[3GScottishUser]

From Mobile Today (18/01/2007):

3 has dropped the job of 'head of multiples', underlining its reluctance to pay what it sees as excessive commissions at The Carphone Warehouse and Phones 4u.

Damian Haralambos, previously 3's senior account manager for the two multiple retail giants, and a ten-man team specifically looking after multiple retailers, are no longer working in those roles.

3's sales volumes have been on a fast decline at Carphone since the third quarter of 2005, where 3 secured 48,000 customers from Carphone. That figure plummeted to around 3,000 by the third quarter of 2006, and have fallen further since.

The year-long slump has been attributed to 3's tightening acquisition budget and attempts to redirect funds to the growth of 3's own stores – a scheme that has started slowly, according to senior sources.

A spokesman for 3 said: 'As you are aware they [Carphone] are currently pushing Orange and O2. We've seen some inconsistency from Carphone this year and that's why we want to drive more business direct in 2007.'

3 is understood to have offered Carphone only £30 more than its standard commission rates for smaller dealers. Orange, by contrast, is believed to be paying Carphone over £100 from its basic dealer commissions.

3's direct drive has also resulted in the operator cooling off from Phones 4u. 3 has been the least connected of the five major networks at Phones 4u in recent months. It is believed 3 has been a long way behind T-Mobile, in fourth place at Phones 4u, for several months.

3 has merged its entire indirect sales team under Bernie O'Beirne, rather than have a dedicated team looking after multiple retailers. The new indirect sales team consists of between 15 and 20 individuals – a huge reduction from six months ago. 3 made 130 roles redundant in December, with some axed from the team.

Full Article: http://www.mobiletoday.co.uk/content/15555.asp

[Hands0n]

3 need to try something different. The work they did with the dealers was not working for them, at least. What they do now, and where they go is anyone's guess.

The 3 stores are unattractive and very gloomy looking with all that black livery. Whoever decided on that needs to be sacked on the spot and replaced with someone who has at least a notion of what is an aesthetically appealling environment. The Bluewater 3 store is normally quite empty, when the other stores are thronging - that has to say something, does it not? From not too afar it looks like a Co-Op Funeral parlour! I've even managed to walk past it's blackness several times while looking for it when in Bluewater. It was only my sheer determination and knowledge that it was there (I'd been before, but was damned if I could find it again) that secured them another visit from me. But it was depressing and I walked away empty handed and bought a PAYG from the Vodafone store instead!

[3GScottishUser]

I'd actually go further and say that with their lillac and white pastel coloured offices Co-Op Funeralcare places look far more inviting than 3's dismal Black and White deserts inhabited by their 'Blackshirts'.

That aside how have 02 managed to get the best of both worlds and see their subscriber numbers rocket? They are in all the major, independents and have a huge chain of their own stores. They also do brisk business on-line.

When the final chapter has been written I suspect the decision to be a pure 3G network will be something HWL will regret. What would have happened if they had pursued a dual approach. PAYG and low users on GSM via an MVNO arrangement and their own 3G network rolled out more carefully offering enhanced services to those who are prepared to pay a premium for them.

As ever it was a land grab that HWL were after but they did'nt figure that dealers would use them to generate record churn and now they have to undo almost everything they put in place originally. The UK operationmust be dizzy with U turns and the dealers and customers are now simply confused and switched off.

A direct strategy looks like the only option available to 3 now and sadly that looks like a botched job. Kevn Russell and his all new team have their work cut out making anything of 3 UK in 2007.