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Daisy aligns Fone Logistics and Anglia

Michael Garwood
October 7, 2010

Acquisitive reseller firm Daisy Communications said it has completed integration of reseller Murphx and airtime distributor Fone Logistics into its business, with the latter now offering the same commercials as Anglia Telecom

Daisy Communications Group said it has completed integration of airtime distributor Fone Logistics and fixed line reseller Murphx into its business, and that it expects its full-year 2010/11 results to be in line with expectation.

The firm, led by Matthew Riley (pictured) said it is to continue its ‘buy and build’ strategy also, to force consolidation in the indirect dealer market and unified communications space, and to create scale.

Fone Logistics last week completed its move to Daisy Communications’ office in Prudhoe. Its offices in Cramlington, northumberland, have now been vacated.

Daisy Communications said the enlarged division is trading in line with management expectations.

It has also aligned its revenue share commercials with O2, one of its chief operator partners along with Vodafone, to reflect those offered to dealers by Anglia Telecom, as reported last month by Mobile News.

The rebranding of the two airtime distribution businesses as Daisy Mobile is yet to be confirmed.

Dealers connecting O2 through Fone Logistics will now receive a 35 per cent ongoing revenue share instead of the previous 40 per cent, which has been in place with it since O2 introduced the new payment model in 2008.

The adjusted revenue share percentage will reflect all new connections and come in to customer upgrades and re-signs. It is understood, however, Fone logistics has agreed to retain the 40 per cent share for selected dealer partners. Its revenue share for O2 mobile broadband connections will remain at 40 per cent across the board.

Dealers will receive an additional £140 in their advance payment to help cover hardware costs in mitigation for the five per cent fall in revenue share.

On O2, both Fone Logistics and Anglia Telecom dealers are being offered a £40 bonus for every handset sold with a business contract, provided they hit 20 sales per month.

The offer is expected to run for the quarter, and will apply to all voice tariffs retained from 2008 (through its recent tariff refresh). The £40 bonus does not apply for sales of Best for Business and the 2010 Business Single and Share range

O2 is tipped to remove its popular 2008 business tariffs in January.

Fone Logistics and Anglia Telecom have also aligned their commercials for Orange connections by increasing sales bonuses on selected plans to £55 from both of Daisy Communications’ distribution brands, starting this month and valid for the quarter.

The pair are also offering a £50 bonus on all connections which include an email bolt-on and are ported to Vodafone from rival networks to December 31. It will apply to Vodafone sales with BIS, BES, BES Express, and standard data tariffs.

Meanwhile, Daisy Communications confirmed Hampshire-based Murphx has integrated into its wholesale division. Murphx provides business broadband, ethernet and leased line connectivity, virtual private networks, hosting, IP transit and cloud computing.

Murphx joins reseller businesses Your Network Solutions and Cole Robert Co in Daisy Communications’ wholesale business.

A new management team has been formed from Murphx’s former management, including Carl Churchill who was commercial director at Murphx and is now appointed managing director of Daisy Wholesale.

Churchill will work alongside former Murphx board members Richard Jay, previously chief executive, Nicki Jay, formerly operations director; and Ben Murphy, who was chief technology officer at Murphx.

Current Daisy Wholesale managing director Rob Sims will leave his position.

The new management team will lead a 100-strong workforce. The wholesale business will support 850 channel

As well, Daisy Communications has said Ian Butcher, a non-executive director, is stepping down from his position with immediate effect.

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