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Canadian Wireless Retailers Poised for Growth But Network Relationships Worrying
The Canadian wireless dealer network is struggling with its wireless carrier business relationships, concludes a study by IDC Canada. In a survey of Canadian wireless dealers, just 38% considered their wireless carrier relationship to be a business priority in 2010 while 50% indicated that their relationship with carriers had deteriorated over the past three years.
The study investigates the dealer/carrier relationship using a dealer program framework that tests the importance and value across key components (financial, sales, technical and marketing resources) and their respective attributes (e.g. commissions).
The study identified specific attributes in the dealer/carrier relationship that are highly important to dealer businesses, but where carriers are believed to provide low value. Two carriers, in particular, stood out as providing low value across a number of attributes that were highly important to dealers, indicating serious issues in the relationship Although carriers received kudos for delivering on strong industry reputations and broad product/service portfolios, very few dealers felt their carrier was doing things to help them be more successful - only 11% believed their carrier was meeting their needs.
"The Canadian wireless carriers need to act on the results presented in this study, which means making the changes required to improve on the relationship attributes that are important to dealers, and where carriers deliver low value - one example being commissions," said Paul Edwards, research director, Small and Medium Business and Channel Partner Strategies at IDC Canada. "Dealers are becoming market differentiators for carriers, especially with the increase in new competition and carrier revenue sources leaning more to wireless services. This reinforces the need for monitoring dealer relationships for continued improvement and market growth."
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