Vodafone, Carphone friends again

Vodafone, the world’s biggest carrier by revenues is back together with UK retailer Carphone Warehouse after a three year split, as it tries to boost its share of the UK market.

On Thursday, the UK-based operator said that from July 7, consumers would be able to sign up for mobile phone contracts and mobile broadband as well as prepay offers.

Vodafone announced a shock decision to sell monthly contract mobile phones only through Carphone rival Phones4U in late 2006. At the time it was thought the company was simply trying to reduce costs in a market where profits from voice calls are in decline. Carphone continued to sell prepay packages after it lost the postpay deal, however.

Perhaps to keep Phones4U sweet, Voda has also extended its agreement with that retail outfit and will boost its offerings by allowing Phoes4U to sell Vodafone mobile broadband connections.

Of late, the rumour mill has identified Vodafone as a potential suitor for T-Mobile’s floundering UK operation, adding the Big V to a list already featuring Orange and 3 UK.

Consolidation in the mature UK market has long been expected, and a goodwill writedown of €1.8bn for the German-owned carrier in the first quarter fuelled speculation that T-Mo is looking to offload its UK operation.

In a market with more than 125 per cent penetration by the end of March, 2009, O2 UK is the market leader with over 28 per cent market share, while Orange, Vodafone and T-Mobile all hover around the 21 per cent mark. 3 on the other hand, which has also been identified as a good fit partner for T-Mobile UK, lags behind with just over six per cent of the market.

The UK communications watchdog has opened an investigation into high street retailer Phones4U.

Ofcom said it has received a large number of complaints from consumers, covering a range of issues including allegations of mis-selling.

It is understood that the British retailer is under fire over claims that its staff misrepresented mobile phone tariff terms and also sold unclaimable cash back deals, in which the window of opportunity for a consumer to make their claim was so small as to be almost impossible.

Ofcom said its investigation will consider whether Phones4U “has engaged in conduct which infringes any relevant law and harms the collective interests of consumers.”

Caudwell owns 85 per cent of the company he built up with his brother, Brian, who owns a 10 per cent stake.

According to the Caudwell duo, it took eight months to sell their first 26 mobile phones when they were still the size of a briefcase. The firm now has more than 8,000 employees.

Caudwell said he will now use his fortune to do the things he wants to do, like sailing around the world.