12/25/2007 6:53:00 PM
Innovation 'key' for mobile distributors
2007 was a tough year for many distributors. Data Select boss George McPherson spoke to Mobile about what he thinks distributors need to do to survive and even grow next year. He said:
‘Key for distributors will be the introduction of innovative new products and services that have high customer appeal and are simple to understand and purchase. This is what distribution is good at, as well as having the channels to distribute these new propositions through. Expansion outside the 'traditional' areas in which we operate will also be key. Ideas are good, but those that can execute well will profit and grow.
‘Distribution has experienced nothing different than other channels have in the past 12 months, going forward more consolidation is to be expected probably within the first 6 months of 2008.
‘Networks are focusing on managing their indirect business within budgets but have missed the opportunity to work with indirect partners to reduce churn and improve ARPU by improving data revenues and lifetime value of the customer. I hope this will change next year and networks will realise the value the indirect channel can bring if supported properly - and given the opportunity.