The Carphone Warehouse
Encyclopedia
Carphone Warehouse Group PLC , known as The Carphone Warehouse, is Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...

's largest independent mobile phone
Mobile phone
A mobile phone is a device which can make and receive telephone calls over a radio link whilst moving around a wide geographic area. It does so by connecting to a cellular network provided by a mobile network operator...

 retailer, with over 1,700 stores across Europe. It is based in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

 and is a 50% subsidiary of Best Buy
Best Buy
Best Buy Co., Inc. is an American specialty retailer of consumer electronics in the United States, accounting for 19% of the market. It also operates in Mexico, Canada & China. The company's subsidiaries include Geek Squad, CinemaNow, Magnolia Audio Video, Pacific Sales, and, in Canada operates...

. Outside the UK and Ireland
Republic of Ireland
Ireland , described as the Republic of Ireland , is a sovereign state in Europe occupying approximately five-sixths of the island of the same name. Its capital is Dublin. Ireland, which had a population of 4.58 million in 2011, is a constitutional republic governed as a parliamentary democracy,...

, the retailer is named The Phone House.

History

The company was co-founded in 1989, when most portable phones were too bulky to carry and called car phone
Car phone
A car phone is a mobile phone device specifically designed for and fitted into an automobile.In the late 1970s and 1980s, the car phone was more popular than the regular mobile phone...

s, by current CEO Charles Dunstone
Charles Dunstone
Charles Dunstone is the CEO and co-founder, in 1989, of mobile phone retailer The Carphone Warehouse.-Education:...

. Dunstone put £6,000 into the company from his savings, and then called his old school friend and Chartered Accountant
Chartered Accountant
Chartered Accountants were the first accountants to form a professional body, initially established in Britain in 1854. The Edinburgh Society of Accountants , the Glasgow Institute of Accountants and Actuaries and the Aberdeen Society of Accountants were each granted a royal charter almost from...

 David Ross
David Ross (businessman)
David Peter John Ross , is an English businessman, co-founder with school friend Charles Dunstone of The Carphone Warehouse. At peak valuation of his business interests, Ross was one of the 100 richest people in the United Kingdom. A profile in The Daily Telegraph put his current net worth at...

, who agreed to become Finance Director. Based originally in Dunstone's rented flat on the Marylebone Road
Marylebone Road
Marylebone Road is an important thoroughfare in central London, within the City of Westminster. It runs east-west from the Euston Road at Regent's Park to the A40 Westway at Paddington...

, London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...

, four years later the company had grown to 20 stores. Now also trading as The Phone House, Carphone Warehouse is Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...

's largest independent mobile phone retailer.

While Dunstone became the public face of the Carphone Warehouse, Ross (described by Dunstone as his "secret weapon"), developed and drove the high street retail footprint of the company by buying Tandy
Tandy Corporation
Tandy Corporation was a family-owned leather goods company based in Fort Worth, Texas. Tandy was founded in 1919 as a leather supply store, and acquired RadioShack in 1963. The Tandy name was dropped in May 2000, when RadioShack Corporation was made the official name.-History:Tandy began in 1919...

 in the UK. Dunstone approached old customer Guy Johnson
Guy Johnson (businessman)
Guy Johnson is an English businessman, the former third business partner in Carphone Warehouse. Described by one City analyst as "the Ringo Starr of Carphone Warehouse" for being in the right place at the right time, His is estimated to have a fortune of £156million, ranking him 546 in the Sunday...

 of NEC
NEC
, a Japanese multinational IT company, has its headquarters in Minato, Tokyo, Japan. NEC, part of the Sumitomo Group, provides information technology and network solutions to business enterprises, communications services providers and government....

 UK - later described by one City analyst as "the Ringo Starr
Ringo Starr
Richard Starkey, MBE better known by his stage name Ringo Starr, is an English musician and actor who gained worldwide fame as the drummer for The Beatles. When the band formed in 1960, Starr was a member of another Liverpool band, Rory Storm and the Hurricanes. He became The Beatles' drummer in...

 of Carphone Warehouse" for being in the right place at the right time - to become the third partner, later taking up the role of Logistics and Distribution director.

