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EE to end links with Carphone Warehouse - Telegraph


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Old 08-06-2014, 09:13
kyussmondo
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http://www.telegraph.co.uk/finance/n...Warehouse.html

This doesn't look promising for Carphone Warehouse. First 3 Mobile and now EE are considering leaving.
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Old 08-06-2014, 09:38
John_Patrick
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http://www.telegraph.co.uk/finance/n...Warehouse.html

This doesn't look promising for Carphone Warehouse. First 3 Mobile and now EE are considering leaving.
Its not great for consumers either... less competition = higher prices
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Old 08-06-2014, 09:41
wavejockglw
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CPW and Phones4U must be in danger of having nothing but MVNOs to sell in the not too distant future if things carry on as they have been doing. Perhaps the merger of Currys/Dixons and CPW was a threat in terms of scale and networks that have not already done so may be considering a new strategy for high street representation. All networks have plenty of their own stores, on-line and direct sales so perhaps the era of the independent retailer regardless how heavily represented is coming to an end. The major consideration for the networks is how to retain customers and taking control of them is probably the best way to ensure that they are not switch sold by independents whose agenda varies depending on which network pays the highest reward for acquisitions.

This move also points to the perceived strengths the networks have with regard to their respective offerings. Perhaps they now think they have a strong enough product and service offering to do without companies like CPW, Phones4U, Dial-A-Phone etc etc Utilities are normally sold direct so it should come as no surprise that in a mature mobile market the same supply pattern will develop for mobile services as fixed line/broadband, Pay TV, Gas and Electricity.
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Old 08-06-2014, 09:48
Thine Wonk
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I can see CPW closing down this year. You don't need a 'middleman' especially not on the highstreet.
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Old 08-06-2014, 09:53
kyussmondo
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Its not great for consumers either... less competition = higher prices
EE will argue cutting out the middle man will allow them to cut costs.

The cynical side of me says that these savings will just be moved to extra profit and bonuses rather than reduced costs or increased spending on the network.

Personally I think Carphone Warehouse will eventually close down. I couldn't see the point in the Dixons merger. It just looked like two declining retailers trying to slow their declines by becoming bigger.
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Old 08-06-2014, 09:59
wavejockglw
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Even without the majors CPW have plenty of opportunity to make a living on the High Streets with their own MVNO (Talk Mobile), switching customers to Talk Talk, selling other MVNOs like Virgin Mobile, LycaMobile etc and retailing their highly profitable range of accessories. BT could also use a strong partner to launch their full blown consumer 4G mobile offering next year. And there's Amazon...... they have their sights set on a share of the smartphone market and a High Street presence could be valuable to become established. There are further opportunities to grow the sales of SIM free handsets and an expanded range of tablets like the Kindle range from Amazon and nexus range from Google. Perhaps CPW could become the Expansys of the High Street?

CPW may have to reposition itself but it will probably be able to carve out a niche within the enlarged group created by the merger of CPW and DSG.

The news that EE could drop CPW will come as a bit of a shock but it's probably only one of a few earthquakes that will shake up the mobile industry in the UK in the coming months.
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Old 08-06-2014, 10:37
coopermanyorks
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Quoted from the link in the op

EE’s review also covers its relationship with Phones4U, Carphone Warehouse’s main rival. A source said the mobile operator would end its relationship with one or the other, or both.
Maybe its P4u that will get dumped if not both
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Old 08-06-2014, 11:52
Aye Up
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This is been in the offing for well over 3 years. In fact it was on the cards from when the brand merge took place. As I understand it they didn't want to cut out the reseller market until they built up the brand of "EE", the recognised they needed a strong single brand in which to do this. The problem for the networks is margins are becoming tighter as a result of the reduced revenues from roaming and domestic pricing. I expect the others will follow suit at some point. CPW will last for a fair while into the future, however P4U as we know it will cease to exist, Vodafone is now actively looking at terminating its relationship.

I just wonder how the market is going to look in 12 months time?
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Old 08-06-2014, 12:30
de525ma
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The only reason that I have used cpw recently is to buy sim free phones.

From their reaction, I don't think that someone walking in and handing over £450 happened all that often...
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Old 08-06-2014, 12:40
jabbamk1
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All networks are looking to do this in a way,

Three have been leading the way in terms of cutting off relations with pretty much every third party including cashback sites.

Seems O2 have been following suit and even Voda/EE are showing interest in going in the same direction.

