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O2 UK Ends Long Relationship with Carphone Warehouse

Wednesday, April 1st, 2020 (5:25 pm) - Score 8,968

Mobile operator O2 UK (Telefonica) has officially cut its commercial ties to the Carphone Warehouse (Dixons Carphone) after two decades of working together. The two had been in the process of negotiating terms for a future contract renewal but have been unable to reach an agreement.

The failure to reach a deal is being seen as a direct result of the recent decision by Dixons Carphone to close all 531 of their standalone Carphone Warehouse retail stores across the United Kingdom. Instead the company hopes to continue their operations by selling mobiles and contracts through concessions inside 305 large Currys PC World stores (as well as online).

A number of mobile operators, some of which have also had to cut back on their own high-street outlets over the past few years, were said to have been surprised by the move. Clearly O2 felt as if their deal with Dixons Carphone no longer provided the same value for money as before.

A Spokesperson for O2 said:

“While we’ve worked hard over the past year to put a number of options on the table, it has not been possible to reach a new agreement as they’ve made clear to the market that they wish to take a new strategic direction and change the relationship they had with mobile operators.”

The situation has also painted a question mark over relations between Dixons Carphone and their other primary mobile partners, EE (BT), Vodafone and Three UK (via iD Mobile).

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19 Responses
  1. Avatar Chris Sayers

    Hardly surprising O2 bailed, Carphone wherehouse, where will they be by the end of the year?, ps, deliberate misspelling…

  2. Avatar Steve

    They will go the same way as Phones4U. Last time )years back) I tried to buy an android phone from them all they were interested in trying to sell me was a windows phone! In the end I turned around and walked out swearing that I would never buy another phone from them ever again – and I haven’t!!!

    • Avatar SQ99

      Yup. I went in and asked for the most up to date iPhone. I did so spontaneously and hadn’t done my research, but expected to be given the relevant information in the shop.

      I later found out I was purposefully sold a lesser model. When I went back and asked why, I was told by the salesman that I didn’t look like I could afford the better model!!!! He then point blank refused to replace the phone with the better version (I obviously expected to pay the difference), refused to allow me to break the contract and refused to allow me to speak to the manager.

      There are just so many things wrong with this experience that I hardly know where to start but having been a customer of theirs for approximately 20 years I will NEVER cross the threshold again. For any reason.

  3. Avatar Ryan

    It’s not going to be the last provider to drop carphone warehouse when it come to renewal of commercial deal with them,it doesn’t help they clossing 531 stores which makes them quite a bit appealing since it will just be bigger Pc World store and online sales now.

  4. Avatar Matthew

    Just a point @Mark Jackson

    But pretty sure Carphonewarehouse don’t have an agreement with Three at all think it’s just Vodafone and EE Left now.

    • Avatar CJ

      They do, but it’s an MVNO agreement. Dixons carphone owns id mobile.

    • Avatar Matthew

      Which for my point would still be fair to make then as they don’t sell Three mobile contracts directly they only sell two of the major network contracts now.

  5. Avatar Richard Crossley

    This isn’t actually good for consumers. I got a much better deal on O2 via carphone warehouse then I could get via O2 direct! They also don’t stock the Pixel 4 range (I wanted a 4XL 128GB) like carphone. Even with student discount because they only give it you on the tariff direct it was about £20 per month more!

    • Avatar Steve

      Ditto – I stopped being a direct o2 customer when Mobiles.co.uk / Carphone Warehouse gave me a fantastic deal on my main Pay Monthly phone. I will stick with them and change networks rather than go back to being robbed as a direct customer. O2 are not competitive any more so this is more likely to backfire on them than on Carphone Warehouse. They stopped their PAYG Classic tariff too so pushing customers away. Not the best business strategy.

    • Avatar Dawn Roberts

      Me too, I’ve always got better deal on 02 in Carphone Warehouse. I’ve been with 02 for 22 years but will definitely think of changing providers rather than going direct to 02…

    • Avatar SQ99

      I was advised some time ago that you do far better to buy the phone in full from wherever you like and then get a sim only deal from your service provider. I’ve just got a really decent monthly plan from O2 for £20 per month which is SIGNIFICANTLY less than I was paying to Carphone Warehouse.

  6. Avatar Laura Brown

    Hi can anyone help me I have bought a Giffgaff voucher on the 20th of the 3rd 2020 is I put it into my phone and now it’s saying it’s invalid I bought two on the same time and I’ve done the other one and it says it’s invalid is there any way I can get my money back on my phone and and I bought a new one today and the expiry date is I bought it today the expiry day is the 2nd of the 4th 2021 so there must be a limit time I’m to go on it

  7. Avatar Arthur

    Hi Giffgaff vouchers last 12 months from day of purchase

  8. Avatar DaveyO

    I’m a little disappointed. Carphone did me a great deal on a Note 10+ on voda. Voda direct couldn’t get anywhere near the same price.

  9. Avatar Honest Gentleman

    The reason why these companies close down is purely for cheap skates like you. You want the latest devices for the cheapest price possible. Why don’t you sell something for less and see how long you will survive.

    Think about how much these telecommunication companies invest in there networks, staff, shops and online etc. Considering some customers do not even pay their bills which costs these companies money.

    You guys are happy to spend £3.80 per day (£106.40 PM) for coffee but cry when you spend £30-80 PM on mobile phone which are worth £800-£1500 plus inclusive allowance like mins/data.

    You pay for something not nothing.

    So stop complaining OR IF you can’t afford it STFU.

    • Avatar Craig

      Lol, think again I have 4 sim deals with three uk each one only paying £5 UL.data/minutes and text.

      Let’s face it they are robbing us blind and fleecing us like no tomorrow profits margins are sky high CEO living in his brand new yacht in Dubai.

    • Avatar Steve

      What a load of tosh. The likes of Carphone Warehouse do huge volumes with the manufacturers to get the lowest possible prices. They don’t make a loss. they pass on the volume savings. Dixons Carphone made £24 million profit in its October 2019 half-yearly reporting period. If you tell me that you routinely pay retailers more than their asking price for goods you are either telling fibs or certifiable. As for coffee – I rarely buy takeaway coffee but if forced then Pret do a 99p filter coffee even in stations and airports. Lovely.

  10. Avatar Stuart

    Dixons Carphone may have made a profit at the half year reporting period but the Carphone section are making a loss of £90 million and will not make a profit until 2021.The mobile market is a thing of the past, sim only deals are the way now as phone prices are beyond the reach of most.

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