Dixons Carphone is eyeing opportunities in the quad play market, following BT’s proposed acquisition of EE.
The electronics and mobile giant is planning to leverage its existing partnerships with EE and BT to maximise its sales in the UK’s growing quad play market.
Speaking at the company’s half-yearly results, Seb James, CEO of Dixons Carphone, said BT’s acquisition of EE and the rise of the quad play market will open up major opportunities for Dixons Carphone.
He said: ‘We think we can get involved in that in quite an interesting way as we are the only player in the market that talks to the customer at every touch point in the quad play journey.
‘Whether you are buying a TV and want TV content, or buying a computer and want broadband, or buying a phone and you want telephony or a mobile phone, we are there and we think that will open up some very interesting opportunities for us.’
James dismissed views that the rise of the quad play market will undermine Dixons Carphone’s business by creating competition in the market for bundled deals. He said: ‘We think this configuration is good for us. In some European markets where we have seen markets disrupted it has really been driven by players giving away mobile as a way of attracting people to their quad play proposition. With BT as the principle TV and fixed line provider going forward, and EE spending a lot of money to buy an existing mobile network, we actually think a much more rational view of quad play is going to take place here, which will be good for us.’
James also refuted suggestions that the merger could fundamentally change its relationships with EE and BT. ‘Our contracts are set in stone and the change-of-control clauses are in our favour,’ he said, adding: ‘These are two companies we get on very well with and we have long-term relationships with both.’
James also said Dixons Carphone was trouncing rivals in its bid to win over Phones 4u’s younger demographic following the demise of the retailer last year.
He said: ‘Phones 4u was considered a cooler brand than Carphone Warehouse, but we are a good bit cooler than our network friends, so I think we are doing a good job.’
James said the company strategy to use social media to reach the youth market had reaped benefits. ‘Graham (Stapleton) and his team have done a terrific job identifying where we can be strong with that customer group, and taking action on it, and we have certainly seen our share of that market increase.’