Orange in direct sales trial as OFT probe starts

Orange, the mobile phone company, has begun trials to sell its handsets directly to customers. The move comes just days after the Office of Fair Trading announced an official investigation into alleged price-fixing through dealers.

The Hutchison Telecom division is the subject of an OFT probe following complaints from a number of Orange dealers that it is fixing prices for its handsets. Dealers claim to be having difficulties getting phone supplies if they do not agree to prices set by Orange.

As yet, the OFT has no firm evidence to support the allegations. It is appealing to dealers for more information.

The allegations come as Orange begins a 500,000, four-week trial to determine if customers will buy its products over the phone.

Orange, which says the direct sales operation will not replace its dealer channel, begins trials this week in TV ads through WWAV Rapp Collins.

The commercials supply viewers with a telephone number that connects directly to Orange’s Hertford headquarters.

The phones – priced at 99.99 each – will be delivered to them within 48 hours.

“The two are not connected,” says a Hutchison spokesman, commenting on Orange’s move into direct sales and the OFT investigation.

He confirms that a letter has been received from the OFT

and that Hutchison will reply

to it by today’s deadline (Wednesday).

The new direct response ads will not affect the Orange branding campaign, designed by WCRS. Two new ads through WCRS will break at the end of August.

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here