Vodafone in mobile phone marketing joint venture

A joint venture designed to capitalise on mobile phone marketing and payments has been set up by 11:04 17/06/2011 Vodafone, Telefonica UK and Everything Everywhere.

The trio announced a new business which will develop technology that will work across networks and handsets to accelerate the take-up of shopping by mobile and allow customers to swap their physical credit cards for SIM card-based ones.

The new entity, the first of its kind in the UK, will provide a single contact for advertisers, marketing partners, retailers and banks making it easier to create m-commerce products and services. It will also deliver the technology required for the speedy adoption of mobile wallet and payments.

Companies that provide anything from credit, debit and loyalty cards to membership cards and transport tickets will be able to create secure mobile versions of their products.

As well as advertising space, there will be the chance to provide offers, coupons and loyalty cards which can be stored on the phone and redeemed in shops.

Customers will be able to use their mobiles to pay for goods, services and travel using contactless technology (NFC) with one touch of their phone, or online via mobile or PC and will benefit from discounts in stores they use.

The partner companies said that they will continue to develop their own competing products and services tailored to their own customers, which will be based on the open platform infrastructure provided by the JV.

They added that they hoped to have the technology up and running in time for the London Olympics in 2012 but the deal currently awaits competition approval and this may not be plain sailing.

Rival mobile company Three said it was never invited to any discussions about the JV and immediately raised objections. The company is thought to be considering whether it has grounds to make a formal complaint to the Competition Commission.