O2 has announced brand new savings on handsets, tablets and wearables, as well as a digital gift card up to the value of £300 when purchasing selected devices and SIM only plans.

The digital gift card can be spent on anything they choose, and those purchasing the Samsung Galaxy S22, Google Pixel 6 or the Sony Xperia 1 IV will receive the full £300 card.

Those who choose the iPhone 12 or 13 will receive a £100 voucher to spend anywhere.

SIM only deals include an unlimited tariff for £26 a month which will save customers £96 across the 24-month contract, or 150GB data for £20 a month with customers able to claim a £50 digital gift card on O2.

 The list of offers available include:

•       Oppo X5 Lite: Save up to £100 – hardware & airtime saving
•       Oppo A94: Save up to £100 – hardware & airtime saving
•       Oppo A54: Save up to £100 – hardware & airtime saving
•       Sony Xperia 1 iv: Save up to £162 – hardware & airtime saving
•       Samsung A22: Save up to £144 – airtime saving
•       Samsung S21 FE 128GB: Save up to £216 – airtime saving
•       Samsung Galaxy Book Go: From £5.99 a month for first 6 months – hardware & airtime saving
•       Lenovo IdeaPad: Save up to £384 and get for £20.99 a month, our lowest ever monthly cost – hardware & airtime saving
•       iPad mini 6th Gen: From £16.50 a month, our lowest ever monthly cost – airtime saving
•       Samsung Galaxy Tab S6 Lite: Save up to £286 and get for just £12.50 a month, our lowest ever monthly cost – hardware & airtime saving
•       Samsung Galaxy Tab A8: Save up to £122 and get for just £9 a month, our lowest ever monthly cost – hardware & airtime saving
•       Samsung Watch4 & Watch4 Classic: 6 months free
•       Kids Watch: 3 months free
•       Alcatel PHS & Dongle: 50% off airtime for 6 months

All deals are available at O2 on its custom plans, with offers running until August 10.

Volunteers supporting those in Ukraine have delivered £10,000 worth of mobile phones delivered by tech recycling specialist WeBuyAnyPhone.com.

A package of 100 brand new Alcatel devices were also included in a van load of aid due to their long battery life, which saw them being delivered to Poland by Hampshire-based volunteers.

Managing director at Portsmouth-based L&S Waste Management, Mick Balch, led the delivery and has completed several since the war began in February.

Graeme Warnell and his wife Aga, who live in Krakow, are some other volunteers who have been housing refugees and donating to the cause.

Graeme said: “Mobile phones are crucial to coordinating  the effort and they needed simple phones with long battery life to keep the lines of communication open.

“We’re very grateful to WeBuyAnyPhone.com for providing these devices, which will help people on the ground directly in a way that will make a huge difference.”

WeBuyAnyPhone.com co founder Aaron Brown added: “All of us at WeBuyAnyPhone.com have been shocked and appalled to see the suffering in Ukraine, but also in awe of those who are helping on the front line and by delivering aid to those who need it.

“Sometimes it’s difficult to know how to help, but when we heard about the need for mobile phones, we saw a way that we could have an immediate impact. 

“We’re pleased to see that these devices are now going to be put to good use, and grateful to Mick and all the volunteers involved for getting them where they were needed most.”

When you think of Chinese smartphone brands, Huawei, Xiaomi and Oppo are probably the first three that spring to mind.

Maybe even OnePlus. But another Chinese vendor intent on growing its mobile offering is that of TCL Corporation.

The vendor, which only launched its first smartphone in 2019, entered the UK market last year.

Since then, TCL has launched a host of smartphones, including two at this year’s virtual CES event in January.

And earlier this month, TCL added three more smartphones to its 20 series, with the addition of the TCL 20 Pro 5G, 20L and 20L+.

Though still relatively new when it comes to having its own mobile brand, the company is looking to establish a foothold and become a household name in this space among European consumers.

Four decades

Yet the company hasn’t just shown up overnight: TCL turns 40 this year, having built a reputation as a manufacturer that specialises across a range of consumer electronics, including TV, air conditioners, washing machines and refrigerators.

But in recent years, mobile has been added to this stable, with TCL being global licensee of the Alcatel brand. And until early last year TCL also produced hardware under a BlackBerry licence.

