Ofcom is investigating complaints by Vodafone about O2s TV ads which claim O2 gives the best ever mobile network performance.

Vodafone originally complained to the Broadcasting Advertising Clearance Centre (BACC) which approves ads for transmission.

An O2 spokesman said:

Vodafone went to the BACC and raised some issues that it had about our ads. We had already bought the advertising space and the ads have now run their course.

The claim in the ads is entirely accurate. The last published Oftel finding from December 2003 found that we had the highest score ever by a network operator said the spokesman.

In another advertising showdown O2 is due in the High Court following an injunction against 3 for alleged copyright infringement and inaccurate claims about O2s pre-pay tariffs mentioned by 3 in its advertising.

O2 issued a writ against 3 and a High Court hearing is scheduled for next Friday. O2 alleges 3 infringed 17 O2 trademarks and made unfair comparisons with its tariffs.

In a statement 3 said: Our comparative ads are a bit of fun as we are the new guys in the market. O2 is claiming trademark infringement over the bubbles. O2 is upset because weve got some of its bubbles. But the only thing weve got of O2s is its customers.

This is part of the cut and thrust of the industry. Obviously its rattled by the pace weve set and wants to slow us down.

A spokesman for O2 replied:

We filed complaints with the Advertising Standards Authority against 3s ads which compare its prices with ours.

Eight of the nine complaints were upheld. Separately we filed a claim to stop it using bubbles in its TV ads.

We believe this is clear trademark infringement and passing off. Oxygen bubbles are a standard look and theme in our marketing. 3 is not entitled to use them in a way that evokes O2 without our permission.

3 is simulating our ad or a

T-Mobile ad and making claims about how expensive it is compared with ThreePay.

We think the information is highly misleading and confusing because it is comparing apples with oranges.

Ironically it wasnt that long ago when O2 itself was accused of passing off in its advertising.

Last June the network was forced to end its 4 million cross-network advertising campaign after Sony complained that four symbols used in the O2 campaign were too close to the registered trademarked symbols that Sony uses for its PlayStation games console.

That row was eventually settled out of court.

The crusher was called in after complaints from drivers that the equipment melted when plugged into the dashboard.

The imitation products were seized in a joint raid with Nokia from a wholesaler in north London. They were crushed by Trading Standards officers last week in an attempt to raise awareness of fake items for sale on the high street and the risks of purchasing them.

Trading Standards chief executive Ron Gainsford said:

Counterfeiting is a problem that affects everyone in the community. In the case of the hands-free mobile phone kits seized in Camden it is easy to imagine that a kit melting on a busy road like a motorway could distract a motorist to such an extent that it could lead to tragedy.

A Trading Standards spokesperson added: The Camden office received complaints that consumers had plugged the kits into the car and they had begun to melt. Potentially they could have set fire to the car or the user could have received serious burns.

Trading Standards also chose to crush the fake mobile car-kits to highlight National Consumer Week which urges the public to get real and say no to fakes frauds and scams.

Trading Standards lead officer for counterfeiting Bryan Lewin commented:

Corners are cut in producing copy products which means they will not only be substandard but may also be unsafe or even in some cases dangerous. The general rule of thumb when buying anything is that if it looks too good to be true – it almost certainly is.

Ruth Orchard director-general of industry lobby body The Anti-Counterfeiting Group added: We urge consumers to boycott counterfeits – its the only way to foil the global network of criminals that controls this hugely profitable trade in fakes.

Group Telecom refurbished Nokia phones installed car kits and dealt SIM-free handsets airtime contracts and accessories.

Manchester accountancy firm CLB which is handling the liquidation refused to discuss details of the case but a CLB spokesman said:

The directors have approached us to place the company into liquidation. We are collating all the information now.

A formal statement from CLB partner Diane Hill said:

The directors of Group

Telecom Limited have consulted this firm in connection with the companys present financial situation. After due consideration the directors have formed the opinion that the company is insolvent and have decided to commence liquidation proceedings.

I have been nominated as liquidator of the company and I am currently in the process of assisting in the preparation of a statement of affairs and report for presentation to creditors.

A copy of this report will be sent to all creditors following the creditors meeting.

Virgin Mobiles Lobster handset is the first fruit of the virtual manufacturing operation.

The Lobster 485 is the smallest flip handset available in Europe according to Virgin Mobile. It features a 262k colour screen and an integrated VGA camera. It will retail for 89.99.

