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O2 dealers threaten “mass churn” over international cuts

Alex Yau
February 13, 2015

They claim the operator’s decision to reduce international revenue share by more than 50 per cent will leave them financially out of pocket  

Dealers are threatening to churn O2 customers to rival networks following its decision to cut international revenue share earning (roaming calls, texts, data) by more than 50 per cent

The change, which takes effect from April 1, will affect indirect partners connecting via distribution only.

Chess Telecom has already informed partners its reducing O2 revenue share for international spend from 35 per cent to 14.5 per cent, whilst Carphone Warehouse Business (currently 40 per cent) and Daisy Distribution (35 per cent) are expected to announce their respective changes shortly.

Financially out of pocket

The reductions will affect all O2 connections, including customers currently in mid-contact – a decision many claim will leave them financially out of pocket.

“We brought the business to O2 on the basis of receiving 35- 40 per cent of the overspend. This is now breached,” said one dealer.

Another added: “O2’s credibility will be seriously damaged if something isn’t changed. If they introduced the cuts for new connections, we could cope with that but I have a lot of customers who’s deals and hardware costs have been calculated on their expected overspend.”

Dealers claim Vodafone and EE, are aware of partner concerns and are now actively discussing opportunities and financial benefits of churning customers over – something a number have said they are open to.

One said:”Why should we remain a loyal partner to an operator if they lose us money?”

O2 declined to discuss specific details of the changes.

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