The deal, trumpeted as the first Microsoft-operator direct deployment outside the US, will see Vodafone users with Hotmail accounts able to choose to have certain messages sent to their mobile phones - for a fee.
After a fairly simple registration process users will receive a confirmation code and a welcome message, but these are the only messages users will be able to receive for free. Hotmail sends out an alert that subscribers have received an e-mail and asks if they want to view the whole message. If the user agrees, the e-mail is downloaded in successive 160 character SMS's. The alerts and each message cost 33c, and each SMS sent costs 25c.
"The alerts are an added value premium service, so we charge more," a Vodafone spokesperson said. The price is based on what Vodafone thinks people will pay for the service, not on any technical issues, said another spokesperson.
The service can be deactivated via the Hotmail Web site or through Vodafone's customer service, and Vodafone said the ability to deactivate the service from the mobile will come in the next couple of months.
The two companies recognise the spam problem, and when a customer initiates the service the Hotmail junk mail filter is automatically set to high. In addition customers can add further layers of filtering, including sending SMS alerts only for messages from people in the contact list, or nominating specific people to only receive alerts about.
In a promotion from September 4 to October 4 customers who sign up for the service will receive alerts and e-mails free, but will still have to pay for outgoing messages.
According to a spokesperson, Vodafone and NineMSN are exploring other avenues of the relationship, and are looking at supplying Microsoft's Instant Messaging to mobile in the next couple of months. This follows Yahoo and Telstra offering the service in August.
Neither company will give any sort of revenue breakdown or forecast for the new service, but cite overseas examples where the partnership saw an increase in overall SMS traffic as a result of the service.
Steve Vamos, CEO for NineMSN, told ZDNet Australia this partnership was not one of the "next generation" of MSN service referred to in a recent ASX report. That was referring to services such as paid extra storage, which is expected out before the end of the year.
