O2 to bill Ericsson over network failure
O2 IS preparing to issue its technology supplier Ericsson with a bill for tens of millions of pounds after the disastrous software failure that cut customers off from the internet.
O2 and its Spanish parent Telefónica have scheduled crisis talks with the Swedish telecoms provider tomorrow over Thursday’s day-long collapse of O2’s data network.
The failure was caused by the expiry of software licence certificates and led to huge disruption to Britain’s biggest mobile operator. It is understood that early estimates of the international compensation bill point to £100m.
O2, one of the worst-affected operators, is expected to demand a large share of any payout. Mark Evans, the chief executive, was last night liaising with angry Telefónica bosses in Madrid in preparation for a series of meetings with Ericsson this week. The investigation is ongoing, but it is believed that O2 suffered partly because it had recently implemented the latest version of the Swedish technology supplier’s systems. Operators using older software were not affected. The same system also caused a day-long O2 outage in 2012.