LONDON (ShareCast) - Carphone Warehouse (LSE: CPW.L - news) and Vodafone (LSE: VOD.L
- news) have ended their three year row over monthly contract sales.
Vodafone stopped using the retailer for deals involving monthly contracts in October 2006, after it tied itself to an exclusive deal with Phones4U, Carphone's main high street rival.
Vodafone will continue its relationship with Phones4U once the business with Carphone resumes on 7 July, but not on an exclusive basis.
Analysts suggested Carphone's earnings could rise by 2% as a result of additional Vodafone business.
"We have always set out our stall to offer the widest possible choice of handsets, networks and tariffs and our new agreement with Vodafone will bring exciting new products and services to our stores," Charles Dunstone, Carphone's chief executive, said.
Analysts suggested Vodafone's decision reflects a need for it to increase its customer base, though costs could rise as it will pay commission to Carphone for any new customers.
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