O2 to bill Eric­s­son over net­work fail­ure

The Sunday Telegraph - Money & Business - - Front page - By Christo­pher Wil­liams

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.

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