10/17/2008 4:07:00 PM
T-Mobile drops Fone Logistics after target shortfall
T-Mobile has severed ties with Fone Logistics after the distributor failed to hit the minimum target to retain the T-Mobile licence.
Fone Logistics was informed of the decision before T-Mobile’s annual dealer conference in Daventry, after falling short of its 1,500 connections-per-quarter target.
All other major T-Mobile distributors have retained their licence, although it is thought that some struggled to hit the target and only narrowly made the grade.
A distributor source told Mobile: ‘It’s very black and white with T-Mobile. If you don’t hit targets, you’ll get canned. It’s a tough industry and it’s about survival at the moment. To be fair I don’t think Fone Logistics missed their targets by much but that’s the way it is now.’
Fone Logistic was dropped by Vodafone two years ago so the T-Mobile loss has increased its reliance on O2, Orange and 3. It is thought that the move by O2 and Orange to switch commission structures from upfront to ongoing could stretch its distributor partners.
Fone Logistics managing director Ian Gillespie remained upbeat despite the loss. He said: ‘We simply weren’t doing the volume with T-Mobile. However, we are seeing a lot of positive upside on the O2 revenue share model, and we are exceeding targets on Orange and 3.’
T-Mobile said the decision was taken as part of national sales manager John Fannon’s indirect channel restructure in May, which effectively cranked up the pressure on distributors.
A T-Mobile statement said: ‘This process began in May when we engaged with all our independent partners to explain T-Mobile’s plan to realign the channel based on new monthly minimum performance targets.
‘The new targets were reduced and include upgrades as part of the count to recognise the importance of customer retention in today’s market.
'Should we take the decision to end our relationship with any particular channel partner who has been unable to meet the new performance targets, we would of course communicate that position directly with the channel partner concerned.’