have larger requirements for services in Eastern Europe.

• Deutsche Telekom has an increasingly robust set of what it terms "Mobile Managed Services" now including areas such as international premium SLAs, contract management and service management, all launched in 2010 as was Central Business Services which include a central dashboard, reporting and ordering.

• The Deutsche Telekom portfolio has been expanded with further pricing options such as one flat monthly price for national voice and laptop data tariffs in each country and the late entry into the market of its global remote access offer launched in 2010.

• The Deutsche Telekom local operational companies are increasingly behaving as all part of the same company and are also more aligned with T-Systems, the business unit responsible for the top 400 corporate customers of Deutsche Telekom. The U.S. company is also better aligned with Europe and also with FreeMove, for example, in terms of sales and processes and has a new MNC ambassador program intended to facilitate best practice sharing and other benefits.

• Deutsche Telekom's portfolio and capabilities are increasingly harmonized across the entire footprint but there are still some noted exceptions, such as remote device management (only in Germany and Austria), flat-rate tariffs (all but in the U.K. and in the U.S. — which are currently served by local offers but will be included in Deutsche Telekom's portfolio shortly) and SLAs which currently do not extend to the U.S.

• For customers with a U.K. requirement, T-Mobile UK has suffered from voice network issues in the U.K. However, a network enhancement program was launched and, as of the merger between T-Mobile UK and Orange UK, customers are, as of October 2010, freely using both operator networks.

• The international contract management is where Deutsche Telekom manages third-party mobile contracts on behalf of the MNC client. This is good, but limitations such as where the offer does not include operators in markets where they themselves are present, and that it relates to framework agreement only, limits the attractiveness of this offering.

Telefonica O2 improves its position in the Leaders quadrant. The operator is strengthening its capabilities to execute. For example, improved capabilities around managed mobility, an expanded geographical footprint while maintaining a strong focus on service experience. The visionary aspect is further enhanced by an increasingly comprehensive and aligned view of the required capabilities and operational company alignment.

Telefonica O2 is the Spanish incumbent and has its own networks in Spain, in the U.K., in Germany and in Ireland. It also owns networks in Slovakia, the Czech Republic, and Latin America. Other coverage requirements are supplemented by the networks and capabilities of preferred partners such as Telenor for the Nordic countries, KPN in the Benelux region and strategic alliances with Telecom Italia as well as China Unicom. Multinational clients are served by Telefonica Multinational Solutions (TMS) which was recently joined by the international wholesale unit with an aligned reporting structure to Matthew Key (Chairman and CEO of Telefonica Europe).

Consider Telefonica O2 if your footprint requirements match its capabilities but also if you have specific preferences for off-net operators. Telefonica O2 is also an option if you have significant presence in Latin America. Note that Telefonica O2 is increasingly delivering services across Europe.

• Multinational clients are served by a dedicated unit, called Telefonica Multinational Solutions (TMS). The unit (launched in 2007) is increasingly becoming more industrialized, illustrated for example, by the launch of Central Cost Manager (a set of reports covering 13 countries in three languages), Central Services, and a European Service Management Center (service desk, global project manager and global service manager).

• Telefonica O2 continues to evolve its portfolio beyond core offerings. This year, the capabilities of the group were unified into a global unit, and the strategies and offerings for vertical markets such as e-health, financial services and also for energy have evolved.

• While Telefonica O2 has a set of preferred partners for off-net coverage, the operator is also willing to use other operators in these markets, if preferred by the clients.

• Telefonica O2 has a strong focus on sustainability, not only for internal purposes but is effectively extending this to the client base enabling them to achieve their own sustainability targets and CO² footprint.

• Telefonica O2 is also progressing with its managed mobility offer which includes global relationship management, mobile device management, TEM and business support management. It may not have the leading edge in all these areas, but the available features are meeting many requirements and can also include fixed services where applicable.

• Telefonica O2's mixed business model, which combines own-network assets with those of preferred partners and other providers when needed, offers flexibility but may also limit Telefonica O2's ability to deliver fully harmonized offerings in terms of pricing structure, SLAs, lead times and so on.

