Home
 » ISP News » 
Sponsored

UPD NextGenUs UK CIC Runs Out of Money for Rural Broadband Initiative

Wednesday, March 14th, 2012 (8:25 am) - Score 1,185

NextGenUs UK CIC, a community focused broadband developer that hoped to bring superfast internet services to rural areas via a mix of fibre optic and wireless (WiFi) connections, has issued a general notice to creditors and customers informing them that the group has effectively run out of money. NextGenUs claims to have “exhausted all serious discussions with potential investors” and are “unable to secure any other viable sources of finance“.

Apparently the board concluded this week that there was “no realistic prospect” of “being able to pay its debt to creditors” or “for any services provided by creditors going forwards“. Luckily NextGenUs’s 500 customers in Hull and East Yorkshire will, at least for the time being, be protected free of charge by Quickline Communications. It’s hoped that should give them “time and opportunity” to find an alternative provider.

Meanwhile its customers in Cumbria, where the group had mooted plans for a “county-wide” rollout of faster broadband that was allegedly backed up by an investment of more than £1 Million, were initially told that the service would need to “cease forthwith“. But thankfully interest from a “serious potential investor” appears to have saved the situation.

NGU Statement

In the specific context of the largest network, Hull and East Yorkshire, where some 500 customer premises are affected, NGU is delighted to announce that Quickline Communications Limited has stepped up in the interim on a free of charge basis as regards wholesale internet backhaul to ensure continuity of service of NGU customers and to provide the time and opportunity for people to make choices as regards alternative service providers if they so wish.

NGU would further like to extend its thanks to the very supportive position taken by KCOM PLC in this difficult time.

The Board is of the opinion that this interim measure is consistent with acting in the best interests of the body of creditors as it keeps revenues flowing into the business and thereby maximises the asset value of the network infrastructure currently deployed.

Cumbria Update 5PM 13 March 2012 – following an enquiry by a serious potential investor, the Board has taken the view that service continuity can be maintained for Cumbria customers.

As regards the North Yorkshire and Lincolnshire networks, negotiations are ongoing with creditors and potential purchasers.

Customers will be receiving an email in the near future giving more information.

Prior to this NextGenUs had frequently touted its privately funded and community owned network model, where locals, supported by some private sector investment, would have helped to both build and manage the broadband infrastructure themselves (i.e. without any taxpayers money). In reality the project appears to have suffered due to some very public spats between directors, many of whom have since left,  not to mention several disagreements with public authorities and the odd rival (e.g. B4RN).

As recently as last month NextGenUs was threatening Cumbria County Council (CCC) with legal action (here) if it attempted to award taxpayers money from the Broadband Delivery UK (BDUK) office to BT. Last week it added to the problems by accusing a serving Lincolnshire County Councillor of potentially abusing his position. If burning bridges was a national pastime then NextGenUs would probably take 1st place.

Meanwhile NextGenUs’s customers, many of whom had previously been unable to receive a viable broadband ISP connection, now appear to have been left with little in the way of alternatives. It’s hoped that a solution can be found for some of these but others might be forced back onto their old and often slower BT line.

UPDATE 15th March 2012

Quickline Communications has now stated that they will have “nothing further to do with with the caretaking of NGU network” (Karoo Forums). Apparently “new talks are taking place so true to our word we will step aside“. Customers are unlikely to be happy with all this uncertainty.

Share with Twitter
Share with Linkedin
Share with Facebook
Share with Reddit
Share with Pinterest
Tags:
By Mark Jackson
Mark is a professional technology writer, IT consultant and computer engineer from Dorset (England), he also founded ISPreview in 1999 and enjoys analysing the latest telecoms and broadband developments. Find me on Twitter, , Facebook and Linkedin.
Leave a Comment
4 Responses
  1. Gareth Cosslett says:

    Service continuity in Cumbria? That’s a joke. We’ve been cut off in Great Salkeld since 2pm on 13 March 13. As most people opted for an internet-based phone service, it means we’re completely incommunicado. The small number of customers they have won’t touch the service again with a barge pole – so good luck to the ‘serious potential investor’ as they won’t have any customers left to service. Despite NextGenUs’s claims, there has been absolutely no correspondence with its customers. The whole thing has been a farce from start to finish.

