O2 targets 60 dealers over slamming

O2 is considering legal action against 60 dealers for mis-selling O2 products and services it said last week.

O2 has started legal proceedings in the High Court in London against Cardiff-based call centre dealer Communications Direct for trademark infringement and passing off.

It is the second Cardiff-based distance caller that O2 has taken legal action against for mis-selling O2 customers airtime contracts on rival networks a sales tactic known as slamming. It fought Landmark Communications in court in December last year. Landmark eventually settled out of court for £500000.

An O2 spokesman said: The problem is widespread but we are currently reviewing 60 other companies who may be guilty of similar practices.

O2 has received up to 100 complaints from customers per month about the behaviour of Communications Direct. O2 is now waiting for Communications Direct to file its defence against the claim.

O2 said last week that it had received a growing number of complaints from customers about call centres that claim to call on behalf of O2 but churn them to a rival network when they agree to an upgrade package.

Dextra confirms Nokia win

Dextra Solutions has confirmed that it has been reinstated as an official Nokia accessories distributor as reported in Mobile News last week.

The deal means Dextra regains its status as the worlds largest distributor of Nokia accessories.

Nokia terminated Dextras distribution contract in April on the discovery of counterfeit stock during a warehouse audit. Former Dextra managing director Mark Ormerod headed a high-level delegation to Finland following the termination. However despite ongoing talks Nokia had refused to re-sign it until now.

Dextra – part of the 2020 Mobile Group which formed after the sale and break-up of the Caudwell Group – will distribute Nokia accessories through independent dealers multiple retailers network stores and non-specialist channels such as Asda and Tesco.

The agreement also covers the repackaging of Nokia enhancements to address the individual requirements of the businesses that Dextra works with.

2020 Mobile Group CEO Mark Ryan said: This deal is great news for Dextra and it demonstrates the strength of our relationship with Nokia. It ensures that we can give our customers the very best product offering and service in the marketplace.

Nokia UK managing director Simon Ainslie said: We are delighted to announce the signing of this agreement with Dextra and look forward to developing our business relationship together. It is very gratifying to see the enthusiasm with which this news has been greeted by the staff at both companies.

Nokia has used Dextra for accessories distribution for 15 years.

T-Mobile appoints retail director

T-Mobile head of retail Russell Taylor who is instrumental in T-Mobiles plan to double its own store portfolio by the end of the year has been promoted to the role of director of retail.

T-Mobile director of sales Gordon Ballantyne said: Under Russells leadership we are on target to open over 190 new shops by June 2007 bringing our total number to over 300. His dedication and energy has been the driving force behind our retail expansion and this announcement recognises the importance we attach to our retail business.

Taylor joined T-Mobile in 2001 as channel development manager. He then became head of business sales before taking on the head of retail job in July last year.

Motorola interested in Sagem says Garriques

Rumours abounded last week over Motorolas interest in French handset manufacturer Sagem. According to reports in La Figaro head of Motorola mobile devices Ronald Garriques said the company has a serious interest in Sagem sending shares in parent company Safran into overdrive.
Subsequently Motorola has tried to downplay speculation saying that Garriques comment was a general musing about the industry as a whole rather than a specific plan of action.
Sagem is the seventh largest handset manufacturer in the world with a strong hold on the French market and good channel partnerships in South America but is unprofitable.

Avenir hits 2.5k O2 volume targets

Avenir is the first distributor on O2s Advance distributor programme to hit targets of 2500 business connections per quarter and qualify for ongoing support into 2007.

As it stands all distributors that were invited by O2 to join the Advance programme in June have been receiving support from the network to pass down to B2B dealers and help them meet relevant performance criteria.

Moco Fone Logistics Dextra and Anglia continue to receive the benefits of O2s Advance programme although Avenir is the first to hit its targets. All distributors which were selected for the programme have been able to offer six-monthly price books and additional marketing support to their O2 B2B dealer bases as a result of their status with O2.

