A group of O2 direct dealers has written a letter to O2 senior channel managers complaining that the network’s revenue share scheme is unworkable and must be scrapped.
In the anonymous letter, the dealers complained that they were ‘unable to budget, forecast or provide an adequate new or re-sign programme for our customers, in fear of any commissions received being withdrawn when the reconciliations are calculated’.
It added: ‘The fatal flaw in the RSS is the high figure placed on the ARP at between £40 and £50 in most cases. It is 100% the opinion of the direct dealers we have spoken to that the ARP figure is totally overestimated, especially on tariffs involving sharers, which are the bulk of our business connections.’
A dealer source said: ‘A lot of dealers just don’t have the cash – it is clearly flawed.’ He added: ‘You can leave if you want, there are four other networks to go to.’
The dealers also complained about O2’s removal of the TRO, which leaves ‘absolutely nothing to bind us to the network’. They added: ‘It is a completely rash, ill thought out procedure, which will undoubtedly fail.’
O2 moved to the ongoing commission scheme, which replaced its upfront model, in October 2008. Many of the operator’s indirect dealers have already complained about the scheme.
O2 declined to comment.