In case you’re interested (or bored)
Every industry has its technospeak, acronymns and jargon. The wireless industry is no exception! We’ve compiled our wireless commissions dictionary. If you are new to the business here’s a quick primer. If you’re a veteran…you can surely skip this section!
“Activation” is the commencement of Service by the Carrier to a wireless telephone number assigned to a handset purchased by a Customer of Carrier (Customer of yours) in accordance with the terms of the Dealer Agreement consummated between such Carrier and You. Each new wireless number assigned to an account that meets the requirements of your Dealer Agreement constitutes an Activation, except as otherwise provided herein.
Activation Commission” is the fee paid by a Carrier to you for putting into service and facilitating the related transaction for such service. These services can include activation of the initial wireless service plan itself or it may include other services or options that are added onto such service.
“Activation Date” is the date on which Carrier commences Service to a wireless telephone number assigned to a handset purchased by a Customer (who happens to be Customer of yours) originating from you or your personnel.
“Activation Fraud” occurs when a Merchant and/or its personnel subscribes to the Service through the use of information fraudulently obtained from another person or by simply using false identification;
Carrier” as used in this Agreement is referring specifically to cellular and wireless carriers that provide wireless telecommunications services. The cellular/wireless carriers most commonly used by Customers of most cellular/wireless agents are: AT&T™, ALLTEL™, CINGULAR™, NEXTEL™, SPRINT™ and Verizon™ although there are many other carriers. (The Trademarks listed above are the property of their respective owners and not our property.)
“Chargeback” is a reduction in your compensation, by the Carrier.
“Churn Fraud” occurs when a Merchant or its personnel deactivates a number and subsequently reactivates the same customer with a new number in order to received compensation, activation credit or to permit subscriber to receive a promotion or Equipment upgrade.
“Commission” is the fee paid by a Carrier to you for facilitating a transaction, i.e. consummating a Wireless Carrier Agreements (WCA) or Service Contract between the Carrier and the Customer that meets all 100% of the Carriers requirements for a commission.
Commissionable Account Activation or Commissionable
Your account activation is “Commissionable” or you have a “Commissionable Account Activation” if you have satisfied all of the Carrier’s requirements in order to be entitled to receive a commission with respect to such activation.
“Commission Fraud” occurs when a Merchant or its personnel modifies new or existing Customer accounts to artificially inflate commission and/or activation credit, frequently by activating multiple pooled lines where the total number of lines activated exceeds the Customer service need, or by downgrading a Customer rate plan in order to add on a new line that pays a higher commission value.
“Confidential Information” has have the definition assigned to such term is Section 5 hereof, “Confidential Information”
“Deactivation” is the Termination of Service to the wireless telephone number assigned to Customer for any reason.
“Deactivation Date” is the date upon which the Termination of Service to the wireless telephone number occurred. If there are multiple Deactivations Dates, the Measuring Date will be the first or earliest Deactivation Date.
“Dealer Agreement” is the Contract or Agreement consummated between the Carrier and you creating the relationship between Carrier and you, and authorizing you to Activate Customers on the Carrier’s system, to hold yourself out to the public as an “Authorized Agent” and otherwise creating and describing the nature and terms of the relationship between the Carrier and you and your organization.
“Default” is the Customers failure to fulfill their Wireless Carrier Agreement whether by act or omission of either the customer or the carrier.
Disputes are the exceptions to or challenges to the statements provided to you by the carrier on commission statements or other correspondence with you that we believe to be incorrect or an error on the carrier part. The carriers have standardized the process of challenging and correcting the errors on their statements by providing you with Dispute Forms which you are to use when providing the carrier with the information that you believe they made in error.
Dispute Form is the form, generally in excel format, provided by the carriers to disputes payments, statements or chargebacks that they have attributed to you.
ESN or Electronic Serial Number
“ESN” or “Electronic Serial Number” is the unique identification number embedded in a wireless phone by the manufacturer. Each time a call is placed, the ESN is automatically transmitted to the base station so the wireless carrier’s mobile switching office can check the call’s validity. The ESN cannot be altered in the field. The ESN differs from the mobile identification number, which is the wireless carrier’s identifier for a phone in the network. MINs and ESNs can be electronically checked to help prevent fraud.
“Fraud” for the purposes of this Agreement will be defined as any material misrepresentation, including any misrepresentation of a matter of fact. This includes an intentional perversion of truth for the purpose of inducing another in reliance upon it to part with some valuable thing or to surrender a legal right.
“Fraudulent Activities” are activities that either the Carriers or we consider to be fraud, the following activities are deemed to constitute fraud. Engaging in these activities may result in the Termination of this Agreement: (a) Churn Fraud, (b) Activation Fraud (c) Commission Fraud. Activities which are considered to be fraudulent are not limited to the forgoing list.
“IMEI” is the International Mobile Equipment Identifier (IMEI) is a 15-digit number (composed of four parts) that uniquely identifies an individual wireless phone or communicator. The IMEI appears on the label located on the back of the phone. The IMEI is automatically transmitted by the phone when the network asks for it. A network operator might request the IMEI to determine if a device is in disrepair, stolen or to gather statistics on fraud or faults.