• Telefonica O2 is both an incumbent provider (Spain and in some Latin American countries) and also a challenger (the U.K., Germany and Ireland) and expresses characteristics from both these roles. Business customers in the challenger markets benefit generally from quicker and more solid responses for example, to proposals, more flexibility around terms and conditions, and some more innovation around proactivity, pricing offers, etc. than do business customers in the incumbent markets. In these markets, response times can be slower and the proposals less flexible. However, this has been noted and the gap appears to be converging.

• Telefonica O2 has for some time been very aggressive on pricing but lately other providers have come increasingly close on price.

• The service portfolio road map in markets, including those where Telefonica O2 is expanding beyond mobility, is not sufficiently transparent and the operator needs to provide further clarity.

Telenor has again improved its position in the Niche Players quadrant. This year, the improvement on the visionary axis comes largely from its growing understanding of both sourcing behavior and service requirements, as well as an improved geographical strategy. Also, execution has improved and here we note a better structured approach to both accounts governance and national versus Nordic prioritization.

Telenor has its own networks in three of the 17 Western European countries: Sweden, Norway and Denmark. It also has its own operations in central and Eastern European markets such as Hungary, the Ukraine, Serbia and Montenegro. For wider geographical reach, Telenor has Elisa and Telefonica as preferred network partners.

Consider Telenor if the vast majority of your Western European users are in Nordic countries.

• Telenor caters increasingly well to the Nordic customer. Nordic customers are covered by a governance model ensuring operative, tactical and strategic alignment. Part of the structure is a Nordic key account management program where teams are supporting Nordic and national customer support according to an A-end, B-end country structure. Furthermore, there is a Nordic operations business team with responsibility for delivery, fault handling and operations.

• The service portfolio is comprehensive with the expected voice and data solutions, BlackBerry for mobile e-mail, MDM and, increasingly, UC. In the last 12 months, Telenor has launched or struck new deals in several areas such as mobile-enabled business processes (mobile work order), telematics and several instances of mobile switchboard solutions.

• For an international reach beyond its own footprint, Telenor has a preferred network provider relationship with Elisa in Finland through which Nordic capabilities are realized, for example, for service delivery and fault handling. In September 2010, a similar agreement was announced with Telefonica which has its own networks in Spain, the U.K., Ireland, Germany, the Czech Republic and Slovakia as well as in Latin America.

• Telenor has a strong M2M communications business. In December 2008, it set up a separate global M2M company, Telenor Connexion which is headquartered in Sweden. In 2009, it launched a dedicated platform for M2M and in September 2010, announced a M2M quality program which includes the possibility of testing different terminals in different networks to be able to assess the real end-user experience.

• Telenor's portfolio continues to have some local variations which may impact on Nordic sourcing, such as SLAs and service offers. However, specific requirements can be addressed through customization and the operator continues to make progress on a deal due to the strengthened governance model and global account management structure.

• Telenor's coverage of Western Europe is limited as it owns networks only in Norway, Sweden and Denmark. Also, in Sweden and Denmark network coverage can still be patchy in remote areas. Outside of its own footprint, coverage is extended through partners but there are still some gaps in markets such as the Benelux countries, Switzerland and Italy, making Telenor somewhat less attractive for companies which have substantial requirements in those markets specifically.

• Telenor's qualification process, and governance model has been somewhat unclear to prospects which has caused some frustration, hopefully this will now be addressed through the new implemented model.

TeliaSonera stays in the Niche Players quadrant. This year, TeliaSonera has strengthened its execution, and there is more focus on alignment, for example of services and processes, across its footprint and it is increasing its focus on the customer experience. From a visionary perspective, TeliaSonera illustrates a growing understanding of market requirements and competitive differentiation.

TeliaSonera has its own presence in five of the 17 Western European countries; Sweden, Finland, Norway, Denmark and Spain. It is also a member of FreeMove, through which it extends its coverage to 16 of the 17 countries, with Ireland being the exception. In addition, the operator owns networks in the Baltic states.

Consider TeliaSonera if your users are predominantly in the Nordic countries. If you have pan-European requirements with a proportionally deep requirement in the Nordic countries, TeliaSonera should be considered as the leading provider in a FreeMove agreement.

• TeliaSonera has a single business-to-business sales organization. Last year's reorganization has been strengthened further. As of January 2010, Product and Production has a cross-country responsibility and further units have also been formed in the business areas of mobility and broadband, including a commercial development organization in mobility with cross-border responsibility for commercial initiatives and co-ordination of other areas which are common between local business units, such as sales, to drive best practices.

