Vodafone UK Reaches Out to SMEs with Revamped ‘Vodafone Partner Services’

Event Summary

September 20, 2010 -- Vodafone UK has completely revamped its channel partner programme with the launch of Vodafone Partner Programme (VPP). VPP will provide a centralised support structure for Vodafone’s partners, which gain access to business development and marketing tools on a tiered performance basis (Platinum, Gold and Silver). Partners will receive financial incentives as well as access to Vodafone-sponsored events (e.g., Formula 1) and use of the company’s new Customer Experience Centre at its Newbury headquarters.

Quick Take

Analytical Summary

• Current Perspective: Very positive on Vodafone UK’s launch of its new ‘Vodafone Partner Programme’ (VPP), as channel partners represent the most important route to market in the SME sector. Vodafone already has 400 partners in place under the new programme, and acquisition Yes Telecom (branded Vodafone Partner Services) will manage VPP. Simplified and unified billing systems and a new partner portal will have a positive effect on Vodafone’s relations with its channel partners and ability to sell its UC solution (Vodafone One Net) and bundled fixed and mobile services.

• Vendor Importance: Very high to Vodafone UK, as it has found the process of selling Vodafone One Net to be a steep learning curve, and in order to gain maximum traction for the product, a network of high-quality resellers is critical. Vodafone’s focus on training and sales support is important, as it is smaller channel partners that have the time to better educate customers on the potential efficiency benefits of UC solutions. Vodafone has also brought its partner programme in line with (and in some cases potentially ahead of) competitors such as BT, Opal, Colt, Virgin Media and O2.

• Market Impact: High on the UK SME market, since Vodafone UK is emerging as a real threat in UC and fixed services on top of its traditional mobile services strengths. Vodafone’s strategic partnership with BT Wholesale was a sign of intent from the operator, and VPP now puts it in a stronger position to win more SME customers. The only limitation on VPP’s immediate impact is Vodafone’s initial focus on mobile services resellers. As VPP expands to include more fixed and IT resellers, its threat will become even greater.

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