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Euro1Net ISP Bites The Dust

Posted: 06th Sep, 2006 By: MarkJ
Despite earlier statements assuring customers of the ISP's stability following a payment dispute with BT and the disconnecting of over 5,000 broadband users, Euro1Net (Advanced Data Services) has now officially "ceased trading".

This morning the Euro1Net.com website has vanished, while customers have been issued with the following e-mail:

----
Despite our communications with a number of ISP's who were interested in taking our users and or our company as a going concern, it is with great regret and sadness that we have to report that our talks have proved fruitless.

The recent actions of BT disconnecting the majority of our customers on the 21st August 2006 with no notification that they were going to do so on that date and the frenzied inaccurate media reporting which quickly followed, have had a dramatic impact on our business.

As a direct consequence of the media speculation and negative publicity, other suppliers and service providers including our bank have all now withdrawn their services. This means that our current financial obligations can no longer be met.

As we are now unable to meet our financial obligations we have had no alternative but to make the difficult decision to make our very loyal staff redundant.

Since BT disconnected our users, we have been working tirelessly under difficult circumstances to try and reconnect all our customers to alternative suppliers. However, as we were prevented by BT from generating Migration Authorisation Codes (MAC's) which not only meant our customers would be without service for longer, but also meant that any possible reconnections with an alternative supplier would have cost around 300% more to connect each customer as a new connection, than they would have done as a migration.

These additional costs proved too much to bear for us and the potential buyers of our company who would have needed to pay BT Wholesale an additional £160,000 in connection fees.

We would like to apologise to all our customers and would like to thank them for the support that has been offered during this difficult period.

As we have ceased trading and can no longer provide a service to our customers, all customers will be free to connect with another provider of their choice. If in doubt, please contact BT for information on whether your line is clear of our service.

We shall be making a formal complaint to Ofcom concerning the way BT conducted the termination of our customers' service, the impact that this in turn had on our customers and our company as a whole. We look forward to their findings.

----

It seems somewhat fruitless to blame media coverage for their own downfall, especially when a few lines below they're pinning it on cost. Not to mention the small matter of an unpaid BT bill.

Euro1Net had previously been criticised by some readers for offering a service based on E7even style economics (too cheap).

Thankfully most customers will have already realised that Euro1Net were unlikely to reconnect them and moved on, yet today many more will suddenly find themselves in the same boat, including all the lost connection time and additional costs this entails.
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