Confusion at O2 commissions


Dealers connecting O2 through Redstone and Fone Logistics officially receive 24 months of upfront payments based on each connection averaging at least £40 per month ARPU, earning them 35 per cent of that amount.

But dealers claimed last week they are confused by the stream of continuous, inconsistent updates sent out following the launch.

One dealer said: “It’s a farce. Why didn’t they sort everything out before actually launching? It seems every time I check my email I have a new message telling me of a change.”

Another said: “I don’t know what’s going on anymore. I hear one thing, then it changes; I hear another, and that changes too. How am I supposed to run a business on guesswork?”

The biggest confusion appears to regard how far into a contract upfront payments are received, with dealers claiming they were initially told 14 months by their distributors, but that the story has now changed to 24.

One well-established B2B dealer said he had stopped connecting O2 because he thought payments would be 14-month, but has since reversed his decision after learning it had changed to 24 months.

Another said: “Twenty-four months certainly helps with more expensive handsets. Lets hope that’s the end for changes for a while now.”

But Redstone managing director Dave McGinn dismissed this, claiming the proposition had always been 24 months. 

“It has been confusing for dealers, but we’re comfortable with our offering and comfortable our partners will adapt to this,” he said.

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