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3G iPhone to storm enterprise world, says O2

Apple's latest means business

Tags: o2, 3g iphone, blackberry, iphone

By Natasha Lomas

Published: 4 July 2008 11:37 GMT

Dowd said iPhone pricing for corporate customers - companies with more than 200 employees - will be bespoke "because their usage profiles and everything else can vary dramatically depending on which sector they're in" - while smaller businesses choose from O2's existing business tariffs. These tariffs range from around £30 per month to more than £200 depending on the package, and include a bolt-on charge of around £8.50 for the privilege of using an iPhone.

The bolt-on cost is largely because users get unlimited data and wi-fi usage, Dowd explained. He said iPhone users tend to gorge on data, consuming over and above other smart phone users. "What we're seeing is the iPhone - the level of data usage is nearly on a par with laptops," he added.

Existing iPhone customers can upgrade to a 3G iPhone for free - and switch onto business tariffs without incurring any penalties. And Dowd said these tariffs will enable enterprise customers to have mixed device portfolios.

He said: "You can balance your portfolio - so if… you've got some BlackBerrys already and you want some iPhones and maybe you've got some Microsoft-enabled devices as well that's fine; you can put them all together… multi-users onto one bill.

"And that will suit a lot of customers from a continuity point of view because they'll want to balance their portfolio rather than put all of their eggs into one basket."

Dowd said he expects the iPhone will do well in all business sectors and does not see it being particularly attractive - or unattractive - to certain verticals.

He said: "I don't think we're seeing one particular sector where it's going to be very strong and other sectors where there's going to be no interest because actually when you look at beyond email there is a need - particularly given the climate that we're in right now - for businesses to really embrace the whole mobilisation capability and drive out what efficiencies that can for their business."

Nor does he see it being bigger in big businesses than SMEs, or vice versa. "I think we're seeing interest across both of those segments. And I would expect high levels of demand in both," he said.

The launch of the software development kit for iPhone offers particular opportunities for enterprise as business customers can develop bespoke enterprise apps, such as CRM, said Dowd. GPS means fieldforce applications will be able to link in to the device. "This stuff drives out real business efficiencies and cost efficiencies for corporates," said Dowd.

Asked whether he believes Apple always had an enterprise strategy for the iPhone, Dowd is unequivocal: "I think at the very start they were very clear about that - that as they launched it, it was never just going to be a consumer device. They wanted to target all segments."

Dowd said O2 has extended iPhone distribution, with 16 of its long standing partners in the B2B reseller space now signed up to supply and support 3G iPhones for enterprise users. This figure may rise to 22 as more contracts are inked, he added.

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