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Orange is poised to appoint Craik Jones Watson Mitchell Voelkel to

handle its consumer retention DM business, worth about pounds 25m.

The mobile telecoms firm is understood to have told the three pitching

agencies - WWAV Rapp Collins, Lowe Live and Craik Jones - of its

decision last week. The review was handled by the AAR.

The brief covers the bulk of Orange's customer communications business

in the UK, including offering upgrades and new services.

It also includes other relationship marketing activity designed to

reduce churn among Orange's ten million-strong customer base.

Orange is understood to have chosen Craik Jones for its strong creative

reputation, although all three agencies had a strong case for winning

the business.

WWAV helped launch the Orange brand in the UK alongside WCRS. Lowe Live

is the retained agency on the firm's customer acquisition DM, while its

sister agency, Lowe Lintas, handles its brand advertising account.

It is thought likely that Orange's development of a sophisticated

customer communications strategy will see it spend about pounds 30m a

year on direct marketing, including the cost of various customer

magazines.

Orange is currently third in the mobile phone market behind Vodafone and

BT Cellnet. The company is also undertaking reviews of its affinity

marketing and telebusiness activity.

Craik Jones refused to comment on the review. An Orange spokeswoman

said: 'We are not ready to announce a decision. There are still details

that need to be resolved.'

COMMENT

The Orange appointment accompanies a frenzy of DM activity as a result

of mobile phone firms' anxiety to recoup the cost of their huge outlay

on licences to build 3G networks.

Vodafone is also reviewing its DM roster, while BT Cellnet recently

completed a review and works with ehs:realtime and Tullo Marshall

Warren.

Virgin Mobile and One 2 One have also changed agencies in the past six

months. Virgin Mobile uses Liquid Communications, while One 2 One hired

Claydon Heeley Jones Mason to its pounds 8m account earlier this year.