Talk Talk/ CPW conflicts of interest.

hurrah

Interesting article in Sunday Times today.

Conflicts of interest breed suspicion

"CARPHONE WAREHOUSE’s move to turn itself from a mobile-phone retailer into a telecoms services provider has increased the tensions that exist with its most important customers: Vodafone, Orange, O2 and T-Mobile.

When Carphone first began selling its TalkTalk landline service three and a half years ago, the mobile companies could afford to take a relaxed attitude. Charles Dunstone’s target was very clearly BT and its 70% share of the residential voice calls market.

However, as Talk Talk has expanded into broadband — and as the barriers between fixed and mobile communications blur — Carphone is increasingly a competitor of mobile companies, as well as an important source of mobile customers.

Take Orange, for example. When Carphone signs up a new subscriber for Orange, that has a potential impact on its Talk Talk broadband service. Orange is seeking to cross-sell its “free” broadband service to mobile customers — who will consequently be less susceptible to Talk Talk broadband. Perhaps it makes more sense, therefore, to push more customers towards T-Mobile, the only one of the big four networks without plans for a fixed broadband service.

Whether or not this is happening, the suspicion that it might causes tension. It helps explain why Orange is reviewing its sales strategy.

These problems are only going to become bigger as the speed of mobile broadband (3G) starts to match that of fixed-line services.

Talk Talk is already a substantial business in its own right. As fixed and mobile services converge, it must be debatable whether Talk Talk can continue to be part of the original mobile-retailing group."

http://www.timesonline.co.uk/article/0,,2095-2404163,00.html