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O2 makes up with retailer, denies any relationship issues

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High-street retailer Phones 4u and operator O2 have patched up their differences and will be working together again come December, though O2 claims this was always part of their plan.

O2 dropped Phones 4u early this year, focusing on their relationship with Carphone Warehouse as part of a trend which seemed to see network operators working more closely with a few retailers, rather than allowing just anyone to sell their products.

That follows Vodafone's announcement in October 2006 they would only be selling contracts through Phones 4u and snubbing Carphone Warehouse, though that position too has since been reversed.

Apparently O2 didn't fancy selling contracts to Phones 4u customers last year; expanding into that demographic didn't suit them, but this year they feel differently and are willing to have that class of punter on their books.

Phones 4u can't have the iPhone though: that will remain the exclusive preserve of O2 shops and Carphone Warehouse - both of whom are enjoying the increase in footfall from people wanting to see the iconic handset, even if not many of them are buying one. ®

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