This is the fourth Gartner Magic Quadrant to compare providers of pan-Western European mobile services for enterprises. 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 interest in sourcing aggressively priced solutions, and the desire to find service providers that see mobility as an enabler of corporate strategy.

This Magic Quadrant includes mobile service providers with broad international coverage and some with a narrower focus. All are assessed at 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 the Leaders quadrant this year: Vodafone, Orange and Telefonica O2 are joined by T-Mobile. 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" (MCOE) 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 2009, pan-Western European mobile service providers have sharpened their focus on data services even further. They have done so particularly in terms of roaming plans; enhancing the capabilities of customer portals (for reporting, ordering and so on); harmonizing coverage in relation to service availability and the customer's "service experience" by launching unified service-level agreements (SLAs) across their areas of coverage; and exploring how mobile services can support new enterprise strategies by aiding business model transformation and increasing productivity.

All seven providers in this Magic Quadrant continue to enhance their enterprise offerings in several ways. They are, for example, launching new services and mobilizing business processes; improving reporting and ordering tools; introducing more attractive and flexible pricing models, terms and conditions; expanding their geographical coverage both through their own networks and those of partners; and integrating solutions from third parties. Flat-rate offerings are now more "granular" — that is, they now include daily packages and pooled packages for groups of employees, for instance.

At the end of 2008, mobile penetration in Western Europe reached 124.5% as the number of mobile connections in the region exceeded 500 million. Growth is still driven by the rise 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 2008, growing enterprise requirements continue to create challenges, as well as opportunities. The center of the Magic Quadrant should not be thought to represent 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 is evolving, and still has a long way to go to fulfill its potential. Enterprise requirements for mobility continue to grow in many ways. Beyond further mobilization of voice telephony and e-mail, there remains a significant opportunity for mobile communications to help enterprises grow and transform themselves.

There are two main aspects to enterprises' interest in mobile services. Their main concern at present is to cut the cost of basic services such as voice telephony, messaging and data connectivity. Increasingly, as the economic climate improves and the focus shifts toward growth and innovation, they are also interested in sourcing mobile services and devices more effectively, and in using mobile communications as "business enablers."

Sourcing mobile services and devices more effectively. Principally this means getting a clearer view of what is bought and used; using fewer providers (probably); and securing more transparent and flexible pricing models, and better terms and conditions. Enterprises' sourcing patterns show a tendency to consolidate the provisioning of communications services. Traditionally, enterprises sourced fixed and mobile voice and data services separately, and from the providers that offered the best combinations of services, coverage and pricing — an approach encouraged by the economic downturn during the past year. However, as mobile communications grow in importance in terms of cost and as business enablers, enterprises are increasingly looking for packages that meet all their communications requirements — and providers are responding by bundling services such as fixed and mobile telephony. 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] including 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), 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 customer relationship management (CRM) systems; outsourced mobility, hosted messaging and collaborative services; enhanced remote access solutions; and security and mobile device management (MDM) services. Enterprises' interest in, and adoption of, such solutions correlates to their experience of basic services — a good experience of basic offerings increases interest in more advanced ones. Therefore, for providers, exceptional execution of basic services is essential to be able to deliver mobility as a business enabler. (For this reason we have made service execution — an area of continued frustration for many enterprises — a more important factor in determining a vendor's position on this year's Magic Quadrant.)

Many other trends evident in 2009 are likely to become more prominent in 2010. The most important are as follows:

A strong focus on the overall customer experience. Service providers work in many ways to simplify the contractual process and improve the customer experience. They are devoting more time than ever to learning customers' likes, dislikes and expectations. They use their findings to build better product road maps and SLAs, and — to give some more specific examples — to enhance enterprise portals with additional reporting options (by volumes consumed, by whom, and from where, for instance), to integrate services from third-party providers, and to harmonize customer self-service tools across many geographies. Some operators are also strengthening their organizations and governance models to improve the overall customer experience. All these efforts reflect providers' recognition that good service portfolios, prices and coverage are not enough to compete effectively — they know that customers' experience of services influences purchasing decisions significantly and that customers increasingly want to buy from a vendor with a robust plan to keep delivering excellent service.

Growth in enterprise use of mobile e-mail. Corporate use of mobile e-mail is increasing and likely to grow further in the coming years as enterprises roll out this service to more than just executives and frequent travelers. This expansion creates a need for a range of mobile e-mail services that meets the needs of various types of user.

