Staff Reporter

O2 and Research In Motion (RIM) makers of the BlackBerry push e-mail device have agreed a deal to offer BlackBerry-type connectivity to the xda II later this year.

This will mean customers will no longer need to think about downloading their e-mail on to their xda II. BlackBerry technology has always-on connectivity to automatically deliver e-mail directly to and from the xda.

It is important to provide the best possible choice for our customers said O2 products director Laurence Alexander.

Users will be able to use the industry-leading wireless communications solution offered by BlackBerry along with the functionality and flexibility of the xda II. This package offers an ideal solution whatever their wireless needs.

So said Vodafone chief executive Arun Sarin in his keynote address at the 3GSM World Congress.

Sarins address follows on the heels of the publication in January by the UKs six mobile operators of a Code of Practice whereby the UK networks have agreed to put in place measures that prevent minors from accessing adult content such as pornography and chatrooms (see Mobile News February 9).

Also addressing the industry on the perils of unsuitable content was Stephen Carrick-Davies of Childnet International the campaigning childrens charity that works to make the Internet safer for children.

He said: You have a precious window of opportunity to get this right.

Our challenge to the industry is that an independent classification body will be properly resourced and able to start working quickly on rating new commercial content and services.

Carrick-Davies said that the mobile Internet offered up new dangers as it gave children the freedom to roam and made them always accessible to inappropriate content and commercial scams.

Holding up a tabloid newspaper cover story about a killer who utilised the Internet in his crime Carrick-Davies issued a warning to the industry:

I hope you have adequate responses when media sensationalism starts to affect the public as its beginning to do with the Internet (see White Lines P48).

Sony Ericssons T610 was voted Best Mobile Terminal in the Technology Innovation category of the GSM Association Awards in a ceremony hosted by CNBC presenter Louise Bojesen at the Martinez Hotel (see White Lines P48)

3 used its own research document to promote the launch. The Great British Pay-As-You-Go-Scandal alleges that other networks overcharge their pre-pay customers by a total of 500 million a year.

It is a bold move by 3. It will stimulate the network what with all the other operators apparently ripping off their customers said Bob Sweetlove marketing manager of 3 distributor Hugh Symons.

3s dealers have welcomed it he went on. We were worried it would take away from the monthly contract customers. But actually because 3s making such a big noise with its advertising campaign the network is doing good business on contract sales. In fact its contract sales have probably risen.

3 predicts users could make savings of between 8 and 50 per month depending on usage.

But networks have responded by suggesting that 3 has moved the goalposts. ThreePay customers find their pre-pay vouchers are subject to a 30-day expiry date which is at odds with the pay-as-you-go services from other networks.

Its the detail of what theyre offering thats interesting said a Vodafone spokesperson. The high-profile line 3 has taken doesnt really reflect whats on offer. The minimum 15 bundle lasts only 30 days – calling time has a limited shelf life.

In effect according to the networks the ThreePay time-limit places it between a traditional pay-as-you-go package and a contract.

3 has to reach a broader audience and it has been aggressive in its proposition noted Carphone Warehouse UK CEO Andrew Harrison. Basically ThreePay is very similar to a subscription – a use-it-or-lose-it scheme. Thats the trade-off.

Quite a bit of re-educating needs to be done added Andrew Culverhouse a director at 3 dealer Time2Talk. Its a good deal for the right kind of customer but because of the high voucher spend its impractical for the OAP who needs to call out the AA and nothing else.

Phones 4U commercial director Scott Hooton said: Its too soon to comment on specific numbers but during the short time its been available in Phones 4U stores interest from customers has been high. Judging by the strength of the proposition it seems to be the start of what will be a serious assault by 3 on the other networks.

Desirable technology

It is offering access to the latest and most desirable mobile phone technology without the commitment of a 12-month contract. If you couple that with the increasing number of video handsets coming on to the market it becomes a very tempting proposition.

However he added that 3s own research showed that while pre-pay may appear more attractive most customers would be better off on a contract.

Allan Fletcher sales executive at ETC Communications said:

Its a very good proposition. But it suits the big high street retailers better than the small dealers and independents because the profit margins are much lower than contract tariffs.

He went on: Its a good deal from the customer perspective but theres only one handset at the moment which puts people off.

However 3 does not deny that it is targeting high-usage customers.

Were getting rid of all the outdated rules in place around pay-as-you-go said 3 spokesman Ed Brewster.

Were a new network – there are new rules. ThreePay is targeted at people who spend more than 15 per month. Weve been completely upfront about it.

But while ThreePay could upset the status quo for the distributors dealers and retailers used to selling high-revenue contracts its chances could be compromised by the fact that 3 still suffers handset shortages.

3 is launching two handsets this week the NEC e616 and NEC e313. The latter will be made available to both contract and ThreePay customers and will be the first pay-as-you-go 3G mobile phone available for less than 100.