For now, the company’s focus is on establishing its brand. This will be done via an array of phones and big- name ambassadors, such as Tottenham Hotspur striker Harry Kane and World Cup winning Frenchman Paul Pogba.

This marketing is a critical cog in the TCL wheel, says William Paterson, UK and Ireland country director at Alcatel.

“We have a great relationship with retailers,” he says. “Last year, we worked very closely with them to launch the 10 series. We created campaigns across the UK and focused very much on digital advertising to both drive brand awareness and sales of products.”

But the company is taking things one step at a time when it comes to setting targets, insists Paterson (below).

“Short-term, our ambition with TCL is to consolidate on the launch we had last year and move into the next generation of products through our 20 series, which launched earlier this month.

“We’ve only recently launched in the UK and Ireland – and during a pandemic – so we really are focusing our attention on how we can support our channels in the best way possible with the TCL devices.”

Early gains

After launching in Europe last year, the vendor has achieved some early success, says Stefan Streit, general manager for global marketing at TCL.

“Based on fourth-quarter results from 2020, we see the TCL mobile portfolio well-positioned across key markets, ranking second in Portugal, fourth in the UK, Spain and Hungary, and fifth in Greece.”

The brand has also seen some significant success in the sub-€150 smartphone bracket, with Streit saying the TCL ranks first in this price range in Spain, Portugal and Hungary, and second in the UK.

In addition, he says tablet shipments grew 72 per cent last year during the pandemic. The diversity of TCL’s portfolio is key to any chances of substantial success in the UK and other European markets, adds Streit.

“While it’s true that there are many different smartphone manufacturers, TCL is unique due to our complex consumer electronics business,” he says.

“In fact, we are the only Chinese end-to- end consumer electronics brand, so while others may compete with us in making smartphones, we’re the only OEM capable of offering our customers a completely integrated product offering, from mobile products to TVs, audio devices and more.”

Alcatel still relevant 

With TCL now making a strong play in the smartphone market, what does that mean for its business with Alcatel Mobile?

“Our Alcatel-branded devices are still a very critical part of our overall TCL Communication product portfolio, and will continue to be so in complement to our TCL- branded devices,” says Streit.

He says the target markets are the difference between TCL and Alcatel, with the former aiming for the mainstream market and Alcatel continuing to serve the entry-level category.

“Alcatel is still a huge part of our business and is performing incredibly well,” adds Paterson.

“Through Alcatel, we speak to a completely different customer with our brand messaging, focusing on democratising technology through the ‘Great Tech, Great Price’ tagline and brand ethos.”

TCL has announced the next instalment in its own-brand smartphone series, a new range of  Alcatel smartphones, and a series of TCL-branded tablets and wearables.

At this year’s virtual Consumer Electronics Show (CES), the Chinese manufacturer unveiled the TCL 20 5G and TCL 20 SE smarthpones.

TCL Smartphones

TCL’s second iteration of its own-brand smartphones which it launched last year starts with the TCL 20 5G and the TCL 20 SE, with three more smartphones set to launch later this year – the TCL 20 Pro, TCL 20 L, and TCL 20 S.

The TCL 20 5G is a mid-range 5G-enabled phone that runs on Qualcomm’s Snapdragon 690 5G chipset, with a 6.67-inch HD+ display and a 4,500mAh battery.

It has a triple-camera setup, with a 48MP main lens, an ultra-wide lens, and a macro lens, as well as an 8MP selfie camera. It can shoot 4K video at 30fps, and has 6GB RAM, with 128GB and 256GB internal storage variants.

The TCL 20 SE is larger, but is 4G-only, with a 6.82-inch display, and a 5,000mAh battery. It has 4GB RAM and 64GB internal storage, running on the Qualcomm Snapdragon 460 chipset.

It has a quad-camera setup, with a 16MP main camera, an 8MP wide-angle lens, a 2MP macro lens, and 2MP depth sensor. It also has reverse-wireless charging capabilities.

Both phones run on Android 10, with TCL promising an Android 11 update this year, as well as three years of security updates. The TCL 20 5G is already available in Italy will launch in other territories later in January in Mist Grey and Placid Blue at €299, while the TCL 20 SE has will be available across Europe in Nuit Black and Aurora Green for €149.

