Representatives from four companies along with the FTIs legal firm Dass Jakhu met officials from the European Commissions Taxation and Customs Union Directorate a fortnight ago to explain why they believe the new UK VAT laws are unfair and why they are wrecking the industry.

The EU officials said they would be monitoring developments and would only be able to act if they saw UK customs officials apply the new legislation in an unfair manner over a period of time. The EU Commissioners said they would judge whether measures such as VAT and duties tribunals and other legal provisions offer traders a realistic chance of defending themselves. The FTI said it would be sending a dossier of evidence to the Commission to back up its claim.

One of the traders David Downey of 1st Mobile said:

Customs and Excise claims it will apply the laws with a light touch but this is simply not borne out by its behaviour. The onus is completely on us to prove the legitimacy of our trading. Whether it intends to or not Customs and Excise is systematically wrecking and destroying our industry.

Corporate4U had 100000 corporate customers under management connected to Vodafone and O2.

This customer base is on Singlepoint contracts and was part of the 405 million Singlepoint sale.

In a separate negotiation Vodafone has purchased the goodwill and infrastructure of Corporate4U. A statement from Caudwell Group said that Vodafone had to buy the firm as it became obvious that the separation of the business from Singlepoint was not practically possible.

Corporate4U offers advanced corporate mobile voice and data solutions such as BlackBerry and Vodafone Mobile Connect as well as fixed-line services.

However a question mark hangs over the fate of the 420 Corporate4U employees.

Around half of them are in sales and account management and are likely to be retained. But those in management and administration may well find themselves facing redundancy as their roles are already duplicated at Vodafone.

Sources say Cattersons departure coincided with Phones 4Us drive to become the UKs number one retailer. An industry figure close to the company hinted that Catterson was not regarded as being able to fulfil John Caudwells ambition for Phones 4U to be the UKs top mobile retailer.

Earlier this month Caudwell poached The Link operations director John Welsh to fill the same post at Phones 4U. Welsh had over 20 years experience in retail with the Dixons group and his arrival meant Cattersons route to the top was blocked.

Outgoing Vodafone sales and distribution director Stephen Brewer told Mobile News: Corporate4U is quite a hard sales and smart sales organisation with the majority of its customers on Vodafone. It was an extension of Singelpoint but was run as a separate business within the Caudwell Group. The job now is to consolidate the management and sales teams.

(see Brewer interview P28)

Corkhill 33 of Croxton Eccleshall in Staffordshire was investigated by Customs after her companies Mondial Mobile and Pysen purchased 18 million of phones from four companies who all subsequently disappeared without paying the VAT to customs.

In 1999 Corkhill set up two mobile phone trading companies called Holerone and Mondial Mobile. Corkhill ran Mondial from the UK.

She hired three French-based accomplices to manage Holerone. Between May and September 1999 Mondial bought 6m of handsets from Holerone.

Mondial reclaimed the VAT from Customs. Holerone disappeared without paying the VAT.

To throw Customs investigaortrs off her scent Corkhill purchased off-the-shelf company Pysen in 1999 and started to purchase handsets from three other companies (Maxonic Technologies Chester Art and Safinia) which had links to the former management of missing trader Holerone.

Between February and August 2000 Pysen bought 12m worth of handsets from Maxonic Chester Art and Safinia.

The three companies charged Pysen VAT. But like Holerone they too went missing without paying the VAT. Pysen successfully reclaimed 2m in input tax from customs. Customs officials realised Corkhill was again involved in a second missing trader fraud.

They decided it was no coincidence and investigated further leading to her eventual conviction.

Customs and Excise assistant chief investigation officer Peter Wiltshire said:

This was a large scale fraud which took place across international frontiers The overseas participants needed someone with experience in the trade who was fluent in French. Lisa Corkhill used her experience and inside knowledge of the mobile phone industry to help steal millions of pounds of public money. She is now paying a heavy price for her dishonesty. I want there to be no doubt amongst those involved in this crime that we are determined to identify them bring them to justice and deprive them of their criminal profits.

Meanwhile LG has poached Samsung technical manager Kevin Robinson to join a new sales and support team in time for the launch of its new GSM handset range.

Samsung confirmed Robinson had left. LG simply said the company was interviewing a number of candidates.

Robinson is expected to join LG on September 4 in a role similar to the one he held at Samsung.

Relations between Virgin and T-Mobile reached an all-time low last month after a second High Court battle between Virgin and T-Mobile ended in victory for Sir Richard Bransons company. The latest court fight included arguments over (Cont P2) the definitions of when a Virgin Mobile customer should be classed as active. T-Mobile had proposed a customer was dormant after 180 days of inactivity on outbound calls.

Virgin rejected this as the formula didnt account for any inbound calls to the customer. The judge agreed and reinstated the original contractual term of 360 days of inactivity before a customer was regarded as dormant.

The judgement gave Virgin a windfall of several million pounds from marketing support contribution withheld by T-Mobile that must now be paid over.

A spokesperson for T-Mobile said: Virgin Mobile is a joint venture between T-Mobile and Virgin Group. T-Mobile is a 50 per cent owner in this venture and as such we would not entertain a change to the network agreement. It is also not possible to see a situation in the near future when that will change – therefore any view that another operator could be used as the network supplier is purely speculative highly illogical and would not receive our agreement.

