O2 quits Dixons Carphone – what will happen next?
I’m sure I won’t be alone in expressing surprise at the news Dixons Carphone and O2 have ended their 20 year-long contract. The independent status of Carphone Warehouse, and subsequently Dixons Carphone, has been a major contributor to customer volumes for mobile operators. But this news comes at a time of extremely tough retail trading - the chain had already announced it was to close its 531 high street stores with a cost of 2,900 jobs, even before the covid-19 lockdown. The first thought anyone in the industry will be having is that there could be a catastrophic domino effect. Phones4U went into administration after networks pulled out, and it happened in weeks! But you have to remember Dixons Carphone is a more diverse business and it has been here before. Firstly, Three hasn’t sold through Dixons Carphone since 2013, and that’s despite using Three to run its MVNO iD, which boasts 1 million customers. Secondly, Vodafone pulled out of Carphone Warehouse in 2006, only to return again a few years later. One can only assume this is because they lost customers as a result of leaving. Understanding the decision through customer segmentation I can only assume that O2 is...
