3G Phones Take up to 20% of UK Market

April 14, 2005 - source: BWCS

Carphone Warehouse CEO, Charles Dunstone, has announced that 3G phone sales now make up between 15% and 20% of the total number of handsets sold in his UK chain of shops. This is, he claimed, the highest total in any European country. He also pointed out that 90% of the company's 3G phones sold in the UK are on Hutchison's 3G network.

Dunstone was speaking on a press phone conference called to give an update on the mobile phone retailer's financial position. According to the company Finance Director Roger Taylor, Carphone Warehouse is in line to make pre-tax profits at the high end of analysts' expectations, probably around £102 million, for the year ended 31 March 2005.

Asked to comment on how his recently launched MVNO operation, Fresh Mobile, was faring, Dunstone would only say that he is confident that it is outselling rival EasyMobile, which was launched last month. However, the Carphone executive declined to give any figures to support this assumption. EasyMobile was created by Low-cost airline magnate Stelios Haji-Ioannou and Danish operator TDC.

On the very day that EasyMobile was launched, Carphone Warehouse immediately offered to cut its UK voice call charges to £0.075 a minute and text messages to £0.025. Dunstone was quoted on the launch day as saying "The fact is that the mobile phone business is not an airline business. The price of mobile calling has been falling every year for the 15 years we've been in existence. There is a big market for simple, low-cost, no frills, everyday calls. We've helped create it. We're the price and service leader. We'll stay the price and service leader." He said.

Dunstone also announced the retirement of former Orange man Hans Snook who has recently been chairman at Carphone Warehouse.