The phone is made by Bellwave which has manufactured or developed devices for a number of other brands such as LG and Bird.

Bellwave has a turnover of $450 million ( 247 million).

The Lobster sub-brand is aimed at 16- to 30-year-olds. Data Select will manage the product sourcing packaging logistics distribution and fulfilment of the entire Lobster range for Virgin Mobile.

Unique was originally scheduled to handle the operation before it went bust.

We are buying all the Lobster range in from Data Select who sourced it said Virgin Mobile product controller Jim Powell.

According to Powell Data Select is looking to represent UK networks and retailers as a go-between with different manufacturers on different continents and in different time zones.

It takes care of all the servicing and logistics involved and our impression is that it appears to have been doing it for years.

We are in discussion with around 30 different brands that arent so familiar in the UK yet. Our expectation is to introduce very attractive products when the end-user is ready for them.

It is a great opportunity for these manufacturers to bring their products to market under the Lobster brand instead of their own.

Powell claimed there are always a dozen or so phones released each year that the industry gets really excited about.

Most products by unknown manufacturers are looked on with great scepticism. But everyone who has seen this device so far has responded well and our sales forecast has gone up as a result he said.

Peter Jones chairman and CEO of Phones International Group said: Data Select is well positioned to support Virgin Mobiles focus on customer service and delivery of innovative products and a variety of services.

Graeme Hutchinson sales and marketing director at Virgin Mobile added:

The Lobster 485 marks the beginning of a new portfolio of phones for our customers.

The products emerging under the Lobster brand will all complement the excellent products coming from the established mobile phone brands

Lobster phones will feature a Virgin Mobile-branded red shortcut key to the virtual networks entertainment portal BITES.

Virgin Mobile expects to bring two new Lobster phones to market before Christmas.

It will also launch a series of promotions merchandising and advertising campaigns around the Lobster brand from July.

The men hijacked corporate phone lines of companies such as BP to dial premium-rate numbers on mobile phones reports James Blackman.

Jonathan Rees 23 and Mark Rebeiro 25 had set up the premium-rate lines themselves and racked up a profit on the calls of 63000 and 12500 respectively.

They were found guilty at Truro Crown Court on September 7 of conspiracy to defraud and were each sentenced to 30 months in prison.

The total combined cost to the victims is estimated to be 250000- 300000. Vodafone fraud risk and security manager David Morrow said:

This must have cost the victims at least 250000. A content provider only gets about 20p out of 1 charged to the caller.

DC Rob Williams of Penzance CID who led the investigation for two-and-a-half years put the fraud even higher at around 300000.

A Mercedes and a Porsche have been confiscated as proceeds of the crime.

Rees and Rebeiro used contract Vodafone mobiles to make the calls. Some of the switchboards that were attacked belonged to Vodafone clients. Vodafone successfully tracked the locations of the calls and identified the handsets and accounts belonging to them.

Evidence supplied by Vodafone showed that Rees and Rebeiro tapped into Vodafone private wire numbers used by businesses to enable employees to re-direct a mobile call via the company switchboard.

They then phoned the premium-rate numbers that they had set up. The premium-rate calls were billed to the victims of the fraud.

Rees and Rebeiro obtained a total of 75500 in fraudulent revenues between December 1 2001 and April 30 2002.

Companies hit included BP Zurich Newbury District Council and United Utilities. Rebeiro insisted on his innocence until he entered a guilty plea. Rees changed his story continually said DC Williams.

The premium-rate network operators will retain the revenue because they were not involved in the scam.

DC Williams said: It was a nightmare. Im not a specialist and the combination of technical information and the sheer volume of data involved was very daunting.

Operation Venison collapsed after the defence successfully argued that information crucial to the defence had been withheld.

Customs must now pay part of the costs incurred by the defence as these costs were incurred as a result of an unnecessary or improper act or omission by the prosecution.

The total costs incurred by the defendants through the legal aid system are estimated to be around 6 million.

Barrister Anthony Barnfather defence counsel in Operation Venison said his firm Pannone & Partners decided to make the application because defence costs had spiralled through no fault of the individual defendants or their lawyers.

See Our Shout page 22

Hore said: Im head of the UK for mobile phones. From the end of December that role ends. I am one of three people in the UK who are being redeployed or ultimately made redundant.

