BTIC faces uphill broadband push
New reseller schemes get mixed reaction from channel
BT Indirect Channels (BTIC's) latest bid to strengthen its broadband proposition has received mixed reactions from the channel.
BTIC said its new products, pricing and commission schemes will ease resellers' entry into the data market and expand their broadband revenues.
The company is launching a self-install pack for small businesses called BT Openworld Business Plug and Go, an Internet Security Pack and an Internet Trader Pack. The products can be sold in conjunction with broadband access.
Chris Jagusz, general manager of chapter management at BTIC, said: "Channel players that have been successfully selling broadband to businesses see it as part of a wider sell.
"In addition to selling the connectivity, they can also sell PCs, local area networks, modems, firewalls, software and installation services. The key to earning money from broadband is to sell it as a solution."
The changes to commissions should be taken together with the price reductions made by BT, Jagusz said.
He added: "The new additional bonus scheme is to reward partners on a volume basis for broadband connections and will run alongside the existing standard revenue share."
But Maurice Lee, managing director of reseller Premises, was not enthusiastic about the new initiative. "Margins and commissions do not really work," he said.
My organisation has not received the offer yet but when it does we will explore it and see if it fits our portfolio. But we are not excited about it."
However, BTIC Premier distribution partner Nimans welcomed the move.
Kevin Weeks, the firm's network divisional manager, said: "The actual value of selling Asymmetric Digital Subscriber Line (ADSL) is in the margins on solution sales that rely on broadband for their connectivity.
"ADSL is a low-cost product but it can form the cornerstone for a host of applications and services where serious money can be made.
"In the short term, this means commission from ongoing revenues won't be a driver for resellers, although it's a welcome bonus.
"Smart channel players should be looking to bundle ADSL to create solutions that add value to businesses."