Vodafone buys Scottish SP

The new company has 66000 customers around 90 per cent of them already connected to Vodafone

The business is based in East Kilbride and operates 25 retail stores in Scotland Northern Ireland and North-East of England.

We are delighted to have concluded this deal with ScottishPower and Martin Dawes Telecommunications with whom we have had a successful relationship for many years. We plan to integrate the business into our UK distribution structure said Vodafone UK chief executive Peter Bamford.

In another development VodafoneAirtouch last week became a 100 billion company when its shares touched 3.22. To put this in perspective Vodafone was valued at 130 million when the 20 per cent owned by Racal was floated in 1988. It was worth 3.3 billion in 1991 when it achieved full independence from Racal.

Boots may repeat killer 2-for-1 offer

For the last 10 days customers in selected Boots outlets were invited to select and pay for one phone from a choice of 12 pre-paid packages in order to qualify for another pre-paid phone package up to the same value completely free of all charges.

But most branches ran out of stock within hours of the offer taking effect. A Boots spokesperson admitted that stocks did not last for the whole of the 10-day period of the offer.

We have made clear all along that this promotion is being run on a first come first served basis. The promotion is going very well. It is possible that some stores will run out of stock before the 15th November. But I do know that we have been successful in sourcing more stock which has been supplied to some 20 of our larger stores.

Pre-paid packages have been available at selected Boots stores for some time

We quite often run buy-one-get-one-free offers across the whole of our product range. So we (Cont P2) are not singling out mobile phones. Last year we saw just how popular pre-paid mobile phones particularly were as presents. We have just seized a commercial opportunity as it presented itself. Naturally we have made the most of the negotiating power we have as a company

Emmanuel resigns from DX retail activities

Their departure on November 5 came just weeks after the company was sold to BTCellnet for 42 million.

Emmanuel and Whyte founded DX in 1991 and transformed it into one of the most successful mobile phone retailers in the UK.

The pair are now going to concentrate their energies into their new holding company which includes European retail interests financial services hire and Westwood Communications the Clydebank-based mobile phone repair and servicing centre. Westwood is now one of the largest businesses of its type in Europe.

The company recently announced the creation of 100 new jobs.

Said Emmanuel:

It is strange for John and I to move on from something we have been so involved in for eight years. However we both believe DX Communications is in very good hands with BTCellnet.

E-commerce plan by ET

The business is as yet without a trading or brand name and is still to launch its product range. But Mobile News understands the company will concentrate on new value added services with the emphasis on e-commerce. It will trade in the UK Europe and the Middle East.

Schweidler told Mobile News:

Initially well be looking at pre and post-pay calling cards and at the pre-pay mobile card market. For the time being at least well be working closely with the mobile operators. The first types of products will probably be in support of voucherless pre-pay. Were looking at new ways of doing electronic top-ups.

This is the first time Schweidler 41 has set up a company from scratch. Though he does have experience in working for start-up companies like Plessey Telnet.

Warren (Hardy) had been working on the idea behind the company for a while. He was looking for somebody to take the idea he had and make it successful. Its an ideal match. Some of the ideas weve had and some of the things we will be doing are essentially very simple. One of the richest men in the UK made his fortune from cardboard cartons. One of our key ideas is not much more complex than that he revealed.

Pre-pay is going crazy and not just here in the UK. There are opportunities there for the taking in almost every European company though some are more developed than others. Those countries which have made a determined effort to increase penetration clearly see that pre-pay is the route to follow.

Ex RSL Com Financial Director Ian Bright is understood to have joined Schweidler and Hardy in the new venture

BT swoops on pre-pay fraudsters

BTCellnet Security BT UK Investigations and the National Crime Squad mounted a series of operations in the Leeds and Loughborough areas against suspected manufacturers and suppliers of re-chipped BTCellnet pre-pay phones.

Ten warrants were served and premises searched. Nine arrests were made. Up to 30 BT and BTCellnet security personnel and twice as many police officers were involved (from West Yorkshire and Leicester police forces along with neighbouring police forces) as well as representatives from the FCS Crime Prevention Scheme and Trading Standards officials.

Items recovered showed that the perpetrators were involved in other counterfeit fraud. A sizeable sum of cash re-chipped handsets and other counterfeit goods including clothing digital set top boxes CDs and CD ROMs were seized.

Before this operation had taken place 19 people had already been arrested in half a dozen operations around the country. Whilst BTCellnet believes that the key perpetrators of the pre-pay re-chipping fraud have now been caught it is carrying out further security operations over the coming weeks.

These criminal offences (including simple possession of a re-chipped handset) carry a maximum sentence of five years imprisonment under section 42 of the Telecoms Act. With the evidence gathered we are confident that prosecutions will be successful said a BTCellnet spokesperson.

Bank sends its receiver into troubled TCL group

Administrative receivers from KPMG were appointed late on Monday 22 November 1999 to take over the company which trades through the 39 retail outlets in London and the South East Midlands and North of England areas.

