Under Oranges new 3G tariffs 30 buys 200 monthly minutes 50 buys 400 minutes and 70 buys 700 minutes.

The first handsets available are the LG u8150 the Sony Ericsson Z1010 the Samsung Z107 and the Sanyo S750. The Sanyo S750 is free on any tariff. Premiums are attached to the other handsets of between 49.99 and 119.99.

No pre-pay is available yet and the independent channel wont be brought online until the new year.

Orange was the first operator to demonstrate wireless broadband in Europe five years ago in Bristol claimed CEO Sanjiv Ahuja.

Today we are offering our customers in the UK and France access to the largest 2G/3G network in those countries as well as 3G roaming in six others.

Meanwhile T-Mobile said it would launch its consumer 3G services in time for the January sales. T-Mobile is going for a soft 3G launch with just a single handset the Nokia 6630.

O2 says it will launch the fastest 3G network of all the networks in the summer with the deployment of a super-fast 3G data network that uses HSDPA (high-speed downlink packet access) and IMS (Internet Protocol Multimedia Subsystem) technologies.

See full story page 18

Siemens will decide by January 27 whether or not to to sell Siemens Mobile possibly to either NEC or Chinese manufacturer Ningbo Bird.

Siemens outgoing chief executive Heinrich von Pierer said Siemens Mobile would be sold or shut down if its poor performance in 2004 could not be remedied. Von Pierer wants a decision made in time for Siemens AGM on January 27 when successor Klaus Kleinfeld takes over.

A Siemens Mobile spokesman said: There have been a few problems within the mobile division. As with any business you have to either fix it or sell it. Our main priority now is to identify the problems – market growth has slowed the prices of handsets have decreased and the competition has increased. We also had a software glitch that affected us through the middle and end of last year and there were delays with launching products to the market.

Data Select marketing director Eric White commented: A sale wouldnt really surprise me. Siemens has got to change something. Its not had a very good 2004.

Motorola marketing director James King agreed: Siemens has always been an interesting package. Eighteen months ago we were rumoured to be looking at buying it. But Siemens Mobile has had a very difficult year and when a manufacturer struggles there is always speculation.

Henning Dransfelt research director at telecoms analysts Ovum said: There is a lot of pressure to address issues with under-performing units in the whole operation. The results for the communications division have not been up to the standards of some of the better performing units. The handset unit has been particularly troublesome pulling the whole division down.

Von Pierer has taken it up with the handset division directly. He wants to present an answer by the time Kleinfeld takes over to keep him out of the line of fire.

Kleinfeld is much younger than von Pierer and has just stepped up to the plate. Von Pierer wants to protect him. Of all its options it is most likely to sell. Certainly if Siemens decided it couldnt fix it this is the solution they would seek.

Dransfelt says the hot favourite to buy is Ningbo Bird which has declined to comment. He argues that Siemens Mobile has a number of advantages such as its channels to market and deals with operators in Europe and the Americas which will appeal to manufacturers.

Access to those markets could well be a factor. It would make it an interesting proposition for someone like NEC suggests Dransfelt which is pushing into Europe but is not well established on the usual operator shopping lists.

Siemens Mobile already has a relationship with both Ningbo Bird and NEC noted Tim Sagar head of marketing at Chinese manufacturer Haier. Siemens has struggled in 2004 and I know Ningbo Bird has intentions to expand into Europe.

Siemens Mobile accounts for a quarter of Siemens total sales but has suffered thousands of job cuts and operational losses in recent years. It is ranked fourth in terms of worldwide handset sales behind Nokia Samsung and Motorola but has lost ground recently to Korean manufacturer LG.

Siemens has under-performed as it has been trying a lot of things to grow its market share and appeal to the mass market and top end as well said Dransfelt.

They include independent channel and distribution head Adam Clarke and Anita Birch account manager for The Carphone Warehouse and Henrys wife.

Henry last week e-mailed Orange dealers and distributors a bulletin announcing the recent restructure and organisational changes.

It stated that Henry had created three new positions all reporting directly into myself which I believe will enhance out ability to meet the increasingly challenging objectives faced by the indirect channel.

He outlined the new positions and named the Orange employees that had been promoted to fill them and those who would be would leaving the business as a result.

Simon Wetton formerly commercial manager for dealers and distributors becomes head of multiple retail responsible for The Carphone Warehouse Phones 4U and Dixons Stores Group accounts.

Chris Hough previously Dixons Stores Group commercial manager becomes head of independent retail.

Lee Bonniface who was channel support controller is responsible for all aspects of channel support product forecasting and channel strategy/direction.

Henry confirmed the three redundancies – of Adam Clarke Kate Adam and Anita Birch.

