Vodafone agrees new Carphone deal

Vodafone and Carphone Warehouse fell out in 2006

Carphone Warehouse is to restart selling Vodafone mobile phone contracts, three years after Vodafone pulled the products from the retailer.

Vodafone stopped allowing Carphone Warehouse to sell its range of pay monthly deals in 2006 after a dispute over how much commission it had to pay.

Vodafone instead signed an exclusive deal with Carphone Warehouse's main High Street rival Phones4U.

Its contract deals will return to Carphone Warehouse stores on Tuesday.

'Benefit'

"This agreement marks a continued strengthening of our relationship, and will benefit both businesses and their customers," said Carphone Warehouse chief executive Charles Dunstone.

Vodafone needs the help of this independent to drive share of gross connections up/churn down Citigroup analysts

Despite the removal of Vodafone's contract deals, Carphone Warehouse has still been able to sell Vodafone's pay-as-you-go products over the past three years.

Vodafone's contract deals will now be available from its own stores, Carphone Warehouse and Phones4U.

Commentators welcomed the news that Vodafone had ended its stand-off with Carphone Warehouse.

"It is clear that Vodafone's withdrawal from Carphone Warehouse did it no favours," said Citigroup analysts.

"Its UK contract churn [of customers leaving] is now over 20%. Vodafone needs the help of this independent to drive share of gross connections up/churn down, in our view."