3s budget tariff to stem cash-back

3 said its new £15 budget tariff provides dealers with sufficient value to discourage cash-back offers.

Its new 18-month voice contract launched last week includes 500 cross network anytime voice minutes for £15 per month. It represents a £10-per-month saving on old £25 voice tariff which also included 500 minutes. The new tariff is available through February only.

3 director of indirect sales Bernie OBeirne said: It is available to all sales channels. We want to shake up the other networks again. This package gives great value without the need for dealers to issue cash-back. There is a £180 saving to consumers straight away and we are still paying dealers very useful commissions on the package.

The new £15 tariff is available on the Sony Ericsson K610i Z610i and the LG u400.

O2 pulls out of Phones 4U

O2 is set to pull its new contract connections business from Phones 4U in April and to take all its high street connections through The Carphone Warehouse.

Phones 4U marketing manager Jim Slater said: Were constantly in discussions with O2. As with all strategic partnerships these discussions remain confidential.

Carphone which already handles the billing of close to one million O2 customers is perceived as the better bet by O2 for its meagre acquisition business going forward and the pair renewed their trading contract at the end of January.

Under the terms of the new contract O2 is understood to have pressed Carphone to sign more customers per month to O2 for less commission than under previous their trading terms.

Phones 4U is understood to have been connecting only a few thousand new O2 customers per month during the past quarter as O2 has switched its focus away from consumer acquisition almost completely towards retention of its consumer base.

O2 spent £5 million on its latest advertising campaign around customer retention promoting its Fair Deal pledge to existing customers that re-sign direct with O2.

Sources claimed last week that the O2 UK management team has had its acquisition budget slashed dramatically by parent company Telef³nica as Telef³nica pursues new customers in emerging markets such as Latin America.

Mobile News understands that the O2 management team is likely to resign with Phones 4U when its acquisition budget is bolstered again by Telef³nica.

The move follows Vodafones exit from Carphone Warehouse before Christmas. Vodafone has signed an exclusive deal on new business with Phones 4U which is understood to have committed up to 70000 new connections to the network per month.

Phones 4U connects around 110000 customers per month.

As with the ongoing Vodafone/Carphone relationship Phones 4U will still be able to upgrade existing O2 customers.

O2 was unavailable for comment.

LG launches platinum Chocolate

LG is launching a luxury version of its Chocolate handset. Featuring a two megapixel camera FM radio and 256MB on-board memory the Chocolate Platinum retains its glowing red touch keypad whilst the classic LG Chocolate styling has been gently updated.

The phone also boasts an upgraded music and video player. Users can search through their music using voice activated commands as well as by keyword.

3 wins 3GSM messaging award

3 launched the application on the 3 network in August 2006 and was the first operator to provide this service free to its 3.75m UK customers. 3s mobile broadband offering provides customers with an identical messaging experience to the one they are used to on their PC allowing them to see the presence of their Messenger(tm) contacts and exchange messages from their phone. There are now more than 300000 customers registered on the service – sending and receiving over 1.5 million messages every day.

LG wins low-cost 3G handset

LG Electronics has beaten eight other handset manufacturers to a contract to produce a low-cost 3G handset for the mass market.

The tender for the contract was set by the GSM Association in conjunction with 12 operators. The handset will be called LG KU250. It will be engraved with the 3G for all campaign symbol.

LGs product beat around 17 other phones judged on price service and support.

Baxendale out of 20:20

20:20 Logistics business development director Richard Baxendale is set to leave the business.

Baxendale will be prevented from working for competitor companies for 18 months under the normal 20:20 severance terms.

Baxendale has been with 20:20 for six years. His departure follows a string of departures from the 20:20 Mobile Group late last year after its sale to venture capitalists Doughty Hanson.

20:20 refused to comment.

Baxendales exit from the 20:20 Mobile Group which comprises 20:20 Logistics and the Dextra distribution businesses follows the departures of former 20:20 Logistics managing director Rod Millar HR director Maxine Brough Dextra Solutions managing director Chris Jones financial director Gerry OKeefe trading director Rob Hendry and commercial director Andrew Burgess.

A source said: Its the end of an era. All those people were moulded in the way that John Caudwell liked to do business. Its a new culture now and they have looked to move on to new challenges.

