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July 19, 2020
Vodafone & Shaw B2B Telco Sales Are Getting Hammered Particularly in SMB

Shaw also increased its provision for bad debt by $5-million owing to rising unemployment levels and impacts on its business customers, as some companies – especially those in the hospitality and resource sectors – temporarily suspended or cancelled their accounts.

Shaw Business, which primarily serves small and medium-sized companies, reported $140-million in revenue during the third quarter, in line with the same period last year and down 2.8 per cent from the previous quarter.

“We are optimistic that as the economy continues to reopen, we are well positioned to accelerate Shaw Business growth,” said Mr. Shaw.

Desjardins analyst Maher Yaghi … “The dire economic environment has had a modest impact on the company thus far,” Mr. Yaghi said in a note to clients. Shaw is likely to be less impacted by lower roaming revenues stemming from travel restrictions than some of its wireless competitors, Mr. Yaghi added.

“COVID-19 provides a clear challenge to Vodaphone’s momentum, particularly given the provider’s strong presence in markets that have been among the most severely affected by the crisis such as Italy, Spain and the UK. The provider is already receiving requests from small medium enterprise (SME) customers for payment deferments while its multinational corporation (MNC) customers are delaying projects.

Shaw was one of the 1st wireless operators in the world to gut their B2B sales organization.

Rumours have it that 70%+ of the entire B2B sales organization was furloughed or permanently let go.

You will see a rapid increase in the rate of decline in B2B revenue streams starting 1st in wireless.

We put a private note to our ecosystem with a specific sequencing that would occur and we asked our Telco partners to ask themselves a series of very difficult questions.

2030 in 2020 and COVID19 means BYOE (Bring Your Own Everything) :

Smartphone & Wireless Plan Home Internet Connection & WiFi Router PC & Associated Software

Commercial Real Estate is not going to return to the world that they knew prior to COVID19.

The next down leg in B2B Telco will be high speed internet connections into those same Commercial Real Estate locations.

We are seeing a massive spike in bad debts and refusal to pay early termination fees associated with hardware and plans & bill payment deferral to an unspecified time in the future.

You’ll see that Shaw calls this out explicitly as does Vodafone

You are going to see this be reported globally and expect B2B teams to be gutted by 30% minimum in the next 6 months.

It’s all about cross sell and up-sell to existing rather than the metrics Wall Street has been using for 30+ years that have already been 10+ years out of date.

Vodafone & Shaw B2B Telco Sales Are Getting Hammered Particularly in SMB