Staff Reporter

Couzens was responsible for all areas of LGs marketing including mobiles. Bernards newly created role will allow him to concentrate specifically on driving LGs UK mobile phone business forward.

Bernards remit means he will report to Chan Park managing director of LG Mobile.

His job will be to plan brand and introduce promotional initiatives to support a range of handsets due to be launched here in the autumn and early 2005.

He also claims Phones 4U let him down because it didnt take his complaint seriously and didnt contact the police to follow up his case.

The incident started when Magnus received a letter from former Caudwell Group service provider

Singlepoint on August 26. (Cont P2) The letter congratulated him on moving from his 25 a month tariff to a 50 a month tariff.

However Magnus claims he did no such thing and contacted both Singlepoint and Phones 4U.

After visiting his local Phones 4U store in Reading he was told by the store manager that an account in his name had been set up by a Phones 4U employee at the London High Holborn branch on August 22.

According to Magnus High Holborn manager Andy Lee said the employee who committed the alleged fraud had left.

A few weeks later Magnus received a bill from Phones 4U for the fake account although he thought the account had been cancelled and was being investigated.

He contacted Phones 4U fraud manager Paul Bailey who assured him the retailer would be assisting police.

Phones 4U risk investigator Dawn Ramsay later told Magnus the company doubted that the former employee had committed any crime.

She suggested that any fraud could have been carried out by a customer.

It didnt feel like they took my complaint seriously at all. I definitely wont be shopping there again said Magnus. Phones4U said it was going to pursue the matter and contact the police yet the Metropolitan police told me that they hadnt heard from the store.

A spokesman for Phones 4U said:

We deeply regret that Mr Magnus feels he has suffered distress as a result of this incident.

After thoroughly investigating this incident Phones 4Us risk team found no evidence to suggest that the member of staff concerned had ever acted in a fraudulent manner prior to this occasion.

The member of staff concerned left the company immediately after the incident was discovered. Phones 4U followed established procedures throughout the investigation which include liaising with the police from the earliest opportunity.

Two of the men will be sentenced on October 28. At least 250 second-hand phones and seven computers were seized by police in an operation codenamed Nemesis.

The manager and employee of the Tooting phone store Asif Mohammed 27 and Mohammed Sedek 21 were charged with conspiracy to reprogram mobile phones.

Mohammed was additionally charged with conspiracy to handle stolen goods while Sedek was charged with reprogramming mobile phones and possessing equipment for the purpose of reprogramming mobile phones.

Mohammeds brother Wajid 25 who worked in the Wandsworth store has been charged with conspiracy to reprogram mobile phones and conspiracy to handle stolen goods.

The two Mohammed brothers appeared in court last week and were bailed to return to court on October 28. Sedek has been remanded in custody. A fourth London man is also wanted in connection with the offences.

The raids were carried out as part of the third phase of the Metropolitan Polices Safer Streets campaign.

Operation Nemesis began in September 2003 and saw officers visit two mobile phone shops in the Wandsworth area.

The Mobile Telephones (Re-programming Act) 2002 came into force a year ago. It became illegal to re-programme mobiles without the manufacturers permission. It also legislates against possession or supply of equipment to carry out such reprogramming.

The act allows police to crack down on individuals who fuel the trade in stolen mobile phones.

The operation was led by detective inspector Dave Manning from Wandsworth CID. He said:

The people involved in the illegal business of reprogramming stolen mobile phones serve only to increase the misery generated by street robbery. The arrests today should send out a clear message to anyone involved in this kind of activity in Wandsworth – you will be caught and you will be brought to justice. Robbery will not be tolerated in this borough.

Commander John Yates who is in overall charge of the Safer Streets operation said:

This operation has successfully targeted those criminals who continue to fuel the trade in stolen mobiles. We have warned people before and this should act as a clear message – anyone in the business of re-programming mobile phones can expect a prison sentence of up to five years.

The change was announced at last weeks OBS conference in Birmingham to 30 OBS members. Dealers have three months to meet the new targets or face expulsion from the programme.

The new connections target replaces the previous figure of 100 connections to Talk 120. The drop of 25 monthly connections is intended to make the programme more business-focused.

Dealers will also have to keep churn below the channel average. Orange will check figures after 12 and 18 months. A quarterly development plan will be set by an Orange business manager and the dealer will have to attend a quarterly training course.

Orange will continue to pay its value growth bonus on customers connected two years ago.

The OBS scheme was set up two years ago with 14 retailers. It now has 30 members and will continue to grow until it has business specialists to cover the country. (Cont P2)

Unique Distribution is believed to be the first UK distributor to pay 8000 a year to join a new Internet database called Secure Trader Network (STN).

Designed to protect traders from missing trader fraud STN launched at the beginning of the month and is targeted at traders who trade at least 20000 handsets a month.

Most of the 8000 annual membership fee is paid to VAT and tax specialist firm Barnard Atkins which checks audits and vets each STN member four times per year.

Once an STN member is approved they can use STNs online software to trade handsets. Stock is scanned and IMEI numbers logged.

