Dealers unfazed by Dixons rebrand

The move estimated to cost £7 million will re-brand all 190 electrical product stores as Currys.digital. The Dixons brand name will only be used for its web retailing operations.
Phone Dealer Forum founder Jez Harris commented: "As far as I´m concerned this is just a name change. They´ll still sell the same products so I don´t think it´ll make too much difference."
JAG managing director John George agreed: "It´ll make very little difference to us. But DSG knows what it´s doing so there could be an ulterior motive behind the name change."
DSG claims the change will enable Currys and Dixons to clearly differentiate their offer through two distinct channels retailing and e-tailing.
DSG chief executive John Clare said: "I am very excited about the prospects for the Dixons brand as a pure-play e-tailer. We intend to become the most successful electrical retailer on the web."
But Mobile Phones Direct CEO Karl Borges expressed doubts. "To re-brand to Currys after two decades of moving the Dixons brand away from white goods will cause customer confusion" he said. "That said throw enough money at anything and it may just be a success."

3 embarks on NI direct dealerships

A 3 spokeswoman said: "Only about 10 per cent of our outlets are being looked at and this decision does not signify problems with dealers in Northern Ireland."
Direct dealership will mean outlets deal directly with 3 rather than a distributor. However 3 denies this is a result of bad relationships.
"We rolled out 3G to Northern Ireland later than in the UK so our relationships with distributors are less mature" said the spokeswoman. "We saw this as an opportunity to go direct with certain outlets."

Dealer anger over mobile tax

Chancellor Gordon Brown announced plans in the 2006 Budget to tax workers who own second mobiles including BlackBerry communicators.
DM Telecom MD Dino Maroudias described the tax as "ridiculous" and "unmanageable". He added: "How on earth are they going to implement this? It´s just another stealth tax from a government bent on taking money from people."
Up until now employers used to be able to loan their employees up to five mobile phones each for their private use. However the Budget outlined new plans that mean only one phone per employee will be tax exempt.
KPMG partner Ian Hopkinson said: "It´s signalling an end to employers offering both a mobile and a BlackBerry to staff. In future companies are likely to force staff to use just one mobile device. This will clearly have a knock-on effect on handset providers."
Surrey Car Telephones business development manager Nick Oldham said he had seen no immediate backlash. "At present no customers have cancelled and there´s not been any real feedback on the issue" he said. However the tax could result in a surge in BlackBerry sales as people won´t want to be without e-mail access which could be detrimental to mobile handset sales."
The changes come into effect on April 6 but are not retrospective.

Yes to spend 5m on IT

The company said the revamp was necessary to cope with the increased workload on its back-end systems as it prepares for 100 per cent annual expansion for the next five years.
Much of the spend will go on the company´s Business Partner extranet capability. It has promised to develop web-based connection processing and re-sign applications.
Yes MD Keith Curran said the company´s internal systems would be fully overhauled.

T-Mobile in union pay clash

The CWU said that proposals by T-Mobile to overhaul performance related bonuses worth up to £1000 per employee could lead to a serious loss of earning potential for many staff members.
CWU telecoms organiser Nick Childs said: "What is currently being proposed would be to the financial detriment of the vast majority of our T-Mobile membership. We will challenge both the proposal and the transparency of the consultation currently in progress. We will also support any member who wants to take out a grievance about the impact T-Mobile´s proposals would have on them."
T-Mobile said that the performance bonuses had been replaced not scrapped. It said that employees had better ability to earn higher bonuses under the pay review.
A T-Mobile spokeswoman said: "Following full consultation T-Mobile has replaced existing bonus arrangements for customer services advisers with a new scheme. This increases the employee´s opportunity to earn higher-level bonuses."
Separately trade unions representing O2 staff recommended that O2 members accept O2´s latest pay proposals. Unions started to ballot members last week.
Assistant secretary and lead negotiator Grace Mitchell said: "We´d have liked a bit more but have accepted that this is the best offer we can reach through negotiation."
An O2 spokesman said: "The trade unions will recommend the proposals and consult with their members. We expect the results back in the middle of the month."
O2 shop staff will see a consolidated pay rise of between two and nine per cent with most retail grades receiving six per cent or more.

New powers for Customs on IMEI records

The measure was revealed in last month´s Budget statement by Chancellor Gordon Brown.
He said: "The measure will only be exercised where Customs has reasonable grounds to believe that the additional records might assist in identifying supplies on which VAT might go unpaid. This fraud most commonly arises from supplies of mobile phones and computer chips."
The measure is intended to stamp out VAT fraud and organised crime.
Thefts of large consignments of mobile phones have increased dramatically in recent months. Metropolitan Police detective inspector Paul Douglas told Mobile News that most thefts are either carried out to set up a VAT fraud or to remove Customs-stamped boxes from a supply chain.
"These kinds of attacks are fuelling VAT fraud" he said.
The Budget confirmed the right of Customs officers to apply date stamps to goods and to record goods by scanning them.
Until now insurance companies have not required traders to record IMEI numbers. Royston Ford a surveyor and investigator at Cunningham Lindsay loss adjusters said that insurers have started making losses on the mobile phone trade and have pushed for a policy change on the recording of IMEI numbers.
"The vast majority of policies issued to mobile phone traders have had no requirements whatsoever for IMEI retention" said Ford.
"A certain level of risk management is OK for insurers as long as they are making money. But as soon as they start to lose money insurers will look at their policies again. That´s the bottom line."
The Budget report stated: "The measure will supplement Customs´ existing power to specify record-keeping requirements for all businesses of a particular description. It will enable record-keeping requirements to be imposed where they are necessary to help combat fraud."
See crime feature page 30

