O2 hails VAR exclusivity

Forsaking all others: O2 can be more open about future plans with exclusive partners

O2 has convinced 12 partners to ditch other mobile operators and sign exclusive deals but has stressed it is happy for VARs to maintain other relationships.

Active Business Communications, ADSI, Aerial Telephones Group, Atlas Communications, Cellular Solutions, Challenger Mobile Communications, Cygnet Holdings, Direct Line Connections, Total Ltd, Uplands Mobiles, Vivio and Welcomm Communication have all gone exclusive with O2.

The twelve firms are all part of one of O2's four reseller Centres of Excellence: M2M; data; enterprise; and applications. Almost 60 per cent of Centre of Excellence partners have now signed exclusive deals.

David Plumb, head of SME sales at Telefonica O2 UK, said: "We do not have any particular plans to increase that amount, it feels like it is probably getting to a natural equilibrium."

He asserted that the decision to go exclusive was always that of the reseller. "It is really their choice and we are very relaxed about working with partners that want to work with other networks," he said. "Although clearly we are able to be more open with future plans and roadmaps with those that go exclusive with us."

He added that O2 would not look to instigate such arrangements with members of its distribution Centre of Excellence. "There are huge benefits of a distributor selling multiple networks as they have access to many partners," he said.

"If a distributor went exclusive we would miss some of the scale and that is the main reason for going through distribution. It is not something I am actively pursuing, though if they wanted to have a conversation, I would have it."

Plumb lauded the expertise of the 12 new signings, saying: "Nearly all of them have single digit churn and we are really pleased that they have agreed."

The launch of the Centres of Excellence heralded the start of a scheme to open up direct customers to the channel. Plumb claimed resellers had benefited from 100,000 new customers in the last 18 months.

He also indicated business volumes were up more than 20 per cent with partners taking part in the Centres of Excellence. The data programme accounts for about a third of O2 VARs. Plumb claimed this spoke to increased convergence between the mobile and IT markets.

"In my view, the strongest relationship between customer and reseller is with the IT reseller," he said. "From my perspective, we are starting to see IT, fixed and mobile come together."