CPWB announces changes to O2 international revenue share

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Distributor maintains current international revenue share levels for existing contracts

Carphone Warehouse Business (CPWB) has announced changes to its O2 commercials ahead of the operator’s overhaul of its B2B business on April 1.

The main change will see revenue share for partners increased from 40 per cent to 45 per cent. As before, this will be paid as an upfront payment but only for up to 24 months regardless of contract length.

Mobile News understands that Carphone’s decision to increase the revenue share payments is linked to O2’s decision to cut international roaming revenue share payments to its distributors.

For dealers this meant a cut in their payments from 35-40 per cent (depending on who they connect through) to just 15 per cent.

The cuts are linked to O2’s overhaul of its B2B business which will see the launch of the Direct Partner Network on April 1. Changes to its distribution partnerships are understood to be in the process of being finalised by the operator.

Indirect O2 dealers had previously complained to Mobile News that the international revenue share changes, which affect both new and existing accounts, would lead to them making losses on existing contracts.

However, Carphone has confirmed in an e-mail to dealers that international revenue share would drop from 40 to 15 per cent for new connections only from April 1. Carphone dealers will still receive 40 per cent for any in-contract customers up to the point of resign or when the contract expires.

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Chess Partner Services (formerly Avenir Telecom) has already confirmed to its partner channel that

O2 international revenue share would be cut from 35 per cent to 14.5 per cent for new and existing contracts, as of April 1.

Daisy Distribution (currently 35 per cent) has yet to announce its plans to the channel.

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