Gamma profits from change in dealer tariffs

Recent commission changes from O2 is having a big impact in the channel and increasing the number of channel partners signing up with Gamma.

In particular, O2’s move to an ongoing revenue structure, while similar to the Gamma Mobile model, leaves one big differentiator to Gamma Mobile; dealers also get ownership of their customers with Gamma Mobile allowing value to be added to their business and giving them complete control over price and profit.

This makes Gamma’s unique model more attractive than ever, according to the business, and with other major networks expected to follow O2’s approach in coming months Gamma is expecting a flood of mobile dealers moving across.

Additionally, while O2’s model is similar, Gamma stated that getting to own the customer means dealers are in control and are not subject to quick turn around tactics that have left dealers having to cope with changing their systems and the way they do business in a very short space of time.

Having just returned from the Convergence Summit South 2008 with its new mobility push, it was very evident that the dealers who attended the show were not comfortable with the way O2 has behaved, Gamma commented, and added that dealers it spoke to said they were actively seeking alternative ways of delivering solutions to their customers that would remain profitable for them.

One leading mobile dealer told Gamma at the Convergence Summit: “We felt angry and let down by O2’s rapid decision to move away from upfront connection fees and don’t understand now why anyone would go with the new O2 commission structure. We can get a similar pay structure from Gamma together with the benefits of full customer ownership, which no other network is offering, and we hope to be moving across to Gamma Mobile in the coming weeks.”