The supermarket now owned by American food giant Walmart has complained to Oftel claiming that the move is evidence of anti-competitive behaviour by the network operators who are concerned about a massive surge in connections occasioned by recent massive reductions in retail prices.

Tesco who were the first supermarket to slash the cost of all its pre-pay handsets to 49.99 are believed to have sold 100000 handsets since the price reduction whilst Asda are reported to be selling some 4000 units a day.

Sioned Rees-Thomas Asdas home and leisure business director said Having turned mobile phones into everyday items BTCellnet and VodafoneAirtouch now want to re-introduce higher charges and put the low-price genie back into the bottle.

Continued Rees-Thomas We thought the networks were prepared to see mobile phone users get a better deal unless the regulator acts fast we may be wrong.

A spokesman for BTCellnet said We totally refute the accusation that increases in the cost price of pre-pay handsets supplied to them is unjustifiable. We also refute any implied accusation of price-fixing.

He continued Wholesale pricing of pre-pay phones supplied to supermarkets has been based on providing highly subsidised handsets and an assumption about potential call revenues to recoup the cost of that subsidy.

From September 1 BTCellnet is changing the mix of its wholesale pricing. It will no longer be subsidising pre-pay handsets; instead it will supply handsets at cost price to supermarkets said the BTCellnet spokesman.

He concluded We monitor our wholesale pricing on an ongoing basis. This is a commercial decision to reflect current market conditions. We will keep our wholesale pricing structures under review and make further changes as necessary.

A VodafoneAirtouch spokesperson confirmed that the network has reduced commission payments to distributors for Pay as You Talk. We regularly vary our subsidy payments; it is normal business practice to do so. Any change in the level of subsidy and the timing of these such changes is based on prevailing market conditions the spokesperson told Mobile News.

The network does not deal directly with Asda though Vodafone Connect of course does. Said the spokesperson Vodafone Connect has passed on the subsidy reduction to retailers. It is up to the retailers what they charge for the product.

Added the spokesperson Traditionally we have done business according to the gross pricing model. But Pay as You Talk has been available for two years; it is no longer an entry product. Demand for it shows no sign of abating. As a network we have to be responsible in the way we conduct business and that our customer services and operational capabilities are in place.

We are not just selling a phone in a box. Customers expect to receive a high level of service. Distributors and retailers would be displeased if customers did not receive the level of service they expect. We are committed to providing that quality of service.

Concluded the spokesperson It is up to our distributors to decide on the level of bonus payments and commissions they make available. Only they can decide how they conduct their business.

Mike Liverton is Sales Director of Anglia Telecom which sells all four networks pre-pay offerings. He summarised the current position. One 2 One is not moving towards gross pricing but their prices have gone up. The lowest retail price point for a One 2 One pre-pay package is 89.99 so their product is between 15 and 17 more than their competitors.

Orange have stayed at 69.99 but they have gone over to gross pricing which leaves their net price at 35 Liverton told Mobile News.

This taken with the changes announced by VodafoneAirtouch and BTCellnet is good news for dealers believes Liverton. As a distributor we have always handled airtime propositions. We are used to handling gross commission based transactions.

Pre-pay has enabled anyone who was prepared to shift boxes at a very low margin to get involved in this industry.

It also challenged the market to shift phones for very little profit so encouraged anyone who felt like it to deal in cash. These people need not be VAT registered and need have no commitment to providing an ongoing service. Recent announcements by VodafoneAirtouch and BTCellnet means that the way pre-pay comes to market can now be controlled added Liverton.

Historically everyones been conscious of market share but it has gone beyond that now. The networks have realised that they dont want market share at any cost and pre-pay was costing them too much said Liverton.

The networks were faced with the problem of how to handle the situation and with the focus on price fixing legislation what they have done is a method of managing the way the product is handled managing the cost of the product and controlling the eventual cost of the product on the High Street.

They have come up with this mechanism which allows them to exert some control without necessarily putting the final retail price up.

Dealers by and large are quite pleased with the turn of events because they see an end in sight for the market being ripped from underneath them believes Liverton.

However he adds Its a nightmare for us though because we do not have an adequate level of supply. We are trying to maximise the return we get on the product we do receive.

Reflects Liverton We are now going to incur additional costs in the way we get the product out and in the way we attribute the commission to the dealers account when that product is connected. We then have to manage the way that we integrate that and normal contract business. Fortunately the platforms are in place to do all that.

Concludes Liverton The networks win because they take the money from us. They are enhancing the subsidy to justify a higher invoice price. They are covering themselves whilst we have to pick up the cost.

The up-side is that hopefully the non-specialists will suffer because we have the mechanisms in place to cope with the move over to gross pricing whilst they do not.

The supermarkets will either have to start from scratch or simply not bother.

Webb reports to chief executive ted Beddoes another ex-Vodafone man. Beddoes worked at Vodafone in its earliest days as head of engineering setting up the then new cellular network.

Webb left Vodafone two months ago amid rumours that he had been fired by Vodafone UK managing director Peter Bamford.

Beddoes who held both the group chief executive officer role and that of the UK MD whilst establishing the Dolphin network will now concentrate on his role as CEO of Dolphin Telecom with responsibility for all of Dolphins European operations.

Said Beddoes:

We have produced the first network to be launched with national coverage. Weve overcome many significant challenges. What we now need in the UK is an even greater focus on the needs of our customers to capitalise on this achievement. Mike Webb can make this happen and I am delighted to have him on board.

Webb was at Vodafone for six years. Before that he worked for Black & Decker for 14 years developing the companys brand in

Europe.

