EE to consider terminating its relationship with Carphone Warehouse

EE is looking to pull out of its partnership with Carphone Warehouse, with a decision to be reached following a review of its consumer retail strategy. Should the largest mobile operator in the UK terminate dealings with the retailer, it will be a sizeable blow leaving just O2 and Vodafone as viable options through Carphone Warehouse. The move would see EE deal directly with consumers, eliminating third-party retailers.

The UK mobile operator is a joint venture between Orange and Deutsche Telekom. Gervais Pellissier, the deputy chief executive of Orange, commented on how he wanted to see EE rely less on third-party retailers and drive sales by dealing direct to consumers. A EE spokesman failed to comment on negotiations, but did highlight how the company is reviewing its strategy:

"While we do not comment specifically on ongoing negotiations, we can confirm that we're formally reviewing our distribution strategy, primarily in the consumer space, with a view to fewer, deeper partnerships, based on value and shared ambitions."

Carphone Warehouse is currently looking to merge with consumer technology retailer Currys (owned by Dixons), which would be hit hard by potential retractions. EE will also be reviewing its partnership with retailer Phones 4u.

Source: The Telegraph

Rich Edmonds