The Link set to lose Vodafone contract sales

A Vodafone spokeswoman said: As part of the continual evaluation of its distribution strategy Vodafone UK confirms a change in its supplier arrangements with The Link from September 1. The Link will continue to sell Pay As You Talk on the Vodafone network. Contract tariff sales through The Link however will be discontinued from the same date.

The move is attributed to the companys ongoing channel approach to review key indirect relationships increase revenue potential and improve the customer experience.

The spokeswoman added: One element of this approach is our investment into the direct channel. We will redesign a third of the Vodafone retail estate further enhancing customer experience.

Vodafone said the move would not result in a reduction of overall trading volumes.

The spokeswoman added: Vodafones broad-based relationship with The Link and DSG International is otherwise unaffected.

Ex-Caudwell staff stay in the industry

Mark Geraghty managing director of Acton-based dealer/distributor Olive Communications said 12 former 4U Business employees have signed up as new dealers in the past few weeks.

I expect to see more Caudwell people setting up dealerships he said.

There are a lot of people there with a good customer base from their time there. Three or four customers is enough to start off with. Were giving good credit limits too so you dont have to have much to set yourself up.

Avenir managing director Tanny Price said: Weve had a lot of applications for new accounts and also a lot of Avenir dealers have taken on ex-4U b2b people to start up internal sales teams. One good quality dealer has just set a new team of six all of them formerly of 4U.

Hugh Symons business manager Bob Sweetlove added: There has been a steady flow of applications from former 4U Business employees setting up as b2b dealers.

Caudwell: Singlepoint sale was biggest event

Vodafone acquired the Caudwell owned service provider for GBP405 million in 2003.

Talking to Mobile News about his time in the industry Caudwell said the sale was a landmark in his career as it guaranteed the prosperity of the rest of the group.

Selling Singlepoint was a big day. It ensured the financial success of the business in the long term he said.

Caudwell added that his greatest achievement while heading up the group was forming a top-flight management team.

Building a management team and workforce that is so professional and do a great job is my biggest achievement he said.

His advice to others in the business was to keep their nose to the grindstone. For a business to succeed requires determination passion hard work resilience and leadership. Anyone who applies these will make it successful he said noting that this advice will not be new to other businessmen and women in the mobile phone channel who are already aware of the fierce competition in the industry. Everyone in the industry knows that they have to be good to prosper he said.

Caudwell sale – distributors face uncertainty

Hugh Symons Communications business manager Bob Sweetlove said: My response to the Caudwell sale perhaps raises more questions than it answers. Will the venture capitalists get a return on their investment? Is the potential growth more in handsets and accessories or in network airtime? How will this then change how 4U Business takes airtime to market in the UK?

As Fone Logistics head of marketing Julien Parven notes: Weve known this sale was in the pipeline for some time so it hasnt come as a surprise. It was just a case of when it was sold and who to. But now we know its hard to predict what changes will follow the sale.

Sweetlove queried whether the traditional approach of 4U Business was still attractive. Traditionally it has been a high-volume/low margin company which used the volume to feed network aggression for numbers and negotiate improved commercials he said. But do the networks still want the sort of low-value customers it provided?

Parven added: Essentially profit will be at the main driver for the two venture capital groups. The biggest change I can foresee will be that each business division will be operated as a unique independent company. In the past one part of the business could shore up the other if it was in need of a bit of extra cash. That wont happen any more.

Sweetlove noted that the breakdown of the Caudwell sale suggested that much of the groups value is based on 20:20 and Dextra rather than 4U Business. However both buyers claim to remain focused on business as usual following the news.

Sweetlove added: I think 4U will continue to be a competitor we need to be very aware of but we have a different way of doing business and will continue to focus on our strengths to grow and develop.

Caudwell sale – Group directors predict growth spurt post acquisition

Both directors who are MD of 20:20 and Phones 4U respectively are adamant that the senior management structure will not change and that the sale of the company has ushered in a new phase of investment and growth.

Its a defining moment for the company and well be looking for more growth said Ryan as the group was bought out by private investors Doughty Hanson & Co and Providence Equity Partners.

Doughty is set to take over the running of 20:20 Logistics Distribution Group renamed 20:20 Mobile Group. Providence will acquire the Phones 4U chain.

There is an expansion on the way added Ryan. Were always looking to expand the team. Our new owners are pleased with the quality of the business. The distribution business brought in revenues of GBP1.5 billion and it is likely to grow aggressively. Expansion is planned on a global stage.

Ryan insisted that the change in ownership of the company has been sanctioned by 20:20s suppliers.

Weve kept all our suppliers in the loop so there have been no surprises he said. Everyone is pleased with the vision of the business weve shown them.

Whiting said he was relieved that the sale was finally completed.

Im delighted we got there. Its been a long process that reflects the level of interest in the company he said.

He countered any comments that the sale had been unexpectedly quick with pundits predicting major shareholder John Caudwell would have difficulty getting the price he was after for the company.

