2/5/2009 10:41:00 AM
LycaMobile settles dispute with distribution company
Data Select claimed it has settled a financial dispute with LycaMobile, after phones put at Argos were heavily targeted by box breakers.
LycaMobile is understood to have initially refused to pay Data Select, as a large volume of the phones had not been connected.
Data Select brokered Lyca’s first move into the handset market with the Nokia 6300, priced under £70, but box breakers claimed the systems were not adequate. Data Select paired Lyca Sims with handsets, linked Lyca to Argos and delivered the phones to Argos.
One box breaker said: ‘It was really easy to buy more than two. There didn’t seem to be any real restrictions, and on top of that, there were Argos vouchers if you spent more than £50.’
Data Select claimed it has now received the payment and pulled the deal with Argos.
Data Select CEO George McPherson said: ‘For all prepay programmes, we monitor sell out and connection profiles. If we see any untoward activity then in conjunction with the partner involved we will decide what the appropriate action is to take.’
LycaMobile declined to comment.