The Independent Cellular Retailers Federation, as reported briefly (CI No 1,162), claims to have taken the first steps in cleaning up the image of the cellular industry this week, by launching its first Charter and Code of Practice. The eight founder members of the Federation, which hold over 50% of the distribution rather than retailing market, say they will drop dealers found to be carrying out incorrect installation or providing poor customer support: Air Call Cellular Ltd claims to have removed 12 dealers to date because of poor practice. Members of the Federation, which must be independent of both cellular manufacturers and network operators, can be expelled if they do not ensure that their dealers obey the Code of Practice’s minimum standards for servicing, charging and installation; the basis of call charging must be provided in writing, details of financing arrangements must be stated, and the Department of Trade & Industry’s installation recommendations must be adhered to. The Code doesn’t control actual pricing levels. The Federation, however, may have problems in avoiding accusations that it has set itself up as a cartel. At present, membership is restricted to retailers with a minimum of 15,000 customers, those that the Federation considers are able to provide adequate training and support for their dealers, and those with the necessary resources to meet the requirements of membership; and clearly the Federation will be unable to discipline retailers outside the Federation – the very retailers most accused of unethical practices. The Federation, set up in August 1988, says it wants to strengthen the code, and claims to have the support of the Office of Telecommunications, which wants to avoid disciplining the industry itself, and the two network operators. The eight founder members are Air Call Cellular Ltd, The Carphone Group Plc, ECT Cellular Plc, Europa Group Ltd, International Communications Ltd, London Car Telephones Ltd, Martin Dawes Communications and Millicom Cellular UK Ltd.
