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O2 Wholesale Withdraws from Channel

O2 Channel partners were surprised to receive an announcement last week indicating that O2 Wholesale are to withdraw from the Channel after it sold its Consumer Home Phone and Broadband business to Sky earlier this year.

In a statement to partners, Dan Cunliffe, Head of Partners & Strategy at O2 Wholesale said “As a result, we have been reviewing our Wholesale and Reseller channels, because the delivery of fibre broadband currently requires a level of scale and investment which does not fit with our strategy to focus on digital services and experiences.”

New orders won’t be accepted from the 14th November 2013 and they plan to have all services off the network before the 28th February 2014.

Commenting on the news Darren Farnden, Marketing Manager at Entanet said “I think the announcement is an interesting departure from the strategy that they announced earlier in the year. It’s going to be of concern to some people in the Channel that have relied on them for their key partnerships. We are prepared to continue to fully servicing O2 LLU broadband customers as they withdraw from the market because of the portfolio of products we have got.

We have had reasonable plans in place since the announcement of the Sky acquisition; this is of no particular surprise but our overall objective is to make sure our existing and new customers have an alternative option to meet their requirements.”

Following the announcement Nimans immediately implemented an effective solution for resellers affected by the move.

Head of Network Services, Mark Curtis-Wood, said the company quickly rolled out a migration strategy enabling resellers to connect with its broadband and data service network.

“The reason Nimans acted so quickly was because we recognised the general consolidation of wholesale services in the channel and the move away from aggregated services. This has created an opportunity for Nimans to advance its strategy to become a full MSP and offer resellers an equivalent service with added value.”

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David Dungay

Editor - Comms Business Magazine

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