Paul: Hostages to fortune

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3 doesn’t have the best reputation in the dealer channel due to its hard-line strategy on clawbacks.

The latest yo-yo events around business clawback don’t really do it any favours, but it should be fairly praised for listening to its partners and correcting erroneous judgement.

3 caused uproar when it told dealers it had imposed a new clawback term that stated it could claw back the full amount if customers disconnect for any reason at any point in their contract term. It threatened to relieve dealers of any kind of control. They are hostages to fortune.

3 has relented, and it should be commended. Dealers aren’t always right and the concern that greets most disruptive moves in the dealer market are natural, but eventually prove unwarranted.

Certainly, revenue share would never have happened if dealers had voted en masse, and as it is now only general stockists regret its introduction. But on this occasion dealers had a point, and on this occasion 3 demonstrated retrospective reason.

 

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