UPDATE2 Concern for Fuel Broadband as Customers Report Service Closure

Reports are coming in that UK ISP Fuel Broadband (formerly Primus Saver), which is owned by New Call Telecom (NCT), could be in serious trouble after customers were informed that the service would be shut down at the end of July 2017 and accounts moved to the Post Office.

During a recent update of our UK ISP Listing database we noticed that Fuel Broadband had completely removed their residential broadband and phone packages (the details are no longer present on their website). On top of that their Twitter and Facebook accounts appear to be either inactive or removed.

Fast forward to this week and a credible ISP informs us that “we’ve received a whole load of queries [over] the last few days from Fuel Broadband customers to state they’ve been informed that they are shutting down in July.” At this stage it’s unclear whether this reflects the closure of the whole ISP or just a specific service. We are currently attempting to get a response from NCT.

A quick look at the Company Details for NCT, particularly their most recent annual accounts to the end of March 2016 (here), shows that NCT are continuing to trade but their balance sheet still has quite a big loss to clean up. NOTE: NCT own Fuel Broadband, Fuel Business, Planet Talk, Just Dial and Rate Buster (nearly all are calling / phone providers); they’re also home to the Wavecrest, Nimbuzz! and ozone brands.

The company recorded a loss on ordinary activities before and after taxation of £18.1m in the year ended 31st March 2016 (down from £21m in 2015) and at that date had accumulated losses of £50.3m and net liabilities of £49.1m. Apparently the company has been funded to date by loans from its parent undertaking of £48.8m. A recent review of the business found as follows.

New Call Telecom Accounts (31st March 2016)

The period of rapid growth in the business between 2014 and 2016 saw it establish as one of the fastest growing residential and telecom service providers in the UK and also saw it record losses of approximately £40 million funded by its parent undertaking, New Call Telecom Holdings Limited and, ultimately, by its principal shareholder [BOOTH, Jerome Paul, Dr – Director].

During 2016 the directors recognised that the business had reached a size where significant sales acquisition activities and earnings through online channels should be de-prioritised and the emphasis placed on improving the quality of the revenue base. The focus of the management team in 2016 and 2017 has been on converting this acquired customer base into a sustainable profitable business through improving margin and a changed focus from online to more selective organic routes to market.

The business has not required net new injections of funds from its shareholder since March 2016 and currently trades on a cash positive basis.

NCT’s Head Office is located in London, although they also have a call centre in Nelson (Lancashire) and New Delhi is home to their New Call India branch where some of their financial administration, IT and web development takes place. NCT also reported a gross profit of £3.66m, which is down from £5.46m in 2015.

We will update again once more information surfaces. Spring 2017 is fast shaping up to be a period of trauma for smaller ISPs, with TenTel and AB Internet both having hit troubled waters during the same period.

UPDATE 12:17pm

One of our readers has identified a related page on the Post Office’s broadband website (here), which appears confirms that Fuel Broadband is closing and their services will be transferring to the Post Office at the end of July 2017.

Apparently accounts will be migrated over between 24th July and 1st August 2017. This is expected to be a “seamless transfer.”

Post Office Statement

If you’re a Fuel Broadband or Phone customer you will have just received a letter telling you that Fuel is leaving the telecommunications market and that your service will be transferred to the Post Office.

The Post Office has been running it’s own broadband and phone service for well over 13 years and has over 460,000 customers. As the fastest growing broadband and phone reseller in the United Kingdom we use the same core network supplier as Fuel, therefore there will be no change in the service you currently receive.

The reference to “same core network supplied as Fuel” reflects the fact that both networks are supplied by TalkTalk Wholesale (this is not to be confused with TalkTalk’s own retail ISP division).

UPDATE 13th June 2017

We’ve received the following statement from New Call Telecom.

Oliver Mackereth, Director of Marketing for NCT, told ISPreview.co.uk:

“I would like to confirm that Fuel Broadband is exiting the UK broadband market. Existing Fuel Broadband customers will be moving to Post Office Telecoms and will experience no disruption in service.

Post Office Telecoms will continue our commitment to giving customers a great service as we leave the telecommunications market. We believe Post Office Telecoms is best placed to meet the customer needs as they use the same network as we do today and will ensure the best possible service and value.”

NCT was also kind enough to include a copy of the letter that has been sent to their customers and we’ve pasted the text below, although we’re unsure whether subscribers would agree with it being described as “exciting news“.

Copy of Customer Letter

Exciting news about your Fuel Broadband service

Dear Customer

We are writing to you to let you know that your Fuel service is moving to Post Office Telecoms. Don’t worry, we are working together to make sure everything runs smoothly. You won’t need to do anything. Post Office Telecoms will continue our commitment to giving customers a great service as we leave the telecommunications market. We believe Post Office Telecoms is best placed to meet your needs as they use the same network as we do today and will ensure that you get the best possible service and value for your household.

There’s plenty to look forward to

As well as benefiting from great offers, Post Office Telecoms will match your current package as closely as possible. While there may be some small changes, there will be no disruption to your service and you will keep your current telephone number.

What happens next?

Together with Post Office Telecoms, we will keep you up-to-date with everything that’s happening and will be in touch soon to explain things in more detail. You will receive a letter or email from Post Office within the next two weeks providing further information about your transfer. If you want to find out more about the process in the meantime, just visit www.FuelBroadband.co.uk/transfer or to find out more about Post Office Telecoms go to www.PostOffice.co.uk/Fuel.

Yours sincerely

Chris Adams
Chief Executive, Fuel Broadband

Meredith Sharples
Director of Telecommunications PO