Staff Reporter

Shafique Islam (24) of Godwin Court Crowndale Road Camden Town was remanded on bail for pre-sentence reports until next Wednesday (May 12) at Horseferry Road Magistrates Court.

He pleaded guilty to stealing a SIM card at the shop on October 10 last year another SIM card on October 25 a third SIM card on November 16 and a fourth SIM card on November 26.

Islam told the court he is now unemployed.

Managing director Dominic Bryant put the company into voluntary liquidation last Friday after realising there was not enough cash to cover overheads.

We are owed around 40000. Around 22000 of that was lost when Unique Distribution went into administration he said.

When we realised we could not get what we were owed we werent able to carry on trading as normal. As soon as we knew we didnt have enough cash to cover our overheads we decided to go into voluntary liquidation to pay off as many people as possible.

Bryant is confident creditors will get any money owed to them.

All our creditors will be looked after. They should get most of their debt because we acted so quickly. We will also be honouring any outstanding orders that were put through to Phoenix.

This week the company started trading again under a new name Cellpak Solutions.

We have streamlined the business and changed our focus. Previously we were only semi-focused on the mobile market Now we have dropped the general packaging side to just concentrate on the mobile market said Bryant.

Unfortunately Ive had to lose four members of staff but going forward I had to cut our overheads. I feel very positive about Cellpak Solutions. We have got new funding and I have invested some of my own money into the new company.

Up until this point Phoenix had been going well. But you cannot predict or prepare for unreturned debts of that amount.

We have been open and honest with our existing customers and many have said that they will continue to work with us through the new company.

Founded in 1990 by Paul Townley Townley Communications became a leading service provider for both Vodafone and O2.

It has a subscriber base of around 23000 customers mainly connected to Vodafone and primarily business accounts.

Townley claims to have the highest customer retention rate in the industry.

Vodafone is believed to have made an attempt to buy Townley Communications before but the deal was never concluded.

Industry sources say this time the contract is practically ready for signing.

A Vodafone spokesperson said the network would never comment on any industry rumour or speculation.

Rees a director of AVR Mobiles said he ordered car kits from the old Unique Distribution. When the delivery came he claimed Unique had sent five faulty car kits and nine too many of one type.

A credit note was raised and Rees was about to return the stock when the firm went into administration.

My account manager said all credit notes would be cancelled. He told me not to worry because Unique would soon be trading again and theyd be re-applied. But when I contacted the new Unique on the first day of trading I was told that the car kits were from the old company and I cant be credited for them.

Uniques accounts department is now threatening Rees with legal action unless he pays the full balance.

They wont credit me for the faulty stock because it came from the old company but they are still demanding the money I owed to it he said.

I read in Mobile News that (former managing director) Angus Dawe says he wants to keep the old partnerships going but the way Unique is doing things I am reluctant to ever use it again.

Dawe said: I will investigate the matter. The new company has started with a clean balance sheet.

It can collect money owed to the old firm but cannot issue any credits relating to the old business.

I appreciate that it seems awkward. But there is nothing we can do. We might be able to get the faulty stock repaired under our warranty agreements with the manufacturer.

Although the dealer would still have to pay for the stock he wouldnt be out of pocket.

Employees enjoying an incentive prize with T-Mobile in Malaysia were telephoned in their hotel bedroom and told to report to their managers room. There they were told that the consultation periods on their store closures had now begun.

Marco Lecca who was the union representative at T-Mobile at the time of the closures said:

Some of the staff at the Knightsbridge store were in Malaysia actually with T-Mobile when they were told. The T-Mobile management asked for the keys to their shops there and then.

Back in the UK staff arrived for work on March 15 to find their stores locked and their area managers brandishing consultation documents.

They were then sent home without prior warning that their jobs were under threat. It is said they were only given the opportunity to voice their objections after the closures had taken place.

Shilen Mehta who worked in senior sales at the Putney branch said:

I had been seconded to the Tooting branch which didnt get shut but because I was based at Putney it affected me too. I am relieved I dont have to work for T-Mobile anymore.

