The papers were positively buzzing with the amazing news that Vodafone had kind of come back to the Carphone Warehouse. You would think, for all the publicity, that the lovebirds had renewed their vows and planned on getting remarried. However, like Anniston and Vaughn’s relationship, it may not be as close as it would appear.
1. Carphone upgrades are only 15% of the old business and there is no chance that Vodafone go back on the exclusive relationship with Phones4U. Phones4U has delivered exceptionally high volumes of Vodafone contract sales in recent weeks.
2. Carphone is really struggling to sell the Cath Kidston range.
3. Phones 4U are about to start selling “independent” broadband
4. Both Vodafone and Orange are putting the pressure on their store staff to sell more. Although, it is reported as a negative story, I believe long term this is the only way forward if the network operators are ever going to deliver decent volumes of direct sales and break the dependence on high indirect commissions.
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