Ross led the footprint development of the company, under The Phone House brand, across Europe and the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

. When Ross led the IPO of Carphone Warehouse in 2000, it had been so successful that the partners had not needed to borrow or involve outsiders: Dunstone owned half, Ross a third, and Johnson most of the rest.

Only Johnson of the three partners had a family, and having according to media reports becoming less enamoured by the Ross-led European expansion of the organisation, sold the majority of his stake in 2001 and retired with his young family to his holiday home in Portugal
Portugal
Portugal , officially the Portuguese Republic is a country situated in southwestern Europe on the Iberian Peninsula. Portugal is the westernmost country of Europe, and is bordered by the Atlantic Ocean to the West and South and by Spain to the North and East. The Atlantic archipelagos of the...

.

While Ross had been joint-Chief Operating Officer
Chief operating officer
A Chief Operating Officer or Director of Operations can be one of the highest-ranking executives in an organization and comprises part of the "C-Suite"...

 with Dunstone from 1990 and 2003, whereas Dunstone stayed with the business that he still runs today, Ross started to give up his executive position from 2003. Ross became deputy chairman in July 2005, and by 2008 was a non-executive director. Ross resigned from the board in December 2008 over an issue with shares.

The group split in March 2010, with TalkTalk and New Carphone Warehouse becoming publicly listed companies. Charles Dunstone became Chairman of both companies. New Carphone Warehouse holds a 50% stake in Best Buy Europe and a 47.5% share in Virgin Mobile France
Virgin Mobile France
Virgin Mobile France is a cellular telephone company owned by Sir Richard Branson's Virgin Group. Virgin Mobile France uses Orange SA's network and launched in 2006.-External links:*...

. Dido Harding became CEO
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...

 of TalkTalk and Roger Taylor CEO of New Carphone Warehouse.

Timeline

Year | Month | Event
1989 The Carphone Warehouse launched
1994 Carphone Warehouse Insurance launched
1996 First Phone House stores open outside of the UK, in Paris and Dublin
1999 January Acquisition of Tandy
Tandy Corporation
Tandy Corporation was a family-owned leather goods company based in Fort Worth, Texas. Tandy was founded in 1919 as a leather supply store, and acquired RadioShack in 1963. The Tandy name was dropped in May 2000, when RadioShack Corporation was made the official name.-History:Tandy began in 1919...

 (UK only) for £9m
2000 July IPO on main market of London Stock Exchange at a price of GBP£2.00 per share
2001 June Acquisition of Cellcom
Cellcom
Cellcom may refer to:*Cellcom , a cellular service provider for Northeastern Wisconsin*Cellcom , a cellular service provider in Israel...

 for £9.1m

2002 Acquired Opal Telecom
2003 TalkTalk brand launched
2004 January Acquisition of e2save for £4.7m
March Acquisition of Xtra in Spain for £11.6m
November TalkTalk Broadband launched
2005 March Acquisition of OneStopPhoneShop for £15m
December Acquisition of Tele2
Tele2
Tele2 AB is a major European telecommunications operator, with about 34 million customers in 11 countries. It serves as a fixed-line telephone operator, cable television provider, mobile phone operator and Internet service provider.- Overview :...

 for £11.5m
Acquisition of One.Tel
One.Tel
One.Tel was a group of Australian based telecommunications companies, including principally the publicly listed One.Tel Limited established in 1995 soon after deregulation of the Australian telecommunications industry, most of which are currently under external administration by court appointed...

 for £169.6m
2006 April "Free" TalkTalk broadband offer launched
October Acquisition of the access business of AOL UK
AOL
AOL Inc. is an American global Internet services and media company. AOL is headquartered at 770 Broadway in New York. Founded in 1983 as Control Video Corporation, it has franchised its services to companies in several nations around the world or set up international versions of its services...

 for £370m
Vodafone switches its contract business to Phones4U
Phones 4U
Phones 4u is a large independent mobile phone retailer in the UK. It is part of the 4u Group based in Newcastle-under-Lyme, Staffordshire. Since opening in 1996, it has expanded to over 550 stores throughout the United Kingdom. - Company Background :...

