We are fully committed to Dundee and that is still the case. We're just holding back while we re-assess the mix of skills that we will need

Kevin Perlumutter, One2One spokesman

The Dundee contact centre - which had been scheduled to open in the summer - was designed to provide call services for One2One customers and act as a training centre for staff.

The jobs were to be based at a new 65,000 sq ft building at the technology park on the outskirts of the city.

Spokesman Kevin Perlumutter said: "Basically, there has been a change in the type of contact that we have with mobile phone customers in terms of the methods by which customers make contact and the help that is needed.

"We are going to be developing new skills and, as we move towards 3G and more sophisticated support, we see Dundee as a bit of a flagship centre where we can get the skills to support those services.

Skills re-think

"We've had another look at the type of contact we're getting now as we move towards GPRS and 3G services.

"We always said there were the kinds of skills in Dundee necessary to support these kind of services and we're making sure we are getting those kinds of skills into Dundee. That takes a little bit longer.

"We are fully committed to Dundee and that is still the case. We're just holding back while we re-assess the mix of skills that we will need."

He added that the company totally refuted any suggestion that the cost of 3G licences has caused the problems.

'Serious concern'

Commenting on the announcement, Scottish Conservative Party chairman Raymond Robertson said: "Coming on the back of 700 job losses at Compaq in Erskine and 3,000 redundancies at Motorola's Bathgate plant, this news is a matter of serious concern and poses many questions about the direction Labour is taking the Scottish economy.

"You have to wonder if Mr Blair is holding the election early in the hope that he can conceal the full impact of his high tax, high regulation approach from the electorate during the campaign period.

"In the meantime, the dark clouds of economic downturn gather over Scotland."