James: O2 accepts criticism and shows leadership

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O2 should be praised for taking on board criticisms and reacting positively to them. Its new SME tariffs, which it proposed to replace existing packages, offered limited value. They reflected its desire to push fixed line, in which it has invested heavily and by which it can broaden supply and improve customer retention.

Dealers made clear their objections to the proposed changes, and how O2 would likely lose business for them. And early sales figures showed they were right. So O2 moved to retain the existing tariffs, alongside the new range.

Dealers and customers now have choice. This is why O2 leads the market, both for indirect and direct sales. It attempts to drive it on product set. But it also appeals to salespeoples because it stretches them and rewards them, and also responds to them.

Necessarily so, because some the processes it has put in place, like revenue share for one, genuinely breaks new ground in dealer sales. Massive churn a possibility at every turn with such moves to drag the market forward. It must manage its sales operation carefully.

 

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