MTN is working on a new commission model for its dealers, but will not comment on whether some stores will be closed down.
"MTN is introducing a new dealer commission model to align with its business strategy and reward consequently,” says MTN GM Pieter van Rheede Oudtshoorn.
He explains that this was done in consultation with the relevant stakeholders. “MTN has extensively engaged with its dealers over the last four months and the process is almost complete.”
Despite dealers' statements to ITWeb that the commission percentage paid to dealers will be reduced and some unprofitable stores will be decommissioned altogether, MTN will not comment on the matter. “As this is a confidential matter between MTN and dealers, MTN is reserving further comment at the moment,” says Van Rheede Oudtshoorn.
Cell C announced a similar move earlier this year when it said it will not renew the contracts of some of its franchises.
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