TCL intends to give the devices a UK launch with UK-specific pricing in April.

Alcatel smartphones

TCL also introduced 2021 variants of the Alcatel 3L and 1S. The 3L has a 6.52-inch 20:9 HD+ display, a triple-camera setup with a 48MP main sensor, 2MP macro lens and 2MP depth sensor, and an 8MP front camera.

It has 4GB RAM and 64GB internal storage, expandable up to 512GB via microSD card, and a fingerprint sensor.

It has an Mediatek Helio P22 processor with 4GB RAM, running Android 11 on a 4,000mAh battery, and will launch in “selected markets around the world” in Jewelry Blue and Jewelry Black colours with a European price of €149.

The 1S also has a 6.52-inch screen and a 4,000mAh battery, with a triple camera setup composed of a 13MP main sensor, a 2MP depth sensor and a 2MP macro lens, as well as a 5MP front camera.

It also runs Android 11 on a Helio P22 chipset, but with just 3GB RAM and 32GB internal storage, although this is also upgradeable to 512GB with a microSD card.

The 1S will be available in “select markets around the world” starting in February 2021 with a European RRP of €109 in Elegant Black and Twilight Blue colours.

Addtionally, following on from teasing prototypes of rollable and flexible technology last year, TCL said it would be bringing out a flexible screen device later in the year.

Tablets

TCL also announced two new own-brand tablets, the TCL NXTPAPER and the TCL TAB 10s.

With the NXTPAPER, TCL has released the first tablet to use its display technology of the same name, which it first announced at IFA 2020.

It uses a reflective IPS screen that results in full-colour displays without blue light, backlight or flicker, making it less intensive on a user’s eyesight.

TCL also claims this screen provides 25 per cent higher contrast than most e-ink tablets, and is 65 per cent more power efficient than a standard LCD screen.

The tablet itself has a 5,500mAh battery, as well as a 5MP front camera and 8MP rear camera. It runs Android 10 and has an 8.88-inch display. In power terms, it has 4GB RAM and 64GB internal storage, with microSD storage expandable up to 256GB.

It also has a Kids Learning option, with a child-friendly UI and parental controls that works in tandem with Google Assistant.

The TAB 10s features a 10.1-inch display with an 8,000mAh battery, as well as an 8MP rear camera and 5MP front camera. It has 3GB RAM and 32GB internal storage and 4GB RAM/64GB internal storage variants, and also allows for microSD storage up to 256GB. It also features a TCL T-Pen stylus.

The NXTPAPER will be available across Europe from April for €349, while the TAB 10s will be available in Q2, with the WiFi version costing €199 and the 4G version costing €249.

TCL is also launching a new Alcatel tablet, the 1T 7 WiFi, which is an affordable tablet starting at €75 also featuring a Kids Mode, in Obsidian Black and Mint Green colours from later in January.

TCL will also be launching a 5G tablet later in the year.

TCL’s general manager for global marketing Stefan Streit said the affordable tablet segment was important in light of the need for families to work and study remotely.

“NXTPAPER is a prime example of the Display Greatness philosophy that TCL Mobile has embodied since it launched over a year ago, and showcases how a vertically integrated ecosystem can help produce innovative new products quickly and affordably,” he said. “This new type of display will directly benefit remote workers and students alike, bringing new features that help encourage productivity, make life easier, and keep our eyes safe.

“We also know that tablets are shared across different family members. That’s why we have Kids Mode that allows the parent to first of all protect their own content, you know, when you give it to the kids, but also, give specific access to the internet to their kids.”

Wearables

TCL is also set to expand its portable electronics ecosystem with a new pair of wireless earbuds, the TCL Move Audio S600, and a new pet tracking smart device, the TCL MOVETRACK. The buds will cost €149, and the tracker will cost €99.

TCL will also launch Wearable Display smart glasses later in the year, with a dual 1080p full HD micro OLED display, and a 140-inch cinematic viewing experience. Streit said that the device would be first available in Japan and South Korea, with no current plans for a UK release.

2020 performance

Speaking to Mobile News, Streit and TCL senior product manager for the UK and northern Europe Patrick Power discussed TCL’s debut year with its own-brand devices.

