Feeds

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

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

Secure remote control for conventional and virtual desktops

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. ®

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
'Serious flaws in the Vertigan report' says broadband boffin
Report 'fails reality test' , is 'simply wrong' and offers ''convenient' justification for FTTN says Rod Tucker
This flashlight app requires: Your contacts list, identity, access to your camera...
Who us, dodgy? Vast majority of mobile apps fail privacy test
Apple Watch will CONQUER smartwatch world – analysts
After Applelocalypse, other wristputers will get stuck in
Shades of Mannesmann: Vodafone should buy T-Mobile US
Biting the bullet would let Blighty-based biz flip the bird at AT&T
Drag queens: Oh, don't be so bitchy, Facebook! Let us use our stage names
Handbags at dawn over free content ad network's ID policy
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
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.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.