BT offers extended contracts to ease channel worries over cuts

Telephony giant admits plans to slash channel number, but hopes longer contracts will pacify key partners

BT Partner Management is offering longer term contracts to reassure resellers after admitting plans to cut back its channel.

The telco is hoping the contracts will offer VARs more stability, and has also increased specialist support and appointed a new channel sales director, Phil Purssey.

However, Mark Cornell, head of BT Partner Management, told CRN: "We will not be going ahead with all partners, but we are activity bringing new partners on board. We will start the new financial year next month with fewer partners than at the moment."

Cornell said the longer term contracts of one to two years will offer partners security and stability, while underlining BT's commitment to the channel. He said the telco will increase specialist support by 20 per cent by appointing new specialist partners to assist resellers.

"What we are announcing is special to the channel. We are looking for double digit growth in the channel and this is an exciting time as convergence is here and opening an explosion in the channel. If there is anyone who claims BT is not dedicated to the channel after this, I will be very surprised," added Cornell.

John Carter, managing director of BT distributor DMSL, said the longer term contracts demonstrate a “larger commitment” from both BT and the channel.

"It is always a bit tentative when you are on a 30-day or three month contract, but now the channel can feel free to invest. BT is investing in partners who have put their soul into its business and BT is committed to partners who are delivering for them," added Carter.

Mark Evans, director of BT reseller ME Consultancy, said: "The longer term contracts are fantastic news and offer stability when investing in BT's indirect model."

Evans added any changes to the number of BT partners that enables focused resellers to make a profit is also a positive move.

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