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.

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.

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)

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).

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.

Otellini presented a PDA prototype with a new silicon chip that delivers DVD-quality video. Production models will become available in the second half of the year.

Otellini also outlined plans to ship chips that support new WiMax technology by the second half of the year. WiMax will be an alternative to cable and DSL and offer wireless broadband Internet access from any location.

Wall Street Journal hi-tech columnist Walter Mossberg commented: As fast as 3G is the potential for WiMax is substantially faster. If he is right we are clearly going to have many new wireless networks and the choices for consumers and the challenges for operators and handset makers will become greater.

This is the prediction of mobile industry analyst firm Baskerville.

In its latest report Baskerville predicts that emerging markets will use mainly pre-paid services to drive uptake. Developing markets named include China India Russia and eastern Europe.

Steady growth in advanced pre-pay markets such as western Europe will also help to drive pre-pay said Baskerville analyst Paul Merry who wrote the report Global Mobile Prepaid Stategies and Forecasts. Operators in these regions will reappraise pre-pay in light of its potential for accessing high-data-user groups including youth segments and its favourable return on investment.

He went on to argue that average revenue per user (ARPU) is not always the best way of considering the actual revenue generated by users when factors such as customer acquisition and provisioning are taken into account.

Operators realised some time ago that high subscriptions do not necessarily equate to high revenues. If average margin per user is considered which takes into account the cost of the subscriber minus the revenue they produce it soon becomes apparent that pre-pay is potentially highly lucrative.

Merry added that the historical perception of pre-pay as a lesser service offering does not necessarily match up to the reality.

Pre-pay customers can generate higher revenue per minute than post-pay customers and generally require fewer operator expenditures in terms of handset subsidies billing and collection costs and bad debt he claimed.

But Merry admitted that high pre-pay ARPU depends on how the pre-pay service is supplied – for example keeping billing simple and offering anonymity to pre-pay users.

Typically this industry has been driven by technology and before we even fully explore 2.5G were thinking of 3G and even talking about 4G WiFi and WiMax McGlade told the 3GSM World Congress earlier this month. Lets work on what we have today lets make it work really well and evolve the next technology only if it makes sense to the customers.

Among his corporate peers McGlade struck one of the few notes of caution at an event that was ostensibly trumpeting the advent of 3G. But McGlade remained cynical about the value of video streaming to mobile phones. And while he was excited by the prospect of music downloads he never suggested it was the killer application sought by the industry.

The ringtone business was bigger in the UK in 2003 than the sale of CD singles – and these are just ringtones. Theyre not even very good quality he pointed out. Once we get into real music downloads well have something really interesting.

McGlade said fully-integrated music devices could be expected on the market by the end of 2004. Until then though he warned that the industry must not let its ambition outrun its means.

We want to make sure that we sweat an asset in 2.5G and get used to using these services today so that when we evolve into a 3G environment were in really good shape.

The ad featured a picture of chairman John Caudwell alongside the slogan: If you dont believe youre worth 1 million a year you are probably right!.

Caudwell told Mobile News that the day after the ad appeared the response rate was three times higher than normal.

The hardest part of any business is finding the right people. The right people are few and far between he said.

The quality of candidates is more important than the quantity. I want the UKs best business talent. So our recruitment process is ongoing. It usually takes us 1000 applicants to find one managing director.

Caudwell said he was after young vigorous high-fliers in their late 20s to early 30s. Caudwell Group company managing directors tend to be in their early 30s while group MDs are in their mid-30s.

There are exceptions but Im after young blood and for the right people there are plenty of opportunities to climb the ladder quickly.

The ad also disclosed the salaries and remuneration of several directors including 20:20 managing director Mark Ryan who according to the ad is paid more than 1 million a year.

At first they werent too keen about their salaries being included Caudwell admitted. But when they realised the benefits it could have in terms of helping the business grow they agreed. I wouldnt have done it without their approval.

He explained that the Caudwell Group never hires for specific jobvacancies.

Opportunities exist across the group both in the UK and globally for a variety of senior management roles. Our policy is to recruit for talent and then choose a job most appropriate to them. We can do this because the Caudwell Group is a massively expanding environment.

Rarely has anyone come to me knowing what job they are coming to me for – the majority of candidates come for a job within the Group.

We started a business 18 months ago that will have 1000 employees by the end of the year. Thats how quickly positions arise.

Caudwell said it was too early to say whether he would repeat the ad in the Sunday Times.

It depends on how successful this one turns out to be in terms of persuading the calibre of candidates we are looking for to apply. It was very expensive.

The ad quoted Caudwell as saying: I am reputed to be a billionaire. I am determined to share that wealth with you … if you join us and prove good enough to grow the Caudwell Empire I wont let you escape.

Initially you will be paid an attractive package but this wont be why you joined … You will have joined because of a wealth-creation opportunity made up of shares share options or Wealth Creation Bonds.

You will be trapped by wealth trapped by fulfilment and trapped by becoming a Caudwell success junkie.

(See White Lines P48).

At a recent press launch Sony Ericsson president Katsumi Ihara confirmed the joint-venture had overcome a shaky financial start.

We are coming into the market with products combining Ericssons expertise in the technology side with Sonys strengths of the look and feel of the handset he said.

Sony Ericsson executive vice-president Jan Wareby added:

Camera phones are a key driver for global handset recovery. They outsell digital still cameras and MMS traffic is predicted to grow to 8.3 billion this year so understandably operators around the world are keen for manufacturers to include cameras.

Our drive has been to understand consumer needs and factors they consider when buying.