> Launch of a MVNO in Spain under the brand "Happy Móvil"
2007 January Suspension of the Big Brother
Big Brother (UK)
Big Brother UK is the British version of the Dutch Big Brother television format, which takes its name from the character in George Orwell's 1948 novel Nineteen Eighty-Four...

sponsorship deal.
May Roll out of Geek Squad
Geek Squad
The Geek Squad is a subsidiary of the Best Buy Company and is based in Richfield, Minnesota. It was originally founded on June 16, 1994 by Robert Stephens. The company offers various computer-related services and accessories for residential and commercial clients...

 nationwide.
June Three-year £7million X Factor
The X Factor (TV series)
The X Factor is a television talent show franchise originating in the United Kingdom, where it was devised as a replacement for Pop Idol. It is a singing competition, now held in various countries, which pits contestants against each other. These contestants are aspiring pop singers drawn from...

sponsorship deal signed.
July Carphone Warehouse offers free laptop with AOL Broadband (counter-offer of PC World's free laptop with Orange Broadband deal).
September The Carphone Warehouse joins the FTSE100
2008 May Carphone announces £1.1bn takeover by Best Buy
Best Buy
Best Buy Co., Inc. is an American specialty retailer of consumer electronics in the United States, accounting for 19% of the market. It also operates in Mexico, Canada & China. The company's subsidiaries include Geek Squad, CinemaNow, Magnolia Audio Video, Pacific Sales, and, in Canada operates...

2010 March Carphone and TalkTalk
TalkTalk
TalkTalk is a pay television, telecommunications and internet service provider company headquartered in London, United Kingdom...

 split to create two separate publicly listed companies


Best Buy Europe

In May 2008 Best Buy
Best Buy
Best Buy Co., Inc. is an American specialty retailer of consumer electronics in the United States, accounting for 19% of the market. It also operates in Mexico, Canada & China. The company's subsidiaries include Geek Squad, CinemaNow, Magnolia Audio Video, Pacific Sales, and, in Canada operates...

 agreed to buy a 50% share of The Carphone Warehouse plc for £1.1 billion to launch the Best Buy Europe joint venture. The first store is set to be open in Thurrock
Thurrock
Thurrock is a unitary authority with borough status in the English ceremonial county of Essex. It is part of the London commuter belt and an area of regeneration within the Thames Gateway redevelopment zone. The local authority is Thurrock Council....

, Essex
Essex
Essex is a ceremonial and non-metropolitan county in the East region of England, and one of the home counties. It is located to the northeast of Greater London. It borders with Cambridgeshire and Suffolk to the north, Hertfordshire to the west, Kent to the South and London to the south west...

.

Mobile phone e-tailers

Mobile phone e-tailers e2save (OneStopPhoneShop and The Phone Spot) and Mobiles.co.uk are separately managed divisions within Carphone Warehouse.

Geek Squad

In October 2006 it was announced that Geek Squad
Geek Squad
The Geek Squad is a subsidiary of the Best Buy Company and is based in Richfield, Minnesota. It was originally founded on June 16, 1994 by Robert Stephens. The company offers various computer-related services and accessories for residential and commercial clients...

 would be launching in the UK in a 50/50 joint venture between Carphone Warehouse and Best Buy
Best Buy
Best Buy Co., Inc. is an American specialty retailer of consumer electronics in the United States, accounting for 19% of the market. It also operates in Mexico, Canada & China. The company's subsidiaries include Geek Squad, CinemaNow, Magnolia Audio Video, Pacific Sales, and, in Canada operates...

.

Geek Squad currently offers 24 hour nationwide over-the-phone technology support and in-home technical support in the North-West of England and Greater London with surrounding area.

