Revenue share starts to pay

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Dealers said last week initial payouts on revenue share schemes by Orange and T-Mobile are better than expected. Both networks’ schemes are effectively partial revenue share models, as they incorporate significant upfront commissions still.

Intek managing director Manny Hussain (pictured) said: “The ongoing revenue is building up at a faster rate than I had predicted and it seems we’ll be able to cover the upfront loss a lot quicker. Sales are still very hard to come by and we’ve had to cut costs to make this model work, but things do seem a lot more positive and I’m now convinced that this strategy is definitely the way forward.”

Complete Communications proprietor Adam Nyman said: “I’m delighted with how it’s going with T-Mobile as it’s all been very straightforward. A number of my customers went over their average bill per month and on some I received double what I was expecting.”

Border Mobiles proprietor Chrissie Mayers said: “We’ve received payments from both networks and I’m very happy with what’s come through.

“There was a lot of panic when these models launched but they will work out better for everyone.”

Both Orange and T-Mobile launched their models on April 1. Orange’s model sees dealers take a 90 per cent upfront payment, followed by 10 per cent of customer spend based on ARPU in arrears each month, with T-Mobile favouring an 80/20 split.

 

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