Price backed the general move within distribution to cut off bad connectors. Avenir is reviewing its channel strategy and Price suggested that it could stop working with certain routes to market altogether.

Said Price: Our strategy is to focus on delivering quality business and generating increased handset revenue through all networks. During the next 12 months I see distributors specializing on different routes to market rather than equally working on all routes. To this end and in line with our strategy Avenir will be investing in the business-to-business arena particularly supporting dealers who service the SME and SOHO market for both voice and data services.

She went on: At the same time we will underpin this business with good quality consumer connections generated ethically though quality dealers and qualified routes to market. We are currently reviewing those routes that present levels of exposure to us that we deem as commercially unviable.

Avenir 2005/6 UK turnover increased five per cent on last year to 135.2 million euros (GBP91.8 m). Avenir Telecom Groups UK distribution business represents 18 per cent of the companys total turnover. Group sales for the year saw a like-for-like increase of 21 per cent and reached 746.1 million euros (GBP501.5m).

The increase was largely down to the strength of its retail operation overseas which recorded a sales jump of 40 per cent to 253.5 million euros (GBP170m) and comprised 34 per cent of its overall sales. Wholesale distribution was up seven per cent to 492.6 million euros (GBP331.1m).

Operating income for the group rose 48 per cent to 19 million euros (GBP12.7m). Retail contributed 6.7 million euros (GBP4.5m) compared to 400000 euros last year and wholesale contributed 12.3 million euros (GBP8.3m).

O2 is considering legal action against 60 dealers for mis-selling O2 products and services it said last week.

O2 has started legal proceedings in the High Court in London against Cardiff-based call centre dealer Communications Direct for trademark infringement and passing off.

It is the second Cardiff-based distance caller that O2 has taken legal action against for mis-selling O2 customers airtime contracts on rival networks a sales tactic known as slamming. It fought Landmark Communications in court in December last year. Landmark eventually settled out of court for £500000.

An O2 spokesman said: The problem is widespread but we are currently reviewing 60 other companies who may be guilty of similar practices.

O2 has received up to 100 complaints from customers per month about the behaviour of Communications Direct. O2 is now waiting for Communications Direct to file its defence against the claim.

O2 said last week that it had received a growing number of complaints from customers about call centres that claim to call on behalf of O2 but churn them to a rival network when they agree to an upgrade package.

Dextra Solutions has confirmed that it has been reinstated as an official Nokia accessories distributor as reported in Mobile News last week.

The deal means Dextra regains its status as the worlds largest distributor of Nokia accessories.

Nokia terminated Dextras distribution contract in April on the discovery of counterfeit stock during a warehouse audit. Former Dextra managing director Mark Ormerod headed a high-level delegation to Finland following the termination. However despite ongoing talks Nokia had refused to re-sign it until now.

Dextra – part of the 2020 Mobile Group which formed after the sale and break-up of the Caudwell Group – will distribute Nokia accessories through independent dealers multiple retailers network stores and non-specialist channels such as Asda and Tesco.

The agreement also covers the repackaging of Nokia enhancements to address the individual requirements of the businesses that Dextra works with.

2020 Mobile Group CEO Mark Ryan said: This deal is great news for Dextra and it demonstrates the strength of our relationship with Nokia. It ensures that we can give our customers the very best product offering and service in the marketplace.

Nokia UK managing director Simon Ainslie said: We are delighted to announce the signing of this agreement with Dextra and look forward to developing our business relationship together. It is very gratifying to see the enthusiasm with which this news has been greeted by the staff at both companies.

Nokia has used Dextra for accessories distribution for 15 years.

T-Mobile head of retail Russell Taylor who is instrumental in T-Mobiles plan to double its own store portfolio by the end of the year has been promoted to the role of director of retail.

T-Mobile director of sales Gordon Ballantyne said: Under Russells leadership we are on target to open over 190 new shops by June 2007 bringing our total number to over 300. His dedication and energy has been the driving force behind our retail expansion and this announcement recognises the importance we attach to our retail business.

Taylor joined T-Mobile in 2001 as channel development manager. He then became head of business sales before taking on the head of retail job in July last year.

Rumours abounded last week over Motorolas interest in French handset manufacturer Sagem. According to reports in La Figaro head of Motorola mobile devices Ronald Garriques said the company has a serious interest in Sagem sending shares in parent company Safran into overdrive.
Subsequently Motorola has tried to downplay speculation saying that Garriques comment was a general musing about the industry as a whole rather than a specific plan of action.
Sagem is the seventh largest handset manufacturer in the world with a strong hold on the French market and good channel partnerships in South America but is unprofitable.

Avenir is the first distributor on O2s Advance distributor programme to hit targets of 2500 business connections per quarter and qualify for ongoing support into 2007.

As it stands all distributors that were invited by O2 to join the Advance programme in June have been receiving support from the network to pass down to B2B dealers and help them meet relevant performance criteria.

Moco Fone Logistics Dextra and Anglia continue to receive the benefits of O2s Advance programme although Avenir is the first to hit its targets. All distributors which were selected for the programme have been able to offer six-monthly price books and additional marketing support to their O2 B2B dealer bases as a result of their status with O2.

Distributors have until June 2007 to raise their games and hit sales targets of 2500 business connections per month as well as satisfy key performance indicators such as tenure churn and ARPU.

O2 initially requested distributors to meet volume targets without assistance in order to qualify for the programme. However it decided that its top B2B distributors needed assistance to hit targets and so passed down the programme benefits from the start.

It is thought to be wary of the five distributors selected for the programme entering a price war to ensure they meet targets. It is likely to take into serious consideration factors such as customer ARPU churn and tenure in June next year when it re-assesses the situation.

Avenir managing director Tanny Price said: The support the Advance programme provides will help to grow our dealers businesses by providing them with tangible practical assistance but also by helping them to create progressive individual mobile solutions which will add further value to corporate customers.

O2 head of indirect partners David Plumb said: Avenir has demonstrated complete dedication to meet the demanding qualifying criteria for acceptance onto the O2 Advance programme which is a considerable achievement. We look forward to working with Avenir in this context as the programme has proved to be extremely successful in providing unrivalled expertise and support for our partners so that they can continue to deliver the highest standards in expertise and customer experience.