In 2008 the Carphone Warehouse is increasing its joint venture with Best Buy by launching Best Buy Mobile as a "store inside a store" inside of Best Buy's or as a separate store located by Best Buy stores throughout the United States. The labor will be split between the two companies. In the same business venture Carphone Warehouse was split into four parts (half retail and half broadband) and one quarter sold to Best Buy for a sum nearing 1.1 billion.

Repairs

The Carphone Warehouse has the largest Mobile Phone repair service in the UK, and repair centres in all of the countries it is actively trading in.

Marketing campaigns

In the 1990s Carphone Warehouse became well-known for using the Stereo MCs
Stereo MCs
Stereo MCs are an English electronic dance group, which formed in Clapham, London in 1985. They are best known worldwide for their 1992 transatlantic Top 20 hit single, "Connected"...

' "Connected" in its advertisements.

Mowbli, the little mobile phone, is Carphone Warehouse's mascot. He appears mainly in radio advertisements with his friend Ed (voiced by the Irish comedian Ed Byrne
Ed Byrne
Ed Byrne is a Perrier Award-nominated, Irish stand-up comedian, voice over artist and actor. He has presented television shows Uncut! Best Unseen Ads and Just for Laughs, and is a regular guest on various television panel games...

), and also on television advertisements. Mowbli was dropped in 2008 and replaced by hand drawn characters and a hand drawn logo to "Bring back its image of Simple Impartial Advice". The retailer has returned to the old strapline 'Simple, Impartial Advice'. This reflects the businesses foray into wireless products including laptops, netbooks and games consoles.

The X Factor (UK)

As of 19 June 2007, the Carphone Warehouse became the official sponsor of the fourth series of The X Factor
The X Factor (TV series)
The X Factor is a television talent show franchise originating in the United Kingdom, where it was devised as a replacement for Pop Idol. It is a singing competition, now held in various countries, which pits contestants against each other. These contestants are aspiring pop singers drawn from...

. The sponsorship deal stands to last for three years. The Carphone Warehouse will also be the sponsor of its various spin-offs, including The Xtra Factor. However, because the Carphone Warehouse and Talktalk have split, Talktalk have taken over the sole sponsorship of the X factor.

Big Brother (UK)

The company were the sponsors for the UK's version of Big Brother
Big Brother (UK)
Big Brother UK is the British version of the Dutch Big Brother television format, which takes its name from the character in George Orwell's 1948 novel Nineteen Eighty-Four...

from 2004 to 2007. In 2006 they also sponsored Celebrity Big Brother and related Celebrity Big Brother shows on Channel 4
Channel 4
Channel 4 is a British public-service television broadcaster which began working on 2 November 1982. Although largely commercially self-funded, it is ultimately publicly owned; originally a subsidiary of the Independent Broadcasting Authority , the station is now owned and operated by the Channel...

.

On 17 January 2007, in response to alleged racism in Celebrity Big Brother
Celebrity Big Brother racism controversy
The Celebrity Big Brother racism controversy was a series of events related to incidents of perceived racist behaviour by contestants on the television series Celebrity Big Brother 2007 shown on British television station Channel 4...

, Charles Dunstone
Charles Dunstone
Charles Dunstone is the CEO and co-founder, in 1989, of mobile phone retailer The Carphone Warehouse.-Education:...

 said: "We are talking to Channel 4
Channel 4
Channel 4 is a British public-service television broadcaster which began working on 2 November 1982. Although largely commercially self-funded, it is ultimately publicly owned; originally a subsidiary of the Independent Broadcasting Authority , the station is now owned and operated by the Channel...

. The sponsorship is constantly under review. Clearly we are against racism. Most people understand that the person who has their name associated with the programme does not necessarily condone the content.

On 18 January 2007, Carphone Warehouse announced that it had suspended its sponsorship of the show as Channel 4 had not taken sufficient action in response to the alleged racism in the show.

On 8 March 2007, the company permanently dropped its sponsorship of the show.

Appy Awards

In April 2011, The Carphone Warehouse sponsored the Appy Awards
Appy Awards
The Appy Awards, first presented on 11 April 2011, mark successful and popular applications for mobile devices. Sponsored by The Carphone Warehouse, Europe's largest independent mobile phone retailer, awards were presented in ten categories in a ceremony hosted by television presenters Richard...

