Feeds

Sources: Azzurri coughs £1m to end O2 call centre spat

Integrator 'failed to give nod that customers were leaving', claim insiders

Internet Security Threat Report 2014

Azzurri has settled a seven-figure dispute with O2 after a financial spat erupted over a Glasgow call centre it runs on behalf of the telco, well-placed sources have told The Channel.

Under the multi-year outsourcing agreement, Azzurri - an O2 Centre of Excellence partner - was paid a fee to run a support desk for O2's small biz customers.

But loquacious folk close to the matter claimed Azzurri had failed to tell the operator that some of those customers were fleeing its network.

There was a "big fallout" when O2 realised this, said a source close to the situation, "Azzurri lost a large number of these customers".

Another told us, "O2 carried on paying a flat fee but they should have cut that in line with the [customer] churn".

Sources claimed that O2 had therefore "overpaid" for support, and estimated the so-called overpayment at between £3m to £4m, but said that the south coast-based integrator had settled the matter with a sum that was substantially less, believed to be nearer to £1m.

Only last month Azzurri backers wrote off tens of millions of pounds of debt, taking it from £103m to £45m. Interest-bearing debt was cut to £25m giving the integrator more breathing space. This is the second refinance in two years.

It is not clear how many customers walked away but unrest was noted on an O2 forum back in 2011 when small biz firms complained they were not told that Azzurri had taken over the running of the call centre.

"Heck I didn't realise that I was actually on Azzurri [until] it was too late," said one contributor named Dexter.

We put the issues to Azzurri and CEO Vim Vithaldas, who sent us a statement. "In line with normal business practice, we do not comment on commercial matters relating to our customers, partners and suppliers."

We are awaiting comment from O2 and will update when we hear more. ®

Beginner's guide to SSL certificates

More from The Register

next story
Of COURSE Stephen Elop's to blame for Nokia woes, says author
'Google did have some unique propositions for Nokia'
FCC, Google cast eye over millimetre wireless
The smaller the wave, the bigger 5G's chances of success
It's even GRIMMER up North after MEGA SKY BROADBAND OUTAGE
By 'eck! Eccles cake production thrown into jeopardy
Mobile coverage on trains really is pants
You thought it was just *insert your provider here*, but now we have numbers
Don't mess with Texas ('cos it's getting Google Fiber and you're not)
A bit late, but company says 1Gbps Austin network almost ready to compete with AT&T
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.