Independent phone dealers met on Thursday to brainstorm ideas in an effort to fight back against network encroachment.

In the past few months dealers have become increasingly anxious about their future thanks to the trend for networks to offer customers direct offers and their tactic of poaching.

Some have even suggested that things have deteriorated so much that it could be the end of the independent.

Dealer Jez Harris who is also founder of the Phone Dealer Forum and a Mobile News columnist said: We met to see if there was anything we could do to stop it because it is becoming worrying. It was a brainstorming session between a select few people to see how we can combat networks offering direct sales which has taken a lot of business away from us.

Harris alleged that it was well-documented that networks contact customers before dealers are able to. At the moment theres nothing we can do about it he said.

Hugh Symons business manager Bob Sweetlove who met with the dealers says that the future isnt all gloom for the independents.
I think there is a healthy market for the independent dealer to move forward in he said.

However whether its in todays market remains to be seen.
See Sharp End page 16

Sony Ericsson has added new Cyber-shot and Walkman handsets to its range.

Sony Ericsson marketing manager Richard Dorman said its new two megapixel K550i available next month will retail for around £129 on prepay.

Dorman said: Prepay has upped a gear in value terms with consumers demanding top-end products. We did very well with the K750i at £99.99. Prepay phones are no longer also-rans.

The K810i Cyber-shot features a 3.2 megapixel autofocus camera and flash and is slated to arrive in the UK in the second quarter.

With 20 million Walkman phones sold to date the series continues with the W880 and W610 while four budget candy-bar phones will be added.
Walkman and Cyber-shot have been hugely important to Sony Ericssons recent success said Dorman. Were very grateful that Sony has loaned the names to us.

He argued that the two brand names gave personality to Sony Ericsson products. Consumers know what theyre getting and confusion surrounding features is kept to a minimum he added.

That helps us when it comes to non-traditional retailers such as Tesco Sainsburys and Asda which are becoming increasingly important routes to market along with catalogue retailers such as Argos.

Dorman was unable to confirm operator or network deals other than an i-mode variant of the K550 for O2 though some colour exclusives are believed to be in the pipeline.

Reaction among dealers has been mixed to 3s new Office Share plans designed for small businesses.

The new plans emphasise flexibility and are aimed at home-based and SME companies.

However 3 has fallen out of favour with many dealers recently after Mobile News reported last issue that 3s call centres in Glasgow will be closed with dealer service calls now being fielded in Maidenhead and Mumbai.

One dealer said: 3s overall customer service is abysmal. People will want to speak to people in this country. Anyone signing up must be completely bonkers.

Another said: Its too much headache not enough benefit.
3 will become the first network in the UK to include Windows Live Messenger and voicemail as well as free calls to other 3 phones.
Four packages offer voice text and data bundle while the other package offers data only.

3 UK marketing director John Penberthy-Smith said: We are doing for small businesses what we did for consumers.

Mobile phone insurance company Fonesure has launched a non-insurance-based product to back up users personal data.

Fonesave which works on more than 500 models of mobile handset costs from £2.99 a month and provides a wireless back-up service using 3G and GPRS connectivity.

Fonesure managing director Mark Gordon said: Most people feel that the content of their handset is more valuable than the phone itself.

3 said last week that its new budget tariff would provide dealers with sufficient value to discourage cashback offers.

Its new 18-month voice contract launched last week includes 500 cross-network anytime voice minutes for £15 a month. It represents a £10 monthly saving on its old £25 voice tariff which also included 500 minutes. The new tariff is available during February only.

It is available to all sales channels. We want to shake up the other networks again. This package gives great value without the need for dealers to issue cashback said 3 director of indirect sales Bernie OBeirne.

There is a £180 saving to consumers straight away and we are still paying dealers very useful commissions on the package.

The new £15 tariff is available on the Sony Ericsson K610i Z610i and the LG u400.

Vodafone will launch advertising on its mobile phones in the summer it said last week. The network said its network is the only pan-European delivery system for advertisers.

