T-Mobile’s forthcoming ongoing revenue share scheme, which starts April 1, will see dealers take an 80 per cent upfront payment, followed by a 20 per cent cut of customer spend after three months on all new and upgrade business.
T-Mobile head of independent retail Roger Fletcher said the upfront payment would likely slide to 60 per cent in due course, with 40 per cent paid in ongoing revenue.
Unlike O2’s revenue share, T-Mobile’s revenue share payments are not based on predicted ARPU. Dealers will earn 20 per cent of monthly billed connections from April.
Fletcher said: “We have taken out all the complications. If someone was given £367 per box, that would be £294, and after three months, the dealer will receive 20 per cent of revenues of the total customer spend.
“We have listened to everyone, and taken their feedback about introducing some revenue commission scheme. We are not launching before April 1, to give people a chance to get their businesses ready for it – so they know what’s going on and they can plan their business. It was fair to give them four months’ notice.”
He went on: “To move, suddenly, to an ongoing revenue share is too much for dealers’ cashflow in these times, so we have started at 80 per cent.”
T-Mobile announced the move to its business connector partners in Luton last week. Avenir, Redstone and Hugh Symons were in attendance, alongside B2B dealers.
T-Mobile also addressed consumer-facing partners in Birmingham. Data Select, Elite and Dextra attended.