Nick Childs lead organiser for

T-Mobile at the Communication Workers Union (CWU) said:

Staff are unhappy with the new bonus targets and the way T-Mobile has gone about the closures. Big companies have to make big decisions but T-Mobile has behaved in an underhand way.

Childs added: The company intends to relocate employees to other stores wherever possible but this is not good enough. With record profits it is unnecessary to make any employees redundant.

Childs says 54 jobs will go from T-Mobiles direct retail chain. He also says T-Mobiles direct retail staff are outraged by the companys attempts to cut their bonuses.

Last month T-Mobile increased many store and individual targets from 750 to up to 1250 points undermining workers attempts to gain their well-deserved bonus said Childs. The first our members heard about the changes was an e-mail from head office. This is not how a modern company should be run.

A T-Mobile spokesperson said: We work closely and together with the elected employee representatives through employee councils. All employees have been fully and frequently consulted on changes and offered full support from the company.

There are certain well-formed allegiances which of course include 3. As long as you dont go against promises of exclusivity I think there is the possibility of broadening the profile and availability. It could be through a retailer or distributor or it could be through a virtual network operator.

LG had been courting ex-3 sales director Barton for more than a year before he signed a contract to take on UK sales for the Korean manufacturer three weeks ago.

Barton takes on the job of steering LG to the top market spot on April 7 reporting to UK president James Young.

LG made an approach to me over a year ago. But restrictive covenants with 3 meant I was proscribed from working in the industry for a while. Also for personal reasons the talks didnt go anywhere. Then circumstances changed for me and LG and the timing was then right.

He added: The LG road map is sensational. Its got some very clever products both across 2.5G and 3G. In fact everyone is saying its the best job in the industry and any fool could do it – although Id like them to come and try.

The LG brand has the capability of being brought to market in a big way.

The plan is to push the brand as far as it will go. LG went to number one in the in the US through good banding and marketing and great product.

Smith declined to comment but a source close to the company told Mobile News: Paul has resigned because of irreconcilable differences with his boss (Ormerod). Its a real shame.

But Ormerod seemed not to realise Smith intended to leave.

Pauls staying with us. He is very valued in the business and has been with the group for a long time.

He will certainly be here through the end of the year and if he performs well and I am sure he will because he always has done then much longer.

As for differences of opinion that is a bit strong. Its news to me anyway.

We are evaluating the merger of the business and peoples performances and there are certain things that will change. But at this stage there are no issues with either of them. There are no plans for either of them to leave the business in the foreseeable future.

John Caudwell merged airtime distribution arm 4U Ltd with his accessories and handset division in January to form a single massive distribution company that provide a one-stop solution to non-specialist resellers and independent dealers.

Under the terms of the merger Smith reports to Ormerod.

I understand Johnson bailed Unique out. But when it was unable to pay him back the administrators were called in.

Another executive who knows Uniques circumstances said funds had been exchanged between Unique and Johnson. Guy Johnson lent Unique 750000 last November. The funds were for a few days to tide them over to buy some stock. I dont know whether it was repaid or whether it rose to 1 million with interest.

Johnson who is a consultant to Fone Logistics was unavailable for comment.

The second source also revealed that financier GMB Heller which put in 500000 of seed capital got cold feet and pulled funding from the distributor.

The arrangement meant Heller was factoring invoices for Unique and advancing it 85 per cent of invoice value said the source who intimately knew Uniques situation.

Royal Bank of Scotland later offered improved terms. But soon after taking on the factoring of Uniques invoices the bank withdrew its credit line. This forced Unique to return to Heller.

A 9 million credit line with Heller was reduced by 1 million a week until Unique only had a 1 million credit line which was not enough to sustain the business said the source.

The source said the backers became nervous after they discovered Uniques assets were not what they were led to believe.

There are a couple of items on the balance sheet that look good at first glance but dont hold up to deeper probing said the source. For example Unique has inter-company loans. One was for 1.3 million to Unique Games.

That company is no longer trading so that loan is unrecoverable. Also Uniques books showed 3.75 million worth of stock. But 75 per cent of this stock was old and worthless.