• Beyond its own network footprint, TeliaSonera's membership in FreeMove enables near total Western European coverage. TeliaSonera is now fully integrated into the Alliance and offers the roaming portfolio and central reporting.

• TeliaSonera has a very granular network in Sweden and Finland specifically; with enhanced HSDPA+ and Wi-Fi services. In December 2009, TeliaSonera also launched 4G in Stockholm and Oslo and has since rolled out the 4G network to additional cities with a plan to cover 228 cities by end of 2011. Enterprise usage to date includes replacing satellite-based news broadcasts.

• TeliaSonera is making progress with respect to alignment of the service portfolio across its footprint. However, the country-based profit and loss structure still enables its local operations to work sufficiently independently to cause frustration among customers that have Nordic requirements with respect to processes, response times and portfolio.

• Sales enablement tools appear weak as they generate large variations in the structure of proposals/renewals and pricing logic. This causes confusion among clients. The alignment between the sales organization and the network organization is also inconsistent on occasion, causing unnecessary delays and internal finger pointing.

• TeliaSonera is the largest operator in Sweden in terms of market share and with the largest network. However, the level of network availability and reliability has been questioned in the last year as escalating mobile data usage appears to have negatively impacted overall availability at times, and there have been some wider outages, albeit caused by simultaneous cable-cuts.

Vodafone retains its position among the Leaders, thanks to strong execution with regard to its improved and harmonized portfolio for MNCs, improved bid process and a more aggressive approach to pricing.

Vodafone covers all 17 Western European countries, eight through its own cellular networks and nine through those of partners and affiliates. The company also owns networks in Central European and Eastern European countries: Hungary, Romania, the Czech Republic and Albania. Together, these give Vodafone the widest own-network reach of any provider covered by this Magic Quadrant. At the end of March 2010, Vodafone had 120.8 million subscribers in Western Europe (including prorated figures for countries where its operations are not run by wholly owned subsidiaries), compared with its global total of 341.1 million.

Vodafone also offers fixed broadband services in many countries as well as WAN services in select situations.

Consider Vodafone if you are a large MNC that procures mobile voice and data services centrally for a pan-European footprint. Also consider Vodafone if you are sourcing on a country-by-country basis in the countries where this provider has a strong enterprise presence, such as Germany, Ireland, Italy, the Netherlands, Portugal, Spain and the U.K.

• Vodafone's dedicated MNC unit, Vodafone Global Enterprise (VGE), has further improved its reporting capabilities as well as its footprint with Vodafone Spend Manager and added procurement functionality. VGE is a separate legal entity that serves 563 customers worldwide with more than 600 dedicated staff in over 30 countries. Vodafone has changed its internal reporting structure and VGE now reports directly to the Chief Commercial Officer.

• Vodafone has increased its focus on M2M over the past 12 to 18 months and made significant investments in staff as well as a dedicated M2M Global Service Delivery Platform.

• Vodafone is strengthening its TEM offering with, for example, capabilities for employee self-service. Vodafone also recently acquired both Quickcomm and TnT Expense Management to further strengthen its TEM offering.

• Vodafone offers various types of contract for MNCs. It is the only provider to offer single-signature contracts, rather than single-frame contracts.

• In 4Q10, Vodafone is launching Vodafone Activity Manager, a service that proactively informs the user of a network problem that has occurred either in a specific location or to a set of users, while also alerting them to the applied or proposed solution.

• Enterprise customers that do not belong to VGE are still served at a domestic level, and coordination between countries is limited. However, some of the products, features and geographical co-ordination offered to VGE clients are now also available to non-VGE clients but who are Vodafone clients in a number of countries.

• Vodafone's wireless LAN access offering is limited. Rather than own Wi-Fi businesses itself, Vodafone mainly works with Fiberlink Communications. Also, Wi-Fi is not part of Vodafone's standard packages.

• The free global SLAs offered are not backed up with service credits by default. Nevertheless, additional SLAs are available at a charge, but with service credits.

• Vodafone's credibility and experience as a full-service provider continues to improve, especially in its management of fixed services, but still remain somewhat limited and its commitment is not predictable from a client perspective.