The decision by to pull its contracts out of the UK's biggest mobile phone retailer was taken in 2006 when the telecoms giant signed an exclusive deal with .
At the time Vodafone said it hoped the move would signal a change in the way mobile phone deals are sold on the high street by promoting smaller retailers.
However, observers saw the move as a tacit admission it was struggling to compete with the other networks on deals and commissions.
Yesterday, Vodafone's UK CEO Guy Laurence adm+itted the company's vision had not gone according to plan. Speaking to the Guardian he said: "It was a decision we took in the hope that it would provide some kind of changes in the overall distribution pattern in the UK. That did not happen."
It is believed the company is poised for talks with in the coming weeks.
Global CEO Vittorio Colao said the company would be focusing on the UK end of the business. It has struggled against the other mobile operators, especially with the UK's largest provider O2 which has been percieved to have offered more competitive monthly deals. Its position was also strengthened when it struck an exclusive deal in 2007 with Apple to sell the iPhone.
Vodafone admitted it was suffering the effects of the downturn yesterday when it revealed its pre-tax profit for the year proceeding March 31 had fallen 51% and it would need to make cuts. Much of this came as a result of losses in its Spanish operation.
o2
Vodafone set to abandon exclusive deal with Phones4U
LONDON - Vodafone is considering an about turn over its decision to stop selling contract deals through the Carphone Warehouse, according to reports.
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