O2 remove their contract mobile phone deals from Phones4u

O2 have followed in Vodafones footsteps by pulling out of new contract business with a major high street retailer

O2 have followed in Vodafones footsteps by pulling out of new contract business with a major high street retailer

22 February 2007


O2 have followed in Vodafones footsteps by pulling out of new contract business with a major high street retailer

Vodafone pulled their contract deals out of the Carphone Warehouse last year, and now O2 have announced that from the 1st April 2007 they will not be selling contracts in Phones4U stores. Current O2 contracts will be able to be upgraded in Phones4U stores and customers will be able to pick up an O2 Pay as you Go handset.

The move is the latest step of the operators taking sides with the retailers and therefore offering sharper deals. O2 have renewed its deal with Carphone Warehouse, and it is believed that they will receive smaller commissions for larger volumes.

It has been rumoured that Phones4U’s O2 contract connections have fallen from 15,000 to 5,000 per month. Currently Phones4U are still ongoing with confidential commercial discussions with O2, so keep checking our industry news pages for updates on what O2 do next.

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