Pricing options for mobile data services. Strong growth in adoption of mobile broadband offerings has led to an increasingly varied range of pricing options for domestic and international usage. Examples are subscriptions including pooled-usage volumes (from flat-rate to limited-use plus overage charges), time-limited offers of, say, one day, and some prepaid offers. The option for corporate pooling of "gigabytes-included" arrangements has become more widely available during the past year, but remains uncommon. USB dongles and data cards are usually heavily subsidized, where this is allowed. What is still not widely available (but should be) 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 services. High-Speed Uplink Packet Access (HSUPA) 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.

A growing enterprise focus on managing the "device estate." This trend is driven by the growing need to manage, control and secure mobile devices. We predict that, by 2010, over 50% of large organizations will adopt a strategy to manage and secure all mobile devices (both company-owned and employee-owned). To meet this need, several providers have recently launched or enhanced MDM offerings, and we expect several more such offerings to emerge in 2010. This kind of offering will increasingly be adopted as part of the standard toolset. It is already bundled with some telecom expense management 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, they remain the largest mobile expense for many MNCs. This is despite regulation-driven reductions, which came into effect in mid-2009, requiring that it cost no more than €0.11 to send a Short Message Service message, no more than €0.43 to make a call, and no more than €0.19 to receive a call. That said, prices vary across Europe and, although they are generally still very expensive, they are falling. 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, for example — and this trend will be spurred by improved network availability and wider access to high-speed connections. We also expect local operators to introduce offerings of, say, 24 hours' unlimited usage when a visitor from abroad first turns on a data device in their country. Roaming charges are one area in which choosing one of the larger providers, or a member of FreeMove, may bring preferential rates.

The introduction of enterprisewide mobile strategy. At first, initiatives to implement mobile communications in enterprise environments were one-off or uncoordinated efforts. Now, though, more organizations are recognizing the need for an enterprisewide mobile strategy to ensure cost-efficiency, predictability and appropriate service levels — and that appropriate technology is chosen. A successful enterprisewide mobile strategy will center on an MCOE and take a balanced approach to three main areas: people and organization; process and policy; technology.

The market for mobile telecom services — for consumers as well as enterprises — in Western Europe is expected to reach $94 billion in 2009. We expect it to grow to $131 billion by 2013.

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 5 million in Western Europe.
• A business subscriber base of more than 1 million in Western Europe.
• Revenue from mobile services of at least €5 billion in the 12 months ending 31 March 2009 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 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.

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, the incumbent operator in the Netherlands, also has operations in Belgium (Base) and Germany (E-Plus). Sympac, a former subsidiary which addressed the international enterprise market, was reintegrated into KPN in 2H09 and is now called KPN Managed Mobile Solutions. Former Sympac products and services are also offered to large Dutch customers by Getronics KPN, which has narrowed its focus to the original Sympac footprint of the Netherlands, Belgium, Germany, the U.K. (through a partnership with O2) and France (via a partnership with Bouygues Telecom). KPN also has delivery capacity via contract partners in Austria, the Czech Republic, Denmark, Greece, Ireland, Luxembourg, Norway, Portugal and Switzerland. Altogether, KPN and its partners cover 13 of the 17 Western European countries identified in Note 2.

KPN has most success with companies headquartered in the Netherlands and Belgium. Gartner views the reintegration of the Sympac brand into KPN as a positive move for both KPN and former Sympac clients.

Consider KPN primarily if you have a significant user base in the Benelux countries or, to a lesser degree, in adjacent countries.

• KPN is not burdened with the traditional legacy infrastructure of an incumbent operator. It has modern systems for billing, rating, re-rating, reporting, customer care and so on. These give it a solid foundation on which to compete with flexible solutions designed to meet clients' individual needs — for customized roaming zones, machine-to-machine (M2M) communications and flat-rate deals, for example.
• 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.
• Centralized support, a customer self-service portal, and centralized reporting solutions provide customers with a single, unified way of handling all their subscriptions and devices. These facilities now extend to large organizations based in the Netherlands.
• Simple tariffs for basic offerings — a single roaming charge for voice services, for example — together with telecom expense management functions help enterprises to control their spending.

• KPN has 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.
• This provider has no presence or partners in Italy, Spain, Sweden and Finland.
• KPN lacks an integrated remote access solution for Wi-Fi, third-generation (3G) cellular and fixed-line (DSL and dial-up) communications.
• Harmonized SLAs are available but only for order and incident handling (due to the company's MVNO approach).

