11/3/2008 11:01:00 AM
3 MVNO claims dealer discontent with O2
3 MVNO, Gamma Mobile said it will cash in as a result of discontent felt among many dealers about O2 regarding commissions.
Gamma Mobile, which began in January this year as a b2b service, said that it expects to sign 30 new customers in the next six months as a result of the O2 revenue share model.
O2’s radical ongoing commission, or revenue share model, with dealers has been applauded by stronger dealers as it rewards those who attract higher spenders and more loyal customers.
Gamma’s strategy is to sign up dealers with a more flexible model. A spokesperson said: ‘Unlike other networks, who mandate end user contract and pricing terms, Gamma resellers can sign up customers on their own terms and conditions and decide what the price is.’
The upgrade policy of the O2 revenue share model – where O2 has put the onus on dealers to upgrade quickly or risk losing them to a direct upgrade – has left some dealers feeling stung, as some claimed it leaves little ownership over the customer.
A business dealer told Mobile: ‘I am outraged that if I sign up a customer on 24 months and then don’t manage to resign that customer after 10 months, my ongoing commission will stop and I lose the customer even if I have signed them up for 24 months originally.’
O2 dealers are given eight weeks to upgrade the customer at month 10 of the customer’s contract; if they fail the customer is transferred to O2 direct.
Gamma Telecom became 3’s first MVNO in January this year.