New kids on block clean up with 02's rebranding: Jenny Wafts looks behind 02's decision to ditch AMV and take on start-up VCCP. (Newsmaker/VCCP).(02 Agency dumps Abbott Mead Vickers BBDO and signs up with Vallance Carruthers Coleman Priest)

Only once in a blue moon does a giant company fire its long-standing agency and put its faith in a start-up which has barely been conceived a fortnight. Still less often does it do so within weeks of a complex and demanding European launch. So the industry gasped at news that 02, British Telecom's demerged and rebranded mobile communications division, had parted company with Abbott Mead Vickers BBDO, in favour of the start-up Vallance Carruthers Coleman Priest.

O2 is due to replace BT Cellnet from April in the UK, as part of BT's demerger of mmO2, the holding company for all wireless operations. The subsequent rebranding of 02's mobile interests across Europe had been lying with AMV. However, it was no secret that AMV had trouble getting to grips with the brief.

Indeed, 02 seemed an agitated client from the outset. While Will Harris, the vice-president of marketing at mm02, says that AMV won the 02 account in July, it was no secret that Agency Insight was briefed to draw up a shortlist of networks to pitch for the business.

Eyebrows were raised further when this decision was reversed after only a short while and AMV began working on the rebranding in September. Harris says: "We looked at the possibility of a pitch, but were against it because we thought we were with the best agency in town--which we were."

At the time, no announcements of the company's pan-European agency arrangements were made, but speculation at the likelihood of the BBDO network being appointed across Europe was strengthened by the close relationship between BBDO's European head, Michael Baulk, and Peter Erskine, the 02 chief executive. And to no-one's surprise; by November the client had confirmed the choice based on its relationship with BT Cellnet.

Adland's collective eyebrows went through the ceiling when the industry returned after Christmas to be told that the VCCP start-up had won the business from London's biggest agency. Rumour has it that Carruthers presented 02 with an idea and, with 100 days until launch, Harris decided to see his work. It appears AMV was told the next day that it was in competition with Carruthers.

Despite BT's long history with AMV, the agency's inability to crack the 02 brief was doubtless the cause of much consternation to 02's managers, under pressure to answer to 16 million customers.