I fully expect Dolphins unique product to give it a significant edge when we start really getting to grips with the corporate mobile communications market. None of the other mobile operators have successfully broken away from their communication for individuals roots. Dolphin has a very different service and I am really excited by its potential said Webb.

Manxs package is the Siemens C10 5 call voucher and leather case. European Telecom will provide Manx with logistic support procurement assembly special leather cases and after-sales support.

European Telecoms service and repair subsidiary ServiceXpress which has just received Siemens accreditation will handle after-sales service.

An important factor in deciding to work with European Telecom was the fact they are able to offer a one-stop solution. Not only are they able to build assemble and distribute the volume of products necessary but they have the capabilities to provide after-sales support said Manx Telecom director of customer services Mike Cook.

Cellcom head Paul Cohen said the proceeds made this an exceptionally profitable investment.

Before joining Brightpoint Torstensson had worked for Ericsson and previously had been general manager of the Mobile Phones and Terminals Division of Ericsson and head of Ericssons mobile phone business in North and South (Cont P2) America. At Brightpoint he presided over the closure of the companys European divisions and closed down the complete disposal of operations in the United Kingdom including the sale of its airtime reselling business (Mobile News July 12)

Brightpoint president Mark Howell described Torstensson as an excellent leader of our strong management team in our Europe Middle East and Africa division who built the management team and developed and implemented the strategy that the management team is continuing to execute.

Torstensson said:

I am very proud of the accomplishments of our management team. While I am disappointed that I will no longer be directing this team I look forward to working with them in this new role.

The opportunity to lead this market region for Ericsson allows me to fulfil a long-term goal.

Stephen Fox (35) had worked at BT for 18 years. He admitted seven charges of false accounting. The court heard he submitted fake expenses claims duplicated claims and doctored receipts. He had also put in unauthorised claims for a microwave oven perfume restaurant bills taxisand even plants.

The prosecution put the total loss at 7622 which was disputed by the defence which estimated the true figure was 6491. Davey had worked in BTs energy section.

For the last year Donovan has been working for Cable & Wireless as chief commercial officer for C&Ws Australian network Optus.

Donovan (41) takes up his new position on October 1 reporting to Vodafone UK chief executive Peter Bamford and will be responsible for commercial strategy and marketing for the company.

He will bring extensive consumer marketing and mobile telephony experience to Vodafone UK and will perform a critical role for the future as one of my senior team said Peter Bamford.

Donovan replaces Mike Webb who left Vodafone in June

He is the second One 2 One executive to find a senior role within Vodafone.

Alan Harper who is now managing director of Vodafone Ltd (the network) was poached from One 2 One where he was strategy director.

Adam Phones will continue operating under its own name. However all the hire kits invoices business cards etc will be dual branded for all Carphone Warehouse customers who hire out mobile phones.

This merger will enable The Carphone Warehouse to continue to provide the best customer service advice and choice of handsets to our hire customers said Carphone Warehouse managing director Charles Dunstone.

West was responsible for developing and launching Sky Digital and helped set up Sky Digitals interactive TV service Open. He is also vice chairman of Intertrust Europe a leading digital rights management company.

West has brought with him a team of ex-Sky Digital executives. Max Alexander who was previously involved with Skys internet strategy will be managing director of the new Carphone Warehouse division. Deputy MD is ex-Sky Digital customer marketing director David Thatcher.

Chief financial officer is Amy Stirling who was previously with Rank and accountants Arthur Anderson.

The Carphone Warehouse has earmarked $50 million for The Wireless Internet Portfolio (WIP) fund which provides capital to early stage start-up internet ventures. Two investments have already been made with Wildfire the voice activated integrated messaging service implemented by Orange and the first pan-European WAP portal Wap

World.Net.

These appointments are central to our business strategy to take advantage of our existing reputation in the communications market place and to become a major player in the European wireless internet market. In 10 years we have grown to be a major European force and our customer focussed approach has proved a winning formula across a number of markets in Europe said David Ross chief operating officer of The Carphone WarehouseSaid Ian West:

We are delighted to join The Carphone Warehouse to develop its wireless internet strategies. The Carphone Warehouse is in a unique position with its distribution strength as Europes largest independent communications retailer to bring together an excellent group of wireless internet partners.

The market is developing very fast and we expect to announce a number of new initiatives over the coming months.

In addition two new group directors have joined the board of Carphone Warehouses holding company Worldwide Telecom.

Ex-BBD Stoy Hayward partner Roger Taylor has been hired as as group financial director and Susan Anderson has left Blockbuster Entertainment to join the company as group human resources director.

The deal is subject to contracts which are yet to be finalised and signed.

As well as the more own label the company also markets the THB and Chatman brands of hands-free kits. It is located in Troisdorf between Cologne and Bonn and supplies distributors throughout Germany.

Fone Range managing director Jay Pau said that his company had known and admired more for several years.

It is the best accessories company in Germany with an excellent reputation throughout the country.

Their product quality and customer service are of a similar high standard to our own. Like us their objective is to remain at the forefront of new product technology and design. Our two ranges are entirely complementary and they will now be able to offer customers our 3500 products as well as their own.

It as vitally important for us to expand in all sectors of Europe. However Germany is at the hub of Europe with an accessories market estimated to be worth DM700 million. This partnership will help our growth significantly. We already own companies in Spain and Ireland where like Germany the market is expanding rapidly. Many of the major UK retailers have also recognised the potential and opened in Germany and other parts of the Continent and we regard it as important to be able to support them in their expansion plans from both a fulfilment and logistics solution.

Mobilfunkzubehoer MD Robert Penin added: We have a great deal in common in particular our business philosophy and the way we operate. It will also help us to open many new sales channels.

We are looking forward to a long and successful partnership to the benefit both of our two companies and our customers.