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Price backed the general move within distribution to cut off bad connectors. Avenir is reviewing its channel strategy and Price suggested that it could stop working with certain routes to market altogether.
Said Price: Our strategy is to focus on delivering quality business and generating increased handset revenue through all networks. During the next 12 months I see distributors specializing on different routes to market rather than equally working on all routes. To this end and in line with our strategy Avenir will be investing in the business-to-business arena particularly supporting dealers who service the SME and SOHO market for both voice and data services.
She went on: At the same time we will underpin this business with good quality consumer connections generated ethically though quality dealers and qualified routes to market. We are currently reviewing those routes that present levels of exposure to us that we deem as commercially unviable.
Avenir 2005/6 UK turnover increased five per cent on last year to 135.2 million euros (GBP91.8 m). Avenir Telecom Groups UK distribution business represents 18 per cent of the companys total turnover. Group sales for the year saw a like-for-like increase of 21 per cent and reached 746.1 million euros (GBP501.5m).
The increase was largely down to the strength of its retail operation overseas which recorded a sales jump of 40 per cent to 253.5 million euros (GBP170m) and comprised 34 per cent of its overall sales. Wholesale distribution was up seven per cent to 492.6 million euros (GBP331.1m).
Operating income for the group rose 48 per cent to 19 million euros (GBP12.7m). Retail contributed 6.7 million euros (GBP4.5m) compared to 400000 euros last year and wholesale contributed 12.3 million euros (GBP8.3m).
O2 is considering legal action against 60 dealers for mis-selling O2 products and services it said last week.
O2 has started legal proceedings in the High Court in London against Cardiff-based call centre dealer Communications Direct for trademark infringement and passing off.
It is the second Cardiff-based distance caller that O2 has taken legal action against for mis-selling O2 customers airtime contracts on rival networks a sales tactic known as slamming. It fought Landmark Communications in court in December last year. Landmark eventually settled out of court for £500000.
An O2 spokesman said: The problem is widespread but we are currently reviewing 60 other companies who may be guilty of similar practices.
O2 has received up to 100 complaints from customers per month about the behaviour of Communications Direct. O2 is now waiting for Communications Direct to file its defence against the claim.
O2 said last week that it had received a growing number of complaints from customers about call centres that claim to call on behalf of O2 but churn them to a rival network when they agree to an upgrade package.