Bad Apples in Telecoms Channel

Leasing companies are taking a more cautious stance to the channel following a rise in scams, according to O-bit Telecom

A rise in reseller phone leasing scams is giving the legitimate telecoms channel a bad name among end users and leasing firms.

This is according to O-bit Telecom, which has issued an alert highlighting how unscrupulous telecoms dealers are exploiting renewed demand for leasing by miss-selling contracts.

According to O-bit chief executive Dave Breith, end users are often left in the lurch when the rouge firms in question go into administration.

Breith said it was a quick and easy scam for disreputable resellers because they will receive cash from the leasing company upfront.

“Leasing companies are being left in the lurch and are being more cautious with telecoms resellers across the board – which makes it more difficult for the legitimate ones”, he said.

-          By Doug Woodburn, CRN, 01.12.09