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 2008 Orange had 57 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 125.5 million. The total number of subscriptions for all providers in Western Europe was 503 million.

As a member of FreeMove, Orange reaches 16 of the 17 countries of Western Europe, the exception being Ireland. Orange plays a leading role in a third of all FreeMove contracts and in the majority of recent ones.

In September 2009, Orange UK and T-Mobile UK announced an intention to merge their respective U.K. businesses into a joint venture.

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 dedicated MNC unit, which focuses on its top accounts (319 at present), coordinates closely with Orange Business Services to offer access to fixed voice, data and system integration capabilities, in order to meet complex customer demands.
• 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 improved its focus on M2M communications services by launching a dedicated center of excellence in 2009.
• Strong — and improving — reporting capabilities combine with improved service management. There are also specific harmonized service levels for the delivery and replacement of handsets and SIM cards across Belgium, France, Spain and the U.K.
• Orange offers transatlantic virtual private network (VPN) services through a partnership with AT&T. The pairing offers flat-rate services in Western Europe and preferential rates for the Closed User Group in the United States.

• 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 remote secure device management and data roaming offerings, for instance.
• Orange's MNC team does not operate in full profit-and-loss mode, so the company might need to make greater efforts to coordinate its matrixed organization.

T-Mobile has moved from the Niche Players quadrant into the Leaders quadrant as a result of improved execution, better articulation of its vision, and a reorganization that caters better for MNCs and corporate requirements.

T-Mobile has its own networks in five Western European countries: Austria, Germany, Greece, the Netherlands and the U.K. However, in the Netherlands and the U.K., T-Mobile focuses on the consumer segment.

T-Mobile UK and Orange UK recently announced a merger. This deal has yet to close but the expected date for complete integration is mid-2011.

Recently, T-Mobile US expanded its focus to include growing its MNC business.

Multinational customers are served through T-Mobile's participation in FreeMove, which extends the company's reach to 16 of the 17 Western European countries, the exception being Ireland. T-Mobile also has extensive operations in Eastern Europe.

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

• A dedicated MNC unit has been formed. It is strengthening its skills by hiring personnel from T-Systems and other information and communications technology organizations in order to deliver complete solutions.
• T-Mobile has introduced a harmonized tariff structure for voice roaming in some central European and Eastern European countries: Austria, the Czech Republic, Hungary and Slovakia.
• T-Mobile's reporting capabilities have improved with the introduction of Central Manager 3.0, a tailored spending manager.
• As part of its customization strategy, T-Mobile can customize tariff structures from a portfolio of building blocks.
• T-Mobile has a European framework agreement for mobile sourcing.
• T-Mobile measures "service performance indicators" for 35 parameters in eight countries. It offers SLAs — standard (free) and premium — for mobile services in Germany, the U.K. and the Czech Republic.
• Remote device management.
• T-Mobile's network in the U.K. is undergoing a much-needed upgrade program for both second-generation (2G) and 3G networks.
• T-Mobile has launched a central ordering portal for its entire European footprint, except for T-Mobile UK.

• T-Mobile's reporting currently integrates the activities of three third-party providers: Orange, TeliaSonera and Telecom Italia. Integration of further providers is planned for 2010.
• T-Mobile's voice coverage remains an issue in the U.K., but the company is making commitments to enhance both 2G and 3G networks.
• There is limited harmonization of bid management and products across T-Mobile's coverage area.
• T-Mobile's various portals are not yet integrated — they remain stand-alone offers.

Telefonica O2 keeps its place in the Leaders quadrant thanks to its strong focus on service execution and evolving value propositions, together with a well-articulated vision for future requirements for communications solutions. It is the incumbent operator in Spain, and it acquired U.K.-based mobile operator O2 in 2005. The group companies are increasingly aligned with respect to operational efficiency, reporting and service portfolio.

In Western Europe, Telefonica O2 has its own networks in Spain, the U.K., Germany and Ireland. These are supplemented by those of preferred providers to cover the rest of the region. Telefonica O2 also owns networks in Slovakia, the Czech Republic and Latin America.

MNC clients are served by three regional units — in Spain, Europe and Latin America — and an international wholesale unit that manages third-party network providers.

Consider Telefonica O2 especially if its footprint matches yours. This provider is also worth considering if your organization has a significant presence in Latin America. Recognize too that Telefonica O2 is increasingly delivering services across Europe.