Distributors have until June 2007 to raise their games and hit sales targets of 2500 business connections per month as well as satisfy key performance indicators such as tenure churn and ARPU.

O2 initially requested distributors to meet volume targets without assistance in order to qualify for the programme. However it decided that its top B2B distributors needed assistance to hit targets and so passed down the programme benefits from the start.

It is thought to be wary of the five distributors selected for the programme entering a price war to ensure they meet targets. It is likely to take into serious consideration factors such as customer ARPU churn and tenure in June next year when it re-assesses the situation.

Avenir managing director Tanny Price said: The support the Advance programme provides will help to grow our dealers businesses by providing them with tangible practical assistance but also by helping them to create progressive individual mobile solutions which will add further value to corporate customers.

O2 head of indirect partners David Plumb said: Avenir has demonstrated complete dedication to meet the demanding qualifying criteria for acceptance onto the O2 Advance programme which is a considerable achievement. We look forward to working with Avenir in this context as the programme has proved to be extremely successful in providing unrivalled expertise and support for our partners so that they can continue to deliver the highest standards in expertise and customer experience.

Looming market slow-down

Global handset sales will slow dramatically next year as developed markets like the UK hit saturation point according to a report by Informa Telecoms and Media.

Informa predicts that handset sales will still rise from 814.4 million at the end of 2005 to 1.255 billion by 2011 but that 2006 will be the last year of significant growth for manufacturers. Annual growth rates will decline from 15.7 per cent in 2006 to just 3 per cent in 2011 they claim.

Informa analyst Dave McQueen said: Manufacturers have enjoyed a fantastic time of it in recent years but theyll struggle to sustain profitability levels. The growth in developing markets such as India China and Latin America is impressive but we are not seeing the same levels of phone take-up per capita. With handset sales in saturated markets much slower and reliant on the replacement of old models the net effect is a major slowdown in overall rate of growth from next year.

Yes predicts 1-in-5 fixed line take-up

Yes Telecom MD Keith Curran has said that its new converged fixed-line service will be such a success that one in five end customers will buy into it.

Speaking at the Yes Telecom Business Partner forum Curran said: The whole proposition is designed for Yes mobile customers. We hope 20 per cent of the customer base will be moved over by March 2007.

Curran recognised that 42 per cent of the market is controlled by BT. If you are up against BT 9 times out of 10 you will win the deal hands down he said. The package is not designed to draw in new customers – it is aimed at the existing customer base. 

T-Mobile Web n Walk offer

T-Mobile launches a new range of Web n Walk packages this week called Plus and Max.

The Max tariffs enable VoIP calls for the first time over T-Mobiles 3G network. It allows 10GB of data usage Instant Messaging and VoIP. The plan costs 44 per month including voice charges as a business option and 22.50 on top of the voice plan as a consumer option.

Another Web n Walk Plus tariff allows 3GB data usage and Instant Messaging at a cost of 29 monthly to business users and 12.50 per month to consumers.

O2 revamps dealer help desk

O2 has overhauled its channel partner services teams to provide dealers and distributors a better quality of customer care.

Before it ran separate help desks for the independent channel retail and its Advance dealers. Now O2 has created a single partner services team and cherry picked its top 150 staff from a total 1500 in customer services who have more than a years experience and can deal with all types of enquiries.

MoCo managing director Ian Robinson said: Its guaranteeing a one-stop shop for enquiries about billing or PAC codes and discretionary discounts. It is a real step forward for dealers and distributors because O2s promising better quality service and less running around.

O2 informed its Advance dealers at a conference in Birmingham last week.

Total Mobile set to shut

Media company Future Publishing has said it will sell or close its news-stand monthly magazine Total Mobile as it shifts its development focus to online publishing.

The title is amongst a group of consumer organs ranging from cars to music that have been deemed by the company as not within the portfolio fit or unprofitable.

The company has entered into a consultation period with affected staff which will last for about a month. They will then make the decision over where the axe will fall.