The announcement was made at a conference for O2s retail partners held at Salfords Lowry Centre last Wednesday. Around 300 delegates attended the three-hour presentation followed by a VIP night of entertainment (see full report P20-22).

O2 believes the O2 Home offering will appeal to the pre-pay youth segment. Research showed a quarter of pre-pay mobile calls are made from home and around 40 per cent of these users do not have access to a fixed line. O2 hopes to boost its call traffic because users will be benefiting from an allowance of low-cost calls by paying a fixed monthly fee.

O2 general manager (channel) Ian Driver told Mobile News:

O2 Home is a true innovation. None of the other networks has anything like it. This is a bundled add-on to pre-pay that identifies the geographical area in which a customer prefers to use their phone and allows them to do so without having to worry too much about call cost.

He went on: Home will reduce the cost per call but usage will rise and so ARPU will increase.

Driver claimed that O2 Home was not a me-too offering – like so many products and services on the market.

He said: The plan gives dealers another hook to differentiate the network and provides them (Cont P2) with another tool to help close the sale.

Two O2 Home bolt-on options are available. Home 250 is 4.99 a month. It offers 250 off-peak minutes from home to O2 mobiles and UK landline numbers for 2p a minute.

Home 100 is 9.99 a month for 100 minutes of calls at any time to anyone in the UK including cross-network calls from home from 10p a minute.

In both cases a minimum 5p call charge applies based on a customer-supplied postcode.

O2 Pay & Go customers can add O2 Home by registering their postcode via text from their O2 handset or through customer services. An announcement alerts them that they will be using minutes from their O2 Home bolt-on before making a call from their postcode.

No contract is necessary. Customers can dip in and out on a monthly basis. The home postcode can be changed every 10 weeks if required. The service will be available to O2 Pay & Go customers from October 1.

Other announcements included a car-kit promotion to coincide with new legislation in Q3 a selection of new bundled business tariffs news about BlackBerry the xda2 and more. l O2 is to raise the cost of calls and text messages. From October 1 text messages sent to foreign mobile numbers will no longer be included in text or bolt-on bundles.

O2 will raise the cost of foreign texts to 16p per message. On November 1 O2 will raise its minimum call charge by 150 per cent from 2p to 5p.

The man (33) and woman (32) were arrested for money-laundering offences contrary to the Criminal Justice Act 1988. They were interviewed in Braintree Essex before being released on bail without charge pending further investigation.

A team of over 20 customs officers searched premises in Essex Sheffield Nottingham and Leeds as part of the operation.

Customs has been cracking down on missing trader or carousel fraud which it claims costs the British taxpayer 2.5 billion a year. In April this year the Chancellor introduced new legislation to target businesses that turn a blind eye to or assist missing traders. (see Comment P16)

From the start of the month Vodafone has been offering fully fitted Bury car kits to dealers for 79.99 before VAT.

The move into car kits is a shrewd one as many new handsets including the Nokia 6310i are not compatible with older car-kit cradles.

Accessory manufacturer Pama claims it has seen an enormous increase in the demand for car-kit accessories over the past couple of weeks. (Cont P2)

Pama development managerHarry Heaney commented: We have seen a huge growth in the demand for car-kit accessories over the past couple of months. This has been for both our Plug N Go devices and for our headsets.

With the Government debating what sort of legislation it wants to impose people want to make sure they have the right kit in stock.

Pama has also released its latest kit – Plug N Go 4 Bluetooth. The unit which can be fitted on to either the car windscreen or the dashboard works on voice with a Bluetooth-enabled phone.

Naveed Saleem a 32-year-old mobile phone trader was found dead in his Range Rover in Moseley Birmingham just before 8am on Tuesday August 26.

He had been visiting his fiancee. Police believe Saleems killers struck at 1am that morning after he left her flat.DI Nigel Rock of the West Midlands police said local residents heard screams for help at that time.

We believe the attack started as he approached his car said Rock.

It was not robbery or random because they didnt take his car or his expensive jewellery.

According to the police Saleem had been stabbed repeatedly.

West Midlands police are appealing for information about the driver of a blue saloon car which was seen around the area where Saleem was found.

DI Rock says police believe the car may have followed Saleem from Walsall earlier in the evening.

The incident room hotline number is 0121 626 1326

All three retailers which collectively own around 68 stores declined to comment. But it is believed that 3 has made them an offer which they must respond to by the end of the month.

3 sales director John Barton had worked with all three retailers when he managed them in his former role as One 2 One sales and distribution director.

Fonehouse managing director Clive Bailey would not confirm or deny the story.

We have a good working relationship with T-Mobile and we plan to open further stores later this year Bailey told Mobile News.

Ace Contact managing director Azlam Athos declined to comment. Chitter Chatter directors Leonard Leeson and Richard Wortley were unavailable for comment.

The acquisition of T-Mobiles top three solus dealers would increase the networks high-street presence undermining T-Mobile.

A T-Mobile spokesperson said the network was not aware of any discussions between its dealers and another network.

This is hardly surprising as the deal is said to be subject to non-disclosure agreements.