Orange overhauls preferred dealers

Orange has signed 16 direct dealers up to the new scheme. Approved dealers will receive an ongoing revenue share based on customer spend and have exclusive access to generic SIM-free stock approved by Orange.
Dealers will also have first access to Orange Broadband which will be re-branded from Wanadoo on June 1 and Orange Landline which will be re-branded from Equant in Q3.
To make the cut Orange connections have to make up 30 per cent of a dealer´s total business and dealers have to connect 120 contract customers a month. Dealers also have to deliver customers that earn Orange £190 in profit over their tenure.
Twelve of the 16 specialist partners have also qualified to enter a dedicated tier for Orange b2b dealers called the Orange Business Specialist Partner Programme. Dealers have to connect a minimum of 100 business customers to contract tariffs in order to become specialist business partners.
Orange´s long-running Orange Business Specialist (OBS) scheme which counts 26 dealers among its members will run alongside the new specialist programmes until the end of the year when it will be made redundant. Orange head of dealer and distribution Chris Hough expects all current OBS dealers to hit targets and migrate to the new specialist scheme by January 1 2007.
Dealer performance will be monitored on a quarterly basis with opportunities to migrate in July October and January. OBS dealers that do not hit Orange´s minimum targets by January 1 will have their privileges revoked.
Over the next month Orange will examine data it has compiled about all Orange dealers and choose which to retain and which to fire.
Hough told Mobile News that Orange has accumulated customer lifetime value data which tells the network how much profit it makes on each customer for both direct and third-party connections.
Mobile News understands that Orange will use the data to set targets for dealers dropping dealers that do not meet the targets.
The new ongoing revenue share pays five per cent on total revenues for a customer between month six and 12 of their contract 7.5 per cent between month 12 and 24 and 10 per cent on customers who have been with Orange longer than 24 months.
Orange will only pay ongoing revenues to dealers for customers who sign up after April 1 until Orange´s back-office systems are brought in line with the new pay policy.
"We are putting a technical fix in place so we can pay dealers for their existing base too but that won´t be ready until Q3" admitted Hough.
"But this is a big bonus for these guys because they will get a monthly payment for the time that a customer stays with the network."

SIM shortage as Flext snowballs

A T-Mobile spokeswoman said: "We have had an issue with SIM cards because of the popularity of Flext. But we have just increased the order of SIM cards and the situation should be sorted out this week."
Hugh Symons business manager Bob Sweetlove said: "There have been shortages across all T-Mobile´s routes to market but I understand it is going to sort it out."
Dealers complained of severe shortages of Nokia 6111s and MDA Varios.
The T-Mobile spokeswoman said: "We knew it was going to be a popular price plan but we hadn´t anticipated just how popular. I can´t give a figure for shortages. There have also been delays with the Nokia 6111 because of its popularity on Flext but these have been addressed."
The Carphone Warehouse has withdrawn its promotional offer of half-price line rental on T-Mobile´s £35 Flext tariff.
A spokesman said: "The £17.50 promotional tariff has come to an end after six weeks as with a lot of introductory tariffs for all networks. But Flext is still very popular."

BTCellnet man lands top FEI post

The ICT Council is one of the top level FEI committees responsible for identifying and addressing key issues affecting FEI members within the information and communications sectors.

The current debate over alleged dangers to health caused by mobile phones is sure to be one of the major areas of discussion.

Short has been in the electronics and telecoms business for 25 years including 12 years in cellular. He was chairman of the GSM Association between 1996 and 1997 and is chairman of the UK Mobile Data Association.

Intel backs Pipex WiMax move

The debut of WiMax wireless communications next year could therefore pose a threat to the revenues of mobile phone giants.
Rob Bamforth principal analyst at Quocirca commented: "It´s certainly a move mobile operators need to take seriously. But I think the real challenge will be in how companies communicate their differences how 3G is different from WiMax and WiFi."
WiMax will enable users to log on at hotspot´ areas and make voice calls over the Internet using VoIP software from providers such as Skype without using a standard phone network.
Bamforth adds: "It´s not necessarily a bad thing for phone operators in the long term. I believe wireless operators will eventually move towards a subscription-based model of payment rather than paying by the second or the megabyte. The key for phone operators will be keeping up with these rapid changes in the wireless sector."
Pipex intends to roll out its wireless network to six or more cities by 2008 and aims to be present in 50 urban areas. Intel Capital the chip-maker´s venture capital investment arm is investing £14.5 million in the new company which will be called Pipex Wireless.
The announcement comes just days after Pipex acquired Homecall the fixed-line business of telecoms tycoon John Caudwell for £43million.
Pipex chairman Peter Dubens claimed the company would now have more than a million customers in the UK across broadband voice and hosting.