Uh-Oh: Vodafone Sees Red As Dealer Claims $6M

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Vodafone could be back in the red after a dealer lodges a whopper $6m claim today. Top Stuff 4 Business based in Homebush is set to lodge the million dollar claim to Sydney’s Federal Court later today, seeking compensation for Voda’s ongoing mobile network problems, including call failures, slow data speeds and poor reception.

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375,000 customers fled the network in the first six months of the year, which hit Vodafone Hutchinson Australia‘ bottom line hard – $78.2 million within six months, ending June 30th 2011

The self described ‘telecommunications consultants’ Top Stuff, formed by its directors, David Coote and Daniel Davis,  are claiming loss of earnings due to on Vodafone network issues, which provoked wide discontent with telco service.

It operated exclusively as a Vodafone dealer.

Top Stuff, which deals mainly to SME’s, are also alleging breach of contract and government regulations, reports News Ltd.

“The failures of the Vodafone network last year have been well publicised and have caused a lot of people a lot of inconvenience and harm, none greater than the Vodafone dealers who rely on that network for their very survival,” said Top Stuff lawyer, Matthew Hourn, yesterday.

He placed the figures for damages being sought in excess of $6m. The case, if it goes ahead, could see the troubled telco go deeper into the red, putting a further strain on its profits as it invests millions into network upgrades.

A Vodafone spokesperson said discussions with Top Stuff had taken place, but had heard no word from any legal team.

This latest blow comes as Vodafone were dealt with some possibly good news this week: the class legal action pursued by 23,000 of its disgruntled customers over the telco’s poor 3G network performance and customer service may now not happen due to lack of funding.

 

Top Stuff website was down today, with a message that it was currently undergoing maintenance.

Read Has Vodafone Class Action Failed?

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