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NetServices Drops Smaller vISP Broadband Clients

Posted: 09th Mar, 2007 By: MarkJ
Broadband supplier NetServices Plc (NS) has begun to drop some of its smaller domestic wholesale broadband ISP clients. In a letter sent to related providers and seen by ISPreview, NS states the following:

NetServices has for some time been transitioning its business away from domestic wholesale broadband and focussing operations on our portfolio of Business IP Telephony, hosting and data networking services.

This letter is to advise you that Netservices will be terminating services to your business on a date no later than 30th April 2007 ("the Cessation Date"). We have reached this decision after careful consideration, and in light of recent market developments, including the introduction of General Clause 22 by the Office of Communications ("Ofcom").

Our sources didn't reveal which ISP's NetServices had issued the letter to, although we can confirm that despite the generalised wording, it does NOT apply to all of their domestic wholesale broadband clients.

NetServices Head of Marketing, Maria Goggin, was able to clarify the situation with the following statement:

"We did indeed advise c20 smaller resellers of domestic wholesale broadband that we wished to cease to supply as we do not and cannot see how we will make a profit with them in the future."

One vISP source has since suggested that the earlier billing dispute between NetServices and V21 (Biscit) may have played a part in the move (General Clause 22 refers to Ofcom's new migration code rules). Some of NS’s remaining clients have previously informed us of their own concerns with the supplier, although at the time of writing none had responded to comment.
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