Vodafone and Redstone Telecom in dealer funding trials

Vodafone and Redstone Telecom in dealer funding trials

Vodafone and Redstone Telecom have completed a one month trial that offered dealers funding to buy out their customers’ contracts.

The move is a bid by the operator to entice customers over from their current network to Vodafone.

The trial was designed to find out whether dealers could secure an increased number of connections and customers if they had more money to spend on a deal, Mobile understands. A limited number of dealers have been involved in the scheme.

Dealers were approached individually by Redstone, and those involved in the trial said they were still unclear over the future of the scheme and whether it would become a Vodafone distribution policy, or remain exclusively with Redstone.

If the payments were implemented on a more permanent basis, it would be another aggressive step for Vodafone in the b2b indirect channel.

The network recently increased the amount of commission it is offering dealers through its distribution company, Yes Telecom. All dealers are now being offered the same levels of commission as ‘gold partners’.

One dealer said: ‘Clients are reluctant to do buyouts so it doesn’t make it any easier to complete a deal. It is a bit more money to play with, but most people are willing to pay the money themselves.’

Vodafone would not comment on the move, but said: ‘We are continuing to work with and invest in Redstone as a distribution partner.’  

Redstone Telecom, which is the only distributor to connect all five networks, was bought by Daisy Group last month.

Written by Mobile Today
Mobile Today

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