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The Ora management has a reputation for being controlling and it wouldnt have suited Bob said an industry source. Also the fact that Ora has lost its O2 and Orange accounts to Dextra would have made it difficult to take the company forward. I dont see it recovering. There are redundancies on the cards.
Johnson refused to be drawn on the reasons for his departure.
It was amicable but it was better to part from the company for personal reasons he said.
Johnson added: Ora has attempted to address the activities of some of the established dealer accessories players without much headway so far. This is a highly price-sensitive and resource-intense arena and Ora will need to determine its own path if it is to be successful.
We did try to launch into new areas including SatNav and Bluetooth and experienced some early successes but the big boys continually drive down margins and progress was difficult. With my experience of emerging technologies such as VoIP I thought it better to concentrate my efforts elsewhere.
A spokesperson for Ora said: Bob left for personal reasons. The strategy he put in place will still be implemented. We are growing our dealer sales team and looking to recruit.
Johnson joined Ora in March. Business director Mark Slater will take on his role for now.
The Crewe-based accessories company part of the Caudwell Group will supply megapixel camera handsets from Nokia Sony Ericsson Motorola and Samsung on Vodafone Orange O2 T-Mobile and 3.
Mark Ormerod group managing director for Dextra and Phones 4U said:
Weve worked closely with the team at Jessops to deliver a solution that best suits its needs from advising on the latest in megapixel technology through to execution in-store.
It is all aimed at maximising sales while at the same time maintaining Jessops high standard of customer experience.
Dextra will initially distribute to 40 Jessops stores rising to all 270 UK stores later in the year. It is the first time Jessops will have offered contract handsets.
Jessops camera phone product group manager Ravi Chambers commented:
With the increasing convergence between digital cameras and camera phones and improvements in camera phone technology delivering higher quality pictures this is an ideal time for Jessops to enter the pay monthly market.
Camera phones are set to represent an ever increasing area in the digital imaging marketplace.`
The deal follows Dextras successful scoop of an accessories contract with Orange parent Fance Telecom worth more than 30 million.
Mokogwu was arrested on July 5 after O2 management discovered discrepancies during stock-taking.
She has been bailed until Monday August 30 for probation reports and was warned that she could face a custodial sentence.
Orange has set aside well in excess of 100000 and has included upgrade commissions for the first time to reward independent dealers for connecting small business customers to Orange contracts with Nokia handsets.
The incentive scheme which runs from September 3 until October 15 will see dealers receive 5 for every Orange small business connection plus an extra 5 if the customer chooses a Nokia handset. Dealers will get 7.50 for every small business customer that upgrades with a Nokia handset.
Orange head of independent sales Chris Hough said:
There is a big struggle in the market place to try to identify small business customers. We are trying to encourage staff to flush out small business customers and connect them to a business tariff.
Business customers generate higher ARPU and we are trying to build a clearer and better database of customers. At the moment that data is a bit skewed. Most painters decorators and plumbers sign up as consumers.
The deal also extends Oranges focus on upgrade customers in an attempt to prevent churn.
It is a big six-figure number said Hough. Its well in excess of 100000. It is the highest budget we have ever set aside for a dealer and distributor promotion and the reason for that is the money that we are putting towards upgrades. There has always been 5 on new connection but there is an extra fiver in it now for connections with a Nokia handset and 7.50 for upgrades.
Hough said Orange was trying to bridge the gap that existed between new and current customers.
In every industry new subscribers get the best deal. But we need to reduce churn. This is a way of bridging the gap.
Hough said that there would be around 25 weekly gift prizes available and four big prizes for the best performing dealers comprising exotic sporting holidays such as jet-skiing in Barbados.
Starting on September 1 Orange is also replacing its Double Talk Double Text promotion with free weekend calls. It will offer a 10 per cent reduction in line rental to loyal customers as well so that customers who want to upgrade can choose either the reduced line rental or the free weekend calls as a reward for their loyalty.
Hough said that recent problems with dealer commission payments relating to its loyalty scheme would be sorted out by the end of August.
Weve got a whole team working on it at the moment. We have done a vast amount of loyalty connections so far. There is a backlog but a fix is in place with the accounting system.
He promised: It will be sorted by the end of August so that we can start afresh in September.
A Vodafone statement signed off by Tim Stone said:
We have a normal trading and continuing good working relationship with Data Select. We have no plans to recoup any money from Data Select. Contrary to rumour we have not ceased supply of pre-pay handsets to Data Select either.
Box-breaking is a challenge for all of the network operators.
We have a regular programme to monitor this issue across all our channels and if such activity is occurring take immediate steps to prevent it.
Data Select founder and chairman Peter Jones said:
Some distribution channels were doing box-breaking and some were clients we supplied to. Vodafone reviewed the position over the past three months.
The situation has been exaggerated by one small distributor anxious to gain a slice of the Vodafone online business we supply.
There has been a bit of mischief-making going on with this smaller rival. There is little likelihood of us losing this business. It is business as normal and we will be supplying between 20000 and 30000 units this month.
Am I bothered about this smaller rival? Not really.
Were just concentrating on building the business and doing even better.
Dangaard COO Michael Køehn said that the Danish distributor wants to set up in the UK and is waiting for the right opportunity. Køehn is impressed by Caudwells mobile phone businesses especially 20:20 and accessories arm Dextra. He admitted that they could be an excellent entry into the UK market for Dangaard because they are well established and well run.
