In a shock move O2 Wholesale has told partners it will be shutting down its fixed network on February 28th next year and will stop taking new orders from November 14th this year. O2 sent an email to partners on October 24th explaining that its wholesale and reseller channels had undergone a root and branch review following the sale of the consumer home phone and broadband business to Sky.
As part of the review a decision was made to move away from fibre broadband and focus on 'digital services and experiences', meaning that partners are required to migrate their DSL connections away from O2 Wholesale before the end of February.
In an official press statement O2 said that the move formed part of a wider strategy, 'We can confirm that as of February 2014 we will no longer offer wholesale broadband services. The delivery of fibre broadband currently requires a level of scale and investment which does not fit with our strategy to focus on digital services and experiences'.
Just one day after the announcement JUC partner Nimans moved fast to offer a solution to resellers affected by the move.
The distributor's Head of Network Services, Mark Curtis-Wood, said the company immediately rolled out a migration strategy enabling resellers to connect with its broadband and data service network.
The reason Nimans acted so quickly was due to a combination of foresight and preparation for such an event, explained Curtis-Wood. "We started making plans when O2 sold its network to Sky," he said. "In doing so it sold the crown jewels and we saw an opportunity to capitalise on a gap in the market.
"We recognise the general consolidation of wholesale services in the channel and the move away from aggregated services. O2 made a decision to focus on 4G mobile and digital services with a huge push for M2M. This has created an opportunity for Nimans to advance its strategy to become a full MSP and offer resellers an equivalent service with added value."
Alarm bells also rang for O2 Wholesale partner Entanet when news broke of O2 Home Broadband and BE Unlimited customers moving to Sky early this year.
"Entanet is fully prepared to continue serving O2 Wholesale's broadband customers as it withdraws from the market," commented Elsa Chen, General Manager, Entanet.
"We've had plans in place since the announcement of the Sky acquisition to ensure our existing and new customers have suitable alternative options that meet their requirements.
"O2 Wholesale's announcement is an interesting departure from the strategy it announced earlier in the year and we can understand it will concern those in the channel."
O2's network sale to Sky also prompted Daisy to collaborate more closely with the operator which, according to Daisy Wholesale MD Terry O'Brien, provided a 'quality product with great take up'.
"We have been working closely with our other carrier partners to ensure that our partners and their customers continue to get an equivalent product at equivalent value to their customers," he said.
"We are enabling our affected partners to make the transition smoothly and helping them to manage the change for their customers."
O2 Wholesale was established in 2005 and formerly known as BE Broadband before it was acquired by the mobile operator in 2006.