TCL had about 300 dealers connected mainly to Phones 4U. There have been rumours that TCL had been hit by some dealer fraud and tight margins on pre-pay. Some dealers had allegedly been putting in invoices for commissions for pre-pay rather than contract business.

Earlier this month TCL had paid off five dealer sales managers in a streamlining process (Mobile News November 15).

Telephone Communications Limited was established in 1984 and had a turnover of 21 million in the year to June 1999. The company employed 130 people in total including head office staff.

Joint Administrative Receiver John Dare said:

As administrative receivers we always try to restrict job losses to a minimum. All the outlets have closed hopefully temporarily while we seek a purchaser for the retail business. We are looking to sell the various parts of the business quickly to maximise returns to creditors. The retail operations are likely to be the main centre of attention for potential purchasers.

The company was closed down suddenly at 5pm on November 22. According to a source close to the company staff were told to collect their belongings and were walked off the premises. The locks were apparently changed in 20 minutes.

Directors Tony Lane John McLuskie Terry Cork and Rob Musk were said to be crushed by the banks decision.

The directors had apparently fought a last-ditch battle with the bank on the preceding Friday to keep the company alive.

No-one blames the directors. Everyone was very disappointed because they had all been working extremely hard. Retail connected something like a thousand new customers last week and the direct call centre was starting to get busier. Things seemed to be on the up. Morale had been good despite the redundancies of a few weeks ago. So the closure has come as a complete shock said the trade source.

Another Dextra Accessories manager goes exec

Norths departure comes two weeks after Dextras managing director Richard Slee left the company under circumstances believed to be less than amicable (Mobile News May 3). North is believed to have returned to the computer industry. Caudwell Group directors and senior managers have been instructed not to take calls or make comment on the matter.

However a usually-reliable trade source said the departures of Slee and North are linked with Dextra sourcing its Nokia accessories from grey sources rather than from official Nokia UK channels.

Orange scraps daily Just Talk charges

BTCellnet says there is nothing new about this as its U prepay service has for some time had no service charges or expiry dates on vouchers. But the network did acknowledge that the ability for an Orange pre-pay customer to migrate to contract was a new feature.

Just Talk pre-pay customers will be able to migrate to an Orange contract tariff at no charge and retain their number. New Orange Just Talk call charges are 5p a minute (off peak) and 25p a minute (peak). Orange to Orange calls are as low as 5p a minute and also come with free text messaging until May.

And Orange CEO Hans Snook accused other networks of knowingly fleecing pre-pay customers of 500 million a year in hidden service charges. He called for the industry to end its practice of misleading statements and small print catches.

Vodafone spokesperson Corinne Norris commented:

It seems Oranges announcement reflects what is already available. Most of our customers use up their calling credit well within the three months they have. Vodafone has led the way in pre-pay with over three million customers more than Orange and One 2 One put together. We think Hans Snooks comments about customers being fleeced do the customer great injustice. Todays customers are more sophisticated than that.

Snook further said:

Few would argue any longer that we are rapidly moving to the position where the great majority of individuals will own a mobile phone and where the mobile will increasingly displace traffic that used to be carried by fixed line phones said Snook.

It is sad to see the mobile market place littered with confusion and competitive claims often based on wholly misleading information.

The mobile industry has to learn that there is only one thing that matters: giving customers a fair deal and treating them in a way that creates trust.

We are a young industry but that does not seem to stop us from exhibiting some of the vices of old-established industries.

Pre-pay phones are a currently a good example. Pre-pay offers individuals perhaps the easiest way to buy a mobile phone. They put the individual in charge of what they pay and the purchase cost is relatively low.

In consequence as many as 5.3 million pre-pay phones have been bought this year alone. Thats out of a total pre-pay market today of 8.1 million.

Over the next two months Orange expects the market to grow by a further 3.5 million. With that rate of growth it is important that individuals understand the running costs.

Our research shows people do not. Recent research shows that 78 per cent of those considering pre-pay are doing so because they want to control costs.

Yet how many of these people realise that pre-pay can be the most expensive way to pay – especially for the millions who are paying 50p a day over 180 a year simply for the privilege of having a phone before they even make a single call?

In a market research survey recently commissioned by Orange almost half of pre-pay customers didnt know that some networks make a service charge for pre-pay and over half of those who knew they paid a service charge didnt know how much it was.

Most pre-pay vouchers have validity dates. Yet few customers count the cost of pre-pay vouchers which expire whether or not the calls that have been paid for have been made.

Orange is launching a pre-pay service with a difference. No expiry dates on vouchers. No daily monthly or yearly service charges.

Every penny spent is on call charges. And those charges are down in price.

Not just within the UK but internationally where Orange is charging over 20 per cent less than BTs standard rates and significantly less than some other mobile operators.

We are also offering our new pre-pay customers free text messaging. If customers find that an Orange contract tariff suits them better all our pre-pay customers will be able to switch at no cost and keep their existing telephone number.