Despite the disruption of the Covid-19 pandemic, which interrupted prospective brand partnerships with BAFTA and the Luna Cinema, Power said they were pleased with the reception the TCL 10 series received.

“The TCL brand was ranged by EE, Vodafone and Three, and as we move into 2021 we’re in conversations with them to move to the next level of devices,” said Power.

“In terms of distribution, we’ve started to become successful with selling into enterprise, so that’s a new opportunity that’s opened up for us, and the new devices will be Android Enterprise Recommended.

“We had tremendous traction last year with the new Alcatel devices as well. We found their spec and price was mapping well onto what enterprise customers needed.”

Data Select and Eurostar Global handle UK distribution for TCL devices.

TCL is avoiding targeting a specific UK market share for its new device range, according to UK and Ireland country director William Paterson.

The Alcatel and Vodafone Smart device licensee made its UK own-brand debut in June with the TCL 10 series, having originally intended to do so in April.

That made it the first smartphone vendor to launch an entirely new brand in the UK during the national lockdown.

Rather than go after a specific market share, Paterson is looking to ensure that the brand shows longevity with its respective partners.

“I won’t say we’re targeting five per cent of the market or anything like that, because very often a lot of that can be outside your control,” Paterson told Mobile News. “The market has a number of vendors that all do different things.

“What I would say is we take it a step at a time. Are we happy with the way we’ve launched? Yes. Are we happy with what’s coming up? Yes, then we’ll move into next year. Success is not so much what we sell today, but about the next family of products. If we get them ranged by the same number of customers, it means the products work well, and our channels are happy with it, and that to me is success.”

TCL’s UK retail partners include EE, Tesco Mobile, Amazon and Argos, while distribution is handled by Eurostar and Data Select.

According to IDC, Alcatel shipped 132,000 smart and feature phones in the UK in the first quarter of 2020, making it the fifth-largest brand in the UK’s mobile market.

“As far as we’re concerned, the market never fell off a cliff, so I think it’s done OK,” added Paterson. “We traded really well in Q2 and we altered communications quite a bit on the Alcatel brand, focusing quite a lot on e-commerce partners; we were pleased with performance

TCL has struck a partnership with the British Academy of Film and Television Arts (BAFTA).

The partnership will see the manufacturer sponsor BAFTA’s A Life in Pictures series of video interviews, as well as the upcoming BAFTA Television sessions, which are beginning in July.

TCL’s BAFTA sponsorship follows on from the Chinese manufacturer’s UK debut with the launch of the TCL 10 series.

The TCL 10 Pro launched with EE, Tesco Mobile and Argos at the beginning of June, while the 10L is also available from Argos.

“The launch of our TCL 10 series handsets has been an exciting time for us,” said TCL northern Europe area director William Paterson. “We’re very happy to announce the highly anticipated debut has seen sales start strong across the UK and Ireland. It’s clear that now more than ever, people are looking to purchase a premium, yet affordable handset and we hope this campaign will show consumers that price does not mean a compromise on quality.”

TCL is also partnering with BAFTA Crew, a professional networking programme for film productions, to create a cinema advertisement for the 10 Pro.

TCL is not the first challenger brand to strike up a branding partnership with a British cultural institution to help publicise its launch. Last year, Oppo partnered with the Wimbledon tennis tournament and the Cricket World Cup in conjunction with its UK launch.

Eurostar Global and Data Select handle TCL’s distribution in the UK.

TCL has been in business nearly 40 years. The Huizhou-based manufacturer has spent the last 10 years producing Alcatel and BlackBerry hardware under licence. Now it is ready to carve out its own mobile space.

TCL Corporation (originally an abbreviation for Telephone Communication Limited) is a partially state-owned Chinese multinational electronics company based in Huizhou, Guangdong Province.

It designs, develops, manufactures and sells products including television sets, mobile phones, air conditioners, washing machines, refrigerators and small electrical appliances.

The company was founded in 1981 as a cassette tape manufacturer under the brand TDK. In 1985, it changed is name after being sued by another cassette manufacturer TDK and changed its brand name to TCL by taking the initials from Telephone Communication Limited.

TV Titan

TCL began manufacturing consumer electronics for the Chinese market during the 1980’s and began to export 20 years ago.

