A 3 spokesperson said: It means we have added another handset vendor to our portfolio. We have secured the deal on a global basis across the entire 3 group which says a lot about how Hutchison uses economies of scale to keep costs down.

3 UK CEO Bob Fuller said: Were seeing strong competition among manufacturers to deliver the most exciting 3G handsets. This is good for 3 the manufacturers and 3s customers.

The video mobiles available in the market in the second half of this year are comparable in size and weight to GSM phones but come with the full range of video mobile features.

Sony Ericsson corporate executive vice president and head of sales and marketing Jan Wareby said:

During 2004 global subscriptions to 3G services almost doubled.

We are building our

3G portfolio to support this growthThe K608i is a classic addition to the family that consumers will immediately find appealing and intuitive.

3 claims it now has over eight million customers across the globe.

There was no official announcement about 3G from Virgin Mobile but its web site now lets customers check if their postcode is within 3G coverage. It states:

3G is available to customers who have a 3G compatible Virgin Mobile phone… Virgin Mobile phones that are 3G compatible and are used in areas of 3G network coverage will be able to view Bites and download games and ringtones even faster than before… Right now 3G coverage is available in major UK cities and were working on getting coverage in other towns as we speak.

A Virgin Mobile spokesperson confirmed:

We have the Nokia 6630 on sale which is a 3G-enabled phone. So customers who pick up that phone can now get 3G. You can get Bites content at a higher speed but you cant get any specific 3G services yet. We will continue to introduce 3G handsets to our range. I cant confirm a date for the full 3G launch yet.

3G data rates are currently the same as normal GPRS costs.

Premtel provides a full range of services from premium-rate phone numbers SMS and MMS subscription and messaging services through to complex call routing virtual office systems and automated order lines.

The company which was founded by David Prosser and Neil Scotchbrook in 2003 also offers advertising and web site design.

Which? said that one in seven mobile phones develops a fault within its first year on average following a poll of 2500 UK phone users. It found that 3 was the least reliable network with almost one third of its customers complaining of faults in the first 12 months.

Motorola marketing manager James King said:

Once a handset is in the market there are so many things that affect it from the kind of usage to which a device is submitted to the negative backlash of being associated with a network. One of the operators had more issues [than others]. Because we are one of the few suppliers to that operator we have got a bad rap. It isnt reflective of Motorola as a whole.

A 3 spokesperson said: Which? has taken a sample size that is not representative. It has spoken to 50 of our customers when we have a customer base of three million. The other thing is that you cant possibly compare text- and picture-messaging GSM phones with the new and complex technology available on 3G handsets.

Which? magazine principal researcher Pete Tynan said:

There is no way that we would recommend Motorola or Sony Ericsson handsets or the 3 network to any consumer. It is staggering. Around 600000 phones are going wrong every year and those customers dont receive the right help.

Tynan added: It is a statistically valid sample. Any number over 30 gives you a valid sample. And when almost a third have a problem then it sends out a very clear signal.

Other UK network operators dismissed the report.

A statement from Vodafone said: Over 90 per cent of the population in the UK now have some sort of mobile phone in a market which is extremely competitive between network operators and the mobile phone manufacturers.

At the end of the day a phone that doesnt work cannot make money for us so it is in our best interest to sell a fault-free handset. Whenever problems occur we seek to solve them for our customers as soon as possible.

An Orange statement said: We offer a 14-day no-quibble money-back policy. Additionally we offer a policy that in the event that a mobile phone is faulty an Orange customer can return the phone to the Orange shop they bought it from within 28 days to exchange it. These policies are in addition to customers statutory rights.

The network added: The recent Which? report fails to make the distinction between a network operator and a handset manufacturer and doesnt address whether when a customer has had a problem with their handset the problem was resolved by Orange.

Tynan responded: Customers get passed between the network the manufacturer and the insurance company. But it is up to the retailers – both the high street chains and the networks own stores – to sort this problem out. If they have problems with certain manufacturers they should stop selling them.

The CWU was still to engage in a final round of talks with O2 over its pay offer to CWU members. The decision on whether to serve notice of industrial action against the network depending on how the talks went this week will be announced today.

CWU lead negotiator Dave Johnson was not hopeful that both sides could reach an agreement.

O2 has attempted to resolve some of the problems but has not so far showed sufficient willing for us to change our position said Johnson. We dont want to go down the road of industrial action but we are not going to hold our breath.

CWU members rejected O2s pay offer by a margin of 24 to one last week. The CWU balloted 3700 members and recommended they reject O2s latest pay package which it claims would freeze the basic pay of half the workforce for seven years and link that of the other half to unattainable performance targets.

The CWU claimed a 76 per cent turnout with 96 per cent voting to reject the offer.

All calls were re-routed to 3s contact centre in Glasgow normally reserved for business customer enquiries.

Thirty-seven inches of rain fell in a single day July 26 in Mumbai killing nearly 900 people.

Staff at 3s Mumbai contact centre which also takes calls from Hutchison Whampoa customers in Australia were unable to get to work for a week.

UK customers were redirected to 3s Glasgow office and Hutchison Whampoa briefed Avarto its third-party logistical support agency to take calls though it was not needed.

