CHANNEL CAMPAIGN SPECIAL
www.comms-dealer.com IT’S TIME FOR CHANNEL
Palmer’s call to arms over new regulations
NINE BOSS URGES ALL UK RESELLERS TO GET INVOLVED IN PRESSURE GROUP
pool resources to defend against threats posed by new contract regulations and a rapidly changing network landscape.
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In a rallying call, James Palmer, managing director of network services provider Nine Telecom aims to recruit a ‘Channel Army’ to fight new government contract regulations, which he says threaten to strangle channel enterprise. He also wants the channel group to pressurise OFCOM into recognising the strength of the independent sector and its demands for voice over fibre solutions that will ultimately replace WLR3.
His main allies are the Federation of
Communication Services, the trade watchdog which represents businesses delivering communications products and services to UK customers, and THIS magazine, which is recognised as the channel champion in fighting for reseller rights.
“We have the most influential trade group and magazine on our side but our main weapon has to be strength in numbers,” said Palmer.
“One of the biggest problems in our industry is that we have had quite a long period of relative
omms channel directors and entrepreneurs are being urged to
James Palmer
“Our main weapon has to be strength in numbers”
stability. We had CPS, then WLR, both of which have earned resellers good money, but things are set to change and we need to make sure we work together and remain competitive.”
And Palmer believes one of the biggest threats has crept under reseller’s radar.
“There are new regulations coming to us from Europe which I honestly do not believe many people in the channel are aware of. Most significant is a maximum 24 month contract on telecoms services.
“What the EC defines as telecoms services is unclear. For example, if a customer wants to buy a managed service contract on a phone system and wants it on a five year lease is that lease contract actually now valid? Resellers have been very creative and are used to wrapping a telephone system, installation, maintenance
and calls into a three year or five year total managed service contract. “And does a hosted telephony service fall into the criteria? It’s all very confusing. But one thing is certain, the customer will get less choice and could potentially be saddled with more upfront cost. Or decide to settle for old technology which could affect his or her business long term.
“OFCOM are saying this will become law for consumers next May but this is another grey area in that what constitutes a consumer? If you have a small office with a couple of workers or you are a sole trader are you a consumer? We need some clarity from OFCOM about this.
“My problem with this sort of bureaucracy is that the Government wants UK technology to become really cutting edge but it is stifling the enterprise of the very people that are delivering it.
“As a channel we did not have a loud enough voice a year ago when these rules were under discussion but by getting the channel together now we can still make a difference by making sure OFCOM really understands the implications of what they are planning to do. We can persuade OFCOM to restrict these rulings to certain product sets and clarify the
entire contract situation. As a force we may get regulatory issues resolved but let’s not stop there. We can push for other initiatives that increase competition and give more benefits to the customer.
With 150 registered FCS channel members from a community of 1,500- plus Palmer believes channel players only have themselves to blame if regulations get passed by OFCOM they do not approve of.
“We are facing a massive period of change with fibre to the premises, Next Generation Networks (NGNs) and the mobile operators coming into the space. We now have a situation where OFCOM could say ‘guys you told us it would be an absolute disaster if we didn’t do this or this, yet there are only 10% of you involved in lobbying’. There is a massive change ahead and we cannot just have 10% of our community lobbying, we have to have 80-90%. And it’s not just a case of taking news feeds from the FCS. We want members to turn up to meetings and make themselves heard.”
To kick-start the initiative Palmer is incentivising his own sales team to get Nine Telecom partners signed up to the FCS and will pay 50% of annual fees which are turnover based but start at less than £400.
helping you reach customers - near or far 42 COMMS DEALER NOVEMBER 2010
• European Commission regulations, due to become law next spring, will restrict ‘tel- ecoms services’ con- tracts to 24 months.
The big issues...
• Europe, as part of its Digital Agenda, has set a target of bring- ing basic broadband to all Europeans by 2013 and for all to have access to speeds of above 30 Mbps (with 50% or more above 100 Mbps.) by 2020.
• BT’s Openreach is extending its up to 100 Mbps Fibre to the Premise (FTTP)) broad- band service, which was launched at Ebbsfleet in 2008, to new pilot areas in Bradwell Abbey and Highams Park.
• The FTTP service will ini- tially only be available from a limited number of BT exchanges (rep- resenting 25% of the total fibre roll out, but other ISPs will be able to rent these lines to provide services.
• Current proposals for the provision of whole- sale services on the Next Generation Access Networks could change the market structure.
• NGA migration proc- esses and costs must be designed to sup- port free movement and competition and not create ‘walled gardens’ or custom- ers who cannot afford to switch provider.
• There are currently no suitable reseller voice products over fibre to the premises.
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• The industry could move to a mobile type market with a small number of vertically integrated players and no suitable wholesale products for resellers.
T: 0844 871 1122 E:
sales@maintel.co.uk W:
www.maintel.co.uk
www.comms-dealer.com
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