The UK mobile operators have made much of their honesty in ceasing to record subscribers that have not made calls within six months. This will help analysts make a clearer judgment of how many people actually use mobiles, and what the correct figure is for ARPU. But pleasure at the apparent increase in openness should be tempered somewhat. Operators are starting to make active efforts to stop subscribers becoming 'inactive'. In the last few weeks all the UK operators appear to have adopted similar policies. These policies state that the operator will take back a subscriber's telephone number unless one call is made or one SMS is sent from the phone during each six-month period.
As important, the mobile operators are keeping a much tighter rein on inventories, effectively shifting stock risk to retailers such as Carphone Warehouse. Inventory levels throughout the supply chain will be lower. Retail price levels will be more robust improving operator margins. But we expect total sales over the Christmas period to be lower than expected because of the higher prices in the retail chain.