A 3 spokesperson said: The conditions made travel in the city very difficult and many of our team in the contact centre were unable to get into the office. We mobilised additional support quickly to ensure our level of service was maintained at this difficult time and we could answer customer calls.

The call centre team in Glasgow were taking first-line enquiries and Avarto was briefed to provide additional back-up if required. Were pleased that our level of service was maintained for customers and Mumbai is now back online.

See Mystery Caller page 32

Intec is geared to being a large-volume business said Intec managing director Harry Ramis.

When Vodafone moved some of its volumes out it was a wake-up call particularly on costs he added candidly. We replaced much of that volume but we need to re-shape. Joining forces with Fonebak can only help.

Ramis has stayed on as managing director and insists there will be no changes to the structure of the business or to staff.

The decision to sell means we can keep our management structure intact. I like the idea of being a part of the continued success of Intec Group and Fonebak.

Without the management and trained staff Intec would just be another repair centre he said.

We were determined to maintain our high service levels and find a safe harbour for all of our team. The ability to provide on- and off-shore services allows us that opportunity.

Intec and Fonebaks relationship began when Intec provided Fonebak with technical assistance and consultancy on testing and repairing handsets in Romania. A chance meeting in January led to discussions he said.

I have always got on well with (Fonebak CEO) Kathy Woodward and knew that she had an interest in adding a UK warranty repair business he said.

Over the past two years there have been several parties interested in acquiring Intec but this deal was for the right terms at the right time. This move gives Intec a competitive edge allowing us to offer our customers a more flexible solution.

He added: Offshore repair and refurbishment services will provide a low-cost alternative on non-time critical units and provides us with another option to offer our customers complementing our existing UK warranty repairs.

The public often dont understand their rights or how valuable a shot might be. They sign away the universal rights to a picture for a nominal flat fee. It could then be syndicated around the world.

Scoopt members retain copyright to their photographs and receive half every licensing and syndication deal. Members submit pictures by MMS to a shortcode or they can e-mail them via a PC.

(See Comment).

Digicel won a licence in June this year in a spectrum auction and is currently building its network infrastructure going head to head with Cable & Wireless Brewers former employer. 

Brewer walked out of his Cable and Wireless job three months ago after Cable & Wireless director of international business Harris Jones appointed ex-Phones 4U marketing manager Paul Hamburger to a role in charge of Brewer. Jones and Hamburger had both worked together at T-Mobile. Hamburger became commercial director of Caribbean operations requiring Brewer to report to him. Brewer resigned remaining in Barbados on six months gardening leave.

Brewer is best known for his high profile jobs within Cellnet France Telecom and ircell.

Denis OBrien founder and chairman of the Digicel Group commented: Stephens leadership and experience in the telecommunications industry position him to successfully lead Digicel to become the number one mobile telecommunications company in Trinidad and Tobago. We are focused on a rapid rollout of innovative services that will give customers the opportunity to choose a service provider that offers added value superior customer care and wider coverage.

OBrien launched Digicel in 2001 after selling his Irish mobile network Digifone to O2. The company already operates in eight Caribbean countries including Jamaica Barbados and Grenada and is to expand shortly into Haiti.

See White Lines page 48

The report claimed Caudwell had appointed NM Rotchschild to sell the Caudwell Group.

The consensus was that the group would only be likely to be sold in its constituent parts.

The jewel in the crown is 20:20. Phones 4U is struggling and the shops are all on short leases said a senior Carphone Warehouse staffer. The networks already have their own retail presence. 3 has been mentioned as being a possible buyer but [chief operating officer] Gareth Jones has told us he has no intention of owning a chain of high street stores.

He may get an approach from a private equity partner. But I doubt any existing company in the mobile industry would be interested.

A Vodafone executive endorsed the view that the networks would not be interested in Phones 4U as they had already established their retail presence.

Ovum principal analyst John Delaney said:

Its wise to approach unconfirmed press stories about Caudwell with circumspection. However this one seems to be solid and makes some sense. The UKs mobile phone retail market is intensely competitive and is getting more so. The mobile network operators direct retail stores have become a prominent feature on UK high streets. Tesco Superdrug and WH Smith have also moved into mobile retail in various ways making it harder still for Phones 4U to grow either market share or profit margin. If Phones 4U is up for sale it would seem to indicate that Caudwell is not thrilled about the prospect of eroding his hard-won personal fortune to fuel the increasingly steep uphill climb to grow the Phones 4U business.

Delaney added: Perhaps hes decided that hed prefer to take the cash and let someone else try as he did with service-provider subsidiary SinglePoint which he sold to Vodafone for around 400 million. It seems that hes looking to repeat that coup on an even larger scale.

One option could be that Caudwell might approach a rival distributor and/or retailer to take over the running of the group.

Meanwhile Caudwell is proving uncontactable by journalists. All enquiries are being routed to David Ginivan group head of Caudwell PR who is telling the media:

We dont comment on market speculation about acquisitions flotations or disposals of any kind. The Caudwell Group has always been surrounded by speculation. I have no comment.

See Business Watch page 14;

White LInes page 48