The move follows One 2 Ones lead to raise the entry-level retail price of pre-pay mobile to 70 a fortnight ago.

Vodafones decision is now raising speculation that the other two networks Orange and BT- Cellnet will also shortly announce similar moves in the coming weeks.

Orange maintains it is reviewing the situation. BTCellnet said they too are reviewing the situation but had no announcement to make.

Network activation bonuses will be reduced by a further 12 in addition to a 6 reduction implemented on February 1.

Vodafone expects the price of its entry level Pay as you Talk packages to be around 70 in line with One 2 One.

The All in One mobile phone packages will be withdrawn from May.

Reaction to the move has been positive from the trade.

Data Select boss Peter Jones says it should have happened sooner.

It should have been done six months ago. It cuts out the non-traditional routes to market and puts an onus back into the lifeblood of this industry and the independent dealers. I agree that some dealers have been doing greater volumes as a result of pre-pay.

But they have suffered badly. I think what well see are more virtual network operations setting up shop and distribution companies along with retailers will have to re-focus.

But Jones argues that the networks need to invest some of the savings back into the trade if the initiative is to really work.

Id like to see the operators put some of the savings into greater development-training programs to create loyalty. It will be needed because there will start to be more content provision and the handsets will start to get more complicated. Dealers will need to be trained in those specialist areas said Jones.

Fone Logistics MD Ian Gillespie was equally enthusiastic at Vodafones decision.

The subsidy had to come out of pre-pay to stop box breaking. It has created a false market but hopefully now this decision will increase sales of contract phones he said.

Gillespie feels the move will have little if no negative effect on his business.

It wont affect our business negatively. We hardly do any pre-pay. It probably accounts for about one percent of our business because we dont focus on it and our sales people are dis-incentivised to sell it.

All the networks have done is made the box breakers a lot of money with pre-pay.

This needed to happen because everyone says it is the right thing to do but it takes brave men to do it first and stand by it.

In the coming months I expect to see a decrease in contract acquisition commissions too because the feedback said Gillespie.

Im getting from the networks suggestions theyll be more focused on revenue streams and customer retention rather than acquisition.

Carphone Warehouse marketing director Jonathan Hook is confident the decision wont have an adverse affect on sales.

Pre-pay has been great for customers but the balance is changing and the handset value has to be reflected because customers just dont understand just how much these mini computers cost.

People who want to get on to pre-pay will get on and raising the price from 20 to 60 or 70 is not an insurmountable price barrier. Im sure the networks will ensure that there is greater value in the box one way or the other so the customer doesnt lose out.

Cellstars European CEO Keith Curran said: We want to assess in the middle to long-term where the market is going and what CellStars options and opportunities are in that marketplace. It is very important for CellStar as a major player to have a key role in every region.

Consultants Andersen are completing its findings and expects the results to be available within the next couple of months.

We will be talking to other key players once we know factually exactly where we are and what our new strategy is confirmed Curran.

The target is equivalent to a growth rate of about twice that of the world market which is what we have achieved during all the previous years said Sagem CEO Pierre Faurre.

The high-growth strategy was unveiled in Paris last week at the launch of new high-tier products topped by the WA3050 smartphone developed in partnership with Microsoft.

Sagem also anounced it expected to appoint more distributors. Previously most of its sales have been through network operators.

Another move will see production of mobile phones in two factories in France and Eastern Europe.

On show at the Paris event was the 3000 range of mobile phones Sagems smallest and lightest to date. Sagem also produced a watertight shock and dust proof phone for outdoor use. It will feature WAP and GPRS altimeter barometer and a mini flashlight.

They will cost 2250 (exVAT) for a table of 10 for the event to be held at the Hilton on Park Lane March 15.

Up to five parties are in the running to buy the base RSL Com the fixed and mobile provider wants to concentrate on the business-to-business sector and its new CP2000 commission plan to dealers (see story P34).

UK and Benelux MD Barry Mowbray told Mobile News:

We have not yet made a final decision as far as the consumer base is concerned. We are reviewing all the options that are open to us.

RSL Com staff were made aware of the situation in a series (Cont P2) of meetings last week.

RSL Com paid around 7 million for Advanced Communications 250000 customers.

