The first incident occurred in Amsterdam in August after a woman dropped her mobile.

The unidentified handset burst into flames as she picked it up and tried to switch it back on again causing serious burns to her face. It is believed the handset contained a non-Nokia battery.

In a second incident two weeks ago a Nokia 7210 burst into flames while it was in a teenage boys pocket. It is not clear whether this handset also utilised a third-party battery or not.

Nevertheless the Finnish manufacturer is fairly confident the faults were caused by third-party batteries and not through any fault of the handsets themselves.

Nokias UK representatives have been quick to reassure the public that there is no safety risk posed by its phones as long as the handset is used with approved accessories.

Nokia business development manager Ray Haddow said:

There is no cause for alarm. We are only aware of the first incident. It appears to be an isolated case.

The information indicates a non-original battery was fitted but we cant verify that yet. Consumers can feel safe as long as they use an original battery and original accessories. We are not aware of any similar incidents occurring in the UK.

Haddow said Nokia had not been able to recover the handset and analyse the battery.

We hope to do this to see how the incident happened and check the origin of the battery he added.

There have been similar cases to this involving our handsets but these are due to non-original batteries being fitted. We recommend our resellers offer original components as they are designed to work specifically with our products. We cant guarantee the quality of non-original products.

O2 was the biggest creditor losing 1155760 in total. Orange was hit for 403451. Vodafone has written off 344843 and 4U is down 104607.

A number of other main trade creditors were owed more than 10000 each including Unique Distribution ( 43216) Ora ( 19085) and Pama ( 14067).

A report from joint administrators Ernst & Young shows that Convergent went bust when it was unable to raise 2 million to continue trading.

In a statement Ernst & Young said Convergent ran into severe financial difficulties because of general overcapacity and declining margins lower-than-forecast return from acquisitions significant bad debt write-offs and restructuring costs.

Retired Convergent founder John Weatherill said its woes began when it paid too much for the companies it bought and wrote that money off sometimes within months.

In June Weatherill who spent 1 million trying to prop up the firms share price blamed ex-managing director Tony Farmer for the debacle saying:

The management of Convergent turned 16 million into an 11 million overdraft in a little over two years. Its staggering.

Weatherill started the company in 1983 as John Weatherill Electronics.

The wind-up has so far cost 60807 in legal fees and 105179 in administrators costs.

Ernst & Young said there was little prospect of unsecured creditors seeing any dividend.

Futurenet Communications MD Jeremy Harris alleges Mainline edited out comments he posted on the Mainline bulletin board. Harris hopes his action will encourage dealers to share information about all the distributors and networks on the forum.

The forum will allow independent dealers to share tips and find out which distributor is offering the best packages he said.

The 240 MPx200 comes in a black clamshell design and carries many of the features first seen in the Orange SPV.

Like the SPV the MPx200 allows users to synchronise e-mail appointments and contacts with Microsoft Outlook through a PC connection as well as to browse the web and download music and videos.

There is no Bluetooth nor an integrated camera phone although an attachable camera can be fitted. The decision to exclude an integrated camera was taken because the handset was being aimed at the professional consumer market.

Motorola claimed its research had shown that a camera wasnt wanted in this segment. Bluetooth was desirable but it was omitted in an effort to keep the price down.

The phone is tri-band and also features an expandable 1Gb memory card and a number of embedded games. It will be sold through independent dealers but a date for distribution has not yet been announced.

Orange also last week launched its first handset to use the Palm operating system.

The Treo 600 has a colour touchscreen e-mail and Word and Excel functionality as well as an integrated camera.

It also offers standard Orange applications such as back-up and update. It will be available in October.

Franklyn Azolukwam (21) of Gascony Avenue Kilburn is charged with using criminal deception in an attempt to obtain a Nokia camera phone T-Mobile top-up card Gameboy and two Nokia 7210 phones from Argos on the Edgware Road using credit cards and other documents in the name of Bashir Ahmed.