Ten years ago it was rated the world’s 25th-largest consumer electronics producer. Since 2015, it has been the third-largest TV manufacturer by market share.

The mobile channel will be familiar with TCL as the manufacturer of Alcatel and BlackBerry phones under licence. it became a licensee of the BlackBerry brand in 2016 under the name of BlackBerry Mobile.

Global head of marketing Stefan Streit and global head of communications Jason Gerdon say TCL has enjoyed a lot of growth in the last 10 years. Not many people know it is now the second-largest TV manufacturer.

“Mobile was always the last piece of the puzzle for us,” says Gerdon. While it’s not currently the best time to be bringing out a new smartphone, there are reasons to do it and the current climate hasn’t stopped Samsung, Huawei, Realme, HMD Global and Xiaomi from launching new devices.

A downturn in sales shipments is expected this year. Global cessation of business indicates many consumers will not upgrade until next year. The market is primed to bounce back, and new entrants could grab market share.

TCL announced its first device at IFA last year – the Plex smartphone launched with select operators across Europe, but not in the UK). At the January Consumer Electronics show it showed its mid-range‘10’ range which included a 5G device utilising its NXTVision screen technology.

TCL is wary about undercutting its Alcatel sales. “Alcatel remains very important to us, so TCL phones will live above Alcatel in terms of price segment,” says Streit.

Streit says there are three reasons why now is the right time for it to launch its own device range. Two reasons relate to TCL’s pre-existing smart products and television display technology.

“5G will be an entertainment proposition with streaming, gaming, media consumption. Everything related to screen watching becomes faster.

“IoT is growing and TCL has a strategy called AI x IoT to build intelligence and smartness into our products.

“Then there is the flexible and foldable screen technology which is becoming more available. TCL is the second-largest TV manufacturer worldwide, and we are bringing our display expertise into mobile products. For example, all Alcatel products already have a TCL display.”

Folding form factor

Yet the folding form factor hasn’t exactly lit up the sales charts. There have been launch delays and pricing obstacles .

Streit sees flexible screens as having a big potential.

“This is a great opportunity for us to bring new product innovations and form factors. But it is a long-term play. We’re not rushing into anything. Others have tried to put out some products and they have priced them so highly, they’re discouraging sales. This is not TCL’s style – we want to make foldable screens affordable.”

TCL has around 36 folding-screen concepts in development. One of them is a tri-folding device. It resembles Samsung’s Galaxy Fold but has an extra flap. A second concept is a ‘rollable’ screen. This unrolls a screen outward like a scroll, expanding its horizontal screen space and maintaining uniform thickness whether or not it is fully extended.

“TCL’s experience in the wider consumer electronics space means it is able to
realise these products. Many smartphone manufacturers don’t have this expertise. At TCL has the technical engineering know- how because of our product ecosystem. We can use this expertise and bring it into the smartphone business.

“We’re not trying to be ultra-premium,” says Streit. There are plenty of those devices. We see an opportunity to focus on premium mid-tier and make the technology accessible to all consumers.

“You won’t see a flexible device from TCL costing $2,000. It may be more expensive than the 10 series, but will still be priced realistically”.

Streit says smartphone design has become stale. He says foldable screen designs are the way to tempt users to change their devices.

“It has been difficult to do real product innovation over the last eight years or so apart from improving cameras and adding megapixels. It’s important to use flexible screen technology gap because it stimulates the market. Currently people hold onto their phones because they don’t see a reason to change.”

In February TCL announced that it would halt production of BlackBerry phones by August. BlackBerry had failed to halt the sales slide and not released a new device since 2018.

Streit hints TCL was hamstrung by rigid design demands placed on it by the BlackBerry licence and its shrinking customer base.

“It’s sad. But you need to look at the big picture and physical keyboards are less essential.”

While its Alcatel licensing agreement, gives TCL design control, the BlackBerry production line was constrained by the need to stick with keyboards.

Relationships

Streit says TCL is in a strong position to enter the UK marketplace saying the company has strong relationships with retailers and multinational operators across Europe through its wider electronics portfolio and its involvement with Alcatel devices. It already makes Vodafone’s own-brand Smart smartphones.

