[3GScottishUser]

3 UK have been moving towards direct distribution by expanding and improving their web presenece and building their High Street stores network throughout the UK.

Recent analysis by 'Hitwise' shows just how well the company is progressing and the following table lists the networks and the top multiple's measured performance in December 2006:


1. 02.co.uk 21.96%
2. T-Mobile.co.uk 19.60%
3. CarphoneWarehouse 15.98%
4. Orange.co.uk 12.75%
5. Vodafone.co.uk 9.90%
6. Phones4U.co.uk 5.58%
7. e2save.com 4.46%
8. Virginmobile.co.uk 4.09%
9. Threestore.co.uk 2.36%
10. Dial-A-Phone.co.uk 2.04%
11. Onestopphonestop.com 1.28%

The above percentages relate to 'hits' and not sales but web traffic plays a major part in delivering sales.

Information provided by Mobile Today and Hitwise: http://www.mobiletoday.co.uk/content/15535.asp?men=0&sub=1

[Hands0n]

What about the other MVNOs (seeing as Virgin is included), such as BT Mobile, Tesco and the like?

3's tactic of going direct via web and store is a sound one to jettison the raping bar steward dealers who have been exploiting them since inception. The loser was 3 and the Customer as deals went sour, cashbacks became a national scandal and all manner of other stuff.

3's biggest problem is their now-well understood reputation in the UK (at least). They have in one way or another let down too many Customers and there is little goodwill in the street about them. It will take a superhuman effort on 3's part to win back the Customer they have lost - and they won't do it on price alone. They have to up the quality and quantity of their Service, particularly their Customer Service, and they could start off with abandoning Mumbai CS - at least from the UK. And make a big fanfare about it too. Then train up and empower their UK CS to at least become on par with the likes of Vodafone. This means stopping their micromanaging from the very top, empower throughout the organisation, introduce accountability and go to market and win back the lost Customer base.

It will take a radical management rethink. Can they do it?