Staff Reporter

But he was adamant that a report that Carphone had already taken over Hugh Symons was not true.

We talk to lots of people. As soon as we announced we were interested in buying a distributor a disorderly queue formed outside our door. But there is no deal done with Hugh Symons.

Hugh Symons declined to comment.

Dangaard COO Michael Køehn said that the Danish distributor wants to set up in the UK and is waiting for the right opportunity. Køehn is impressed by Caudwells mobile phone businesses especially 20:20 and accessories arm Dextra. He admitted that they could be an excellent entry into the UK market for Dangaard because they are well established and well run.

Said Køehn: We have always been looking to establish ourselves in the UK market… If we were to consider any part of it [The Caudwell Group] it would be the distribution side – 20:20 and Dextra – and not the after-sales repair or retail business. As far as I know Johns business it is very well run and well connected. And the UK in general contains very professional retailers and operators which know the business well so there is nothing better for a distributor like ourselves. There is not a lot of work that would have to be done.

Caudwell confirmed to staff last week that he has appointed Rothschild Investment Bankers as advisors to Phones 4U and the Caudwell Group. He insisted that it was consistent with the actions of a company of its size and that it would be tasked with exploring the strategic options open to it.

The statement said: Speculation in the press about the sale of Phones 4u and the Caudwell Group has been sparked by the groups appointment of Rothschild Investment Bankers as advisors. We can confirm that we have appointed Rothschild to advise on strategic options for the development of the group. These strategic options have yet to be explored.

The Caudwell Group continuously reviews group/business strategy to ensure that shareholder value is maintained and the appointment of Rothschild is not out of line with activity expected of a group our size. Every mobile phone business in the Group is performing exceptionally well with significant growth over 2004/5 and very exciting prospects for 2006 both in the home market and geographic expansions.

In the event of a sale the consensus of the industry is that Caudwells companies would almost definitely have to be sold off as individual units because. At an estimated 800 million – the value that its chief is understood to estimate for the group – few could afford it.

(See feature page 20).

A Vodafone statement signed off by Tim Stone said:

We have a normal trading and continuing good working relationship with Data Select. We have no plans to recoup any money from Data Select. Contrary to rumour we have not ceased supply of pre-pay handsets to Data Select either.

Box-breaking is a challenge for all of the network operators.

We have a regular programme to monitor this issue across all our channels and if such activity is occurring take immediate steps to prevent it.  

Data Select founder and chairman Peter Jones said:

Some distribution channels were doing box-breaking and some were clients we supplied to. Vodafone reviewed the position over the past three months.

The situation has been exaggerated by one small distributor anxious to gain a slice of the Vodafone online business we supply.

There has been a bit of mischief-making going on with this smaller rival. There is little likelihood of us losing this business. It is business as normal and we will be supplying between 20000 and 30000 units this month.

Am I bothered about this smaller rival? Not really.

Were just concentrating on building the business and doing even better.

Orange has set aside well in excess of 100000 and has included upgrade commissions for the first time to reward independent dealers for connecting small business customers to Orange contracts with Nokia handsets.

The incentive scheme which runs from September 3 until October 15 will see dealers receive 5 for every Orange small business connection plus an extra 5 if the customer chooses a Nokia handset. Dealers will get 7.50 for every small business customer that upgrades with a Nokia handset.

Orange head of independent sales Chris Hough said:

There is a big struggle in the market place to try to identify small business customers. We are trying to encourage staff to flush out small business customers and connect them to a business tariff.

Business customers generate higher ARPU and we are trying to build a clearer and better database of customers. At the moment that data is a bit skewed. Most painters decorators and plumbers sign up as consumers.

The deal also extends Oranges focus on upgrade customers in an attempt to prevent churn.

It is a big six-figure number said Hough. Its well in excess of 100000. It is the highest budget we have ever set aside for a dealer and distributor promotion and the reason for that is the money that we are putting towards upgrades. There has always been 5 on new connection but there is an extra fiver in it now for connections with a Nokia handset and 7.50 for upgrades.

Hough said Orange was trying to bridge the gap that existed between new and current customers.

In every industry new subscribers get the best deal. But we need to reduce churn. This is a way of bridging the gap.

Hough said that there would be around 25 weekly gift prizes available and four big prizes for the best performing dealers comprising exotic sporting holidays such as jet-skiing in Barbados.

Starting on September 1 Orange is also replacing its Double Talk Double Text promotion with free weekend calls. It will offer a 10 per cent reduction in line rental to loyal customers as well so that customers who want to upgrade can choose either the reduced line rental or the free weekend calls as a reward for their loyalty.

Hough said that recent problems with dealer commission payments relating to its loyalty scheme would be sorted out by the end of August.

Weve got a whole team working on it at the moment. We have done a vast amount of loyalty connections so far. There is a backlog but a fix is in place with the accounting system.

He promised: It will be sorted by the end of August so that we can start afresh in September.

Mokogwu was arrested on July 5 after O2 management discovered discrepancies during stock-taking.

She has been bailed until Monday August 30 for probation reports and was warned that she could face a custodial sentence.

The Crewe-based accessories company part of the Caudwell Group will supply megapixel camera handsets from Nokia Sony Ericsson Motorola and Samsung on Vodafone Orange O2 T-Mobile and 3.

Mark Ormerod group managing director for Dextra and Phones 4U said:

Weve worked closely with the team at Jessops to deliver a solution that best suits its needs from advising on the latest in megapixel technology through to execution in-store.

It is all aimed at maximising sales while at the same time maintaining Jessops high standard of customer experience.

Dextra will initially distribute to 40 Jessops stores rising to all 270 UK stores later in the year. It is the first time Jessops will have offered contract handsets.

