Mobile Cashback Petition

michaels

I think the objectors are fighting a losing battle - the current political climate implies that we are all idiots unable to make our own decisions and that he state can protect us from any possible mishap...no wonder there is so much emigration as well as immigration.

Back to the topic on hand - there does seem to be a problem that the networks benefit if the retailers make unrealistic promises bringing lots of sign ups, without any comeback when the inevitable happens. I don't know a lot of other industries where this happens. One problem seems to be asymmetry of information - the network commission structure in kept confidential by draconian contract clauses with the retailers so the consumer has no idea how realistic cash back offers are.

alnsv1000s

On a £35 contract commission can be up to £340 less the cost of the phone.

Now you can work out how unrealistic some of the offers are.

There is a horrible word called profit that also has to be taken into account.

alnsv1000s

I along with 19 other dealers were invited to visit Ofcom's offices today to discuss the Cash-Back situation, and we were shown graphs of the increase in complaints from Mid last year to now.

Compared to other industries in their remit the increase is very high and shows that something needs to be done.

They are aware of the petition, but the due processes are already being acted on so IMHO pressure groups are just keeping them advised that the problem still exists.

We now look forward to our meetings with MP's very shortly.

PRESS STATEMENT

Release





11th January 2008



Agreed Joint statement from Ofcom & IMPDA

HEADLINE
Today Friday 11th January, the IMPDA (Independent Mobile Phone Dealers Association) met with the telecoms regulator Ofcom at their offices in Southwark London to discuss a wide ranging set of issues including the cash-back issues currently affecting the consumer.


STATEMENT

A historic moment took place today as 20 dealers representing the whole of the UK Mobile Phone dealers and at the invitation of the IMPDA met for the first time with regulator Ofcom in London. The UK dealer network has never before had the opportunity to give their views or suggestions on the industry, historically Ofcom has engaged in talks with distributors and Networks but the heart of telecoms, the dealer has always been left out.

A wide ranging discussion took place, with Ofcom being apprised of the working relationship between dealers and Networks.

Chris Caudle chairman of the IMPDA said "This is indeed a first for the UK dealer network, for years dealers in the country have asked to be listened to and generally been ignored by networks.

The fact that Ofcom is now prepared to hear what dealers have to say and take on board the suggestions they give to the betterment of the consumer, and to push for change in the industry is applauded. The industry needs now more than ever to change, and the time has come for the networks to work with UK dealers and not against them, both in communication and in competition. With the discussions held today with Ofcom we are of the opinion that the start of the change for the industry starts here, and we are pleased that Ofcom has listened our views and suggestions today and agreed to further discussions with us in the future.

The consumer needs to be protected and UK dealers need to be able to compete and not be dictated to or stifled in their business by the networks. We now look to 2008 as the year fair trade is returned to UK dealers and better protection for the consumer.

alnsv1000s

An Early Day Motion was placed before parliament on the 15th January 2008

http://edmi.parliament.uk/EDMi/EDMDetails.aspx?EDMID=34852&SESSION=891

INDEPENDENT MOBILE PHONE DEALERS ASSOCIATION, OFCOM AND CASHBACK
15.01.2008


Godsiff, Roger
That this House welcomes the first meeting to take place between the Independent Mobile Phone Dealers Association (IMPDA) and Ofcom, the telecoms regulator; regards the opportunity presented to the IMPDA to give its views on the working relationship between dealers and the network providers and consumer issues, particularly in regard to the ongoing problems associated with cashback which have left many customers facing legal action, as long overdue; agrees with the IMPDA that the consumer has been ill served by the failure of the network providers adequately to police the cashback incentive scheme; believes the network providers to be complicit in the active promotion of an unsustainable business model in relation to cashback to achieve connection numbers and highly profitable volume targets; further believes the voluntary arrangement agreed between Ofcom and the network providers has comprehensively been demonstrated to be inadequate; and supports the IMPDA in its call to Ofcom, following its current review, to introduce statutory regulation not only to protect the consumer but also to eliminate uncompetitive practices within the industry.

Syntax_2

I know few friends who been ripped off big time with cash back deals I think network have to take some responsibility as well why pay large amount of commissions to dealers who are then encouraged to pay it back in cash back, wouldn’t it better for networks to use the same amount to reduce tariff prices and pay dealers less commission that way dealer makes the small margin and consumer is happy.

alnsv1000s

That would be a good idea, such as Three have done with Mix and Match tariffs, but a lot of the complaints on this adother consumer forums are due to dealers who are giving more back than they actually receive.

They rely on people not being able to claim.

Syntax_2

People need to use there common sense and if they find any deal which is too good to be true just walk away, I personally had cash back deals for many years but I chose right dealer one who is local and been trading for long time, I found his deals were never the cheapest, may be few quid extra per month but I always got my cash back.

Same dealer told me (mentioning no name otherwise I’ll get accused for spamming again) that every dealer in UK is on same commission give or take £35

I still blame network they turned blind eye and let it all happen to increase connections, greed I say.

I agree with your earlier comments about eliminate uncompetitive practices within the industry I think mobile phone industry is only industry where network try to under cut it’s own dealers.

mobilejunkie

All business are based on statistics. That's how the whole insurance industry works. Leave well alone; although I HAVE lost money on one dealer I am well up over-all and so are my friends. If people can't take responsibility for their own decisions I'm afraid I can't sypathise. CHOICE gives anyone the power to decide for themselves and protecting the gullible at the expense of the sensible is the nanny state gone mad. Soon (it's already commenced) the people who successfully use cashback schemes will be bemoaning the lack of good deals and before too long it won't matter WHERE you get a contract or phone from. Competition will be lost and the dealers themselves will lose a lot of business because people may as well upgrade direct with a network if they have to pay a small fortune and get the same package anyway for something they WERE previously getting free - or of course not have a mobile phone at all.

alnsv1000s

Ofcom do not want to cut out competition. Just make it fairer to everyone and realistic.

They actually want to sell off Vodafone & 02's 900 mghtz spectrum by 2010 to bring other companies into the Market. There will be new technologies such as WiMax coming in where Voip will be the norm and the current networks are already complaining as they reckon it will cost them 13 billion to update their 3g network if they dont have a gsm network any more.

Poor things, dont want any competition.

Now they know how we feel.

kle87

Ive also signed this position as im currently owed over £200 as is my mother by Mobile Club 7. I am taking them to court in order to try and get something back as im a student and signed up to this in good faith. Any one else had trouble with Mobile Club 7?