, calling them "the UK’s first major app awards ceremony designed to recognise innovation and development in app technology".

Charity Support

In 2001, The Carphone Warehouse established a corporate partnership with Get Connected UK
Get Connected UK
Get Connected UK is the UK’s free support service for under-25s. Young people can contact the helpline in confidence with any problem and a trained volunteer will find them the most appropriate help using a directory of over 13,000 trusted services around the country...

 that continues today. The Carphone Warehouse supplies Get Connected with office and helpline equipment and it has been instrumental in ensuring it is free to call from all landlines and mobiles . This partnership won the Charity Times Corporate Partnership Award in 2003 and the Third Sector Excellence Award for Corporate Partnership in 2006 .

Customer Service

Carphone Warehouse provides full customer service support through a range of channels.

To ensure customers can start playing with their mobile straight away Carphone Warehouse has introduced a free 'Walk Out Working' service to get you set up and ready to do everything you want, before you leave the store. If you buy online or over the phone they'll give you exactly the same help to get started. You just need to call their Geek Squad Agents once you get your new phone and they'll take you through it step-by-step.

For post-purchase support customers can contact Carphone Warehouse here.

The company also has a dedicated social media channel to assist customer with both pre and post-pay enquiries on Twitter CPWcares.

Carphone Warehouse has four core customer promises which drive everything the business does:

Choice - The best possible choice of phones, tablets, and networks. Advice - Simple, impartial advice to help you find what's best for you. Price - Prices that match or beat the networks'. Support - Support throughout the life of your device.

AOL UK

The Carphone Warehouse announced that it would purchase the UK business of AOL
AOL
AOL Inc. is an American global Internet services and media company. AOL is headquartered at 770 Broadway in New York. Founded in 1983 as Control Video Corporation, it has franchised its services to companies in several nations around the world or set up international versions of its services...

 on 10 October 2006 for £370m.
This makes Carphone Warehouse the 3rd largest broadband provider, with over 2 million customers, and the largest LLU
Local loop unbundling
Local loop unbundling is the regulatory process of allowing multiple telecommunications operators to use connections from the telephone exchange to the customer's premises...

 Operator with more than 150,000 LLU customers.

The acquisition process completed on 9 December 2006.

It has also been stated in their press release that AOL UK Audience business will remain a separate organization and brand with a revenue sharing agreement. It is not yet clear if the AOL UK Access business (the broadband part) will be fully integrated into Carphone Warehouse, however the name of this business has been changed to AOL Broadband
AOL Broadband
- History :The UK ISP side of AOL was bought by The Carphone Warehouse in October 2006 for $688m to take advantage of their 100,000 LLU customers which made The Carphone Warehouse the biggest LLU provider in the UK....

. AOL Broadband
AOL Broadband
- History :The UK ISP side of AOL was bought by The Carphone Warehouse in October 2006 for $688m to take advantage of their 100,000 LLU customers which made The Carphone Warehouse the biggest LLU provider in the UK....

 customers will not be automatically transferred to Talk Talk.

AOL began consulting on job cuts in 2006. The Times
The Times
The Times is a British daily national newspaper, first published in London in 1785 under the title The Daily Universal Register . The Times and its sister paper The Sunday Times are published by Times Newspapers Limited, a subsidiary since 1981 of News International...

 reported that the company expected to cut a total of 500 UK jobs by Christmas. In line with legal requirements, AOL UK (now AOL Broadband
AOL Broadband
- History :The UK ISP side of AOL was bought by The Carphone Warehouse in October 2006 for $688m to take advantage of their 100,000 LLU customers which made The Carphone Warehouse the biggest LLU provider in the UK....

) notified the DTI that redundancies are planned. The Press Gazette
Press Gazette
Press Gazette, formerly known as UK Press Gazette , is a British media trade magazine dedicated to journalism and the press. It was first published in 1965, and currently has a circulation of about 2,500, although it had enjoyed higher circulations earlier in its history...

 stated "The company has informed the DTI that it is possible that it will make more than 100 redundancies".

