Reply to post: Re: A year left to run on the EE contract?

Phones 4u slips into administration after EE cuts ties with Brit mobe retailer

No, I will not fix your computer

Re: A year left to run on the EE contract?

In retrospect, it's not a surprise, O2 left first, being the smallest supplier of contracts to P4U, basically losing out in most contract comparisons, that left EE and Vodafone, directly competing against each other , both having to effectively discount their contracts with P4U skimming the commission, if they wanted P4U to sell a contract then they would have to undercut the other, EE was pricing Vodafone out so Vodafone left, with EE no longer competing with anyone they had no reason to stay.

Vodafone said "Phones 4U was offered repeated opportunities to propose competitive distribution terms to enable us to conclude a new agreement, but was unable to do so." I assume that the discounts that Vodafone was asked to give (which contributed towards the £100M profit) was too much for them?

Carphone Warehouse I suspect now will be in the same state, with the phone (contract) suppliers being in a strong position to offer only smaller discounts, if they don't agree then they will pull out, while they might hoover up some shops and staff from P4U, there's absolutely nothing stopping EE/O2/Voda pulling out - and if they did it with P4U, there will have to be a good reason for not doing it with CW.

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