O2 Daisy has set nerves jangling in its partner base by terminating its relationship with Babble.
Babble is known to be one of the telecoms giant’s largest dealers, with multiple sources estimating the number of connections it manages at around 60,000-70,000 at peak.
In a letter to its partners, O2 Daisy confirmed it had ended its business partner relationship with the cloud-based comms and contact centre specialist, whose last accounts (for its fiscal 2023) show a turnover of £103.4m.
Without giving a reason for the move, it said its priority “is to ensure the end-user customer experience remains at the highest possible standard”.
“This move does not reflect a broader shift in our partner strategy, nor does it indicate the start of a large-scale partner consolidation,” read the letter, a screenshot of which has been seen by IT Channel Oxygen (see bottom).
Babble could not be reached for comment.
“Pretty tough on Babble
One source in the comms channel branded it “pretty tough on Babble”.
“None of the rest of the channel will be particularly happy about it, because when a network behaves like this it gets everyone nervous they could do it to other people,” they said.
The termination will “almost certainly” have been for performance reasons such as failing to grow the base in line with contractual obligations, the source claimed.
“It will be an opportunity for some partners because that base will need a new home,” they added.
“O2 will take it direct but a lot of partners will see it as an opportunity to pick up some of those customers if they know who and where they are.”
Neil Hall, CEO of O2 Daisy partner Focus Group, said he was able to see past the “unfavourable optics” of the move.
“While we understand concerns within the Bluebill community, we see this as an opportunity to strengthen our strategic relationship with O2,” Hall told IT Channel Oxygen.
“We’re actively engaging with O2 Daisy’s new management team and remain optimistic about establishing a partnership that delivers our signature service excellence with industry-leading pricing. This reinforces why independent mobile providers must stay agile and offer comprehensive solutions – something that’s been core to Focus Group since day one.”
London-based Babble has been quiet on the M&A front after making over 30 acquisitions under former CEO Matt Parker, who departed at the start of 2025.
In a 2022 press release, Babble claimed its acquisition of ADSI – which brought with it 30,000 O2 mobile connections – made it O2’s second largest dealer.
One source thought Babble managed around 60,000 connections in total, while another understood the figure had peaked at as high as 70,000. This was not confirmed by either Babble or O2 Daisy.
In a statement to IT Channel Oxygen, an O2 Daisy representative said:
“Following a commercial review, we made the decision to end our business partner relationship with Babble. Our priority is to ensure that the end-user customer experience remains at the highest possible standard.
“This move does not reflect a broader shift in our partner strategy, nor does it indicate the start of a large-scale partner consolidation. Our partners remain an integral part of our commercial model and play an important role in driving growth for our business.
“We will continue to work closely with partners who operate effectively, share our commitment to customer excellence, and align to our strategic goals. Together, we aim to provide the best possible connectivity and service for businesses across the UK.”
Letter in full
Dear Partner
We want to share an important update regarding our partner channel. Effective immediately, we have made the decision to end our partnership with Babble.
Please be assured we have not taken this decision lightly. Our priority is to ensure that the end-user customer experience remains at the highest possible standard.
This change does not reflect a broader shift in our partner strategy. Our partners continue to be a vital and integral part of our commercial go-to-market model and play an important role in driving our growth strategy.
We will continue to work closely with partners who share our commitment to customer excellence and align with our strategic goals. Together, our vision remains clear: to provide technology that makes every business better.
If you have any concerns, please to not hesitate to reach out to me.
Thank you for your continued partnership and support as we move forward together.
Doug Woodburn is editor of IT Channel Oxygen