Dealers pour scorn on 3 business tariffs

Reaction amongst dealers has been mixed after 3 announced a range of new Office Share plans designed for small businesses.

The new plans are aimed at SOHO and SME companies which 3 says will give them total flexibility in their mobile working.

However 3 has fallen out of favour with many dealers recently after Mobile News reported last issue that 3s call centres in Glasgow will be closed with all dealer service calls now being fielded by call centres in Maidenhead and Mumbai.

One dealer said: They opened the call centres in Glasgow with the aim of dealing with small businesses.

With call centres being moved to India people will want to speak to people in this country because 3s overall customer service is abysmal. Anyone daft enough to sign up to these plans must be completely bonkers.

Another dealer said: A lot of dealers are annoyed with 3 at the moment for obvious reasons. Its too much of a headache with not enough benefit.

3 will become the first network in the UK to include Windows Live Messenger and voicemail in their five Office Share plans as well as free calls to other 3 phones.

Four packages offer voice text and data bundle whilst the other package offers data-only.

3 UKs marketing director John Penberthy-Smith said: 3 is the challenger brand in the UK and with our Office Share plans we are doing for small businesses what we did for customers offering great value and easy to understand price plans.

Mainline appoints Jo McLarty

Mainline has appointed former Hugh Symons sales manager Jo McLarty as regional sales manager.

McLarty spent seven years at Hugh Symons where she led the Orange sales team before becoming sales manager and taking on responsibility for the internal sales team and for relationships with all networks.

She has been tasked with developing and growing key dealer accounts and will manage Mainlines field-based dealer team for the North Scotland and Northern Ireland.

Mainline managing director Andrew Boden said: Jo has a strong track record of customer retention and management. This experience will help tremendously as we focus on supporting dealers and providing them with the best possible platform from which to grow their business and to maximise their success.

McLarty said: Our single-network focus makes our product offering straightforward and means we can concentrate on developing and supplying complementary services all of which adds value to dealers businesses.

Houghs Mainline stint ends

Hough joined Mainline in August from Orange where he was head of independent retail. He was tasked with restructuring its dealer manager team and bringing to market a Mainline-branded accessories range to bring it new revenues.
Mainline is in the process of making the final two appointments to its field sales team which should be confirmed by mid-February. Its accessories range which Hough sourced in Hong Kong towards the end of last year will be available to dealers at the start of February.
Mainline revamped its field sales team at the end of last year scrapping the old dealer manager roles for new dealer sales consultants tasked with building relations with around 1000 dealers across the country.
Hough said: We restructured the field sales force. The new team is talking to lots more dealers across the whole country. We compiled a database of all the dealers in the UK and our new dealer sales consultants have each been allocated ground to cover.
The new accessories range goes live in February. We wanted to reduce our total reliance on Orange month-to-month so we have established a new accessories range to bring in extra revenue. The products are all sourced in the Far East and will be Mainline-branded.
Hough is expected to remain within the industry and could rejoin Stuart Henry at Carphone Warehouse with whom he worked at Orange. Im keen to maintain the contacts and experience that Ive built up and to stay within the industry said Hough.
Mainline managing director Andrew Boden said that Houghs exit comes on the back of Mainlines most successful year to date.
Boden said: Chris came here with a clear insight of the industry and a unique perspective on the independent channel. He has helped me to review our current structure and has recommended and helped to implement changes that will enable us to build on the successes of recent years. Chris has helped us to create a platform from which to build.

No resurrection for BenQ Mobile

Efforts to find a buyer for BenQ Mobile have failed after the last potential buyer ended negotiations. The announcement will affect around 3500 workers although most of them have found work at Siemens.

BenQ Mobile went bankrupt towards the end of last year after new owner BenQ decided it would cease funding the company because of the failure to compete on a level playing field with Nokia and Motorola. Siemens had sold its mobile phone manufacturing business to BenQ in June 2005 due to disappointing sales.

BenQ Mobile insolvency administrator Martin Prager said in an e-mailed statement: I now see no realistic chance to sell the company in one piece and enable a new start. We have to acknowledge that the market has decided against BenQ Mobile.

Prager had held talks since October 2006 with more than 100 potential buyers and entered into negotiations with 30 and according to Prager Sentex Sensing Technologies and SF Capital had failed to deliver acceptable offers.