Staff Reporter

The company issued a statement admitting:

KaLL International Limited was established in May 2000 and is a re-seller of least cost routing and wholesale fixed line products. In February this year it became known that the company had been hit for substantial fraud through their switches the (Cont P2) total of which is still being reconciled. As a result the business has been placed on hold pending an enquiry from KPMGs forensic team to ascertain the future of the business and liability for the debt. KaLL International is independent from Dabcom Ltd trading as KaLL the mobile phone distributor and this action will in no way will no way impact that business.

A spokesperson admitted that KaLL has no idea how long the fraud had been running for and but warned that estimates of 2 million losses were premature. The trick involved customers entering a set of keystrokes on their telephones before making a call that allowed them to pay lower European rates for their calls when ringing countries in Asia. The fraud came to light following the recent earthquakes in India when call volumes rose significantly. KaLL says that the service has been suspended indefinitely.

KaLL was established in the UK in 1994 under the name A to B. It started as a mobile dealer for all four networks. In 1996 the company decide to work solely with Orange

In 1998 the company entered the fixed line telecom market and established Telesse to specifically target dealers of fixed line products and services.

In April 200 both A to B and Telesse were rebranded KaLL followed shortly after by the creation of the least cost routing business known as KaLL International.

Chitter Chatter director Leonard Leeson told Mobile News that a number of shops had been on the market but these have been withdrawn.

None of our stores are on the market. Any stores that have been on the market have been withdrawn. We are very close to One 2 One and are one of their key customers. We re-assessed the market and decided that business will improve. Every business has to make decisions based on whether its stores are profitable or not.

Leeson denied industry reports that Chitter Chatter stores in London and the South of England were being sold because they are unprofitable due to One 2 Ones plans to withdraw loyalty commission payments.

But Leeson did hint that the chain might be for sale at the right price. Chitter Chatters London outlets are in Kensington Covent Garden and Oxford Street. (Cont P2)

The prestige Question Time pane comprises Mark Stansfeld (sales director BTCellnet) John Barton (sales and distribution director of One2One) Andy Smith (Vodafone UK sales director) either Gareth Jones or Richard Hanscott from Orange and James Malcolm of the FCS.

Make sure youre there early for this important event.

The first phone will be a GSM and GPRS version of a camera-phone Sharp is already selling in Japan. The BT version will be badged Cyclops and is planned to be on sale by the end of the year.

Steven Bold managing director of Sharp telecommunications Europe said:

Weve had a research and development centre in Oxford England for about 10 years now. But last year we were asked to extend our operations to see how our Japanese mobile phones could be re-engineered for Europe. The decision by Kenwood to sell its R&D development centre came at the perfect time for us and we did a deal to take over the centre in January.

Bold claims that operators are interested in the new Sharp product even though it has yet to be built.

Sharp will supply products to BT which will market and sell them in the UK and other countries through its joint venture partners and subsidiaries including Genie.

The Cyclops product is claimed to take and send pictures to the internet. It will also have a WAP browser camera lens colour LCD screen picture storage capability and transmission speeds over GPRS of up to 56 KBPS where available. BTCellnet director of group products and services development team Tony Greaves said:

The Sharp deal is part of BT wirelesss mobile Internet strateg for personalised communications.

The speed at which this partnership has been established and is to bear fruit demonstrates the commitment by BT wireless and Sharp to deliver exciting new products and services to the consumer. Cyclops is the device which heralds the start of our relationship.

I dont know who did it and Im not going to point my finger at anyone Patel told Mobile News.

The police have taken statements from a number of witnesses and are following up their enquiries. They have recovered the car used by the attackers and are trying to contact the owner to help them with their enquiries because it has not been reported stolen. As far as I am aware no arrests have been made.

Patel says that the attack may leave him permanently blinded in one eye.

Doctors dont know if they will be able to restore sight in one of my eyes.

Patel says the horrific injuries have adversely affected Chatternets business.

At the moment most of my time is spent going to and from the hospital. Ive got several operations to go before I can really recover from my injuries but we are trying to cope the best we can

BT Selected specialist dealers will be offering the Motorola Timeport 260 for an unsubsidised 200 aimed at heavy SMS WAP and mobile data users rather than new customers.

The admission comes after a week of turmoil for Motorola which is closing a major factory in Bathgate plant in Scotland.

Motorolas general manager personal communications sector for UK and Ireland Doug Goodwin told Mobile News Motorola is to ditch is Personality user interface and pep up its low-end entry models with improved design and much smaller form .

Our products will be dramatically improved going forward. The MMI has been most publicly criticised. We have now corrected the process and new products coming through in Q3 and Q4 will have a new Synergy interface. Some of our customers have suggested that they dont have a problem with the user interface and others have said they dont find it intuitive. We have taken the best of the past and evolved it making it a lot more consumer friendly.

Goodwin also admitted that some of Motorolas low-end product had not been as competitive in terms of size and design.

Some of our products were perceived to be too large. Some of the newer entrants into the market have been providing a much smaller form factor at an entry-level price. In the course of Q3 and Q4 the platform has been regenerated and we will be reflecting the form factor of our V3688 in a non-clamshell form factor phone. It will be extremely appealing and we are addressing some of the criticisms across the range.

