Staff Reporter

Virgin Mobiles Lobster handset is the first fruit of the virtual manufacturing operation.

The Lobster 485 is the smallest flip handset available in Europe according to Virgin Mobile. It features a 262k colour screen and an integrated VGA camera. It will retail for 89.99.

The phone is made by Bellwave which has manufactured or developed devices for a number of other brands such as LG and Bird.

Bellwave has a turnover of $450 million ( 247 million).

The Lobster sub-brand is aimed at 16- to 30-year-olds. Data Select will manage the product sourcing packaging logistics distribution and fulfilment of the entire Lobster range for Virgin Mobile.

Unique was originally scheduled to handle the operation before it went bust.

We are buying all the Lobster range in from Data Select who sourced it said Virgin Mobile product controller Jim Powell.

According to Powell Data Select is looking to represent UK networks and retailers as a go-between with different manufacturers on different continents and in different time zones.

It takes care of all the servicing and logistics involved and our impression is that it appears to have been doing it for years.

We are in discussion with around 30 different brands that arent so familiar in the UK yet. Our expectation is to introduce very attractive products when the end-user is ready for them.

It is a great opportunity for these manufacturers to bring their products to market under the Lobster brand instead of their own.

Powell claimed there are always a dozen or so phones released each year that the industry gets really excited about.

Most products by unknown manufacturers are looked on with great scepticism. But everyone who has seen this device so far has responded well and our sales forecast has gone up as a result he said.

Peter Jones chairman and CEO of Phones International Group said: Data Select is well positioned to support Virgin Mobiles focus on customer service and delivery of innovative products and a variety of services.

Graeme Hutchinson sales and marketing director at Virgin Mobile added:

The Lobster 485 marks the beginning of a new portfolio of phones for our customers.

The products emerging under the Lobster brand will all complement the excellent products coming from the established mobile phone brands

Lobster phones will feature a Virgin Mobile-branded red shortcut key to the virtual networks entertainment portal BITES.

Virgin Mobile expects to bring two new Lobster phones to market before Christmas.

It will also launch a series of promotions merchandising and advertising campaigns around the Lobster brand from July.

Group Telecom refurbished Nokia phones installed car kits and dealt SIM-free handsets airtime contracts and accessories.

Manchester accountancy firm CLB which is handling the liquidation refused to discuss details of the case but a CLB spokesman said:

The directors have approached us to place the company into liquidation. We are collating all the information now.

A formal statement from CLB partner Diane Hill said:

The directors of Group

Telecom Limited have consulted this firm in connection with the companys present financial situation. After due consideration the directors have formed the opinion that the company is insolvent and have decided to commence liquidation proceedings.

I have been nominated as liquidator of the company and I am currently in the process of assisting in the preparation of a statement of affairs and report for presentation to creditors.

A copy of this report will be sent to all creditors following the creditors meeting.

The crusher was called in after complaints from drivers that the equipment melted when plugged into the dashboard.

The imitation products were seized in a joint raid with Nokia from a wholesaler in north London. They were crushed by Trading Standards officers last week in an attempt to raise awareness of fake items for sale on the high street and the risks of purchasing them.

Trading Standards chief executive Ron Gainsford said:

Counterfeiting is a problem that affects everyone in the community. In the case of the hands-free mobile phone kits seized in Camden it is easy to imagine that a kit melting on a busy road like a motorway could distract a motorist to such an extent that it could lead to tragedy.

A Trading Standards spokesperson added: The Camden office received complaints that consumers had plugged the kits into the car and they had begun to melt. Potentially they could have set fire to the car or the user could have received serious burns.

Trading Standards also chose to crush the fake mobile car-kits to highlight National Consumer Week which urges the public to get real and say no to fakes frauds and scams.

Trading Standards lead officer for counterfeiting Bryan Lewin commented:

Corners are cut in producing copy products which means they will not only be substandard but may also be unsafe or even in some cases dangerous. The general rule of thumb when buying anything is that if it looks too good to be true – it almost certainly is.