Clarke had been with Orange since launch. Kate Adam was channel marketing manager. Both Clarke and Birch have now left Orange. Adam has been seconded to Orange Retail.

Orange press spokesperson David MacDonald declined to expand on the restructure saying things like this happened all the time.

However an internal e-mail from

T-Mobile UK managing director Brian McBride to staff leaked to the Communications Workers Union (CWU) revealed that the number had spiralled to 795.

The figure corresponds to a Mobile News report of the cull which T-Mobile denied last month.

T-Mobile says the figure of 475 has now been amended to 535 and did not include 260 jobs that would be outsourced to other employers.

It claimed 535 losses would be part of natural turnover anyway.

A T-Mobile spokesperson said:

We are going to reduce the number by 795. However the reduction in the headcount by 535 does not necessarily equate to redundancies. If we reduce the workforce by 535 theyre not necessarily enforced redundancies. But I cant say categorically that they wont be enforced.

Nick Childs CWU lead organiser for T-Mobile workers said:

Near enough 800 jobs are going in the UK. All of its operations are currently being reviewed with the intention of cutting 800.

We dont know exactly where those job cuts will come yet but some will go from its Hatfield operation. Three hundred of the 800 jobs will be outsourced by its agencies to other companies and its final salary pension schemes will be affected.

Childs said he believed that call centre staff in Merthyr Tydfil in south Wales Greenock in Scotland and Doxford in the North East are likely to be affected.

We got hold of the information from an internal e-mail that was forwarded to all staff by Brian McBride. We have had quite a few further leaks of the same e-mail as well as further confirmation from staff within T-Mobile.

T-Mobile began consultation with staff and its workers unions on January 21. An announcement from T-Mobile about the whereabouts of the cuts is expected later this month.

But Childs said: Theyre not happy. There is a culture of fear and anger within the workforce. The mobile market has had a rocky ride of late and T-Mobile staff have suffered a lot of cuts. But the UK market is doing well now and just as things are starting to go well they have more potential redundancies hanging over their heads.

T-Mobile responded: Weve been open and fair with employees but it is a sensitive issue and it will take us time to consult with all the staff.

Adrian Foot of The Phone Shop in Welling said: Its another source of income thats been slashed from the independent dealer.

Our pre-pay SIM profits were once very healthy. A year ago we were selling 200 SIMs each week. Were probably only doing about 50 now because Orange and the others are selling them direct at nothing prices.

O2 has been doing it for about a year now. Its the same old scenario. Were getting hammered again.

Gary Bridger of Airwaves Communications in Yeovil said:

We used to sell about 20 SIM cards each month but its down to around 10 now. We sell them for about 10 each. People are cottoning on and going online to get hold of them.

Orange has devalued the product again. O2 started offering SIM cards for free online and the others now have to match it. Its another nail in the independent dealers coffin.

Manny Hussain managing director of Paignton-based Intek Communications was more sanguine however.

I understand it from the networks point of view he said. Why charge to put customers on to your network? It doesnt want obstacles. From our point of view thats the way things work.

Responding to the furore an Orange spokesman commented:

Thats just one offer. You get different deals with different dealers. It is just one thing we are trialling at the moment.

But there are a number of deals out there for independent dealers to capitalise on. Its certainly not the case that we arent offering them anything.

See Sharp End page 14

Northamptonshire police say four or five men were involved. One of the men was a white male between 30 and 35 years old with a medium build and short blond hair.

A police spokesman said: We know that the handsets taken were manufactured by Sony Ericsson but we dont know what model they were as yet.

This is the second robbery involving Sony Ericsson mobile phones in the space of a month.

More than 5000 Sony Ericsson 3G v800 handsets were stolen on January 4 in Wednesbury in the West Midlands (Mobile News January 28).

Islam 24 who worked at the Vodafone Shop in Oxford Street London stole the demo SIMS and ran up a bill of 8671 over a four-month period. He was ordered to repay Vodafone 1000 at the rate of 20 a week.

As well as the community service Islam was also placed under a one-year probation order at Horseferry Road Magistrates Court.

Islam now unemployed of Godwin Court Crowndale Road Camden London was told at an earlier hearing he could have faced jail after pleading guilty to stealing four SIM cards at the shop on October 10 October 25 November 16 and November 26 last year.

The community service work was a recognised alternative to imprisonment the court said.

The prosecutor said Islam had been working for Vodafone for two years and stole the cards which were only meant for demonstration purposes.

After a police investigation he was arrested at his home and admitted the thefts.

The court heard that first-time offender Islam had a number of job interviews lined up and had written to Vodafone to apologise for the breach of trust.

The magistrates told him the court had taken his previous good character and plea of guilty into account.

A Vodafone spokesperson said: Vodafone always takes a firm line on employees who attempt to defraud the company.

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)

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.

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.