Vodafone contract blow to Carphone

Carphone Warehouse’s rollercoaster week continued today when it emerged it had been dropped by Vodafone as a supplier of its contract phones.

Vodafone’s switch to rival Phones4U came a day after Carphone bolstered its TalkTalk business with the acquisition of the UK internet access arm of AOL.

Carphone shares were up 9% yesterday, but plunged 13% today as investors digested the surprise blow to its high-street retail operation.

The deal means Phones4U will become the exclusive third-party retailer for Vodafone’s contract customers on the UK high street from November 30. Customers can also visit Vodafone’s own shops.

Pay-as-you-talk handsets will still be available from a range of outlets, with Vodafone also in discussions with Carphone about the prepaid business.