7/21/2010 12:34:00 PM
Orange backtracks on clawbacks
Orange has changed its clawback policy to bring it in line with the introduction of revenue share for its dealers and third-party consumer retailers.
Dealers who sell to customers that are eventually classified as ‘fraud’ or ‘bad debt’ will no longer face 100% clawback of their commission. Instead, they will only have 50% of their commission taken back after changes were made to the operator’s policy on 1 July.
The decision to implement 100% clawback at the start of the year hit many dealers hard, as they claimed the policy was often backdated to deals done in September 2009.
Dealers told Mobile at the time that the policy had made them think twice before making new connections on Orange. One affected dealer said: ‘In terms of connecting Orange, it makes you think twice – it’s not great.’
The move to reduce clawback to 50% sees the network return to its original policy regarding customers who had defaulted on payments or could not be identified.
Dealers are now more receptive to the changes that Orange has made. One dealer said: ‘This is a much better position to be in because my business would never knowingly put through a connection that was going to end up defaulting.’
Revenue share for Orange dealers has increased from a 10% up front payment to 30%. Mark O’Meara, national sales manager, indirect retail and distribution at Everything Everywhere, said: ‘After consultation with our channel partners it was felt that our new clawback policies better encompass our new commercial policy of shared risk and reward.’