Said Køehn: We have always been looking to establish ourselves in the UK market… If we were to consider any part of it [The Caudwell Group] it would be the distribution side – 20:20 and Dextra – and not the after-sales repair or retail business. As far as I know Johns business it is very well run and well connected. And the UK in general contains very professional retailers and operators which know the business well so there is nothing better for a distributor like ourselves. There is not a lot of work that would have to be done.
Caudwell confirmed to staff last week that he has appointed Rothschild Investment Bankers as advisors to Phones 4U and the Caudwell Group. He insisted that it was consistent with the actions of a company of its size and that it would be tasked with exploring the strategic options open to it.
The statement said: Speculation in the press about the sale of Phones 4u and the Caudwell Group has been sparked by the groups appointment of Rothschild Investment Bankers as advisors. We can confirm that we have appointed Rothschild to advise on strategic options for the development of the group. These strategic options have yet to be explored.
The Caudwell Group continuously reviews group/business strategy to ensure that shareholder value is maintained and the appointment of Rothschild is not out of line with activity expected of a group our size. Every mobile phone business in the Group is performing exceptionally well with significant growth over 2004/5 and very exciting prospects for 2006 both in the home market and geographic expansions.
In the event of a sale the consensus of the industry is that Caudwells companies would almost definitely have to be sold off as individual units because. At an estimated 800 million – the value that its chief is understood to estimate for the group – few could afford it.
(See feature page 20).
But he was adamant that a report that Carphone had already taken over Hugh Symons was not true.
We talk to lots of people. As soon as we announced we were interested in buying a distributor a disorderly queue formed outside our door. But there is no deal done with Hugh Symons.
Hugh Symons declined to comment.
The Motorola device still dubbed ROKR at the time of going to press will be carried at launch by O2 in the UK T-Mobile in Germany and Cingular Wireless in the USA. Motorola reportedly received FCC approval for the device last week.
The launch took place on Wednesday but at time of going to press Motorola O2 and Apple would not disclose details of the launch.
O2 was being coy that it will carry the handset but a spokesperson said: Our music strategy is to provide compelling music propositions that our customers want and we are looking at a number of options to ensure that we deliver against this.
The ROKR which is rumoured to resemble a white version of the Motorola E398 is expected to be released to coincide with the busy Christmas market.
It is anticipated that it will be the first phone to ship with Apples iTunes software and will come in two versions one with 256MB of memory and one with 512MB.
The new phone will be capable of storing about 70 and 140 songs respectively. Users will not only be able to plug the phone into their computer to tap their iTunes Music Library for tunes but will also have the ability of buying songs on the fly over Cingulars network.
He is perfect for this type of job. Hes keen to look at new ways to sell the product.
Red Letter Days was a struggling company run by Joness co-star on the Dragons Den TV series Rachel Elnaugh. The company went into administration and was snapped up by Jones who also now has interests in publishing (see White Lines page 52).
Henry told Orange of his decision to quit on Monday this week. A replacement at Orange has not been announced but it is believed it will be a French national.
A source close to Orange said that Henrys departure had been on the cards for some time. Henry was being pushed out as a result of poor sales performance and subsequent loss of market share.
Three years ago Orange was regarded as number one – now it is struggling to maintain third position. Without some sort of positive response it is likely to move to number four given the positive performance of 3 in recent months.
The source added: Orange has lost its way and needs to use this opportunity to sort itself out – Vodafone was dusted off the number one spot but it went away got its house in order and regained that spot. Orange and whoever it brings in to replace Henry need to do the same.
Paul Leonard managing director of Orange Business Specialist Sprint Communications said the news of Henrys departure came as no surprise. Im not overly shocked. I think Stuart had done as much as he could in that area in terms of promoting the channel.
He is a strong guy who needs a challenge and hell certainly get that in his new role. His contacts in the sporting world especially in rugby make this a marriage made in heaven for him.
Microline managing director Jas Singh who has been an Orange dealer since the network launched was stunned by the news. Im shocked he said. Stuart has been really good for the industry and good to dealers.
Its quite worrying who he will be replaced by. If its someone from France Telecom we could be in trouble. The French do business differently and the threat of possible changes to the industry in the run-up to Christmas will make a lot of dealers nervous.
He added: I would prefer to see someone from the UK – someone who knows the industry – take over.
Phone Direct had curtailed its handset trading since Customs and Excise withheld a 2.4 million VAT refund last year pending a VAT tribunal hearing in October (Mobile News June 1).
The share placing was approved by TTG shareholders at an AGM on July 13. Phone Direct began trading again on July 19.
I never had any doubt that the placing would be a success said Andy Smith TTG Group director of mobile distribution and CEO of TTG subsidiary Anglia Telecom.
The whole meeting was over in 15 minutes. There is not currently a lot of confidence in telecoms so to raise 6 million shows the confidence that institutions have in the group.
Apart from replenishing Phone Directs working capital the funds will be used to open distribution centres for the groups new distribution arm TTG Mobile in Amsterdam and Brussels as well as other markets.
TTG Mobile will be based in the World Trade Center in Amsterdam and recruitment has already begun for various financial operational and marketing positions. TTG said that it would launch a campaign to recruit dealers in the Netherlands in August with a 2004 target of 50.
We have already signed deals with Vodafone and KPN to distribute in Holland. We will look to Belgium next and then possibly Spain. The idea is to replicate the Anglia Telecom business model that exists in the UK in other markets said Smith.
Smith said that TTG will continue to wholesale handsets as long as there is a market and a margin.
Graham Pollard CEO of TTG Netherlands and Belgium said: The introduction of this division opens up a number of new channels to market that will enable us to continue expanding our dealer network.
Group CEO Michael Hanna said:
We promised shareholders we would get back into bulk trading at the earliest possible opportunity and at increased levels.