Jessops camera phone product group manager Ravi Chambers commented:

With the increasing convergence between digital cameras and camera phones and improvements in camera phone technology delivering higher quality pictures this is an ideal time for Jessops to enter the pay monthly market.

Camera phones are set to represent an ever increasing area in the digital imaging marketplace.`

The deal follows Dextras successful scoop of an accessories contract with Orange parent Fance Telecom worth more than 30 million.

The Ora management has a reputation for being controlling and it wouldnt have suited Bob said an industry source. Also the fact that Ora has lost its O2 and Orange accounts to Dextra would have made it difficult to take the company forward. I dont see it recovering. There are redundancies on the cards.

Johnson refused to be drawn on the reasons for his departure.

It was amicable but it was better to part from the company for personal reasons he said.

Johnson added: Ora has attempted to address the activities of some of the established dealer accessories players without much headway so far. This is a highly price-sensitive and resource-intense arena and Ora will need to determine its own path if it is to be successful.

We did try to launch into new areas including SatNav and Bluetooth and experienced some early successes but the big boys continually drive down margins and progress was difficult. With my experience of emerging technologies such as VoIP I thought it better to concentrate my efforts elsewhere.

A spokesperson for Ora said: Bob left for personal reasons. The strategy he put in place will still be implemented. We are growing our dealer sales team and looking to recruit.

Johnson joined Ora in March. Business director Mark Slater will take on his role for now.

One Orange dealer said:

The situation is driving me crazy. Oranges commission used to be divided into low medium and high depending on the tariff. The loyalty system adds different factors into the equation which Oranges accountancy systems cant seem to manage. They say they are sorting it out but its causing me headache. Ive put on a lot of connections. On all of them I have been paid less than I should.

Mobile News columnist and dealer Jez Harris added: Oranges accountancy systems are all over the place. I upgraded a Talk 30 customer to Your Plan 120 on an 18-month contract and only got commission for a 12-month Talk 30 price plan.

A source at Orange distributor Avenir Telecom confirmed there had been a number of complaints.

There are problems – they have been going on for quite a while and it has been a source of concern to dealers. But Orange assures us that it is taking steps to sort this out.

An Orange spokesman said:

There were a few initial issues with paying loyalty commissions but things have now been rectified. Dealers will be reimbursed for any missing money. Any dealers who have any outstanding problems and have been paid incorrectly should contact their account manager.

Mobile News has assembled a team of the UKs foremost lawyers and consultants in revenue law and practice as key speakers at the conference.

They are ex-Customs and Excise investigator-turned solicitor Hassan Khan ex-Customs senior investigation officer Don Mavin barrister Anthony Barnfather former Customs solicitor Andrew Young and solicitor Alias Dass. Dass is known for having led the legal battle against Customs & Excise that led to joint and several liability being referred to the European Court of Justice.

As well as the key speakers there will also be panel discussions featuring traders who have been affected by the implications of the Finance Bill.

The timing of this conference could not be better said Don Mavin. A substantial number of businesses are beginning to trade in the grey market both old and new while Customs is doing its best to enforce the limited sanctions it has and generally to disrupt what it considers to be a dubious market.

This conference will enable delegates to hear the views of a range of professional advisers and I am looking forward to adding my own experiences in dealing with Customs to the topics on offer.

Mobile News editor Ian White added:

Since the Finance Bill traders have had deal with a fierce VAT regime. We felt Mobile News should help the channel and we are thrilled to have attracted such a fantastic calibre of speakers.

See the brochure attached to this issue call 0207 324 3500 or e-mail conference@mobilenewscwp.co.uk.

Weve been dealing with Vodafone as a direct dealer for some time now but actually becoming one of its official distributors is fantastic for us said Robinson.

During the trial we introduced a lot of new dealers to Vodafone he said. This was incremental business as these dealers had not been previously offering Vodafone. As a result we have been appointed a full distributor as of Monday to go out and sell Vodafone. The deal makes us an even bigger force against rival distributors. We are very strong and have even more plans for expansion in the pipeline.

Vodafone is helping MoCo get started by letting the company exclusively sell the Nokia 6680 on an 18-month contract with 500 anytime minutes 100 texts and 50 video minutes included in the bundle for 40 a month. Half-price line rental applies for the first six months.

That is a very competitive offering and should win us and Vodafone lots of new business said Robinson.

Robinson is now recruiting for extra staff to handle the increased business the contract will bring.

Im looking for two or three account managers around the country as well as additional warehouse and telesales staff he said.

The deal has also sparked internal promotion. MoCo marketing manager Harvey Alexander has been made communications and operations director responsible for handling all communications to dealers and customers.

MoCo had traditionally been an exclusive O2 distributor from its days as a BT reseller. It added T-Mobile last year and Orange in May.

Meanwhile in a separate move Vodafone has extended its 3G Data Card offering by launching a new pre-pay version.

The Vodafone Mobile Connect Prepay 3G data card is priced at 199 and is available from retailers including PC World Maplin Comet Argos and Amazon.

It is also available through channel partners Ingram Micro and Computer 2000. Resellers interested in selling the card should contact them.

The card comes with a free 10MB of data transfer. Further top-ups can be purchased from the handset in Vodafone UK retail stores and online.

Usage will be charged at 3.07 per megabyte in the UK and 9.085 internationally.

To coincide with the launch Vodafone has introduced a new Unlimited price plan at 45 per month for existing contract 3G data card customers. New subscribers to the tariff will get the data card free. Downloads are subject to a fair use policy.

This tariff replaces the 450 and 1000 MB bundles. Existing customers will automatically be moved to the new price plan saving 1000MB customers 30 per month and providing 450MB customers greater usage at no extra cost.