From the start of this month, hefty upfront fees for O2 resellers were scaled back as the commission structure moved towards a model incorporating more ongoing revenues.
Richard Bligh, marketing director at Gamma, claimed that while his company’s model was financially similar, it offered resellers ownership of customers.
“O2 resellers are given an O2 contract and they sell that to customers at a price set by O2. That customer belongs to O2. Gamma VARs can sign up customers on their own terms and conditions and decide what the price is. We offer ongoing ownership of the customer.”
Bligh said he had met a number of O2 VARs that are unhappy about the changes to the commission structure and had set up several meetings with potential partner recruits. He aims to sign up 30 new VARs to sell Gamma Mobile during the next six months.
The changes to O2’s commission structure caused some consternation among VARs and the operator was accused by some of rushing through the overhaul. Rival Orange is set to detail similar changes to its commission model at the start of next year.
An O2 representative said: “We have now spoken directly to more than 80 of our partners regarding the changes we have made to our commission structure and we are pleased with the way this has been implemented. The feedback from our partners has been positive and they agree that this is the right way forward.”
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