• Telefonica O2 continues to expand its communications portfolio. Recent expansions of its mobile service portfolio include a widening of the geographic scope of the device management offering and the addition of telecom expense management capabilities.
• There is a dedicated MNC unit called Telefonica Multinational Solutions.
• Telefonica O2 has good billing and reporting capabilities, which include an e-service platform, a bill analyzer and a bill manager. It can re-route and re-rate, when required.
• A portal for MNC solutions was launched in September 2009.
• Strategies for vertical markets, such as healthcare, have been further enhanced and harmonized across the Telefonica Europe Group.
• Telefonica O2 offers enhanced SLAs, with both standard and premium versions available.
• Telefonica O2 has a comprehensive M2M communications offering.

• Telefonica O2's presence in, and coverage of, Germany has improved significantly. There is also commitment to make further network enhancements.
• Response times — to requests or changes, for example — and flexibility with respect to terms and conditions vary by country (there are some challenges to overcome in Spain). However, Telefonica O2 does conduct customer service surveys that trigger the creation of action plans if the satisfaction index drops.
• Telefonica O2's mixed business model, which combines its network assets with those of partners, offers flexibility but might limit its ability to deliver fully harmonized offerings in terms of pricing structure, SLAs, services, lead times and so on.

Telenor has improved its position in the Niche Players quadrant thanks to a continued record of execution and especially to its overall vision and understanding of future requirements for products and services. Reference customers in the Nordic area include Carlsberg, DnB NOR, If and Storebrand.

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, Ukraine, Serbia and Montenegro. Telenor often widens its geographic reach by working with Vodafone.

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

• Telenor has a Nordic key-account management team to enhance service execution and the service experience for important Nordic customers. It includes key-account managers in Sweden, Norway and Denmark. This team is responsible for tailored Nordic solutions, including pricing and roaming models and SLAs, and offers strong cross-country governance for the business-to-business segment.
• Telenor strengthened its advanced Internet Protocol-based solution capabilities with the acquisition of Datametrix in 2008. Telenor combines these capabilities with mobile offerings to create solutions for teams of workers — UC solutions, for example.
• Additions to the service experience include split invoices (for private and business consumption), loyalty programs, family solutions available to employees' families, and a roaming offering for businesses called RingSkandinavia. In addition, alongside its mobile broadband offering, Telenor offers businesses a PC client, Mobilt Bredband, to ensure a seamless cross-platform VPN connection for PC usage.
• Telenor has enhanced its mobile service portfolio with Research In Motion (RIM) BlackBerry and personal information management features. It is also expanding its MDM portfolio in phases. The first phase saw the addition of the Mobil Kontroll service, which supports remote locking and wiping of information on mobile phones. There are also tailored, hosted and customer premises solutions for large enterprises, covering areas such as security, data and content management, process automation, and device support fully aligned with the customer's IT infrastructure. In addition, a UC solution including a service called Unified MobileStatus was launched in Norway in October 2009.
• Telenor has strengthened its relationship with Elisa in Finland and continues to harmonize and expand its Nordic offerings, with Nordic capabilities now available for service delivery, fault handling and service content management, among other things.
• Telenor has a strong M2M communications business, having set up a separate global M2M company in October 2008. Telenor Connexion is headquartered in Sweden and offers a range of basic and vertical-market solutions backed by automatic provisioning and SLAs.

• Telenor's service portfolio still has local variations across its coverage area, except for WANs. A recently launched UC solution, for example, is currently available only in Norway. But the company is making progress toward harmonization, aided in part by the specific key-account structure for Nordic customers.
• Telenor's coverage of Western Europe is limited, as it only owns networks in Norway, Sweden and Denmark. Even in Denmark and Sweden, network coverage is patchy in remote areas. This makes Telenor less attractive to companies with substantial needs elsewhere in the region.
• SLAs are limited and not universally available, but they are offered to the company's pan-Nordic large-account segment.

TeliaSonera retains its position in the Niche Players quadrant, thanks to a continued record of execution, a stronger focus on aligned product and service capabilities, and an improved overall vision.

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, which extends its coverage to 16 of the 17 countries, Ireland being the exception. In addition, the company owns networks in the Baltic states.

Consider TeliaSonera if your users are predominantly in the Nordic countries. Also, if you have pan-European requirements and a strong presence in the Nordic countries, consider TeliaSonera as the leading provider in a FreeMove agreement.