Goodwin agrees Motorola lags behind its rivals such as Nokia in its marketing message but promises a very strong message from Motorola in the future.

Trying to create a life experience around a brand takes time and investment. Our Nordic colleagues have been working at it longer than us and have invested more than us. We are playing catch-up and we recognise we have a lot of work to do to catch up and pass them.

Goodwin says content will play a key part in Motorolas message.

Content will be a critical component in our message. We are developing partnerships with companies whose brands can be intrinsically linked to Motorola intellectual properties.

People will understand that you can play the Millionaire game on a Motorola device on whichever networks are supporting it and win a prizet will be a simple message for people to understand. Theres too much jargon in the market. Well use the Millionaire logo to get a simple message across.

Kenwood will now concentrate on 3G product. Kenwood had been on the verge of launching product in the UK after launching some product in Belgium and Turkey. However the company concedes it struggled to get the proposition right

We had a problem playing catch-up we just couldnt get the product right for launch said Kenwood communication director Mike Atkins

There were a number of factors that affected our decision. Each time we felt that we were ready to launch the price wasnt right or the feature set wasnt right and then when these were resolved we had a problem trying to get the right volumes ready in time.

We were very close and had full intention of launching. But we just couldnt get that final push. It just goes to show how difficult it is to enter the market right now.

Its very hard to launch product in to. We feel that focusing on 3G is the right decision. I think if we had taken the risk it may have been dangerous for us as a company Atkins said.

Nevertheless Atkins says that Kenwood intends to be a serious player in 3G bolstered by its current success in the Japanese market.

Kenwood is very strong in the Japanese market. We felt that it will be better to focus on 3G because it is a world standard. By having Japanese engineers working on 3G on their own soil it will give us a chance to come in at a sensible level rather than playing catch-up. Kenwood has a significant share of the Japanese market and for to be successful we need to come from a strong base.

Motorola UK director of dommunications and public affairs Mark Durrant told Mobile News that the reports carried in the national press and TV were total speculation.

Durrant says that Motorola will not be announcing any decision until it has consulted with staff.

A consultation forum has been set up so that elected employees can consult on the companys proposals. No proposal has yet been put forth from the company.

It was reported that the Prime Minister Tony Blair had intervened personally to try and safeguard the factory.

A Downing Street press spokesperson added:

Tony Blair had a telephone conversation with the president of Motorola Chris Galvin and he made it clear that we are keen to explore if there is anything we can do to influence the decision.

So if Motorola had no intention to shut down the plant why did Blair feel it necessary to call Motorola president Galvin to intervene?

Apparently the Minister for Enterprise Scottish MP Wendy Alexander became aware that Motorola was coming under increasing pressure to announce a downsizing of its operations in conjunction with its latest reports showing losses to appease its shareholders.

On returning to the United Kingdom Alexander called a meeting to make a case for Motorola to look at the broader picture and to take time to look at the significance of Bathgate to its operations in Europe. This was followed up by Blairs call to Galvin to make a case for Scotland and the labour force of Scotland.

After this conversation Motorolas president apparently confirmed he would be happy to continue discussions and not make an immediate decision on the future of the plant.

Speculation has grown over the closure of Bathgate for a number of reasons.

In September last year Motorola reduced production from three shifts per day to two and has shut the plant for the first time over this coming Easter Holiday.

In March this year Motorola also announced that part of its next major step in a continued effort to reduce costs in its wireless handset business would involve reducing its global workforce by at least 7000 positions.

Motorola said that these reductions would affect all aspects of the business across all geographies because it was committed to becoming the most cost effective enterprise in the industry in order to help grow market share.

It looks like a deal might go through that will pay a dividend to unsecured creditors. But until the deal is signed nothing is guaranteed said joint administrator Shay Bannon of of accountants Levy Gee

Fone Range founders Jay and Vimal Pau are now operating through another company called Bluetok. This was formerly known as Fone Range Partnerships.

A statement from Paragon issued last Tuesday (April 10) confirmed the company was attempting to seek a Voluntary Arrangement with its creditors.

The statement blamed the Fone Range/Paragon collapse on increased margin pressure in combination with high levels of fixed overheads adding:

The directors have considered every avenue to return the company to profitability but have reached the conclusion that the appointment of administrators and a new management structure will achieve the most advantageous outcome for employees and creditors and will support the groups future business plans.

We now have a clear way forward to develop the business opportunities that exist within the current group structure whilst protecting the interests of all parties to the fullest extent possible.

But a letter written by Bannon two days before this statement said Paragon had ceased trading.

The administrators letter to Fone Ranges creditors said:

Regrettably circumstances do not enable me to consider further trading and the company has ceased to trade with immediate effect.

It warned unsecured creditors were unlikely to see their money again. Jay Pau said it was not true that Paragon had ceased trading. Administrator Shay Bannon admitted that The situation has changed since the letter was written.

Paragon said contracts have been drawn up with a potential buyer but would not comment further.