JOHN Cauldwell, the multi-millionaire owner of high street retailer Phones 4u, has banned staff from using internal e-mail.

The tycoon - who does not use e-mail - told more than 2,500 employees they would have to swap cyberspace for face-to-face.

He estimates the ban will save staff three hours a day and his company at least £1m a month in saved time.

Mr Cauldwell, Britain's 26th richest man with an estimated personal fortune of £840m, said: "I saw that e-mail was insidiously invading Phones 4u so I banned it immediately.

"Management and staff at HQ and in the stores were beginning to show signs of being constrained by e-mail proliferation - the ban brought an instant, dramatic and positive effect."

He said customers would still be able to contact the company via e-mail because only internal mailing had been banned.

The biggest benefit from the ban would be increased customer loyalty as staff focused on providing a better service, he said.

"Service par excellence needs 100 per cent focus, and e-mail was showing the potential to get in the way - but not in my business," Mr Cauldwell said.

"The quality and efficiency of communication have been increased tremendously in one fell swoop - things are getting done and people are not tied to their PCs."

Last month Mr Cauldwell, who founded telecoms company The Cauldwell Group, sold his mobile phone business Singlepoint to Vodafone for £405m.

With an annual turnover of £2.5bn, his group employs 7,000 people and includes Phones 4u, gadget retailer The Discovery Store, mobile phone distributor 20:20 Logistics and the Dextra accessories business.

The Stoke on Trent-born businessman lives in a mansion in Staffordshire. He ownes a helicopter, a jet, a £1m schooner and a Bentley Azure.