EE severed ties with Dixons Carphone, becoming the latest mobile operator to drop its retail prices. In a statement, EE said the decision was not an easy one and "many months of difficult discussions and negotiations" followed. “After more than 20 years of close association, we have made the difficult decision not to renew our EE Mobile contract with Dixons Carphone and to refocus our attention and investments towards growing our own stores and online channels,” said a BT spokesperson. “However, as our strategy evolves towards convergence and our focus on customer value and retention increases, we will reset our distribution strategy to prioritize sales and service in our own channels. “Dixons Carphone has been a great partner for many years, and we thank the team for all the work they have done with us to help grow our business, and we wish them good luck in pursuing their own strategy. renovated. Customers will not be affected by this change. "
EE Carphone Warehouse
The end of EE's contract means three of the big four mobile operators no longer have a relationship with the UK's biggest mobile phone retailer. Three parted ways several years ago when O2 failed to agree a contract extension earlier this year. This exodus is partly explained by increased investment by operators in department stores and online sales sites, but also by Dixons Carphone's desire to change the terms of its contracts as part of a transformation programme. longer. When he was appointed in 2018, CEO Alex Baldock said existing relationships with EE, O2 and Vodafone were "unsustainable". A great challenge for Dixons Carphone is the change in consumer habits. A saturated market and longer upgrade cycles reduce contract renewal rates, making SIM-only pricing and SIM-free phones more popular, reducing margins. In addition to "resetting" the company's relationships with operators, the company is improving its technological capabilities, training its staff and planning to offer credit services with the aim of revitalizing its mobile business and boosting sales. line. To that end, it closed Carphone Warehouse's 531 standalone UK stores ahead of lockdown. EE's departure leaves Vodafone, Voxi and Virgin Media as Dixons Carphone's remaining network partners, while the company also has its own mobile virtual network operator (MVNO) 'iD', powered by Tres' infrastructure. However, Dixons Carphone believes the market is moving away from long contracts that tie airtime to specific devices. It's considering a new proposal for mobile devices, but hasn't provided many details yet. “EE and Dixons Carphone have enjoyed a strong working relationship for more than two decades,” a Dixons Carphone spokesperson told TechRadar. “However, after lengthy discussions, we have agreed that our contract with EE to sell earlier and after payment will end this month. “Our mobile financial plans and support for customers currently connected to EE are unaffected by today's news. We are well on our way to transitioning to a new, more flexible and transparent mobile offering that offers better value to our customers, and this offering is expected to launch early next year. We will continue to provide our customers with a wide range of connectivity options. "