24 Jul 2008


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Mobile networks reassure retailers on top-up commissions

Vodafone

independent

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Mobile network operators O2 and T-Mobile have reassured retailers that they will not copy Vodafone's 1% cut in top-up commission rates which has provoked a backlash among independent retailers.

The cut is due to come into place on 1 August 2008 and the retailers claim it will save Vodafone about £1.2m.

A spokeswoman for O2 said that it had no plans to change its payment plans at present. A spokesman for T-Mobile said the network had no plans to change the commission structure at the moment.

But network providers 3 and Orange would not confirm their future plans are.

An Orange spokesperson said: “We regularly evaluate our commission structure, but no decisions have been made regarding commission for prepay top-up at present.”

Kevin Hunt, who has organised the protests against Vodafone’s cut, said: “This is a great result and only after our second boycott. We hope the other network providers will follow suit.

“We are disappointed with Vodafone for taking this decision because they were happy to use small stores as their route to market when top-ups were first introduced. We feel this decision will erode the long term viability of the category.”

Vodafone has responded to retailers who have signed Hunt’s petition on www.topupratecut.biz.

It said: “Over recent years, competition and market changes have meant we’ve had to take some difficult decisions. While seemingly tough, these decisions have allowed us to continue to offer our and your customers the products and services that they want and need.

“One of these difficult decisions has been to cut commission rates. We understand that this may have caused you some concern, so we’d like to reassure you of our continued investment in products and services that provide great value, drive TopUp sales and promote growth.”

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matt reid	25 Jul 2008 08:46:43
i think the boycott is great, it shows that small and independent retailers are not willing to be backed into a corner on what they recive as providers to larger companies customers. they already recive a pituful amount of comission and reducing it more will only lead to retailers removing the service altogether as the costs are just to much.