Were optimistic about the stock being available said Harrison.

The new campaign claims how you can have long-term happiness with your mobile phone and a better mobile life.

The ad promotes repairs camera-phone attachments phone accessories and handset upgrades. The backing track used for the campaign is the 1960s Kinks hit Days.

The ad is the sixth in a series created by agency CHI. The Carphone Warehouse claims that the campaign has contributed to the growth of its UK market share which has now reached 22 per cent.

The new brand ad will also run with 10-second promotional executions promoting the retail chains latest offers.

This latest move in a long-running legal battle follows a Court of Appeal ruling in favour of the Inland Revenue.

The Caudwell Groups legal action began in 2002 when contributions to EBTs were ruled non-deductible against Corporation Tax.

EBTs can be used by companies to provide employees with pension entitlements in a tax efficient manner.

The 2002 Pre-Budget Report announced immediate legislation to counter the avoidance of tax and National Insurance contributions through the abuse of EBTs.

After taking extensive legal advice the Caudwell Group decided to try and protect the scheme it has used for the past six years to motivate its workforce.

The decision to escalate this matter has not been taken lightly said Caudwell Group chairman John Caudwell. The Court of Appeal ruling was desperately disappointing for all of my senior employees and it eliminates the possibility of extending the scheme to the rest of the workforce.

He went on: Wealth creation is a key to the Caudwell Group philosophy and the EBT has motivated employees to contribute and participate in the success of the Group. While this case is ongoing we are seriously having to consider alternative wealth creation schemes.

A decision by the House of Lords on whether the appeal will be allowed is expected to be made by the end of April.

Among the wealth creation schemes operating at Caudwell Group is a scheme to reward managers with bonuses of up to 1 million on reaching certain targets.

The Caudwell Group set up an EBT in 1998. The trust has 117 members.

The setting up of an EBT is part of an ongoing commitment to employees to allow participation in share-ownership and profits.

When contributions to the EBT were ruled non-deductible against Corporation Tax by the Inland Revenue the Group took its case to the Inland Revenues Special Commissioners who ruled in the Groups favour.

The Inland Revenue appealed the decision to the High Court and the Revenue lost the case for a second time. It appealed again to the Court of Appeal and won on an interpretation of the statute.

EBT benefits are said to include providing employees with post-employment benefits helping motivate the workforce retaining and attracting key staff and protecting the possible sale of company shares to outside parties.

An important feature is also that an EBT complements employee share ownership schemes by providing a market for employee shares.

Meanwhile Caudwell is also busy planning his annual charity ball and says he expects more than 1500 people to attend the event on May 8 in aid of The Caudwell Charitable Trust.

This compensates customers if the price of their mobile phone drops in the months following its purchase.

The Carphone Warehouse claims it returned more than 22 million in credit vouchers to customers since the launch of the scheme.

Chiswick-based Adam Phones will now offer handset hire for customers of Avenir dealers who require phone hire in the UK Europe the USA or Japan.

Avenir Telecom sales director Tanny Price commented:

Although demand for hire phones is only a small part of the market our dealers wanted to be able to offer a hire service to those customers who requested it.

Adam Phones will also supply customers with personalised business cards carrying the customers name and the hire phone number.

A choice of handsets is available covering all regions. Deliveries are promised within two hours depending on location. The hire service will be available 24 hours a day seven days a week.

Adam Phones managing director Andy Tow said:

Mobile phone hire is a niche market. When there is demand for mobile phone hire it is vital that dealers have this available in their sales portfolio.

The deal means that Avenir Telecom UK dealers wont be forced to send their customers elsewhere because they will be able to provide the total package.

He went on: We offer as little as one days hire for all products charging a pound a day for handset rental which is waived if the user spends 5 per day or more on calls.

Theres no reason why visitors to Japan where even tri-band phones dont work should be without a mobile for their trip.

The merger had been expected as the companies are near each other in South Yorkshire and have worked together in the mobile industry for more than 20 years.

The new company would not reveal the precise financial details of the transaction.

Motek specialises in private mobile radio while GB Communications sells mobile phones and tracking devices.

GB and Motek work in similar fields. Over the years they have had a mutually beneficial relationship said a ninehundred communications spokesperson. Both firms have loyal staff. So it made sense to become a one-stop shop. Two heads are better than one.

Managing director Robert Rees who was formerly MD of GB Communications added:

Our name has changed but the faces products and services are still the same.

Karan Bhatia (18) of Beeches Road Tooting Bec London is accused of stealing the phones on November 30 last year while working at The Carphone Warehouse store in Oxford Street London.

He has been remanded on unconditional bail for trial at Middlesex Guildhall Crown Court and will appear for a preliminary hearing at the Crown Court on April 12.