“We have trusted relationships with the carriers. They know our processes. Everything is already in place. We are not a newcomer. We have relationships and existing supply chains. We do not need to take a super-aggressive strategy and we have offices in the UK, Italy, Spain, Portugal and Germany”.

Gerdon adds: “TCL may be an unknown mobile brand, to the consumer but it is not unknown to operators and retailers. We’ve worked with them for many years. We know the complexities of the market depending on the retailer and operator. We know how to work with their processes, so that initial step is already done.”

They reckon the rise of bundled mobile deals also works in TCL’s favour, Operators are bundling streaming services and (in the case of Sony devices), gaming consoles.

“As a consumer electronics giant TCL can also do this. It could offer a phone, a tablet and a TV as part of a two-year subscription. This is where we’re different. We can bring TVs, home appliances and IoT systems to the market.”

The company says it is in no rush to achieve its aims.

“TCL doesn’t want to hurry things along for the sake of it. It’s not as if we’ll abandon the market if we’re not number two or three overnight”, says Gerdon. “This is a much more intentional evolution that has been taking place for many years. We’re going
to be patient and take our time to build naturally.”

TCL has announced four new phones in its Alcatel product portfolio at CES in Las Vegas.

The new devices feature a range of firsts for the vendor, including a 48MP triple-camera setup and an Android 10 (Go Edition) device.

They are mainly intended for developing markets, with none of their prices exceeding $155.

Alcatel 3L

The Alcatel 3L has a triple-camera setup, with a 48MP main rear camera, a 5MP with a 115° wide-angle lens, and a 2MP macro lens. Its front camera is 8MP. It has 4GB RAM and 64GTB internal storage, with microSD capability up to 128GB.

It is scheduled to be available in select EMEA, APAC and African markets in Q1 this year at prices starting from $155 (€139) in Chameleon Blue, Dark Chrome, and Agate Green colours.

Alcatel 1S

The Alcatel 1S also has a triple-camera setup, albeit at a weaker configuration. The main rear camera is 13MP, and is joined by a 5MP camera with bokeh for portrait mode, and a 2MP macro camera. It has 3GB RAM and 32GB internal storage, that can be increased to 128GB with a microSD card. Its battery is 4,000mAh.

It will also be available in select EMEA, APAC and African markets in Q1 this year at prices starting from $110 (€99) in Agate Green and Power Gray colours.

Alcatel 1V

The Alcatel 1V will be released in select markets in Latin America, APAC, Middle East and Africa starting from $88 (€79) in Prime Black and Pine Green. It has a dual camera setup, with a 13MP main camera and a 5MP ultra-wide sensor, and has a dedicated Google Assistant button.

It also has a 4,000mAh battery, 3GB RAM and 32GB internal storage, expandable up to 128GB.

Alcatel 1B

Running Android 10 in Go Edition is the USP of this budget smartphone that rounds out Alcatel’s CES lineup. It has 2GB RAM and 16GB internal storage, expandable to 128GB, as well as a 3,000mAh battery. It also has a dedicated Google Assistant Button, and will be available in Q1 this year in select EMEA, APAC, Latin American and African Markets from $66 (€59) in Prime Black and Pine Green.

The 3L, 1S and 1V all have a 6.22-inch display, while the 1B has a 5.5-inch display.

Alcatel bolstered its distribution ties in the UK at the end of last year through a partnership with Eurostar Global.

Mobile News has reached out to Alcatel to confirm whether or not the UK will be among the countries where the devices getting a European launch will be released.

Alcatel also announced a tablet aimed at children, the TKEE MINI, and the LinkKey IK41 USB dongle at the trade show.

Eurostar has continued its recent spate of partnerships with the announcement that it is an official UK distribution partner for TCL’s Alcatel Mobile.

The partnership is Eurostar’s third significant partnership in the past three months, following its deals with Lease Telecom and Cat and Land Rover brand licensee Bullitt Group.

Eurostar managing director Peter Carnall said the vendor’s range of wearables and connected devices as well as its mobiles meant it was a good fit for Eurostar’s growth plans.

“Eurostar is thrilled to partner with Alcatel Mobile and as the Eurostar business looks to bolster its branded portfolio of products to its customers, the future growth of Eurostar is in working with partners that have a strength in not just mobile, but in wearables and connected devices,” he said.

