Wednesday 20 May 2009

Vodafone Redials Distribution

Vodafone is rethinking its exclusive UK distribution deal with Phones4U and trying to get its offerings back into Carphone Warehouse (updating Chapter 8 of my book, which examines channels and logistics).

Why? Because sales are slow and Vodafone would like wider distribution. Consolidation among UK mobile carriers is another possible solution to the intense competition, according to Vodafone's CEO.

For now, mobile bargains are everywhere as prepaid services compete against subscription services in a slow-growing market. Although Vodafone is cutting costs aggressively, its latest financial results were below targets. Will wider distribution be the answer?