T-Mobile axes Fone Logistics


T-Mobile has made the next move in its review of indirect partners, terminating its distribution partnership with Fone Logistics.

But the Northumberland-based distributor, which acquired rival distributor Dextra’s airtime dealer base in May, appeared unphased by the move and said the “mutual” decision would have little impact on its business.

Fone Logistics sales and marketing director Julien Parven (pictured) said: “T-Mobile is working on a well publicised review of its indirect partners, and our new strategy has also been well publicised.

“We were doing very few T-Mobile connections, hence this mutual decision. Our strategy is to focus on long-term relationships and high value, high quality customers.”

Parven said the business would look into developing a closer relationships with O2, Orange and 3.

“O2 is a big part of our business. The change in its commission model has given us an opportunity to add value to our dealer business,” he said.

“We have a good relationship with Orange and an ongoing opportunity to develop that. We are very close to 3 and I see the next big thing for us as leading the way in 3 Business. We have more than enough to keep us busy.”

Parven added dealers would try to connect directly to T-Mobile, others would connect via other distributors and some would cease connecting it altogether.

T-Mobile national sales manager for independent partner John Fannon previously said T-Mobile’s relationships with five distributors and 18 business partners were likely to go unchanged, although some direct dealers were expected to be downgraded to “stockist” status.

However the network dropped business partner Wish Communications earlier this month claiming negative cashback dealings.

Mobile News also understands further businesses are at risk, but T-Mobile refused to confirm any names.

A spokesman said: “T-Mobile is engaging with Fone Logistics about the future of the trading relationship as part of an overall review of the structure of T-Mobile’s indirect channel.

“This process began in May when we engaged with all our independent partners to explain our plan to realign the channel based on new monthly minimum performance targets.

“At the end of September, we began an evaluation of performance against new targets and are currently reviewing the data.”