“Alcatel products appeal to a vast range of users and are backed by a trusted Tier 1 manufacturer. As a business, we are highly focused on building lasting partnerships of value to the brands we choose to work with and we welcome Alcatel Mobile to the Eurostar portfolio.”

Eurostar’s head of commercial and vendor management Steve Hankey added: “Alcatel is a highly respected brand in the UK in both B2B and retail channels – Its diverse product portfolio consisting of mobile, tablet, and mobile broadband further enhances Eurostars already significant offering out into the channel.”

Alcatel handsets will be available from Eurostar in Early December. The distributor turned over £89 million last year, and Carnall has described 2019 as a “record year” for the company.

Nearly three years since the UK voted narrowly in favour of leaving the European Union, that exit is – supposedly, at least – nearly here.

In the referendum vote in June 2016, the ‘Leave’ campaign narrowly edged out ‘Remain’ by 51.9 to 48.1 per cent, with over 17.4 million people voting for the UK to leave the EU.

Since the results were confirmed, British politics has been dominated by the so- called Brexit, with debate after debate in the House of Commons over how to secure the best outcome for the country.

Prime Minister Theresa May has already seen two proposed Brexit deals rejected by fellow MPs, with the process proving anything but straightforward and causing uncertainty for UK businesses.

There have been debates over a hard or soft Brexit, as well as several calls for either a second referendum or a “people’s vote”, with MPs voting in March to seek a three-month delay to Brexit until June 30.

With so much uncertainty, what does this mean for UK telecoms and its consumer and business-to-business markets?

TRADE AND SUPPLY

Trade between the UK and member states is expected to become disrupted as Britain exits the EU – which has effectively become a single market in which goods and people can move around as if within a country.

With the UK set to leave, many also expect the value of the pound to suffer against the euro – at least in the short term.

This is a “real concern”, says Nigel Prince, managing director at distributor New Way International. “There’s a big worry about how the currency will become affected as result of Brexit. It’s a real concern how strong the pound will be against the euro and US dollar.”

There may also be supply chain issues, says Imran Choudhary, director for technology at research company GfK.

“Aside from the currency, other negative impacts are likely to include disrupted supply chains and logistics, and higher admin costs,” he says. “For the B2B industry it will have an impact on what it will be able to export.”

In addition, concerns have been raised over a potential return of roaming charges for using data when abroad in the EU.

However, Three (for one) has announced that it will not add any additional roaming costs, regardless of the final Brexit outcome.

Three CEO Dave Dyson said “We’re committed to eradicating excessive roaming charges and will retain this customer benefit regardless of Brexit negotiations, allowing our customers to continue using their usual allowances when they travel within the EU.”

Following Three’s announcement, CCS Insight senior analyst Kester Mann believes it will be difficult for any of the other operators to apply additional costs for roaming.

“I don’t think operators will revert to this, as the UK is such a competitive market – plus these operators already offer roaming outside the EU as a differentiator.”

“In theory the operators could introduce this but if the operators backtrack on this because it could be risky for them.”

CONSUMER CONFIDENCE

There are also questions over consumer confidence during the period of uncertainty caused by Brexit.

This comes on top of several factors that have already contributed to a decline in the UK smartphone market in recent years, as it has matured.

Increased product lifecycles, better hardware and higher prices have led to consumers holding onto their phones for longer – and Mann believes that although these struggles would continue even in the absence of Brexit, the UK’s departure from the EU will not help the market.

“The downward trend will continue with or without Brexit, despite the innovation we saw at the Mobile World Congress,” he says. “However, with Brexit we might see that consumer confidence won’t be as strong, as people will be more nervous about making big investments.”

Choudhary, meanwhile, says that British consumers have been “stoic” in the face of the unknown, but does foresee a downturn in SIM-free handset sales.

“These sales will come under increasing pressure,” he says. “They are currently on a growth trajectory, but this could be dampened by Brexit. Consumers may be less likely to spend money on brand new phones.”

PLANNING AHEAD

With Brexit looming, many businesses will have planned for the future with this in mind – something that has been the case for New Way.

The distributor, which has a business in Germany, opened a further centre in the Dutch city of Rotterdam in September.

In the event of Brexit, this international presence also offers backup for the business, including staff, logistics functions and a warehouse.

