With some dealers facing a ‘challenging’ six months after being hit by a double whammy of increased targets by two networks, the move towards a more converged offering is gathering greater pace.
The announcements last year by both O2 and Vodafone to set tougher targets not only sparked an outcry but also led dealers to carefully examine exactly what they were offering.
One such dealer, Savin Communications, which partners both O2 and Vodafone, has said it was continuing to widen its scope to meet the new challenges.
Vinod Zada, MD of the Brentford-based dealer, said the increased targets set by O2 and Vodafone for their partners would definitely mean a tougher 2013.
‘There’s a lot more consolidation going on. It’s not nice when networks run out of money. O2 has already indicated it is going for a big push to look for more business. I totally understand their perspective as they want to sell more, but obviously it makes it tough for us. We are now pushing our product portfolio with O2, in areas like fixed lines.’
‘We have also successfully negotiated our contract with Vodafone, and that should lead to more renewals and increase our existing customer base,’ he said.
Zada said his 15-strong business was performing well and had only seen a 0.5% churn last year, with plenty of referrals from existing customers. He also claimed 93% of his customers having already upgraded. He said this was partly due to mobile no longer being the sole focus with the business adopting a more converged approach.
‘For example we’re now looking to sell more fixed lines, educating our customers on mobile security, tablets and BYOD,’ added Zada.
He also said the service support proposition they had introduced was doing well. He said: ‘We now have a helpdesk responding to customer calls and complaints. We are resolving 90% of the business within 60 minutes. Obviously, some of the problems are network dependent. So, that’s been a big positive for us.’
Zada also pointed to opportunities being offered by the widespread arrival of 4G later this year and said there were possibilities to increase revenue, depending on the models that would be established by the operators.
‘It’ll be interesting to see what 4G will bring – obviously we’re just waiting now. The launch of the new BlackBerry 10 OS, should should also help.’
Principal analyst and partner Philip Carse from Megabuyte.com said: ‘Mobile network operators are facing a tough environment and these costs are being passed down to their dealers and service providers. So it makes total sense for dealers to look at other services apart from just mobile.’
Author: Shujaul Azam