Freight forwarder Hersh Patel who helped set up the system said:

The checks we make are far in advance of what Customs and Excise require. This is the only system that will help you check beyond your immediate supplier.

The Primus 650 an entry level mono-screen handset will be available across all four GSM networks and Virgin Mobile. The handset is sold SIM-free and unlocked at 89.99 and comes in a range of colours.

Primus expects to have another two handsets in the market before Christmas one of which may have a colour screen.

Initial emphasis is on the low-end talk and text segment of the market according to general manager Lisa Hazelden.

Its challenging entering a market with so many established players but we are confident that we have a strong product portfolio (Cont P2) she added. There is a gap for a robust value for money SIM-free handset. A large group of people just want to talk and text.

However Hazelden stressed the Primus brand would not be cheap and nasty.

It will be value for money but also very stylish and ideal for the fashion-conscious. There is a large market out there for upgrade and second handsets.

We are also focusing on the way the handsets are being presented. As the phones are sold unlocked and SIM-free customers can choose the network and payment method that best suits them.

A letter sent out earlier this month by Vodafone business partner senior manager Jason Rigby tells the unnamed SPs their licences will not be renewed unless they increase their business and meet agreed connection targets.

Vodafone service provider contracts are due for renewal at the end of the year.

Vodafone will use the opportunity to consolidate its base of 32 service providers.

In his letter Rigby said:

Following a review of your account Vodafone considers that you are failing to comply with the terms of the business plan in that you are failing to meet the connection volumes to which you committed and as a result you are also failing to meet revenue targets…

Vodafone requires you remedy the situation without delay … If you have not remedied the position and are not back on line with your business plan by 31 December … Vodafone will exercise its right under clause 5.2.1 of your service provider agreement (Cont P2) not to enter into a further SP agreement with you following expiry of the current agreement on 31 December 2003.

Vodafone is considering changes to its service provider agreement to ensure SPs toe the Vodafone line with regards to virtual service providers (VSP) and GSM gateways.

Vodafone says service providers with VSPs on their customer base are in breach of their licences.

Vodafone also wants to remove all illegal public GSM gateway traffic from its network to comply with the decision of the Radiocommunications agency to ban commercial use of fixed GSM gateway equipment.

A redrafted SP agreement could give the network greater power to terminate SPs who allow GSM gateway and VSPs connections.

All three retailers which collectively own around 68 stores declined to comment. But it is believed that 3 has made them an offer which they must respond to by the end of the month.

3 sales director John Barton had worked with all three retailers when he managed them in his former role as One 2 One sales and distribution director.

Fonehouse managing director Clive Bailey would not confirm or deny the story.

We have a good working relationship with T-Mobile and we plan to open further stores later this year Bailey told Mobile News.

Ace Contact managing director Azlam Athos declined to comment. Chitter Chatter directors Leonard Leeson and Richard Wortley were unavailable for comment.

The acquisition of T-Mobiles top three solus dealers would increase the networks high-street presence undermining T-Mobile.

A T-Mobile spokesperson said the network was not aware of any discussions between its dealers and another network.

This is hardly surprising as the deal is said to be subject to non-disclosure agreements.

Naveed Saleem a 32-year-old mobile phone trader was found dead in his Range Rover in Moseley Birmingham just before 8am on Tuesday August 26.

He had been visiting his fiancee. Police believe Saleems killers struck at 1am that morning after he left her flat.DI Nigel Rock of the West Midlands police said local residents heard screams for help at that time.

We believe the attack started as he approached his car said Rock.

It was not robbery or random because they didnt take his car or his expensive jewellery.

According to the police Saleem had been stabbed repeatedly.

West Midlands police are appealing for information about the driver of a blue saloon car which was seen around the area where Saleem was found.

DI Rock says police believe the car may have followed Saleem from Walsall earlier in the evening.

The incident room hotline number is 0121 626 1326

From the start of the month Vodafone has been offering fully fitted Bury car kits to dealers for 79.99 before VAT.

The move into car kits is a shrewd one as many new handsets including the Nokia 6310i are not compatible with older car-kit cradles.

Accessory manufacturer Pama claims it has seen an enormous increase in the demand for car-kit accessories over the past couple of weeks. (Cont P2)

Pama development managerHarry Heaney commented: We have seen a huge growth in the demand for car-kit accessories over the past couple of months. This has been for both our Plug N Go devices and for our headsets.

With the Government debating what sort of legislation it wants to impose people want to make sure they have the right kit in stock.

Pama has also released its latest kit – Plug N Go 4 Bluetooth. The unit which can be fitted on to either the car windscreen or the dashboard works on voice with a Bluetooth-enabled phone.

The man (33) and woman (32) were arrested for money-laundering offences contrary to the Criminal Justice Act 1988. They were interviewed in Braintree Essex before being released on bail without charge pending further investigation.

A team of over 20 customs officers searched premises in Essex Sheffield Nottingham and Leeds as part of the operation.

Customs has been cracking down on missing trader or carousel fraud which it claims costs the British taxpayer 2.5 billion a year. In April this year the Chancellor introduced new legislation to target businesses that turn a blind eye to or assist missing traders. (see Comment P16)