The other two UK employees affected are sales development managers Andrew Kidd and Robert Hughes.

Philips has two major centres of operation for marketing and sales in Paris and Hong Kong. But as part of a refocus on the Far East and eastern Europe it will close the Paris centre by the end of the year.

We are not doing a huge amount of business in western Europe but we are doing a substantial amount of business in China and Russia particularly and this closure is about concentrating our efforts so we can continue and try to grow that said Hore.

Paris closing means that the operator field sales teams in western European countries including the UK Italy Spain France Portugal will also close by the end of the year Hore said.

Hore said the news hadnt come as a shock. Its been obvious for the past few months that something needed to change but the formal announcement has only just been made in the past week.

If there are suitable jobs within Philips they will be put to us for consideration added Hore. We are also looking at opportunities outside the company. In the next few weeks we will make our decision.

See Whats Out page 18

Seven B2B specialists have been recruited to the programme boosting the team to 12. Mainline is in the process of recruiting three others.

The programme dubbed Business Mobile provides dealers with a business toolkit of sales and marketing activities and commercial incentives. The aim is to assist dealers to grow their Orange business within the SME market.

Mainline marketing head Gail Hollinshead said the necessity for extra staff reinforced the success achieved by the original members of the programme over the past 12 months. The group deals with 46000 SME customers and sells around 185000 handsets a year.

We have developed a comprehensive range of sales and marketing activities for the dealer to choose from each of which is specifically tailored and suits their budget and priorities said Hollinshead.

Each activity is undertaken on the dealers behalf – allowing them to concentrate on growing their business. The programme includes a fully supported web site e-mail campaigns trade and local public relations a full tariff analysis service appointment setting with sector-based data additional incentives plus stationery and proposal templates.

Orange accreditation gives them added credibility in the market and helps to secure business added Hollinshead.

Our direct and ongoing involvement in support activity allows dealers to focus on sales. We look to hit specific market sectors that will provide us with the customer profile and handset volumes that our dealers want to target.

Hollinshead says that in return for this support Mainline expects participating dealers to be dedicated and committed to the programme. However she pointed out that they do not have to be solus Orange.

The dealers involved receive a significant number of leads from Business Mobile and that is reflected in the increase in Orange connections she says.

Tesco is expected to start offering contracts over its web site in the next few weeks. It will then begin trialling the service at some test stores before the end of the year. Dedicated in-store stands will give shoppers the chance to sign up to a contract there and then.

Tescos move into contracts is separate from Tesco Mobile the MVNO that uses the O2 network to offer two low flat-rate pre-pay tariffs: Tesco Mobile Tariff (handset and SIM) and Tesco Mobile Value tariff (SIM only).

Tesco Mobile has picked up more than 750000 subscribers since its launch two years ago. It is thought this success has given the supermarket giant the confidence to chase similar success with contract customers.

Tesco Telecoms spokesperson Joanna Kinloch said: Weve been looking at offering contracts since launch. We are still investigating all the different routes with mobile networks and distributors. Nothing has been finalised yet.

The network source said that Dextra would be supplying the airtime for all five networks in Tesco stores as well as online.

The potential revenue stream is huge. Its rivals will be gutted to miss out on this said the source.

In the past 12 months Dextra and 4U Airtime have won business from other multiples such as Boots Jessops Morrison and Asda. These contracts now boosted by Tesco mean Dextra and 4U are dominating the multiples channel.

Mark Ormerod group managing director of Dextra and 4U declined to be drawn on whether the Tesco contract had been signed but didnt rule it out.

We continue to build our relationship with Tesco he said. We have supplied a number of product ranges into Tesco stores for some years and the relationship continues to flourish. I cant comment about any airtime contract.

He admitted: My presence may have been a hindrance to the recovery because there is still some contention about the administration. Some people are still blaming me for the collapse. My being part of the executive was leaving a bad smell. Also my heart was just no longer in it. But it is a wrench to leave.

Dawe plans to set up another company focusing on new technology. He said: I have no intention of building another Unique or working for a competitor. I will be starting a niche business in a new area.

Unique chairman John McFarnon said: The recovery of Unique since its takeover in April of this year has been beyond all expectations. [Unique co-founder] Rob Lees and I supported by the strong management team we have assembled are totally focused on continuing the companys outstanding progress to date.