On 1 November 2006, it was made public that Karen Thompson, AOL UK CEO and President AOL Europe, had resigned and had been succeeded by Carlo d'Asaro Biondo (previously CEO of AOL
AOL
AOL Inc. is an American global Internet services and media company. AOL is headquartered at 770 Broadway in New York. Founded in 1983 as Control Video Corporation, it has franchised its services to companies in several nations around the world or set up international versions of its services...

 France). Thompson was part of the team responsible for launching AOL UK in 1996.
It was made public on 14 December 2006 that Carlo d'Asaro Biondo had resigned after only six weeks in his new role. Philip Rowley (the chairman of AOL Europe) has taken over on a temporary basis. The Guardian states: the management turmoil has put the European operation in "freefall" and created a "massive vacuum", according to one AOL insider. The same article estimates that 5,000 AOL jobs are to go worldwide (25% of staff) with a significant number from AOL UK.

In January 2007 AOL UK was rebranded as AOL Broadband
AOL Broadband
- History :The UK ISP side of AOL was bought by The Carphone Warehouse in October 2006 for $688m to take advantage of their 100,000 LLU customers which made The Carphone Warehouse the biggest LLU provider in the UK....

.

Service changes

In an early press statement, The Carphone Warehouse stated they had "no plans to change the service in any way at all," but, since January, all those who used P2P applications heavily had their downstream bandwidth limited to 50 kbit/s during peak times (18:00-24:00, Sunday to Thursday).

Marketing offers and problems

During the third quarter of 2007, AOL Broadband
AOL Broadband
- History :The UK ISP side of AOL was bought by The Carphone Warehouse in October 2006 for $688m to take advantage of their 100,000 LLU customers which made The Carphone Warehouse the biggest LLU provider in the UK....

 caused a stir by offering a free laptop computer (and eventually a free PlayStation 3) to all new customers signing up for a 24 month contract with its AOL Broadband Wireless Plus broadband package. While sceptics looked for a catch, industry experts conceded that the offer was reasonable, despite the necessity to sign up to an AOL Talk home phone package in order to be eligible for the free laptop. While an option to not take a bundled home phone package was available, the price increased by £10; further offers include a free Xbox 360
Xbox 360
The Xbox 360 is the second video game console produced by Microsoft and the successor to the Xbox. The Xbox 360 competes with Sony's PlayStation 3 and Nintendo's Wii as part of the seventh generation of video game consoles...

, PlayStation 3
PlayStation 3
The is the third home video game console produced by Sony Computer Entertainment and the successor to the PlayStation 2 as part of the PlayStation series. The PlayStation 3 competes with Microsoft's Xbox 360 and Nintendo's Wii as part of the seventh generation of video game consoles...

 and Wii
Wii
The Wii is a home video game console released by Nintendo on November 19, 2006. As a seventh-generation console, the Wii primarily competes with Microsoft's Xbox 360 and Sony's PlayStation 3. Nintendo states that its console targets a broader demographic than that of the two others...

 in addition to other promotional items.

Best Buy

On 8 May 2008, Charles Dunstone revealed Carphone Warehouse's biggest move to date: a £1.1bn takeover by America's largest electrical retailer, Best Buy
Best Buy
Best Buy Co., Inc. is an American specialty retailer of consumer electronics in the United States, accounting for 19% of the market. It also operates in Mexico, Canada & China. The company's subsidiaries include Geek Squad, CinemaNow, Magnolia Audio Video, Pacific Sales, and, in Canada operates...

. The deal has paved the way for Carphone to split its telecom and retail businesses: a move expected to be completed by March 2010. As part of the detail, a radical new direction has been undertaken for the its retail arm. Big Box out of town stores will be launched to compete with Curry's and Comet, selling electrical goods from TVs to fridges. Meanwhile Carphone's fleet of telecom outlets will be supplemented by new format Wireless World stores targeting connected home entertainment products, laptops and gaming. Investing in such diverse retail distribution is a gamble, but gives The Carphone Warehouse a foothold in businesses with current and future potential.

