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View Full Version : Voda and CPW kiss and make up



3g-g
7th December 2006, 11:41 PM
Aww, isn't it cute. However, does it not show that as much as the operators want to sell through their own streams the re-sellers are still holding quite a few cards? Who has the upper hand?


Just a couple of months after Vodafone announced that Phones4U would get the exclusive right to sell its connections it has back-peddled and will allow CW to sell contract renewals and pre-pay connections.

According to the The Financial Times the firms have stepped back from an acrimonious divorce, and have opted for some sort of open relationship. The Times estimates contract renewals and pre-pay connectionsto account for around 40 per cent of the business lost, which makes it a significant step towards rebuilding the relationship between the two companies.

At the time of the original announcement Carphone Warehouse shares dived nearly 16 per cent as many questioned its business model, and other networks announced they were re-examining their sales channels. But it would appear that other operators have become nervous of doing business with Phones4U, and are strengthening their relationship with CW as a result, which in turn makes it harder for Vodafone to operate an exclusive arrangement.

It isn’t rare, in the mobile industry, for companies to struggle to understand who needs whom the most, and who has the upper hand in negotiations.

Network operators are often guilty of over-rating their position while rapidly discovering that customers are more loyal to their handset manufacturer or retailer than their service provider, a situation which is only going to intensify as alternative voice services become more widely used.

This time it seems that Vodafone overstepped the mark, and in a year or two we’ll see Carphone Warehouse quietly stocking Vodafone contracts again as though nothing had happened.®

Read me here too if you fancy it. (http://www.theregister.co.uk/2006/12/06/vodafone_makes_up_with_cw/)

Hands0n
8th December 2006, 12:05 AM
Good news really - not that I'm particularly enamoured with CPW, but P4U wouldn't see any of my business ever. I simply do not trust them or their shoddy sales techniques. I'm getting news of another associate who has been "sold" four, count them, four contracts with Vodafone. He only went in for one! P4U are at this time saying that they only provided him with what he specifically asked for!

P4U? I think I'd rather do without if they were all that were left!

3g-g
8th December 2006, 12:24 AM
... I'm getting news of another associate who has been "sold" four, count them, four contracts with Vodafone. ...

P4U? I think I'd rather do without if they were all that were left!

Yeah, I think I'd be back to yoghurt pots and string than head to P4U!

And stop teasing us with this story, tell tell tell! ;)

Hands0n
8th December 2006, 12:38 AM
I'm waiting for the lad to give me a call to tell me more. He's a close friend of my nephew-in-law who was stung by Palm Communications (see elsewhere on T3G). It took 3 itself to put things right and as far as I know they have struck Palm off their reseller list.

As far as I know, so far, this lad has been issued with four Vodafone contracts in rapid succession. At the moment P4U and Vodafone are holding him to these, and he is being called to pay out £1,200. The tale goes that he is buckling under and is likely to pay the demand just for an easy life. I'm trying to get hold of him to give him some help in finding the culprit and getting things put right. Clearly, to me, if P4U issued the contracts then it is up to them to make things right - but Vodafone can always step in if P4U are going to play silly bu99ers.

I'm of the opinion that such shoddy practises should be referred to the DTI and the OFT - the self-regulators just do not work in the Customer's interests.

Ben
8th December 2006, 10:09 AM
Is this friend of yours under some sort of curse? ;)

Hands0n
8th December 2006, 11:01 PM
Errr, no. This is yet another tale about the friend of the family member who was bitten by Palm Communications (3). I guess that he may be a member of an Unlucky Circle :D