By Paul Kunert
2 September 2008
Hewlett-Packard is going to walk resellers through the contract activation process so they are able to sell data tariffs more effectively, something the IT channel has struggled with for years.
According to IDC, 10% of consumer notebooks are subsidised with broadband connectivity in the UK and the figure is set to double for the next two years with telco resellers expected to be the main beneficiaries.
The IT channel has not been able to navigate through the sea of complex of contracts offered by the mobile operators, a point that has not escaped the attention of HP’s head of telco channel Graham Badenoch
“When it comes to selling a notebook on a subscription, mobile resellers are fully aware of selling products under a contract because there is not a huge difference to selling mobile phones in that way,” he said.
“The challenge for the IT channel is to gear itself up,” he added, “that is one of the pillars of my responsibility, not just looking after the telco channel but to build these solutions in the IT channel.”
The first step in that process has been to pair telco wholesaler Avenir Telecom – which distributes on behalf of the five major mobile operators - with ETC and more recently Westcoast to bundle solutions.
Badenoch said no one IT distributor had relationships with every telco and the market has been confusing for partners, “It has been difficult enough to sell contracts without suddenly having a different process per operator.”
In the past Vodafone has attempted to simplify contract activation and others have also made moves to reduce bureaucracy.
But the teclos have “not been very successful at rolling out channel programmes and engaging with IT resellers,” said Alistair Edwards, senior analyst at Canalys, “tariffs and contacts are very complex things,”
PC vendors are still assessing the best routes to market for notebooks sold with airtime he added but the bundles are likely to target consumers and very small businesses in the short term.
Pioneer of the Eee PC netbook, ASUSTEK struck a deal with Orange store mid-August but Steven Tien, director for the system business unit said he suspected the bundles would be sold by both channels to businesses.
“Netbooks bundled with broadband are a good solution for corporate customers. They will be sold by both the telco and the IT channels,” he added.
