EE is to cut its 1,500 strong b2b dealer base by two thirds by terminating the contracts of those dealers with fewer than fifty customer telephone numbers (CTNs) on ongoing revenues.
The move is part of a major restructuring which will see EE take greater control of a streamlined base of around 500 indirect dealers as it ramps up its drive into the b2b market.
Dealerships falling within the threshold will be informed later this month by their distributors and given seven days notice before their contracts are terminated.
However some dealers with fewer than 50 CTNs may be spared the cull, if distributors can provide good reason why the dealer should continue with EE.
‘Distributors have been given time to flag any exceptions. It may be the case, for example, that some dealers have fewer than 50 CTNs because they are new and so they will be put back for consideration,’ said an EE spokesman.
He added: ‘We’re reviewing our distribution network so that we are can operate as effectively and efficiently as possible, ensuring our rapidly growing number of business customers have the best experience of the EE brand.
‘As part of this review we are reducing the number of stockists, allowing our distributors to focus efforts on where they can generate the greatest return.’
The operator insisted the move will have little impact on smaller dealers’ businesses. It said most dealers affected will either have dormant dealer codes or be dealers that do the bulk of their connections with other networks.
The operator said its remaining indirect dealers will benefit from the move with EE devoting greater resources to help them grow their businesses.
Dealers contacted by Mobile said the move made sense.
The MD of one large dealership said: ‘EE needs to be more focused on its channel. If you don’t have control of your channel you have not got control of your customers and they do need to streamline to achieve that.’
Another said: ‘So they should. Accounts of this size aren’t worth the billing run.’
A smaller dealer commented: ‘Having thousands of dealers takes an investment in auditing, training and accounting and billing so its sensible to reduce that number.’