Vodafone new business development director Frank Boulben said: Brands are suffering from a lack of international media in Europe we havent got players with a significant reach in each corner of the large European market. As Vodafone weve got close to a third of the western European mobile market so we could be the first truly European mass media.

Following trials last year Vodafone wants to incorporate interactive mobile elements such as coupons and reward schemes into traditional TV radio and print advertising. It said customers are willing to accept advertising on the handsets in return for subsidised content downloads rather than advertising-funded free downloads.

Head of mobile internet and content services Al Russell said: The volumes are very high on free but customers dont value the content or interact with the games. They just trial it and throw it away.

According to Boulben more than one million Vodafone customers have already opted-in to receive free text messages which contain news or sport content alongside the occasional advertisement. An idle screen ad format is also being trialled.

It has developed partnerships with Yahoo to incorporate banner and link advertisements and Google to incorporate its search engine into Vodafone handsets in all its markets by the end of the year.

By opening the window to the youth market Vodafone also hopes to tap into advertisers growing mobile budgets. Boulben said: Fifty-two per cent of brands expect to spend between five and 25 per cent of their advertising budget on mobile advertising in five years time.

The network is also working with the GSM Association to establish common advertising standards with country-specific guidelines for age appropriate content.

Russell said Vodafone would manage advertising quality as it could not afford to let it turn into spam. Responsible advertisers dont want to be invasive so well manage it through policies frequency and placement because otherwise the whole industry will be damaged he said.

Former Orange sales director and 3 UK chief operating officer Gareth Jones has joined Northampton distributor EBS as a non-executive chairman.

EBS founder and majority shareholder Ray Kingston said: Gareth has got so much experience in the mobile industry. He can bring a lot to the table with his experience and contacts. He obviously wouldnt have put his name to the business if he didnt believe in it.

EBS turned over £164 million in 2006. It is responsible for 60 per cent of all Orange SIM packs in the market said Kingston amounting to around 60000 SIM cards a month. EBS is looking at opportunities in fixed-line services recycling insurance and MVNO services. It is also set to launch a multinational SIM card with 3 and is already selling Orange broadband products.

Kingston said: It is a tough market for distribution at the moment. Were succeeding because of the service we give to our customers and the diversification of our portfolio.

Kingston becomes deputy executive chairman. Jones will give around two days a week to EBS.

Jones said: I am delighted to be joining EBS and involved in its future plans.

Jones was sales director for Orange until 2001 and chief operating officer at 3 for two years from early 2003.

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The channel was mourning the death last week of Derek Davey founder of south-west dealership West Talk who died on February 5 at the age of 51.

Davey remembered by the dealer community as outspoken and passionate had been diagnosed with cancer before Christmas.

Carphone Warehouse director of indirect distribution Stuart Henry who worked with Davey when sales director at Orange said: Derek was eccentric. I remember sitting around a campfire in Botswana with Derek regaling us with some very strange tales which ended with him telling everyone in all seriousness that he was the son of God. He was mildly barking but great fun. He was a lovely fellow and very passionate about what he did. I am very sad to hear that hes gone.

Davey set up Orange dealership West Talk with his partner Jeff Woolaway from the proceeds of the sale of the Vodafone Centre which had five stores to JAG managing director John George in 1999. George took a further 27 sites from Davey when he bought West Talk in 2002.

Davey then ran the West Talk brand as a B2B dealership. He sold the business before Christmas.

George said: I knew him for many years. He was always a competitor but he was great fun too. He was madcap and fun.

Zero7 managing director HJ Kempf added: He phoned me three weeks ago and told me about his illness. He said he was going to fight it. It is very sudden and very sad.

Intek managing director Manny Hussain said: I had run-ins with him but always counted him as a friend. He spoke his mind and was one of the few guys that really stood up to the networks and fought them all the way on poaching and encroachment. I am very sad that hes gone.

Go Mobile managing director Iain Humphrey added: I went on several trips with him. He always made me laugh. He will be missed.