3GScottishUser
2nd November 2006, 01:38 PM
From Mobile Today (02/11/2006):
3 is set to axe 20 dealers this week as it starts to fight 'poor-quality' connections with a series of sweeping changes.
The canned dealers were found to have high levels of 'never pay' connections, Sim-only deals, tariff downgrades and cashback complaints.
3 will also hobble many dealers' cashback plans this week by issuing a complete ban on tariff downgrades. Customers cannot switch to cheaper tariffs now for 12 months.
Several more dealers have been placed on an 'amber warning'. 3 has tightened credit control for those dealers effectively slashing their connections until the quality improves.
The culled dealers and their distributors will be notified by sales chief Marc Allera and dealer head, Bernie O'Beirne, this week.
High-volume dealers have been personally warned that they risk being terminated if they fail to meet quality standards. 3's CEO, Bob Fuller, said the company aimed to reduce its reliance on third-party retailers from 80% to 50% by the end of next year: 'Building our own route to market is very important. By the end of next year we expect to see half of our business through our own channels, half through others.'
3 is trying to kill off troublesome cashback deals after suffering a series of complaints from customers and identifying disproportionately high churn rates from cashback dealers. Between 40 and 45 dealers have already been struck off this year.
The proposed elimination of cashback deals will be preceded in the New Year by another wave of dealer terminations with high levels of tariff downgrades a major component of most cashback schemes. Cashback dealers sign customers onto high-end tariffs, and advise them to drop to the lowest tariff at the earliest opportunity.
Many dealers have welcomed the move. 3 is telling dealers that as the credit checking gets tougher it will reduce clawbacks. New cashback rules were sent to dealers last month, signalling the operator's objective to distance itself from rogue cashback deals.
Retailers said 3 has been more aggressive in approaching customers signed up in dealerships and upgrading them directly ahead of the end of their contracts in recent months.
Referring to the ban on tariff downgrading and so-called upgrading poaching, one dealer said: 'There's no difference now between 3 and Orange and T-Mobile.'
3 tightens up
Between 40 and 45 dealers already axed this year
New cashback rules sent to dealers
20 dealers axed this week
Ban on tariff downgrading
Plans to eradicate cashback
3 is set to axe 20 dealers this week as it starts to fight 'poor-quality' connections with a series of sweeping changes.
The canned dealers were found to have high levels of 'never pay' connections, Sim-only deals, tariff downgrades and cashback complaints.
3 will also hobble many dealers' cashback plans this week by issuing a complete ban on tariff downgrades. Customers cannot switch to cheaper tariffs now for 12 months.
Several more dealers have been placed on an 'amber warning'. 3 has tightened credit control for those dealers effectively slashing their connections until the quality improves.
The culled dealers and their distributors will be notified by sales chief Marc Allera and dealer head, Bernie O'Beirne, this week.
High-volume dealers have been personally warned that they risk being terminated if they fail to meet quality standards. 3's CEO, Bob Fuller, said the company aimed to reduce its reliance on third-party retailers from 80% to 50% by the end of next year: 'Building our own route to market is very important. By the end of next year we expect to see half of our business through our own channels, half through others.'
3 is trying to kill off troublesome cashback deals after suffering a series of complaints from customers and identifying disproportionately high churn rates from cashback dealers. Between 40 and 45 dealers have already been struck off this year.
The proposed elimination of cashback deals will be preceded in the New Year by another wave of dealer terminations with high levels of tariff downgrades a major component of most cashback schemes. Cashback dealers sign customers onto high-end tariffs, and advise them to drop to the lowest tariff at the earliest opportunity.
Many dealers have welcomed the move. 3 is telling dealers that as the credit checking gets tougher it will reduce clawbacks. New cashback rules were sent to dealers last month, signalling the operator's objective to distance itself from rogue cashback deals.
Retailers said 3 has been more aggressive in approaching customers signed up in dealerships and upgrading them directly ahead of the end of their contracts in recent months.
Referring to the ban on tariff downgrading and so-called upgrading poaching, one dealer said: 'There's no difference now between 3 and Orange and T-Mobile.'
3 tightens up
Between 40 and 45 dealers already axed this year
New cashback rules sent to dealers
20 dealers axed this week
Ban on tariff downgrading
Plans to eradicate cashback