SpinVox to cut out SMS middlemen

The integration process will take place over the next 12 months. SpinVox intends to retain its own brand.
SpinVox CEO Christina Domecq said that SpinVox did not control SMS delivery itself and blamed aggregators for any latency issues involved in delivering voice messages to customers inboxes.
With today s standalone system we have very little control over SMS delivery said Domecq. It is because we are working with aggregators. The delivery of SMS is down to them.
SpinVox partners with aggregators mBlox Mobile 365 and WIN to deliver voicemail in SMS form.
Domecq said: Over the next year the service will be deployed so that the aggregators are cut out and the service resides on the network itself. That process will be moved to the networks in the future. The customer will get a better service. So it will make delivery more seamless.
This will require the adoption of a different business model.
SpinVox will become a service provider to the networks in the future she said. At the moment we retain and manage the customer relationship.
The Carphone Warehouse has recently taken a 17 per cent stake in the company.
SpinVox claims trials with The Carphone Warehouse the operators and across its own managed base found SpinVox increases text and call traffic. Domecq said that the uplift in voice ARPU is between 6.5 and nine per cent and the uplift in SMS ARPU is 15-20 per cent.

Hugh Symons set to swallow MPE

The Carphone Warehouse is roughly 60 per cent of the way through integrating Hugh Symons IT system into its own system. That process is expected to take up to three months.
Once that process is completed Carphone Warehouse will put its SIM-free distribution arm Mobile Phone Express and airtime distributor Hugh Symons on the same sales ledger. At present Hugh Symons is required to purchase stock from Mobile Phone Express itself and bill dealers separately.
Hugh Symons will become Carphone Warehouses distribution brand for both airtime and SIM-free in the dealer channel from July 1.
It is unclear what will happen to the Mobile Phone Express brand but Carphone Warehouse director of indirect distribution Steve Fraser said he had no plans to retire the brand and that it would continue in some capacity.
Fraser said: "We are putting the Mobile Phone Express and Hugh Symons businesses on to the same sales ledger. We are combining all the products of the two businesses. Dealers will be able to buy Carphone Warehouse SIM-free stock as well as other services such as Fresh and TalkTalk and connect airtime against those products."
He said no decision had been made on the Mobile Phone Express brand.
"I dont want the two businesses competing with each other but at the same time were not going to just kill off the Mobile Phone Express brand. We have people that work for Mobile Phone Express and they will continue to work there."
Speaking at Hugh Symons Unity seminar last week Hugh Symons business manager Bob Sweetlove said: "We are integrating our business into the Carphone Warehouse system. Were 50 to 60 per cent of the way through that. Thats when Hugh Symons and its customers will have access to all the Carphone Warehouse product set."
See feature page 28

Dealer fury over T-Mobile commission cut

The speed and size of the cut has wrong-footed dealers. Many have lost business or been unable to honour deals they promised in April.
Jez Harris dealer and founder of the Phone Dealer Forum lost £1345 on his expected payment on a deal because it went through on May 1 instead of at the end of April.
Harris signed 18 handsets on a Business Plan 5000 tariff. Commission on the tariff went from £2575 down to £2060. Handset commissions for each sharer handset on the tariff went down from £215 to £169.
"When it launched the Business 1 plan T-Mobile commissions were favourable now they are lower than Orange" he said. "The only logical reason is to stem the flow of connections. It has proved successful maybe too successful."
Rebal Elayan of Business Print Communications in Staffordshire said: "It is infuriating. We had one contract that would have made a big difference if it had gone through at the end of April. It leaves us way off our expected margin."
Faisal Sheikh of Fone Doctors in London said: "I had signed a customer to a Business 1 plan. He could not make it in to the store on the Friday to complete the contract and with pricing arriving so late we didnt have time to chase him up.
"It meant I couldnt offer the customer the same deal. He wasnt very happy. T-Mobile should never have gone so high with its commissions if it was going to cut back like that. A 20 per cent cut is too much and too sudden."
A T-Mobile spokesperson said: "A higher commission was offered as a promotion to the dealer to support the launch of the tariff. This period of promotion is now over and therefore the commission rates have been reduced."
See Sharp End page 18

Phonebox management buy-in

Communications director Jason Fernyhough sales director Oliver Rowe and business development director Ian Hooper have bought a two per cent share of the company in return for full board directorships.
They each have an option to acquire 13 per cent more over the next few years.
MD Nigel Harrison who shares ownership of the company with his wife and company finance director Donna said the move was in response to outside interest.
"We were approached by a local company but the workforce was down in the mouth about the prospect of not having as much input in the business and wanted me to remain" he said.
If Fernyhough Rowe and Hooper build their combined share to 45 per cent the rest of the company can be bought through a bank loan.
Phonebox which has five stores in Redditch Solihull Tamworth Lichfield and Shrewsbury has a £5 million turnover and employs 65 staff.