  2. desouzr says:

    A lot of the comments that NextGenUs came out with over the years were not what I would associate with a professionally run company. On the one hand I liked what they were doing/or promising to do but not the way they came across. Given the recent revelations about some of the individuals involved in the company it is not really a surprise that the whole operation has gone belly up. I really feel for their customers who put their trust in a company that preached about being a CIC and working for the best interests of the community.

  3. Craig Brass says:

    @Gareth: Have you tried rebooting both your nano and your router as I hear Guy turned the network back on again about 5pm and know other customers are working in the village….

  4. r couldwell says:

    I am a Hull customer and have been cut off since 26/03/12 and have never been contacted by the company – they have made it impossible to contact them, no calls are answered and support tickets are ignored – i have paid a full year upfront and have been left considerably out of pocket. Overall an expensive 1 month of broadband at £192.50. I have never encountered such an unprofessional service…..to call it a farce would be an understatment.

Comments are closed.

Comments RSS Feed

Javascript must be enabled to post (most browsers do this automatically)

Privacy Notice: Please note that news comments are anonymous, which means that we do NOT require you to enter any real personal details to post a message. By clicking to submit a post you agree to storing your comment content, display name, IP, email and / or website details in our database, for as long as the post remains live.

Only the submitted name and comment will be displayed in public, while the rest will be kept private (we will never share this outside of ISPreview, regardless of whether the data is real or fake). This comment system uses submitted IP, email and website address data to spot abuse and spammers. All data is transferred via an encrypted (https secure) session.

NOTE 1: Sometimes your comment might not appear immediately due to site cache (this is cleared every few hours) or it may be caught by automated moderation / anti-spam.

NOTE 2: Comments that break our rules, spam, troll or post via known fake IP/proxy servers may be blocked or removed.
Cheapest Superfast ISPs
  • Vodafone £19.50 (*22.50)
    Speed 38Mbps, Unlimited
    Gift: None
  • NOW £20.00 (*32.00)
    Speed 36Mbps, Unlimited
    Gift: None
  • Hyperoptic £20.00 (*25.00)
    Speed 50Mbps, Unlimited
    Gift: Promo Code: HYPERFALL21
  • Shell Energy £21.99 (*30.99)
    Speed 35Mbps, Unlimited
    Gift: None
  • Plusnet £22.00 (*38.20)
    Speed 36Mbps, Unlimited
    Gift: £70 Reward Card
Large Availability | View All
Cheapest Ultrafast ISPs
  • Gigaclear £24.00 (*49.00)
    Speed: 300Mbps, Unlimited
    Gift: None
  • Vodafone £24.00 (*27.00)
    Speed: 100Mbps, Unlimited
    Gift: None
  • Community Fibre £25.00 (*27.50)
    Speed: 200Mbps, Unlimited
    Gift: None
  • Hyperoptic £25.00 (*35.00)
    Speed: 150Mbps, Unlimited
    Gift: Promo Code: HYPERFALL21
  • Virgin Media £28.00 (*52.00)
    Speed: 108Mbps, Unlimited
    Gift: None
Large Availability | View All
The Top 20 Category Tags
  1. FTTP (3570)
  2. BT (3024)
  3. Politics (1943)
  4. Building Digital UK (1929)
  5. FTTC (1888)
  6. Openreach (1838)
  7. Business (1694)
  8. Mobile Broadband (1480)
  9. Statistics (1410)
  10. FTTH (1365)
  11. 4G (1278)
  12. Fibre Optic (1176)
  13. Virgin Media (1174)
  14. Wireless Internet (1163)
  15. Ofcom Regulation (1150)
  16. Vodafone (847)
  17. EE (837)
  18. 5G (772)
  19. TalkTalk (770)
  20. Sky Broadband (748)
Promotion
Helpful ISP Guides and Tips
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
Sponsored

Copyright © 1999 to Present - ISPreview.co.uk - All Rights Reserved - Terms , Privacy and Cookie Policy , Links , Website Rules , Contact