Partner Channel Headlines: C&W Trades Direct Sales Reps for Agents

Posted: 03/2002

PARTNER CHANNEL HEADLINES

C&W Trades Direct Sales Reps for
Agents

By Josh Long

Last fall, Cable & Wireless let go nearly its entire direct sales force responsible for its small to medium-sized and large corporate business accounts. As the number of pink slips mounted, independent agents found themselves in a strikingly different situation. Cable & Wireless handed the business to some of the largest telecommunications master agencies — paying them to manage accounts its direct sales force had acquired.

The move spoke “volumes” about the company’s commitment to alternative channels, says Ted Schuman, president and CEO of master agency US Telebrokers Inc. “It is a fairly epic event in alternative channels as a whole.”

In total, Cable & Wireless gave independent partners roughly 20,000 customers vs. partners, says Peter Green, president of Cable & Wireless’ Business Markets. Business Markets is responsible for large corporate and small to medium-sized accounts.

Green says the channel program would evolve as the carrier receives feedback from agents. The company will “try and build a program together,” he says.

Green, who will attend PHONE+’s Channel Partners Conference & Expo March 25-27 in Las Vegas, says he plans to speak to as many partners as possible.

Cable & Wireless’ decision to rely on a channel-centric model is “aggressive” and “really courageous in a way,” says Rick Dellar, co-founder of Intelisys Inc. Cable & Wireless gave Intelisys more than 1,000 accounts to manage, he adds.

Of course, agents agree the carrier’s program is not flawless.

Among some comments:

In all fairness, agents say no program is perfect; and sales representatives can’t expect everything to fall in their laps without breaking a sweat, particularly these days.

“My feeling is our industry is a sick industry right now,” Dellar says. “It is ill. I understand companies have to make tough decisions and I support that. I want this industry to survive.”

Schuman makes a similar observation regarding channel programs: “I would say each carrier obviously has its issues, and as long as I stay in business I realize that I will never find nirvana with any of our providers.

But he emphasizes that he believes Cable & Wireless is committed to the alternate channels. “I don’t have any other provider — and we represent most of the major carriers — that is so committed to their alternate channels as Cable & Wireless is at the moment.”

Master agent Brad Miehl says the carrier’s business customers will benefit as well. Miehl, president and CEO of The

AgentsNetwork Inc, adds that agents can provide business customers more stability and services than a direct sales staff.

For instance, in the BellSouth Corp. territory, the agency could manage accounts for businesses on behalf of Cable & Wireless and the Baby Bell, he says. Obviously a direct sales force could represent one of the companies, not both.

Miehl also notes managers at an agency often remain a primary contact for businesses longer than a direct sales staff,

because turnover in management at a large corporation tends to

be higher.