Theres also debate over the Nokia Music Store and a review of the LG Viewty KU990. Meanwhile Mobile News editorial director Ian White rants about Vodafone offering massage services for its executives.

To cap it all off Iain Graham and the team take a light hearted look at all the latest headlines affecting the mobile industry. So dont miss out listen to the latest edition of the Mobile News podcast by clicking here.

Chinese manufacturer ZTE has signed a deal with Vodafone to supply it with budget Vodafone-branded prepay devices across all Vodafones markets.

It has not yet been confirmed whether the ZTE devices will be sold in the UK but the first an ultra low-cost 2G handset will ship to emerging markets in Q2.

Vodafones global director of terminals Jens Schulte-Bockum said: This agreement will build on ZTEs experience in emerging markets to create an ultra-low cost handset as the first of a range of products we seek to develop with them.

ZTE senior vice president He Shiyou said: This is a breakthrough for us and highlights ZTEs ability to develop handsets according to European operators requirements and standards.

The sleek touch screen handset contains a variety of professional-level digital camera features including a built-in image stabilizer that enables the camera to take clearer pictures. It also comes with photo editing software that allows users to write on their photos and internet access that will allow pictures to be uploaded in seconds.

The Viewty is also the first phone that enables users to record video at 120 frames per second. It also features an MP3 player FM radio and 3 inch screen.

LG Mobile CEO Dr. Skott Ahn said: The LG Viewty is a camera phone with unparalleled functions. This handset provides quality matching or exceeding that of conventional digital cameras.

With some of our earlier handsets LG emphasized great style. Now we are focused on functionality and features as well. LG is always trying to identify unspoken customer needs and create new mobile trends.

Anglia Telecom chief executive Andy Smith is to leave the company.

Smith has had a falling out with the management team at Anglia Telecom parent company Symphony Telecom Mobile News understands.
Smith refused to comment.

Prior to his appointment to Anglia Telecom in early 2004 Smith spent 19 years at Vodafone latterly as sales director.

Two weeks ago it issued do not deal notices relating to around 150 dealers across its entire distribution base. Orange UK head of independent retail Steve Heald told Mobile News: These dealers have consistently failed to deliver value to Orange. We cant support them commercially and so we have ceased trading with them.

Orange has analysed three-to-six months trading figures for all its dealer base and been making steady cuts on its findings during the past weeks. But last week it summoned 10 of its distribution partners to its Hertfordshire headquarters for oneto- one briefings to inform them of the mass dealer cuts and to issue guidelines on procedures and performance.

Heald said every distributor that attended had dealers culled. Numbers would increase once the new policies are enforced next month he said.

Dealers among them a high number of call centres have been cut for mis-selling upgrades failing to honour cashback offers churning high volumes of customers and delivering poor quality business.

Orange has immediately struck off dealers with a churn rate of 50 per cent or over. It has also issued 90-day warning notices to distributors about dealers whose churn figures are running at 30-50 per cent. Around 100 dealers are on final warnings Mobile News understands. Dealer codes that remain inactive for six months will also be terminated.

Its new guidelines for call centres follow the introduction of an operator code of conduct backed by regulator Ofcom on distance sales and marketing practices earlier this month. Call centres must now clearly identify themselves to customers at the start of a call stating where they are phoning from. Call centres must clearly publish customer service numbers on their websites.

Heald said: We have received complaints for a long time about this from customers who repeatedly get calls from an organisation theyve never heard of at inconvenient times and where the offer is not clear. Weve successfully reduced the number of last years customer complaints by more than half but we have needed to do more.

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European Telecom has been given three months to improve the quality of business it delivers to Orange or face being axed in March.

European Telecom has also been issued with a do not trade notice by Carphone Warehouse SIM-free distribution arm Mobile Phones Express (MPE) because of unpaid bills. Sources claimed European Telecoms credit has been cancelled by several trade suppliers.

Orange director of indirect sales Steve Heald said: We are working with European Telecom to improve the quality of business that it delivers to Orange. That is our focus in 2007 as we have stated before. If the right quality business is not delivered then we will review our partnerships.

European Telecom finance director Jim Mann admitted that Orange had brought it up on the levels of distance selling it was doing but that its sales team would meet targets by March.

It is to do with distance sellers and the need to improve the quality of business delivered to Orange said Mann. There is no problem other than we have to make sure that the quality of business is good.

Meanwhile European Telecoms handset distribution business was also said to be failing last week. Sources claimed it has unpaid bills with MPE stretching back as far as November.

MPE refused to comment but a source close to MPE said: It has got European Telecom on hold and wants its money.

Mobile News understands that European Telecom has outstanding invoices from December at least.

Carphone has European on stop because it hasnt paid a bill since November said a source.

Another distribution source said: Everybodys withdrawn their credit lines from European Telecom on the handset side. That is the vast majority of what those guys do.

But Mann put the cashflow problems down to the Christmas hiatus in trading.

He said: We shut down around Christmas and it took us a few weeks to get back in gear. It is the same cashflow problem that affects any distribution business.

3 was also rumoured to be evaluating its ties with European Telecom last week but 3 director of indirect sales Bernie OBeirne said: We have a good trading relationship with European Telecom which goes back nearly four years and were not aware of any financial problems.

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