Ruth Orchard director-general of industry lobby body The Anti-Counterfeiting Group added: We urge consumers to boycott counterfeits – its the only way to foil the global network of criminals that controls this hugely profitable trade in fakes.

Ofcom is investigating complaints by Vodafone about O2s TV ads which claim O2 gives the best ever mobile network performance.

Vodafone originally complained to the Broadcasting Advertising Clearance Centre (BACC) which approves ads for transmission.

An O2 spokesman said:

Vodafone went to the BACC and raised some issues that it had about our ads. We had already bought the advertising space and the ads have now run their course.

The claim in the ads is entirely accurate. The last published Oftel finding from December 2003 found that we had the highest score ever by a network operator said the spokesman.

In another advertising showdown O2 is due in the High Court following an injunction against 3 for alleged copyright infringement and inaccurate claims about O2s pre-pay tariffs mentioned by 3 in its advertising.

O2 issued a writ against 3 and a High Court hearing is scheduled for next Friday. O2 alleges 3 infringed 17 O2 trademarks and made unfair comparisons with its tariffs.

In a statement 3 said: Our comparative ads are a bit of fun as we are the new guys in the market. O2 is claiming trademark infringement over the bubbles. O2 is upset because weve got some of its bubbles. But the only thing weve got of O2s is its customers.

This is part of the cut and thrust of the industry. Obviously its rattled by the pace weve set and wants to slow us down.

A spokesman for O2 replied:

We filed complaints with the Advertising Standards Authority against 3s ads which compare its prices with ours.

Eight of the nine complaints were upheld. Separately we filed a claim to stop it using bubbles in its TV ads.

We believe this is clear trademark infringement and passing off. Oxygen bubbles are a standard look and theme in our marketing. 3 is not entitled to use them in a way that evokes O2 without our permission.

3 is simulating our ad or a

T-Mobile ad and making claims about how expensive it is compared with ThreePay.

We think the information is highly misleading and confusing because it is comparing apples with oranges.

Ironically it wasnt that long ago when O2 itself was accused of passing off in its advertising.

Last June the network was forced to end its 4 million cross-network advertising campaign after Sony complained that four symbols used in the O2 campaign were too close to the registered trademarked symbols that Sony uses for its PlayStation games console.

That row was eventually settled out of court.

Ghillebaert replaces outgoing executive vice-president John Allwood who is moving to the Telegraph Group as executive director after four years at Orange.

Sanjiv Ahuja CEO of the Orange Group (see above) said Ghillebaert would be a more than capable replacement.

Under his leadership Mobistar has become one of the leading telecom businesses in Belgium with a strong presence in both the business and consumer markets he said.

Allwood 53 had high-level posts at News International Sky Television and Trinity Mirror Group before joining Orange. His first taste of telecoms followed 11 years at News International where he became finance director of all Rupert Murdochs Wapping-based newspapers before moving to Sky.

Between 1991 and 1992 he was finance director of Microtel – then a mobile telecoms start-up but now part of Orange.

MonsterMob provides content including ringtones Java games wallpapers videos and competition products to Vodafones live! web portal. The company supplies content to a total of 25 carriers across the world including Vodafone China Mobile and Verizon.

Neal who left Phones 4U nine months ago starts his new role at the end of this month. He will be responsible for the manufacturers channel and content marketing teams including the Samsung Fun Club brand.

At Phones 4U Neal had a wide range of responsibilities including marketing strategy and planning branding advertising and retail merchandising.

Before joining Phones 4U he worked at electrical and computing retailer Tempo Superstores and has also held marketing positions in music video and gaming at WH Smiths and Dixons Group.

We looked long and hard to find the right candidate and immediately realised Julians experience and outstanding achievements in the retail sector said Mark Mitchinson director of Samsung Mobile UK.

Said Neal: Its an exciting time to join Samsung. I look forward to being part of a successful team and building on the companys achievements to date.

Orange has backtracked over remarks by chief executive Sanjiv Ahuja that suggested the networks 3G launch would be delayed because of overheating handsets.

