Vodafone in Stores Again
It seems an agreement has been reached between the Vodafone and the carphone warehouse on the subject of the latter being able to sell the former’s mobile phones and contracts. The dispute surrounding this has been raging for the last three years.
An announcement is expected imminently, following high-level talks between the Carphone Warehouse boss and Vodafone’s senior management. It is believed that this deal would lead to mobile phone contracts for Vodafone again being sold across the carphone warehouse UK network of stores. This would be the first time that it has happened since 2006.
In 2006 Vodafone signed an exclusive agreement with a phones4u, following their agreement to sign up at least 30,000 new customers to Vodafone’s service every month. The carphone warehouse boss was noticeably shocked by this decision by Vodafone, and it is believed that he felt that they hand left the negotiations too early.
Following news of the loss of the contract the carphone warehouse shares fell by 14%; city analysts also estimated that the company would lose over £20 million per annum because of this.
Talks were reportedly continued on the subject of resurrecting the old mobile phone deal before the last three years. It should be noted that the sale of Vodafone’s prepaid mobile phones was a contract that the carphone warehouse were able to retain.
Since the previous deal with Vodafone and the carphone warehouse business model has changed dramatically. The retail business has been spun off into a joint-venture with a stateside retailer called Best buy. The vision is that the new combined chain will sell electronic goods in addition to the current stock of mobile phones.
The acquisition of AOL UK by the carphone warehouse in 2003 was a major move into diversification as the business was later rebranded talk talk. Following the acquisition of Tiscali UK earlier this year, the business is now regarded as Britain’s second biggest broadband provider.
