Feeds

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

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

5 things you didn’t know about cloud backup

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. ®

Boost IT visibility and business value

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
So, Apple won't sell cheap kit? Prepare the iOS garden wall WRECKING BALL
It can throw the low cost race if it looks to the cloud
EE accused of silencing customer gripes on social media pages
Hello. HELLO. Can EVERYTHING EVERYWHERE HEAR ME?!
Time Warner Cable customers SQUEAL as US network goes offline
A rude awakening: North Americans greeted with outage drama
Shoot-em-up: Sony Online Entertainment hit by 'large scale DDoS attack'
Games disrupted as firm struggles to control network
BT customers face broadband and landline price hikes
Poor punters won't be affected, telecoms giant claims
Broadband slow and expensive? Blame Telstra says CloudFlare
Won't peer, will gouge for Internet transit
prev story

Whitepapers

Best practices for enterprise data
Discussing how technology providers have innovated in order to solve new challenges, creating a new framework for enterprise data.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?