He is further charged with giving false information on an Argos credit agreement.

The handset has an MP3 player Internet and wap access video playback and a fold out thumbpad keypad. The phones are being manufactured for Sierra Wireless by Flextronics. Siemens is supplying the GSM/GPRS radio components.

Handsets will be co-branded with networks and the company is looking to supply the handsets through distributors.

The five men – Mohammed Anwar Mohammed Safdar Mohammed Sawar Gohur Iqbal Hussein and another man simply described as Mohammed – were involved with a firm called Mobile Phones Distribution in Bradford and had been charged with VAT evasion.

This followed a lengthy investigation which involved multiple raids on premises in Leeds in March 2002 as part of a Customs operation codenamed Dundee.

However the case collapsed when defence lawyers successfully cited an earlier case relating to a company called Bond House when it was determined that VAT does not apply to carousel fraud.

The Federation of Technological Industries is fighting to have Customs and Excises joint and several liability VAT measures quashed in the High Court by the end of the year.

FTI chairman Mark Cook said:

Im not sure whether this is good news for the industry. It may allow the fraudsters a loophole to get back into the industry. Then again it may be a good thing because honest businesses may be able to trade without fear of persecution by Customs.

Cook says that it looks unlikely that a charge of cheating Customs would stand up in court after this latest ruling.

Whether you are accused of evading VAT or trying to cheat the Revenue it is unlikely Customs will now win because of the legal precedent in the Bond House case.

If VAT does not apply to carousel fraud how can you be accused of cheating the Revenue?

Cook confirmed that a preliminary hearing was due to be held at the High Court in London last week which would confirm a date for FTIs fight against joint and several liability.

Well probably get a hearing within four to six weeks he said.

The Mobile Phones Distributioncase heard at Leeds Crown Court earlier this month collapsed leaving the five defendants to walk free.

Customs and Excise is now believed to be reviewing its legal position before proceeding with similar cases.

The judge dismissed the case before it ever went to trial after the mens lawyers successfully defended them with a legal argument.

Defence lawyers cited the Bond House case in which the judge backed Customs and Excises claim that carousel fraud was not an economic activity to which VAT could be applied.

The mens lawyers pointed out that if VAT did not apply to goods involved in a carousel fraud their clients could not be accused of trying to evade VAT.

That argument forced Judge Barry to dismiss the case although he noted that a serious fraud had taken place. He also dismissed an application by Customs to amend the charges to cheating the Revenue because the case was too far advanced.

Samsung UK boss Mark Mitchinson said Samsung had virtually sold out its entire stock until February and revealed that another leading manufacturer is in an even worse position.

Carphone Warehouse chief Charles Dunstone recently told journalists stocks of handsets like the Sony Ericsson T610 were difficult to obtain.

This means when retailers sell out of existing stock there will be nothing to replace it until near the second quarter of 2004.

A leading retailer came to me and said hed take 10000 Samsung products at any price because there just isnt the stock said Mitchinson.

We arent the only ones who are having stock problems. It is a global problem caused by poor communication between networks and manufacturers as well as low supplies.

Mitchinson blamed much of the problem on networks which dont present manufacturers with firm enough forecasts.

At present they are much too vague. We get told what they expect but thats give or take a couple of hundred thousand either way. And we need to be updating forecasts on a rolling month basis he said.

Like last year we are starting to see networks and retailers going into the Golden Quarter with demand rising expensive advertising campaigns kicking in and no product to meet the demand.

Mitchinson warned that that if stores werent careful their poor stock forecasts would affect sales into the new year.

Last year a lot of stores werent able to buy new products that were coming out in the first quarter because they still had a load of stock they hadnt shifted from the Christmas period.

O2 says that the cuts are designed to give national businesses more autonomy.

A spokesman for parent company mmO2 said: When we demerged from BT we needed to have a strong corporate centre.

Now we are much more customer-focused we dont need such a strong support network.

The entire mmO2 organisation employs around 13500 people.

This should have read SIM-only kit.