WorldCom bids for reseller business

WorldCom is giving resellers of its communications products the same pricing as its direct sales force, in an attempt to do more business though the channel.

The company has developed a set of rules on how it works with indirect partners. Andrew Lowe, European indirect sales director at WorldCom, said: "There will no longer be price differentiation between channel and direct sales."

Resellers can sell the company's connectivity and bundle their own products and services on top.

"We want to find the right partners that can add value to our connection," said Lowe. "These include security and networking value-add resellers."

The company has brought together the internet channel inherited from its UUNET acquisition in 1996 with its own voice channels, and in the UK has about 60 channel partners.

Resellers can be an 'agency partner', an arrangement where they get commission for deals but WorldCom bills the customer. Or they can bill the customer themselves after receiving a WorldCom discount, as a 'billing partner'.

Partners will receive training, technical support and extranet access, as well as support from WorldCom's direct sales team.

WorldCom was at the centre of the world's biggest accounting scandal last year, which saw it forced into Chapter 11 bankruptcy protection and many of its executives axed, with some facing criminal proceedings.

Last week the company wrote off $45bn (£29bn) of goodwill, which is the difference between what is paid for an asset and its actual value.

Since Michael Capellas joined from Hewlett Packard last December the company has gone through many changes, including a focus on sales through partners.

"The message coming from Michael Capellas is that partnering is something the company should be doing," said Lowe.

He added that about 30 per cent of WorldCom's business is through partners, and that this figure is expected to increase.

Tom Hannon, sales director at reseller partner Vistorm, said WorldCom's move to "level the playing field" with the same pricing for direct sales and resellers was "enormously positive."

"We used to have a good relationship with WorldCom, and at one point we were its number one reseller," he said.

"We want to re-ignite this relationship because we expect telcos to come out of the recession leaner and meaner."