Weve been up for sale for nearly a year. It doesnt feel like a quick process from inside said Whiting.

We are looking forward to working with Providence which has an excellent reputation in the telecoms industry.

He added: It has fully bought into our plans for the future. The change in shareholders wont be accompanied by a significant change in the business. Senior management will be staying.

New SatNav from TomTom

SatNav supplier TomTom has released a new version of its Navigator software that integrates Mobile and PDA functionality.

Users of TomTom Navigator 6 can also use TomTom Home to move and manage content and services between a desktop PC and their hand-held device.

New features include the ability to navigate straight to contacts in an address book arrival time planning speeding alerts and the latest database of speed cameras. It also includes visual instructions using road sign graphics and a special pedestrian view function to allow easier navigation on foot.

The software comes in both a regional version and a western Europe version offering door-to-door cross-border navigation. And if you cant wait to reach your destination before you speak to your friends it comes with TomTom Buddies – the products instant messaging service.

Genuine Solutions appoints marketing manager

Surrey-based accessories distributor Genuine Solutions has appointed Danny Lack formerly of Intec as its new head of marketing and growth strategies.

Lack will oversee the relocation of the business into a larger premises at the start of March.

Genuine Solutions sales director Chris McBride said: Genuine Solutions is at a point where we are now able to show people that we mean business and are here for the long haul. With this in mind we have taken on a marketing manager to help us build on our brand and the values behind it.

He added: We have enjoyed a good first year of business and have outgrown our current premises. As we have grown our stock levels have increased as has our sales team and we are starting to get a little crowded here. The new site will give us the room we need not just in terms of our existing infrastructure but also the necessary space for future expansion.

Genuine Solutions launched in February last year.

Genuine Solutions managing director Bav Majithia said: The business is people focussed. The staff work very closely and genuinely enjoy what they do and I think that this comes across when dealing with our customers.

O2 franchise s first birthday

O2 now has 25 franchise stores in total.
O2 sales director Mark Stansfeld said: We are really pleased with progress to date and we will continue with the programme as planned. O2 sees this as a real opportunity for independents to work closely with their chosen operator and get true alignment. We are continuing to look for people wanting to progress with the programme.
Dan Fountain owner of the Rotherham franchise said: It works well because O2 is a good brand in the marketplace. As a franchise we cut out the middle-man and can offer better deals than third-party retailers as well.
He added: We have a real presence on the high street. If people have issues with their O2 phone they come straight to us not to the retailer that they bought it from. We try to offer the best service we can so that next time they will come straight to us.
Fountain worked at O2 for five years before setting up as a franchisee. He replied to an e-mail sent out by O2 looking for owner/
operators for the franchise stores.
He is now looking to open a
further two franchise stores.

3 launches Geek TV

3 has launched a new made-for-mobile TV channel called Geek TV.

The new channel combines clips from shows such as Miami Vice and American Dad with original mobile video content and user-generated clips.

The channel is updated weekly and is pitched to the 16-to-24-year-old demographic.

The service by video content company Player X has been available on O2 i-mode handsets since the middle of 2006.

Player X has invested heavily in the mobile video space and recently announced a deal with Universal Mobile Entertainment to make mobile versions of 1970s TV shows such as Knight Rider and Magnum P.I.

GBP54 million VAT fraudster jailed for 15 years

After an extensive six-year investigation by HM Revenue & Customs (HMRC) and two criminal trials the man behind a 54 million VAT fraud has been jailed for 15 years the longest sentence ever handed down by a British court for this type of crime.

Emmanuel Hening a trader with dual Belgian/French nationality was found guilty on three counts of missing trader (MTIC) fraud at Worcester Crown Court following his extradition from France in December 2005. He was described by Judge McCreath as the guiding hand behind the multi-million pound MTIC VAT fraud which has seen an eight-strong crime gang given sentences totalling 38.5 years.

HMRC deputy director of investigation Chris Harrison said: This was not some kind of victimless crime but organised fraud on a massive scale perpetrated by criminals all bent on making fast and easy profits at the expense of the British taxpayer. This was theft of revenue needed to fund our countrys public services. Missing trader fraud is not merely a paper fraud but often features links to other forms of criminal activity. This case is a further example of our determination and success in bringing to justice the criminals behind this type of fraud. The sentence should send out a clear message to others who may contemplate such criminal activity.

Judge McCreath said: This case involves fraud against the Revenue on a massive scale amounting in total to a Revenue loss in excess of 50 million described accurately as an orchestrated attack on the United Kingdom VAT system.

Hening was sentenced alongside two accomplices one from the West Midlands and one from Wales in December. A further two members of the gang from the West Midlands and two from Lancashire were sentenced at an earlier trial. An eighth defendant a woman from Birmingham pleaded guilty and is awaiting sentencing.

The court heard the multi-million pound fraud centred on the mobile phone industry. Investigations by HMRC began in 2000 and involved breaking the audit trail of businesses based in the UK Luxembourg and France through a company called Handycom SA operated by Hening.