Will be interesting to see what happens to P4U.
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Old 08-06-2014, 12:41
wavejockglw
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Looking at what GiffGaff have done and it's possible that if EE and others withdraw from CPW they may develop their own rent/buy scheme to provide mobiles. They can still take advantage of their strong representation by offering SIM free handsets on a hire purchase scheme and advising on SIM Only deals. Not as clean cut as network commissions but with the buying power they have they could develop a decent offer to compete with the networks for the lucrative handset profits that are made.
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Old 08-06-2014, 12:48
Thine Wonk
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Looking at what GiffGaff have done and it's possible that if EE and others withdraw from CPW they may develop their own rent/buy scheme to provide mobiles. They can still take advantage of their strong representation by offering SIM free handsets on a hire purchase scheme and advising on SIM Only deals. Not as clean cut as network commissions but with the buying power they have they could develop a decent offer to compete with the networks for the lucrative handset profits that are made.
I can't see why anyone would pay an APR on a phone when the contract providers don't, and go to the effort of having a separate loan to your airtime agreement.

MVNO's usually have a theme:-
-Virgin, Talktalk etc are doing it as a quadplay and don't have to make the same margin because they're selling you other stuff.
- Ethnic / migrant MVNO's / people who have a lots of family abroad like Lyca, Lebara who operate a big multi-country operation.
- Supermarkets who are making a small slice and have a massive customer base of weekly shoppers, and loyalty card data to market to cheaply.

Take those out and there's barely anything left in the MVNO market. They have to pay wholesale rates, so outside of the above there's little room to fund marketing, systems, sales, support and make money up against the main MNO's.
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Old 08-08-2014, 00:52
linkinpark875
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I can see CPW closing down this year. You don't need a 'middleman' especially not on the highstreet.
http://www.retail-week.com/sectors/e...063043.article

Not quite but I'm wondering why Dixons bought Carphone Warehouse to put inside Currys digital stores when they already have Phones4u inside them?

More store closures like the EE merger? Will Phones4u or carphone be rebranded under one name?
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Old 08-08-2014, 07:47
finbaar
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It will be a sad day if the only phones available to those wanting a new contractract are network branded ones. I truly hate any kind of network crap - even a splash screen - on any phone.
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Old 08-08-2014, 10:34
Everything Goes
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Shares in Dixon's Carphone are down 3% this morning.



http://www.mobiletoday.co.uk/news-li...f-trading.aspx
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Old 08-08-2014, 10:44
jonmorris
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I spoke to someone at CPW, only shop staff so obviously not in any position of control or influence, but he seemed to think they'd be pushing the MVNOs and more SIM free, as well as accessories.

But I do think that if and when they stop being able to sell contracts and upgrades for the major networks, they're going to suffer a huge downturn. And it's not as if Dixons hasn't got/had problems of its own for many years.

On the BBC, I saw the new boss claim that 90% of people still go to a store - but use the Internet to do research etc. What confused me was that I can well believe people go to a store and look, then buy on the Internet (if only to save a lot of money) but he was claiming the reverse. Of course, he could have been twisting stats and simply saying that of the people that actually come to a Dixons store, 90% have looked online, but that doesn't tell the whole picture.

Dixons or PC World is a place you might go in a panic to buy something in an emergency, as I've done when a hard drive has failed, or a PC fan has gone, or the dishwasher broke - but if I have time, I would buy elsewhere. Now with Amazon Prime and Sunday deliveries, I doubt I'd ever really go to a PC World ever again.

Do I need to see things in the flesh? Perhaps for something big like a TV, but I'd still likely buy elsewhere unless Dixons can match the Amazon (or similar) price.

Frankly, I can't see how this merger does anything to solve the problems - except that there's now only one company to go under instead of two.
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Old 08-08-2014, 21:29
jchamier
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Dixons or PC World is a place you might go in a panic to buy something in an emergency, as I've done when a hard drive has failed, or a PC fan has gone, or the dishwasher broke - but if I have time, I would buy elsewhere. Now with Amazon Prime and Sunday deliveries, I doubt I'd ever really go to a PC World ever again.
I suspect there may be an age range where internet buying is scary, but for anyone in the know and thanks to the Distance Selling Regulations, its not an issue for anyone.

The independent phone shops (CPW/P4U) have become empty in the towns around here, as they're generally alongside the genuine network stores, at least in Farnborough they're all pretty much opposite each other in the same walk way!!

The comment above about buying non-network branded devices is important to me as well, but I'd never buy from CPW as the device would lock to the SIM used. So the likes of Amazon selling a Moto G 4G for £140 delivered is a "no-brainer".
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