2/3/2010 11:07:00 AM
Vodafone plots SME shake-up to grab share
Vodafone is planning a major restructuring in a bid to grab a greater share of the SME market.
The changes, driven by SME sales director Rob Shardlow, will see its distribution centralised, new partners recruited from the fixed-line market, new partnering arrangements and a new revenue share model.
Shardlow told Mobile that Vodafone plans to streamline its distribution system. It is currently a mix of indirect and direct dealers, with the former overseen by Vodafone subsidiary Yes Telecom.
Shardlow said: 'Ultimately, we want one route to market, one set of processes and systems, and we will work across our partnership relationships and bring them together.'
He declined to confirm that Yes Telecom will be the central distribution centre and rebranded as Vodafone Distribution, but promised more details 'later in the year'.
Vodafone is also planning changes to its partnership programme, with Microsoft's programme as a possible model, as it looks to align with increasing industry convergence.
Shardlow said: 'We have mobile-centric channels and partners, but in an increasingly converged world we have got to remain relevant, so that has to change.'
New partners will be recruited from the fixed-line channels. Shardlow said Vodafone expects many of its existing partners to expand into the converged services, with a few remaining focused on mobile.
A new revenue share scheme is also in the pipeline. Shardlow said: 'If and when we launch changes to our commission scheme, we'll get it right first time. It will probably not be one model for all channels.'
Distributors told Mobile they were supportive of the changes. One said: 'It makes sense for Vodafone to streamline the business, and bring in better, more efficient systems.'