Advance payments is allowed by O2

O2 bows to pressure from dealers to grant upfront payments as part of revenue share to cover kit subsidies
O2 has bowed to dealer pressure to offer upfront commission as part of its revenue share scheme, amid claims re-signs have declined year-on-year because of channel cashflow issues.

O2 is understood to have taken fewer re-signs in the period since dealers started to take a share of customer revenue, starting October 2009, compared with the equivalent period a year ago. Early revenue share payments have not afforded them equivalent cashflow to re-sign customers with new kit.

O2 has until now refused partner requests to offer some upfront sum to subsidise upgrades. Dealers have been forced to fund deals themselves, putting them at a potential loss.

But O2 has back-tracked and distributor Fone Logistics is offering £100 24-month re-signs and £160 for 36-month upgrades.

The money is described to be part of a revenue share ‘true up’, and can be clawed back at the end of the customer’s contract should the 40 per cent per month revenue share be less.

An O2 spokesperson said: “Following feedback, we are trialing resign advances.”