11/24/2010 11:08:00 AM
O2 and Daisy ink deal to grow share
O2 and Daisy have entered a ‘strategic’ partnership to grow share, chiefs from both companies told Mobile last week.
Daisy has entered a three year Centre of Excellence (COE) partnership with O2 following its acquisition of rival SpiriTel earlier this month.
SpiriTel will now be ‘ring-fenced’, selling only O2, Matthew Riley, Daisy’s CEO, said. Anglia Telecom, comprising the companies formerly known as Fone Logistics and Redstone, will continue to trade as before.
Meanwhile, O2 and Daisy will now sell a suite of converged products. O2 business sales director Ben Dowd said: ‘From an O2 perspective, we have been building and growing.
‘Our partnership with Daisy is strategic – it’s a bigger relationship and partnership and gives us access to a bigger customer base. There are things we can sell into Daisy, including wholesale [such as fixed-line broadband].’
He added: ‘It’s a bigger deal to encompass Daisy, SpiriTel and Anglia in parallel with Daisy’s three-year contract to increase share for both of us. Daisy is a unique partner for us for SME.’
Riley said: ‘From our perspective, we wanted to get closer to O2. Convergence and unified comms is now happening and people want a suite of products from their supplier. What we are looking for at Daisy is a one-stop shop for customers.’
SpiriTel was one of O2’s ‘best’ COE partners, with low churn, said Dowd, adding: ‘In terms of the agreement with Daisy, it’s to grow market share for both companies – to grow overall.’
Riley added: ‘But we’re not just an O2 distributor. We are cementing a special relationship with O2 to grow the new connections.’
One of Daisy’s aims after the acquisition of SpiriTel is to increase Daisy’s growth rate. ‘Their average customer spend was £700 while ours is £200,’ said Riley.
Daisy to increase sales team
Daisy will increase its sales team by at least 20 following its acquisition of SpriTel and strategic partnership with O2.
Riley said: ‘We are looking to grow connections with O2 and we will increase the team. The whole idea of buying into the skill set is we will have a ring-fenced team to focus on O2.
He added: ‘We want it to be known – Daisy is a good company to work for, not just in fixed but in mobile. It’s a massive opportunity – we are taking on at least 20 sales people.