Jun 1, 2018

Dixons Carphone risks loss of big mobile groups in contracts row

At least one major mobile network is looking at pulling its business from Dixons Carphone after the retailer's attempt to squeeze more money out of the telecoms industry. Dixons has to negotiate the renewal of its contracts with EE, O2 and Vodafone - the lifeblood of the Carphone Warehouse side of the business - in the coming months. Alex Baldock, new chief executive of Dixons Carphone, warned the mobile phone sector this week that its contracts - some signed after the collapse of its rival Phones 4U in 2014 - were "Unsustainable" and in need of renegotiation. Another person at a rival network said that selling phone contracts through Carphone Warehouse was the "Least profitable channel for operators" and that the comments suggested that the business was struggling. The mobile group Three severed its ties with Carphone Warehouse in 2013 as it brought sales in-house.

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