Ahuja told the European Technology Roundtable Exhibition in Cannes:

If you want to generate heat you do not have to use cooking appliances. I say use your mobile 3G phone for that. You can fry eggs on them.

His remarks were immediately picked up by the BBC and broadcast to millions of Radio 2 listeners.

An Orange spokesperson said Ahujas comments were taken out of context claiming:

We are still on track to launch this year. What Sanjiv Ahuja said was that there are still issues with 3G phones which everyone is already aware of.

We are currently trying to get the customer experience right so that we run with good products. He was asked why Vodafone is launching 3G with 10 handsets when Orange is only launching with two and he responded by saying that we are going to launch this year with two good handsets that are robust and offer a good customer experience. He was making it clear that there are performance issues with competitor handsets and that we are not taking those handsets.

John Bernard LG Electronics marketing manager for mobile suggested that Orange was ready to move on its own 3G handsets this month.

The launch of Orange 3G is imminent. The phones are in. We have delivered all the handsets to Orange already. I dont know what he means by overheating – certainly our handsets dont get too hot.

A spokesman for rival network 3 suggested that Ahujas statements showed that Orange was looking to backtrack on its earlier promises about 3G.

3G handsets dont get hot he said. They do get hot in early development models. But we have over a million 3G customers. You would have thought wed have had complaints if there was any sign that they were overheating.

The thing is that Orange is obviously not ready for launch. We already know how much time it takes and how difficult it is to optimise the network. It has a huge challenge in the market anyway. How does it present these services to its customers? Does it move to our price model and cannibalise its existing customer base and revenues? That holds no advantage. But at the same time Orange wont be able to compete unless it does that. So it faces a huge challenge.

See Comment page 14

The stores aim to avoid queues with self-service facilities such as Vodafone E-top-up units. This forms part of the Vodafone UK retail expansion programme that will see the networks retail estate increase by a further 60000 sq ft this year

The letter offers free line rental and calls from 3p/minute with cross-net calling for 13.8p/minute. It was sent to companies by T-Mobile south-west business development manager Samantha Armstrong.

Her letter on official T-Mobile paper (see right) said: I would very much like to meet with you to understand your needs … many of our clients are benefitting from some of the following rates – 3p calls to fixed lines 4.7p calls to other T-Mobile users 2.3p calling colleagues on the same account 3p SMS to other T-Mobile users.

When asked if she had sent out more than one letter Armstrong told Mobile News: Im not allowed to talk to you. You need to talk to someone else at T-Mobile.

But a T-Mobile spokeswoman then explained that the letter was not authorised and that its content was inaccurate.

She said: an investigation will be made into where this commun-ication has originated and why it was sent out adding T-Mobile apologises for any confusion made to those companies that have received the letter and we will be contacting them shortly. T-Mobile is committed to the business market and is driving sales through its direct and indirect channels.

A T-Mobile dealer in the north-west who spoke on conditions of anonymity was furious about the Armstrong letter. He said:

T-Mobiles direct sales force is causing a lot of disharmony. Weve stuck with T-Mobile since 1977 through thick and thin. Ive had enough. Were putting our connections elsewhere.

The dealer said hed been chipping away at a 50-handset account for a farmers cooperative for months.

I had proposed a very attractive package. T-Mobiles direct sales force got wind of the deal and went in. They blew me out of the water and made me look an idiot at the same time. T-Mobiles direct sales force doesnt talk to business dealers. They go in with all guns blazing.

Paul Davis of Portsmouth based Aerial Telephones said:

The fact that offers like this are being made doesnt surprise me. Deutsche Telecom is telling T-Mobile to pull its finger out as far as the UK business market is concerned. Its difficult to grab a potential customers attention by letter even if you are offering rock-bottom prices.

However he went on to say that none of our customers have told me theyve been offered a fantastic deal.

Jason Chapman senior analyst at Gartnercalled the T-Mobiles offer extremely aggressive.

Theres little or no margin in it. Im surprised that T-Mobile is putting an offer like this on the table before they even begin negotiations.

Why does T-Mobile feel it has to come in with such a low-priced offering?

(Full story on page 18)