VODAFONE HAS ended its relationship with Oyster Group, its largest independent agent.
A spokesman for Vodafone confirmed last night that "there is no longer a commercial arrangement between Vodafone and Oyster".
The mobile phone operator did not give any reason for terminating the long-standing relationship which in 2007 accounted for two-thirds of Oyster's turnover of about €47 million.
A spokesman for the Oyster group said that the company "was aggrieved that after more than 12 years of over performance things have ended up this way".
Industry sources said that Oyster was in talks with rival operator Eircom Mobile, the virtual network owned by Eircom and aimed at business users.
Eircom Mobile - which resells minutes on Eircom's Meteor mobile network - has targeted some 8,000 small business in a soft launch in an attempt to tap into affinity with the Eircom brand and existing relationships.
The virtual network is expected to get a further push from Eircom in the new year, according to industry sources.
Oyster, which is owned by entrepreneur Emmet Memery has a direct sales force of 18, operates 23 retail stores and has 48 agents. It is Vodafone's biggest independent agent with a 20 per cent share of its business with small- and medium-sized enterprises (SMEs).
In the group's corporate brochure, Mr Memery describes the relationship with Vodafone: "Although they are the mighty corporate with a huge brand name behind them we think our relationship is special. Through consistent growth we have become their largest independent agent in the country managing a significant part of their national business which is growing at a rapid rate.
"Apart from pure business we have close personal relationships with their people. We're good for each other."
Oyster posted pretax profits in 2007 of €2.4 million as turnover declined to €47 million from €60 million a year earlier. This was the result of the group's decision to withdraw from the wholesale mobile handset market last April.
Oyster's mobile phone operation accounted for €35 million of its sales last year. Formally known as Cellular Services, it was rebranded as Oyster in 2007.
Oyster had 83,000 mobile phone customers last year, an increase of 18 per cent on 2006. It also distributed 160,000 handsets, even though it withdrew from the wholesale market.
The group also owns timber milling operations in Russia and Latvia, the Papillon wine distribution company and the Lemongrass restaurant franchise operation in Ireland, and vineyards in South Africa. It is also developing property in Ireland, Britain, Latvia and South Africa.
Oyster has two large property development projects under way in Latvia and has been granted planning permission to build 240 apartments, 30 home office units, five office blocks and a shopping centre at a site in Finglas as part of a €127 million development.
