Return rule hits 3 sales

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http://www.mobiletoday.co.uk/content/15645.asp?men=0&sub=1

Many retailers are pulling back from selling 3 after the network announced last week that it would stop giving credit for returned 'used' handsets.

Dealers said the new rule is the latest measure to transfer risk to retailers, following a string of policy changes as 3 strives for quality business. The change has already prompted distributor Data Select to stop connecting distance sellers to 3.

One dealer said: 'It has killed the first rule of retail which allows the customer to feel the product. 3 used to be our second-choice network. It has now slipped way down the pecking order and is our fifth choice.'

Data Select MD George McPherson (pictured) said: 'We have stopped connecting distance sellers on 3. The new ruling by 3 makes it very difficult to manage.' He added that Data Select remained a 3 connector and was 'actively looking at their business packages'.

One distribution source said a drop in 3 connections had been apparent. 'Connections have dropped a bit after each new rule,' he said. 'Maybe the dealers can't be bothered with all the paperwork 3 has put in place. Or perhaps they know their business isn't good quality.'

Mobile understands that some distributors have scaled down their 3 stock because the demand just isn't there.

A 3 spokesman said: 'We are a maturing business and as a result of that we have decided to change some of the rules on returning handsets.' He added: 'Dealers shouldn't be out of pocket. They can still sell the handset and new packaging could be available.'

The returns rule comes after a year in which 3 emphasised the importance of demonstrating services to customers and many feel the new policy jeopardises this.

3's definition of 'used' is any handset that has made or received calls, texts or content.:T