Despite not being too concerned about the UK’s departure harming how New Way operates, Prince says that having a plan to cater for it is essential.

“We’re one of the more fortunate UK businesses, as we already have an established business out in Germany,” he says. “With this, we have staff, logistics and a warehouse, and this offers us a backup plan.”

Prince adds: “We’re ready to do what we need to do, whether that is moving stock around or selling stock in Europe directly.”

Meanwhile, vendor Alcatel has said it has been planning ahead for the worst-case scenario in the event of Brexit, inlcuding for the possibility of a no-deal outcome.

At the Mobile World Congress, Alcatel’s UK and Ireland country director William Paterson told Mobile News that the firm has planned for the worst when it comes to potential stock issues.

“We planned and reorganised the supply chain to bring in products in a sufficient manner,” he said. “We will be bringing products directly from China to the UK and avoiding customs in Paris.”

5G QUESTION

There is also a question surrounding whether Brexit will affect the launch of 5G in the UK, given the investment required at a time of uncertainty.

Operators EE and Vodafone plan to debut the technology this year, with EE launching in 16 cities and Vodafone in 19 this year.

Mann doesn’t believe, however, that 5G rollout will be affected, as the infrastructure is already in place.

“I don’t expect 5G to be impacted by Brexit,” he says. “EE in particular is determined to be at the forefront of this and Vodafone isn’t far behind.

“It seems to be full steam ahead for 5G, and the operators seem to be pushing on with plans rather than reining them in. It appears that Brexit isn’t influencing this, which is quite encouraging.”

Choudhary agrees, adding that he doesn’t think the UK will fall behind with 5G because the investment has already been put in place. 

“5G is critical to the development of the mobile industry,” he says. “The capital expenditure required for 5G has already been thought of and all the mobile operators are working towards this.” 

Choudhary does, however, believe that the Brexit situation could affect SMEs and larger businesses.

“Brexit might have a broader impact on the SME and corporate landscape in the UK, as a lot of these businesses might be planning investment in IT and telecoms infrastructure,” he says. “The uncertainty around Brexit might put them off investing in 5G hardware.”

BRIGHT SIDE?

While Brexit is anticipated to be a challenge for the UK’s telecoms industry, will there be any positive outcomes for the telecoms industry?

Some think so – or, at least, that the impact will be relatively neutral. Edward Elliot-Square, sales director at phone trader IPT.cc, says, for instance that the uncertainty doesn’t phase him.

“I’m not worried at all,” he says. “I think it is going to be positive for the industry if anything, in particular for the mobile industry.”

Elliot-Square believes the UK will be able to control its own laws and regulations, and could even become a focal point for trade.

“There will be new rules to adhere to, but this might even see the UK become a trading hub, the likes of which we see in Switzerland and Dubai,” he says. Under this scenario, he explains, other countries could “trade with confidence” with the UK because they would be dealing only with that country.

Elliot-Square also believes that from a mobile manufacturer perspective, little will alter.

“Most, if not all, of the mobile manufacturers are outside the EU, so nothing is going to change. There’s no duty on the movement of mobile phones across Europe, so I don’t see how there can be an issue with Brexit,” he says.

Eurostar Global Electronics MD Peter Carnall, meanwhile, says it will be “business as usual” once the UK leaves the EU.

Carnall shot down fears that Brexit will slow down goods entering the UK and revealed that the distributor has explored contingency options over the past two years.

“There’s not going to be a delay on products entering the UK; if we leave the EU, the goods will still come to us at the same speed they do now,” he says.

“There’s a fallacy that the doors are going to come down and goods will take forever to be shipped. I don’t think the UK government will allow that to happen.”

WAITING GAME

Although it is difficult to forecast the UK’s future with Brexit on the horizon, the shared feeling among those in the mobile industry is therefore that the impact won’t be too detrimental.

But Choudhary thinks it is a case of playing the waiting game before the full implications of Brexit for the mobile industry can be determined.

“Although most businesses will have planned for Brexit, it’s difficult to know exactly what will happen, and the long- term effects won’t be known for years,” he says.

He believes the final impact of the UK leaving the EU will hinge on how much of a hit there will be on consumer and business confidence in spending.