Fonehouse has not implemented T-Mobile’s new revenue share model and is instead seeking an alternative to it.
Mobile News understands that the retailer has refused to use the model, deeming it unworkable and too costly. It will run a version of the model at some point over the coming months and is in negotiations with T-Mobile as to what this should be.
On April 1, Fonehouse store staff weren’t informed of any changes to how they would be paid their commission and all payments are still being made on an up front basis.
One store manager said: “Fonehouse should be on different terms due to the large volumes it puts through. It will probably come to revenue share of some kind, but it will be a more gradual process.
Another store manager said: “I’m glad this has happened as these revenue share models are going to cause problems. It’s just another way of the networks getting rid of dealers.”
Fonehouse managing director Clive Bayley (pictured) declined to comment.