Part of the remaining stock is verging on obsolete. Thus there is around 5 million listed as assets that arent worth anything. The Royal Bank of Scotland realised this and got scared.

Then when Heller was taken over by GE Capital GE discovered the same anomalies.

A spokeswoman for joint administrators Mike Rollings and Alan Hudson of Ernst and Young insisted there was still hope that Unique could be sold as a going concern.

We are in talks right now with potential buyers she said.

Vodafone finally kicks off its national 3G service on Monday with a multi-million pound ad campaign for 3G live!.

Ads featuring David Beckham will blitz television posters and press in the main cities where Vodafone has achieved 3G coverage which now covers 60 per cent of the population. The initial focus is on video messaging and content. A number of advertisements in the London area will promote video calling in the capital.

Despite Beckams somewhat tarnished image Nick Read the chief commercial officer for Vodafones consumer business unit said Vodafone believes his PR as a global brand is as good now as it has ever been.

Vodafones initial batch of 3G handsets shipped this week making it the first network to throw down a challenge to incumbent 3.

Vodafone will launch six new handsets before Christmas with the first four out now. They are the Sony Ericsson V800 and Motorola V980 which will both be exclusive to Vodafone; the Motorola E1000 and the Samsung Z107 which will only be available online from the Vodafone web site; and following these soon afterwards the Nokia 6630 and the Sharp 902 the first two-megapixel 3G phone.

However the Christmas timing of the launch is coincidental according to the network. People have been focusing too much on saying that this is a Christmas launch said Read. Its nothing about a Christmas launch. It just so happens that everything has come together now.

He continued: There might be other players but they dont have Vodafones reputation. People said when Vodafone came into 3G it would be reliable high quality and different from what was already out there.

We said we wouldnt launch before we could deliver that. The fact that we are ready before Christmas is nice but its a small element of our overall strategy to become the clear market leader.

Vodafones 3G launch has the aim of moving its live! service offering to a higher level.

Live! has been totally redesigned. Vodafone has two million live! customers said Read.

We know what content they value We dont foresee any technical problems. We didnt rush out and sacrifice the user experience. Our reputation is at stake.

Nor does he anticipate any teething problems. We are not anticipating any problems. We will refine as we go forward as anyone would he said.

Read believes Vodafones reputation and vast customer base counts for more than 3s 18 months and million 3G customers. Vodafones is a different approach from that of 3 he claimed.

We waited until the quality for our network would be at the right level for launch.

We just need to focus on our game plan rather than someone elses. We are not concerned about any one operator. Its a competitive marketplace. We will drive forward on our own plan.

He insisted that Vodafone would not be drawn into a price war with 3 or other rival operators.

If customers are getting an outstanding product and service and pre- and post-sales support they will pay a certain price. Thats the overall value we offer our customers. We dont just compete on price.

Vodafone will be trying to persuade customers from rival networks to migrate over as well as persuade its existing 2.5G base to convert to 3G.

We want to offer people unimpressed with their current network operator the chance to move across to Vodafone said Read. We do have a substantial campaign for our existing customer base. Its about showing our existing two million live! customers that they can use those services at a much higher level.

Upgrade customers will not be offered free 3G phones however.

Weve used Vodafones scale and scope to negotiate an impressive range of handsets at a price that makes good economics for us. We will continue to use our current policy of subsidy retention and bonuses.

Orange reckons it can limit the damage by allowing dealers to connect Orange SIM cards with GSM handsets when it experiences supply problems in the future.

Hough said: We have an issue with stock shortages of the D500 at the moment. We realise that were missing out on connections there. Were also late to market with new handsets which again means we sometimes miss out on new connections for the period that that handset is unavailable.

If we had a SIM proposition it would enable people to get hold of GSM stock and connect it to Orange. Our SIM proposition would be available for the period until we launch the handset so that we gain in incremental business.

He added: We will never go down the O2/Vodafone SIM route. Ours will be for purely incremental connections.

Weve been trialling it with the Carphone Warehouse for a couple of months. Its worked well. CPW has been working with one handset the SL65. We have to sort out various systems issues before we can roll it out properly but this trial is helping us get over those.

(See Hugh Symons conference report on page 18)