In the attached report, we present an analysis of UK handset sales over the online channel, using data sourced from Mobileshop.com, an online comparison handset sales site. Mobileshop.com presents offers from all major online mobile shops, including those from the operators and the major independent retailers, covering handsets, datacards and SIM-only offerings, across prepay and contract connections. In this, our first report, we have focused on issues relating to the market structure and broad market share figures, and our future quarterly updates will focus more on emerging trends

European mobile revenue growth has declined again, from 1.4% to 0.5%, despite favourable movements in regulatory factors, which imply an underlying drop in growth of about 2 percentage points

Vodafone’s European organic service revenue growth dropped again in the September quarter, to -1.3%, and we estimate that it continues to underperform its competitors’ growth by two percentage points, thus losing market share. Margins also fell, as the company’s cost reduction measures continue to fail to stop costs rising

The UK business (EAUS) is continuing to improve ahead of guidance as expected and its turnround can now be judged a success. Management has announced an aggressive plan to extract synergy from the recently acquired Thus

The Nokia Comes With Music (CWM) service bundles a music-centric handset with an unlimited music downloads service, allowing consumers to easily take advantage of their handsets’ music functionality, and have no need for a separate iPod

Distribution connection numbers were strong (+9%), especially on contract (+21%), despite a reduction in store expansion and the consumer slowdown which is affecting other consumer electronics businesses

The long awaited first Android-driven handset was launched this week, and with the Google logo emblazoned on the back it has been swiftly christened the Googlephone

European revenue growth fell to 1.4% in the quarter, down 0.8ppts from 2.2% last quarter, driven primarily by Spain where growth fell 4.1ppts. The deterioration was despite an improvement in the regulatory conditions, and underlying growth fell by 1.0ppts, with Italy slowing rapidly

H3G Group’s H1 2008 results showed static revenue and EBITDA slipping back into negative territory, neither of which bode well for the company’s target of being EBIT positive next year

Carphone Warehouse had a solid quarter on the distribution side given the current environment, with 6-7% underlying organic retail growth and roughly stable like-for-like figures