On dealers, he commented that numbers of independents will drop once more: “Unfortunately I think we will finish 2010 again with less independent dealers than we started with. The community most at risk are those who run shops and still rely mainly on consumer traffic. They are just not getting supported by the networks, who have decided that the independent dealer channel is only for SME connections.”
On mobile networks, he said: “When you look at all of the forces in play we could well have a bit of a scrap among the networks for market share in 2010. This could prove to be a positive thing for their distribution channels, albeit controlled by revenue share commercials. I’m not sure if that is better or worse for the industry as a whole long term. What we do need to work on is our overall service level and product consistency with the end user community.
“I’ve given up predicting consolidation in the distribution sector,” added Sweetlove. “HSC will be forging ahead with our plans to dominate by providing the widest possible choice of products backed up by the best levels of knowledge, service and relationships. Revenue share payments will start to become a material figure for pay monthly dealers, and distributors will need to be on their game to make sure these are accurate and consistent,” he concluded.