A year ago Mowbray said:

Advanced epitomises whats best about independent service providers. Despite operating in a notoriously volatile industry Advanced has exceptional customer loyalty. Like RSL Com its success is based on selecting the right solution for each individual customer and being more clever than most when it comes to customer service. This union supports RSL Coms objective as an integrated communications provider to meet more of the needs of our customers.

The Mobile Alliance was formed to offer independent dealer a branded high street presence and access to marketing advertising and branding potentialities that are normally enjoyed by the multiples.

The Carphone Warehouse boss Charles Dunstone told Mobile News:

The Carphone Warehouse Group can confirm that we are currently investigating a number of stock discrepancies at the Warrington

Superstore. The internal audit department are interviewing some of the personnel working at this store and some people have been suspended whilst the investigation is completed. The Warrington store is trading as normal.

The suspended Warrington staff were understood to have been using newspaper money-off coup-ons discount vouchers and credit vouchers to buy equipment such as palmtops and phones from the store which were then allegedly sold on for personal gain.

The police are involved in the investigation.

He has already removed certain material about the FCS Crime Prevention Scheme from his organisations web site which the FCS claims was confidential.

The FCSs lawyers have remined Rowcroft he is not permitted to make use of any confidential information and is still bound by the terms of the contract he signed.

Rowcroft has also been threatened with a claim for damages for allegedly publishing malicious falsehood. The FCS has also demanded he returns all information and documents he has copied.

In a news release he claimed the current FCS Crime Prevention Scheme was in turmoil and publicised other details of problems the Scheme may be facing. He also claimed why pay hundreds or even thousands of pounds a year to be a member of a trade organisation and then receive very little or even nothing in return.

We are surprised by Rowcrofts claims said FCS Secretary James Malcolm.

He spent barely six weeks with the FCS. Most of what he purports to offer is already provided by the FCS. However it is a matter of concern that since his appointment was so recently announced many in the industry may be misled into thinking that he still represents the FCS.

It is also a matter of great regret that for the first time since the FCS was established 20 years ago it has had to take steps to enforce a confidentiality agreement signed by all staff before joining us.

The FCS has a record of successful lobbying on behalf of members and is well known and respected in relevant government departments and in Oftel. It is owned by and answerable to its members and membership applications are also subject to approval by them.

According to a survey taken by the Trade Association Forum of which FCS is a member and represented on the Steering Committee FCS subscriptions are among the lowest asked by trade associations in any industry.

Rowcroft told Mobile News:

I deny that I breached any conditions of my contract. It depends on what they are saying is confidential and what is common knowledge within the industry. I think theirs is a response to the fact that there is a competition to the FCS.

The network made its apologies to its dealer channel at a seminar held at Chateau Impney on October 5.

BTCellnets sales director Mark Stansfield who joined the network from One 2 One in April said:

Lets face it we havent done a lot for you over the last couple of years to make you feel that you are valued channel partners and critical to your business so before we start and get into the good news Im putting my hands up and saying sorry.

He told dealers:

I am not saying we have all the answers. But I really believe we have made a strong start. What you do have is my commitment to you all that we want to work with you to develop your business not only for BTCellnet products and services but also to help you sell more of everything in the mobile category. Your business is very important to us.

On the day the network announced a raft of price changes and promotions. Included in these were reduction of up to 22 per cent) on Business First tariffs a 10p minute peak call rate and the fact that Business First can now be offered to single purchasers.

BTCellnets Mobile Extension product will come with extra benefits. Every Mobile Extension customer connected from October 1 would also attract an extra 20 commission.

A hundred or more customers connected to one account would win a 500 bonus and 150 a 1000 bonus.

General manager Ian Driver predicted a WAPpy Christmas and announced a three-month free mobile internet access offer to both new and existing WAP customers supported by a 10 million marketing push.

A new product for Christmas 2000 called Pay Upfront was announced to capitalise on the 40 per cent of total sales that are bought as gifts.

This gift-wrapped offering comes with 12 months free line rental 200 off peak minutes or 50 anytime minutes a WAP enabled Siemens handset.

The 99.99 package will give dealers a margin of 50; a 59 per cent POR.

Pay and Go rates are coming down to 2p/minute at weekends 10p off peak and 25p peak