Staff Reporter

Phones 4U connects on average around 70000 consumer contracts per month according to sources close to the networks. Phones 4U is understood to have agreed to deliver in the region of 35000 consumer contract connections per month to Vodafone.

During 2006 Phones 4U is thought to have delivered most – about 30-35 per cent – of its connections to 3 a much higher proportion of 3s new monthly subscriptions than delivered by The Carphone Warehouse.

Phones 4Us agreement with Vodafone would appear to put 3s numbers under threat.

3 denied that the Vodafone deal would affect it. A 3 spokesman said: 3 does not believe that the Vodafone agreement with Phones 4U will impact its business with the retailer. If there was to be an impact it would be felt equally across all the networks. But as a brand 3 has a different appeal to Vodafones.

Phones 4U and Vodafone said that targets would be met by working to increase footfall to Phones 4U outlets rather than cannibalising connections across other networks.

Vodafone director of commercial operations Ian Shepherd said that the number of Vodafone subscriptions guaranteed by the deal would not vary much from the kinds of numbers Phones 4U has connected for it in the past.

It is not going to require Phones 4U to unduly skew its business in our favour he said.

Mobile News understands that O2 is the most likely to pressurize Carphone first. It is estimated that 50 per cent of Carphones monthly connections go to O2 and that it would be most eager to twist the knife.

Both O2 and Orange made public statements last week that they viewed Vodafones decision as an opportunity. Orange went so far as to make clear that it is reviewing its rolling three-month contract with Carphone for next year.

Vodafone itself suggested that the retail landscape would change and that other networks would react to its lead.

Vodafone director of commercial operations Ian Shepherd said: All the networks have said in the last week that they are having a good think and Im not surprised.

The question that networks have to ask of indirect sales is where the value is coming from. The relationship has to deliver business that the network wouldnt get elsewhere. This relationship with Phones 4U is designed to generate value as well as sales.

One source said: The commissions paid to all the indirect channels have been as high this year as they have ever been – since the heyday five years ago. The cost to networks of acquisitions through the indirect channels is astronomical.

Carphone is on the back foot now. The networks are in the driving seat again and theyll look to cut commissions to Carphone. It is an ideal opportunity to exert a bit of pressure.

It also added an extra 20 meaning distributors can pass down to dealers as much as 80 extra per consumer connection. The revised commissions have been guaranteed until the end of the year which suggests that it is like Orange looking to issue a quarterly price book.

T-Mobile upped commissions mid-September by putting an extra 45 on each consumer connection. Having told distributors in July that it had exhausted its channel budget and would not put money back into the package until after Christmas its commissions for consumer connections are now on a par at around 330 with its spring levels.

Avenir managing director Tanny Price said: Its good news. T-Mobile was holding out and looking at different strategies. Its recent strategy obviously hasnt worked. If dealers back this then it will see good results between now and the end of the year. There are only so many times you can chop and change before dealers decide not to back you but this looks like a good move.

An Orange spokesperson said: We are always looking at ways in which we can support our Orange Specialist Partners. Now that broadband is part of our proposition we are shaping a consumer package that will only be available through selected partners later this year.

Mainline sales director Chris Hough said: All Oranges key launches will be available through the channel eventually. Orange Broadband will certainly come down to the channel. Orange knows that it will sell if there is commission behind it. Orange is looking to use the channel going forward for different product areas. Mainline is a trusted valued partner for Orange and we hope that we will get to trial any launches in the channel first.

Dextra is expected to confirm the Nokia accessories contract this week.

Nokias director of communications Mark Squires said: We parted amicably and have never stopped talking with Dextra. But there is no signed agreement with it at present.

Dextra refused to comment.

A source within the company confirmed that Essex based B2B telecoms provider Business Comms is in financial difficulty after an employee defrauded the company.

It is understood that the matter is being investigated by police.

Director Kevin Veitch said: This is an internal matter that I am not willing to comment on.

Business Comms predicted turnover for this year was 2million.

BenQ Mobiles UK division has filed for insolvency. In a letter to its network and distributor customers last week BenQ Mobile UK managing director Philip Rambech said it has exhausted all avenues and followed the German business unit into administration.

Rambech said: Unfortunately despite our best efforts there have been too many factors working against us and we have exhausted all avenues to ensure minimal impact on our joint plans for the Christmas quarter.

We have always strived to deliver a total product experience. Although we have found ways of securing deliveries directly from Taiwan and from the administrator in Germany in the meantime we regret that we have reached the stage where it is no longer possible for us to keep up the level of service needed in order to fulfil our ambitions. Therefore I am sad to inform you that BenQ Mobile UK has filed for insolvency in the Court in London.

Robert Birchall from PriceWaterhouseCooper has been appointed as the administrator. Around 30 UK jobs could be affected.

The decision came just 18 days after BenQ Mobiles German operation – consisting of the headquarters two factories and the European distribution centre – was shut down reporting losses of ?840 million ( 566 million).

BenQ Mobile is estimated to have shifted just 500000 units in the UK this year.

A total of 28 stores are planned to open before the end of next year. The new retail chain will be branded 3Stores and the expansion program will create over 200 retail jobs before the end of 2007 with the investment program estimated to be worth ?10-?15million ( 6.7- 10million) in the Irish market.

The first two 3Stores to open will be in Cork and Waterford next month and a flagship store for Dublin will open at an as yet undisclosed location shortly after.

3 has appointed a deputy CEO from its counterpart in Australia as the network prepares to switch on its mobile broadband services. Kevin Russell was previously CEO of 3 Australia where he has held the post since 2001. He will take over his new role from January 2007 and report directly to CEO Bob Fuller.
Fuller said: I am delighted to bring in such an experienced leader. Ive worked with Kevin for over ten years.
Russell has held high-level positions within Hutchison since 1995 when he took the role of group finance manager for Hutchison Telecommunications in Hong Kong. From there he moved to CFO partner communications in Israel in 1999.
Russell said: 3 (in the UK) has developed leading market positions in the mobile media sectors under Bob (Fuller) direction and I am keen to further this position in mobile broadband.

Emblaze are launching its new handset today through Currys in an attempt to
build more consumer awareness around its handsets.
The Touch 7 has a 1.3 mega pixel camera with flash Bluetooth MP3
and MPEG4 video playback and an expandable memory. It is available in pink
or black and has slider with a depth of 16mm.
Laurence Alexander CEO and President of Emblaze said: The handset is part of our
strategy to make Emblaze mobile become a brand name in its own right in the
consumer handset market.
Currys parent company DSG international has recently undergone a significant rebranding excersise losing both Dixons and The Link fascias. However the company has stated its commitment to stocking mobile phone ranges in its stores.
Working with Emblaze Mobile has enabled us to add depth and choice to the range of consumer handsets we can offer our customers said Jon Lyngra
Head of Trading and Communications at Currys and DSG international.