Tiscali UK

On May 8, 2009, Carphone Warehouse became Britain’s second largest broadband provider after BT
BT Group
BT Group plc is a global telecommunications services company headquartered in London, United Kingdom. It is one of the largest telecommunications services companies in the world and has operations in more than 170 countries. Through its BT Global Services division it is a major supplier of...

 after it agreed to pay £236m in cash for the UK assets of Tiscali
Tiscali
Tiscali may refer to:*Tiscali, an archaeological village of Nuragici people, in Sardinia, Italy, notable because it was completely inside a huge cavern*Tiscali SpA, a telecom company based in Italy*Tiscali TV , multiple uses...

, the Italian telecoms group. The business was later rebranded under the existing TalkTalk
TalkTalk
TalkTalk is a pay television, telecommunications and internet service provider company headquartered in London, United Kingdom...

 brand.

Former competitors

The Carphone Warehouse has acquired four former competitors mobile phone e-tailers e2save, The Phone Spot, Mobiles.co.uk and OneStopPhoneShop. Orders are fulfilled through the Carphone Warehouse, but each company has its own terms and conditions and, significantly, rules regarding promotions.

Marketing offers and problems

These subsidiaries offered 'cash back' redemption on entering into a contract; customers had to send in bills and vouchers to claim back line rental paid to the network. This has proved problematic for many customers.

In the case of the OneStopPhoneShop and e2save, customers have had a history of problems in claiming their cash back. OFCOM, the regulator, has admitted receiving many complaints about the behaviour of these two companies, but no action has yet been taken.

Data protection

During 2005, TalkTalk's proactive sales techniques drew criticism in the press when it was accused of practising "slamming
Telephone slamming
Telephone slamming is an illegal telecommunications practice, in which a subscriber's telephone service is changed without their consent. Slamming became a more visible issue after the deregulation of the telecommunications industry in the mid-1980s, especially after several brutal price wars...

" to win new customers.

Customers who bought mobile phones from Carphone Warehouse retail outlets alleged that their landline accounts were subsequently switched without their consent
.

On 15 August 2006, the Information Commissioner's Office issued Preliminary Enforcement Notices for breaches of PECR (The Privacy and Electronic Communications Regulations) against Carphone Warehouse and TalkTalk for making marketing calls to people who are signed up to the Telephone Preference Service
Telephone Preference Service
The Telephone Preference Service is a UK opt-out telephone list that is intended to prevent telemarketing calls to those who do not wish to receive them. The list is administered on behalf of Ofcom by the British direct marketing industry, who also run the Mailing Preference Service and Fax...

 (TPS) or people who have asked that the company make no further calls to them.

On 28 October 2006, in a Times
The Times
The Times is a British daily national newspaper, first published in London in 1785 under the title The Daily Universal Register . The Times and its sister paper The Sunday Times are published by Times Newspapers Limited, a subsidiary since 1981 of News International...

 interview, Richard Thomas, Britain's Information Commissioner, stated:
We're taking action against some of the telecom companies, Talk Talk and Carphone Warehouse. We're taking action against them because we've had a lot of complaints that they've been telephoning people with marketing calls, people whose name is on the telephone preference service. And then we do these prosecutions, particularly with private detectives. We've got a big case coming up.

See also

  • TalkTalk
  • Charles Dunstone
    Charles Dunstone
    Charles Dunstone is the CEO and co-founder, in 1989, of mobile phone retailer The Carphone Warehouse.-Education:...

  • AOL
    AOL
    AOL Inc. is an American global Internet services and media company. AOL is headquartered at 770 Broadway in New York. Founded in 1983 as Control Video Corporation, it has franchised its services to companies in several nations around the world or set up international versions of its services...

  • Local loop unbundling
    Local loop unbundling
    Local loop unbundling is the regulatory process of allowing multiple telecommunications operators to use connections from the telephone exchange to the customer's premises...


External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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