:::renaissance chambara:::

Posts on quality, life, culture, the media, news & tech with a twist & a slice of Limey. I moved my blog to http://renaissancehambara.jp in December 2006, go there for the latest content.

Friday, November 11, 2005



Cauldwell Holdings, owner of Phones4U is being sold by its founder John Cauldwell in order so that he can send time sailing around the world in a giant yacht. Fair play.

Cauldwell denies that the sale is due to increased competition in the marketplace. See Fortune4U as Cauldwell puts phone empire up for sale by Damian Reece, The Independent (November, 10 2005) registration/subscription required.

Mobile phone shops were originally formed because Vodafone and BT Cellnet (02) had to have intermedaries called airtime providers in between them and the customers. This was designed by the regulators as an artificial mechanism in order to try and spur competition in the sector and provide better value for the customer. However, now all the carriers have their own airtime reseller operations or direct client billing relationships and an online and offline retail presence. So carriers have less incentive to offer signing on fees to get new customers.

Although the group enjoyed 30 per cent growth last year is Cauldwell getting out as the industry turns from growth to value?

The UK has over 80 per cent mobile penetration and many people I know now have two handsets and accounts. Growth will come from upgrades, which is something carriers are getting stingy about. I had to get my latest handset SIM free as Orange claimed that they were constantly out of stock. Orange's competitors such as Vodafone are looking to lengthen the upgrade paths with 18-month contracts up from 12-months, probably with a view to having a similar upgrade time of two years like its sister carrier Verizon.

This means that phone shops will have less carrier subsidies, which makes up the bulk of their money. And since I was buying my handset SIM-free I sourced it from a supplier that does not sell mobile phone contracts in order to get the cheapest handset price. Thus, the shops have increased competition from the IT sales sector on handsets sales.

Carphone Warehouse has tried to expand into the notoriously difficult voice market with its TalkTalk service. All of this empirical evidence tends to suggest that Phones4U is now a value play rather than being able to enjoy the same kind of stellar growth into the future.

Labels: , , , , ,

Create Social Bookmark Links

Links to this post:

Create a Link

<< Home


03/2004   04/2004   05/2004   06/2004   07/2004   08/2004   09/2004   10/2004   11/2004   12/2004   01/2005   02/2005   03/2005   04/2005   05/2005   06/2005   07/2005   08/2005   09/2005   10/2005   11/2005   12/2005   01/2006   02/2006   03/2006   04/2006   05/2006   06/2006   07/2006   08/2006   09/2006   10/2006   11/2006   12/2006  

Welcome, thanks for visiting and a bit about this blog (:::renaissance chambara::: all in lower case just like UNIX)
Got something to bitch about? Trying to legal the author or want to send scary fan mail? Click here for more details
Want to leave a comment? Feel free, but please take account of the guidelines
The blogroll (there's some missing that Bloglines can't read, if you're not in sort your feeds out)
Subscribe via RSS to :::: renaissance chambara ::::
The grooves that drive :::: renaissance chambara :::: (see what's on our iTunes)
This work is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 2.5 License.

Blogger rox nuffsaid.