Paul: O2 customers save, dealers pay

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Especially if you’re O2. It seems chief Ronan Dunne’s broardoom philanthropy has gone too far for the middle men.

Just a month after launching its fixed line proposition, one which appears to have gone down very well with the dealer channel, some have been critical because the pricing is too low for them to make good margins.

Their point? They want to charge customers more to earn higher margin.
O2 is offering 2,000 free minutes to any of its 20 million customers from its landline offer.

Customer spend could potentially be around 40 per cent lower (if O2 statistics are true that 15 per cent of calls made from a business are to mobile and make up 40 per cent of the bill).

With line rental already less than the likes of BT, the seven or eight per cent ongoing revenue doesn’t stretch that far.

O2 knows this. It says the true benefits for the dealer will be clear by getting customers involved with all its Joined Up propositions.

That is the very point of unified communications for both customer and supplier. It’s just the middle men get caught out again.

 

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