Cut-price ISPs collapse

Two internet service providers (ISPs) have ceased trading this week, leaving thousands of customers in the lurch.

ET Global Solutions has gone bust and Ecosse Telecommunications, the Scottish ISP and phone company based in Glasgow, has pulled the plug on its unmetered dial-up internet services, Ecossetel.

Ecosse's sudden decision to end its unmetered service has come as a shock to its bemused customers. The telco blames its demise on a third - as yet unnamed - ISP, for allegedly failing to pay a £160,000 bill.

vnunet.com has been unable to contact Ecosse for further comment, but a statement on its website said a winding-up order has been issued against the third party and the matter is now sub judice.

The statement also said that customers can still have access to their emails via an 0845 local-rate number, and that it will issue pro-rata refunds to all customers using 18 October 2002 as their termination date. Refunds are expected to be made either to customers' original credit or debit cards or by cheque by the end of November.

"Please note no other claims for 'compensation' will be entertained apart from the refund for the unexpired portion of your monthly/quarterly or annual subscription for the unmetered service," the Ecosse statement added.

The demise of ET Global Solutions, one of the first ISPs to jump on the low-cost ADSL bandwagon, comes only weeks after it launched its cut-price broadband service of less than £20 per month.

Gio Internet, another ISP, which had been handling the billing relationship for ET Global Solutions, has taken over ET's customer database. A Gio spokesman told vnunet.com that it was trying to sort out the resulting problems.

"There shouldn't be any problems for customers who have signed up with ET Global Solutions and had their service activated," he said.

"We will be providing the access. But those people who have paid for the connection but not had the service activated will have to pay another £96 for connection and the first two months for Gio's ADSL service, which costs £17.99.

"At the end of a year's contract, they should only be about £7 out of pocket if they were on ET Global Solutions £22 per month contract" the spokesman added.

Customers not wishing to stick with Gio Internet can either contact the official receivers, R W Keating Ltd, 20 Winmarleigh St, Warrington WA1 1JY, or their credit card company.