BT Culls Channel According to Pareto Law

Ahead of the start of their new financial year next month BT has confirmed they have cut their channel partner numbers dramatically – as forecast last week on this web site

The move was initiated by BT Indirect Channels’ Mark Cornell following a review of where his channel business was coming from.

“Around 90 percent of our channel revenue was being delivered by less than 20 percent of our channel partners so we have decided to focus our resources on those resellers. We will start our new year with fewer resellers that we finished with but are actively recruiting new channels to replace those from whom we have parted company.”

Cornell told Comms Business Magazine that he is seeking sales growth in 2005/6 of between 10 and 20 per cent and had recruited a further 20 reseller support staff.

“This brings the figure up to around 100 dedicated channel support staff who will be available to help resellers close business. At the same time BT is offering the remaining channel partners longer term contracts of up to two years to demonstrate their relationship commitment and secure revenue streams.”

Additionally Cornell has announced the immediate appointment of Phil Purssey as Sales Director to drive the channel forward.

“Convergence remains the focus and we are seeking to partner with both traditional voice and traditional data resellers wishing to move in to the integrated space.”

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