Mobile operator insists there is no impact on commercial terms when distributor takes on a dealer’s contract on its behalf
EE is guaranteeing existing commercial terms for direct partners who are moving to Mainline for six months.
In April, Mobile News exclusively revealed that around 80 per cent of EE’s direct partners will move to distribution following EE’s acquisition of Mainline in December.
The changes are being led by EE market director for small business Mike Tomlinson (pictured).
The number of direct partners that will remain by the time the process is complete is expected to be around 10. EE has began informing partners, with six having moved into the indirect channel.
A number of dealers have contacted Mobile News in recent weeks to express concern at the changes with many fearing cuts to revenue share and upfront payments.
Many have threatened “mass churn” onto other networks if there are significant changes to the commission structure.
One dealer said: “We’ve been told that we will be moving to distribution. How are we meant to compete if our commissions are being cut. I understand that they have Mainline and they have go to make it work but I’ll be moving a lot of our business to O2.”
However, the operator has moved to allay any fears from dealers by claiming that partners could even be able to increase their commissions if they are putting enough business through Mainline.
An EE spokesperson said: “There is no impact on commercial terms when Mainline takes on a dealer’s contract on behalf of EE.
“After working with Mainline their commercial terms will be negotiated as usual, and on a case by case basis, dependant on the capability and performance of those partners – with the ability to negotiate reduced, similar or even enhanced terms depending on the goals and projected performance of the partner.”