An “In-Valid” Chargeback is any Chargeback that is not a Valid Chargeback, as defined herein. The following, without limitation, are examples of In-Valid Chargebacks:
- Customer Active in Same Market – The Carrier may indicate the customer has discontinued their service even though the Customer may still be active in the same market.
- Customer Inactive, But Already Fulfilled Obligations – The customer may have satisfied the minimum Chargeback period prior to a deactivation.
- Customer Inactive, But You have already been Charged-Back (I.e. Multiple Chargebacks.) The Carrier may charge the same commission back to you more than once for the same customer deactivation.
“Multiple Chargebacks” occur when the carrier charges you back or reduces your commission more than once for a deactivation that has occurred only once and there have been no intervening re-activations, or less re-activations than deactivations and resulting chargebacks.
Non-Commissionable or Non-Commissionable Activation
Non-commissionable Account Activation is account activation is “non-commissionable” because it does not satisfy all of the Carrier’s requirements for the payment of an activation commission. The following are a few examples, and not an exhaustive list, of account activations that may be non-commissionable.
- Out-of-Area Activations
- Resold Equipment, Reactivated ESNs, SIMs and IMEIs
“Operating Procedures” collectively refers to manuals, instructional materials and specifications provided to you as well as the policies, procedures and transaction requirements set forth by this Manual to be followed by you and us, as amended from time to time.
Out of Area Activation
“Out of Area Activation” is Activation by you of a Customer that is outside of the territory that you are authorized to activate a new Customer in. These Out-of-Area Activations are non-commissionable and not valid by definition. They can not be collected from the Customer as the burden fell completely on you to only Activate Customers that meet your Dealer Agreement requirements.
Prohibited Sales Activities
“Prohibited Sales Activities” are sales activities that fail to comply with the restrictions on Sales Activities listed and described in the appropriate Dealer Agreement between you and the Carrier. For instance, most Dealer Agreements require that sales must be made out of an easily accessible retail storefront location or locations as appropriate. Accordingly you and your personnel are often prohibited from promoting or selling the sale of Equipment or Services through telephone sales or telemarketing activities, direct mail activities, broadcast faxing activities, catalog sales activities, internet sales activities or any other similar direct sales activities without prior written approval of the carrier, which is often at the carrier’s sole discretion. As such these activities will be prohibited by us unless (1) you have presented us proof of the carrier’s specific authorization of such activities and (2) such activities are approved in writing by us in advance of the activity taking place. This approval will be at our sole discretion.
“Re-Activation” is the re-start service by the carrier to a wireless telephone number assigned to a handset purchased by a Customer of Carrier that was previously a Customer of yours that you had previously activated in accordance with the terms of the Dealer Agreement signed by you and the Carrier.
“Re-Activation Date” is the date on which Carrier re-started Service to a wireless telephone number assigned to a handset purchased earlier by a Customer of Carrier that was previously a Customer of yours that you had previously activated in accordance with the terms of the Dealer Agreement signed by you and the Carrier.
“Reactivated ESN” is an ESN that was used previously in an earlier Activation.
“Reactivated IMEI” is an IMEI that was used previously in an earlier Activation
“Reactivated SIM” is a SIM that was used previously in an earlier Activation
Reconciliation is the process of comparing, and matching the carrier commission statements and other statements provided by the carrier to your sales data and your point of sale information, analyzing the results, and then using the matched and unmatched records to assist in identifying the commissions should have been paid to you and have not been paid as well as the commissions that have been paid to you and should not have been paid.
“Resold Equipment” is Equipment or Phone Equipment that was previously sold and then returned to you. Many Dealer Agreements specify that the Carrier will not pay you the commissions for Activations on new numbers on new subscribers that are Activated with Resold Equipment.
“Service” is the Wireless Communications Services, including voice and data service, provided by the Carrier.
“Service Contract” is the Wireless Carrier Agreement or WCA entered into by the Customer and the Carrier to provide wireless telephone services to the Customer.
“SIM” is also known as the Subscriber Identification Module or Smart Card is an electronic card inscribed with a customer’s information and designed to be inserted into any mobile telephone. Usually SIM card phones work by GSM technology.
Valid Charge-back Or Valid Collectable Charge-back
“Valid” or “Valid Charge-back” or “Valid Collectable Charge-back” is a charge-back that has met all of the requirements necessary to be valid. It was originally a commissionable activation that was properly activated by you according to the requirements described in the appropriated Dealer Agreement between you and that Carrier. It was activated by you in a market that you were authorized to activate within. The Service was activated by the Carrier and customer has deactivated the Service or left the Dealers authorized Service Market in breach of the Customer Agreement with you.
“Wireless Carrier” as used in this Agreement is referring specifically to cellular and wireless carriers that provide wireless telecommunications services. The cellular/wireless carriers most commonly used by Customers of most cellular/wireless agents are: AT&T™, ALLTEL™, CINGULAR™, NEXTEL™, SPRINT™ and Verizon™ although there are many other carriers. (The Trademarks listed above are the property of their respective owners and not our property.)
Wireless Carrier Agreement or WCA
“Wireless Carrier Agreement” or “WCA” is the Service Contract signed by the Customer to purchase wireless service from the wireless carrier.