• In October 2008, TeliaSonera expanded its mobile broadband portfolio by adding international services with a capped daily fee to its flat-rate domestic services.
• TeliaSonera offers unparalleled network coverage in Sweden and Finland, with enhanced High-Speed Downlink Packet Access (HSDPA) and Wi-Fi services. Commercial fourth-generation services are being trialed in Sweden and Norway; they are expected to launch in Sweden in 2010 and to cover 60% of the population.
• TeliaSonera has a single business-to-business sales organization. In addition, a recent reorganization shifted product responsibility from local teams to global product managers with a stronger governance model and the goal of harmonizing all product development according to a single product road map.
• Participation in FreeMove strengthens TeliaSonera's international coverage. It has expanded its portfolio to include FreeMove International Roaming and Central Report 3.0.
• TeliaSonera continues to harmonize its services in the Nordic countries and has extended key platforms, such as Wireless Office, to Finland. In addition, the company recently began offering MDM solutions in Sweden and Finland. It makes innovative use of M2M applications, mobile work orders and mobile receipts.

• Although TeliaSonera has made an effort to harmonize the products it offers in different markets, its profit-and-loss structure remains country-based and its country operations still work relatively independently. With several country operations having distinct pricing structures and reporting capabilities, this could make it harder for TeliaSonera to deliver a homogeneous service experience.
• CRM capabilities across TeliaSonera's footprint appear weak. Lengthy internal processes impair service execution, such as responding to requested changes and proposals.
• TeliaSonera's own-network presence is limited to the Nordic countries, the Baltic states and Spain. This makes its offerings less attractive to companies with substantial needs elsewhere, unless they welcome an arrangement backed by FreeMove.
• TeliaSonera does not support RIM's BlackBerry handsets and services, although it does support other products that fulfill the demand for mobile e-mail as usage of Microsoft ActiveSync increases.
• Although standard SLAs are available, they are not homogeneous across TeliaSonera's coverage area. Also, the company does not offer premium SLAs.

Vodafone has improved its position among the Leaders, thanks to strong execution with regard to its increasingly harmonized portfolio for MNCs and a more aggressive approach to pricing in the past 12 months.

Vodafone covers all 17 Western European countries, nine through its own cellular networks and eight through those of partners. 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 in this document.

Vodafone also offers DSL services. It continues to expand its DSL assets in European markets such as the Italy, Germany and the U.K., although it mostly aims these services at consumers. In addition, in October 2008 Vodafone signed a strategic partnership deal with Russian operator Mobile TeleSystems (MTS) for mobile services.

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 MNC team has improved its reporting capabilities — with Vodafone Spend Manager, for example.
• Vodafone has increased its focus on providing managed mobile services. It provides these in up to 100 countries, and is moving significantly beyond initial products like Invoice Manager and Spend Manager.
• Vodafone's dedicated MNC unit is a profit-and-loss center that serves over 650 customers worldwide with more than 650 dedicated staff (approximately a 35% increase year on year).
• Vodafone has launched a global SLA product and set up a focused M2M team in the past nine months
• Vodafone offers various types of contract for MNCs. It is the only provider to offer single-signature contracts, rather than single-frame contracts.

• Enterprise customers that do not belong to the Vodafone Global Enterprise (VGE) group are still served at a domestic level, and coordination between countries is limited. However, some VGE products are becoming available to non-VGE clients.
• Fixed add-on services are available in some countries, but are not aligned with mobile offerings.
• 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.
• Vodafone's creditability and experience as a full-service provider remain somewhat limited, but the company is making progress, especially in its management of fixed networks.

Note 1
FreeMove

FreeMove is an alliance of mobile operators. It does not have its own position on the Magic Quadrant because enterprises cannot purchase from it directly. Instead, they buy from individual FreeMove members — and the service experience they receive may differ, depending on which provider they choose. As such, the status of FreeMove depends on the positions of its individual members.

Membership of FreeMove extends a provider's reach. Enterprises opting for a FreeMove deal can expect more harmonized tariff and reporting arrangements across their footprint than if they chose separate, unaffiliated providers.

Note 2
Definition of Western Europe

In this report, Western Europe comprises the following 17 countries:

• Austria
• Belgium
• Denmark
• Finland
• France
• Germany
• Greece
• Ireland
• Italy
• Luxembourg
• The Netherlands
• Norway
• Portugal
• Spain
• Sweden
• Switzerland
• United Kingdom

We omit Iceland because its enterprise market is so small.