Teletext launches mobile service

"Teletext Mobile has been designed with the user in mind" said Teletext commercial text manager Jonathan Creber. "It is quick and easy to use and relatively cheap."
The service went live two weeks ago and aims to provide information for subscribers 24 hours a day.
Creber said that "early indications are promising".
Eagle Eye Technology director Ed Pippin added: "Now almost every mobile device sold has access to the Internet and old barriers such as slow access poor screen resolution and lack of colour are a thing of the past."
To get the service on a mobile phone users text the word Teletext´ to 8430. The service is free but users will have to pay for GPRS data transfer.
Teletext Mobile content will be similar to the information found on text services on ITV and Channel 4. "All the page numbers people are familiar with from the television site will also be the same on the mobile provider" said Pippin.
"Teletext has chosen now to enter the market because it is at these early stages that browsing habits get created and brands make a name for themselves" he added.
Teletext head of mobile Marcus Thornley said: "As the costs of the mobile Internet fall we hope to increase the use of rich media on Teletext with more video."

Yes sells stake to Voda

The full amount of Vodafone´s investment is undisclosed but it is expected the cash will fund the SP´s growth for the next five years.
Yes MD Keith Curran who will continue to run the company alongside his existing team insisted that Vodafone´s operational input would will be minimal.
Newly appointed Vodafone business unit sales director Mark Bond explained that the decision was dictated by the prospect of Yes going elsewhere for funding. "The directors were talking to venture capitalists to fund its growth" he said. "We have seen some distributors go to the wall and some others acquired. This was the only way to work it so that Yes would continue to be Yes."
Bond insisted the existing team would remain. However part of the deal is that Vodafone is to have a regular report on Yes financials. "We do not intend to suck them into Newbury" he said.
Curran said he was involved in the negotiation process with Vodafone over the sale for the best part of six months. The deal is a guarantee the network will pursue SME revenues through the channel he said.
DM Telecom MD Dino Maroudias typified the optimism with which Yes dealers appear to be greeting the deal.
"Yes has high ARPU and low churn. It looks after its customers and has created a real niche in the B2B space. If Vodafone bought it outright it would lose that."
Pioneer Communications Solutions MD Marshall Frieze was also optimistic. "It´s going to make us more competitive in the marketplace. Hopefully we will get access to better products as a result."
TMD UK owner Geraint George said: "It will hopefully give us access to products now only available to Vodafone´s corporate customers."
See Our Shout page 14

VAT reverse charge bid will encourage fraud

But experts warned that a reverse charge procedure would create VAT fraud in the dealer channel.
A reverse charge would remove VAT payments between VAT-registered firms in the UK. VAT would only be paid by the end consumer. The sole responsibility for VAT repayments to Customs would sit with retailers under the reverse charge scheme.
Bond House director Mike Cheetham said: "Dodgy online retailers will be able to generate large revenues at least 17.5 per cent of the cost price even if they sell products on at cost. Were not talking about carousel fraud on hundreds of thousands of phones. It will be on a smaller scale but much harder to track."
Alias Dass of Dass Solicitors said: "VAT fraud will move into retail channels because VAT will be collected by retailers. Fraudulent retailers will be able to accumulate lots of VAT over three-month periods put in a dodgy tax return and then either continue for another three months or shut the company right away and set up another."
The European Commission said last week that it would support the UKs application for a reverse charge backed by Germany and Austria. Once approved the plan must be accepted by all EU nations which could be a stumbling block.
"Fraudsters will register companies abroad and run the scam abroad" said Dass. "Traders that traditionally traded through Dubai will now use the UK instead because it will be a VAT-free zone. It will make carousel fraud easier because the UK VAT-free zone is closer."
The Commission wants to implement wider-ranging VAT measures to deal with fraud on a European scale but there is no agreement on what the measures will be.

Bond will head up Voda business sales

The appointment coincides with the announcement from the network that it has acquired a stake in hitherto independent service provider Yes Telecom.
The initiatives come after a group-wide strategic review and are an attempt to get Vodafones business house in order following a number of high-level departures.
Bond previously marketing head at the unit will report directly to enterprise business unit director Kyle Whitehill.
Head of indirect sales Rob Sandford will continue to report to corporate sales chief Amanda Baker who has recently been caretaking the sales director role. Baker will report to Bond when he becomes sales director.
Bond has been at Vodafone for 10 years. He spent some years at Vodafone Connect and at the enterprise marketing division. Prior to that he worked at Cable & Wireless for 15 years. He has run channel marketing for three years at Vodafone UK.
Despite his long experience at Vodafone this is Bonds first sales role. However he insists he has the required experience.
"Channel marketing can entail some account management but Ive not done a formal sales role before" he said. "Its true marketing people have a different outlook from sales people. Marketing is perhaps a bit longer term whereas in sales the questions is how can I hit that target right now? But all the dealers know me so this isnt such a major change for me."
Bond was unwilling to go into details about his proposed strategy but he recognised the network has much to do to keep up with current trends in the industry.
"I see a lot happening in our business" he said. "There is a lot going on in broadband. There is a lot of talk about fixed-line. We are seeing some consolidation in the channel and service providers are up for sale."
But he is adamant that the network has not been lagging its opponents.
"Weve not come late into the market" he declared. "Vodafone has been selling fixed-line for some time. Weve been offering broadband for two years. Its true weve not put these offers in the front line. Now customers are asking about these services more we will probably bring them up to the front of the process.
"Change is required and we will be looking at what we need to do but the details havent been finalised. Weve had an internal announcement but now we need to get out and speak to the channel. There are a few businesses out there that are not sure what to think about us at the moment so I am going to get out there to them."
Yes Telecom MD Keith Curran said: "Ive known Mark for some time. I can only see his appointment as extremely positive. He understands our business inside out and Ill probably be working more closely with him than anyone else at Vodafone."

