Broadband News

More news emerges on the V21 / Netservices saga

ZDNet UK has a lengthy article about the recent Netservices/V21 service problems. This article makes public a lot more background behind the issue and the impression one gets is that this could go on for some time.

In theory those V21 customers whose service was via Netservices and have not elected to sign up with EzeeDSL should now be waiting on BT Wholesale to action a cease order on their ADSL, i.e. stop the connection working so that you can sign up with a new provider. The orders are thought to have been placed on the 24th November and will probably take two weeks to happen, i.e. around 8th December.

What is interesting to see is that the payment dispute between Netservices and V21 has been going on for some months, and stems from charges raised by Netservices for burst bandwidth, i.e. capacity used above the 100Mbps link rented by V21 originally. It would appear Netservices worked with V21 to try and control usage to bring it inside the contracted amount, with the end result of V21 accepting the need to acknowledge the excess usage and pay for it.

In the middle of all this Biscit came along and became aware of the disputed invoice in the 'due diligence' process while acquiring V21, which was for a figure of £200,000 and acknowledged it would pay this so long as a 'proper invoice' was produced. Now the amount and invoices between the start of 2006 and July 2006 are being disputed and it seems likely the final settlement may take place in court. Netservices also points out that there are other 'outstanding bills for tails and central pipe rentals'.

Sources close to Biscit have led us to understand that the audit of Netservices invoices is ongoing, in particular for the period up to July 17th 2006 since before this date we are told that Netservices did not have the technology to measure bandwidth. It also appears the ex-Directors of V21 had understood that there was an agreement between V21 and Netservices that no excess bandwidth charges would be levied for the period up until July 17th.


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