Why cancel the VM installation? Cancel the O2 contract with O2 (report back if they are difficult), and do nothing about VM. They won't charge you until the installation which won't now happen, but until the company issue a formal "Cease Notice" and provide a suitable alternative ISP arrangement, they will still owe you £5.25 a day. As VM are usually very disorganised, it could be many weeks, even months, possibly the end of time itself before they issue a cease notice and offer that alternative ISP arrangement. This thread may explain some of the details. Likely that you'd need to eventually cancel the VM order yourself, then complain to VM asking for the compensation - they'll insist that a phone call from the install team counts as the cease notice, but your argument is that such a call does not form a cease notice, and absent fulfilling the obligation of providing a suitable alternative (same speeds, same terms) from another ISP, they're still in breach and the rules clearly state they have to pay. It would certainly need to go through formal complaint and then external adjudication, but there's some profitable fun to be had.......