CPW staff under fire over targets

The pressurised selling environment is thought to be the result of the appointment of Anthony Catterson as MD of retail in April.
Catterson who is now responsible for the 669 Carphone Warehouse stores was previously managing director at Phones 4U and IT distributor Micro-P where he made significant job cuts.
A Carphone Warehouse store manager commented: "There are rumours going round the industry that he is here to axe jobs. He got rid of a load of people when he was at Phones 4U and then left. Were worried hes here to do the same thing."
Carphone Warehouse refused to comment but another Carphone store manager revealed: "In stores the pressure is certainly on. There is a focus on selling new subscriptions. Customers often come in to shops wanting just TalkTalk broadband but weve got to try to sell them a new phone at the same time."
One source close to the retailer revealed that new sales strategies to pressure teams into action were being put into place at area manager level. According to the source staff have to ensure 20 per cent of customers who take broadband also take a phone or face disciplinary action.
One store manager revealed: "There was an area managers meeting about a month ago where Catterson said: Im looking forward to working with most of you in the future. According to my area manager he kept repeating this phrase basically implying they wouldnt all have jobs in the future. They have to perform or they face the sack."
The source revealed: "Catterson has made it very clear what he wants. He wants top sales performance. There are no congratulations if you get it 90 per cent right. It has to be 100 per cent or youre out."
The comments come as Carphone Warehouses full-year revenues have grown by 30 per cent to £3 billion with pre-tax profits at £136 million.
CEO Charles Dunstone said he would pump £50 million into broadband adding that he intended to open a further 80 stores primarily in retail parks and small towns.

Entertainment show fuels mobile content debate

Peter Cowley director of Interactive Media at Endemol the company behind Big Brother said his firm has been offering profitable Big Brother updates on mobiles for the past couple of years. He claimed the figures are "staggering" with mobile users downloading 10 million Big Brother streams in just 18 months.
"It´s good money but not everything we do with mobile brings in the money" he said.
MTV vice-president of strategy Angel Gambino suggested the only way companies like MTV can make money from the service is to own rights to the content.
She said users who download MTV streams on their mobiles do so for short periods but regularly three times a day on average.
One surprise from research firm M:Metrics was the finding that mobile users generate around three times more content than they consume. "Users are uploading personal snaps and videos to the Internet as well as sharing the files with their friends and colleagues" said senior analyst Paul Goode.
Where they do consume paid-for content said Ovum principal analyst John Delaney it is clear mobile entertainment being viewed is quite different from armchair TV viewing.
"It´s all about snacking" he said. "Mobile users snack on mobile entertainment for just five or 10 minutes at a time. Is there a business model for mobile entertainment services that generate just €10 (£7) a month in revenue? I´m sceptical" he added.
Bango sales director Martin Harris argued that there is a business model for low-cost mobile entertainment but he referred more to static content a lot of which is adult´. Bango is handling O2´s new adult range of Active services which Harris admitted O2 doesn´t want to handle itself.
Apart from pornography there´s also mobile gambling.
Matti Zinder CEO and founder of Spin3 the company that developed the technology behind a growing number of mobile Internet sites claimed that mobile gambling is now reaching critical mass with users more than willing to download a Java applet to have a flutter on their handset.
Spin3´s latest claim to fame is Tomb Raider a five reel 15 payline mobile slot machine package that offers users many more ways to lose their money.
But the mobile slots as they´re called are a step or two better than the ones in the pubs or clubs as witnessed by the company´s other major offering Major Millions a progressive jackpot game than can pay out up to a hefty £250000.
Zinder´s company which has more than 130 staff worldwide doesn´t make its money from offering mobile gambling services to users. It designs the technology that makes it all work which includes age verification banking interfaces and the gambling software itself.
It was ironic that Spin3´s announcement of its latest mobile gambling achievements were overshadowed by the previous night´s lead story on the BBC Nine O´Clock News about Internet gambling becoming a major problem in society.
But what about non-adult mobile content? Is there enough revenue for a viable business? Harris pointed to the Manchester United site which lets fans download a customised mobile phone logo with their team´s latest result on it.
"At £3 a throw Manchester United fans have been flocking to the service and they keep coming back as no one wants an out of date logo on their mobile" he said.