Feeds

ISP sues BT for £37m

08002go.com's David takes on BT's Goliath

  • alert
  • submit to reddit

Security for virtualized datacentres

A little-known ISP is suing BT for £37 million for alleged breach of contract.

A writ was served in the High Court on December 14 and although BT has asked for an extension, the case is expected to be heard in early January.

Manchester-based, Zone Corporation, which trades as 08002go.com, alleges it had a contract for BT to provide unmetered Net access.

However, 08002go.com claims BT pulled out of the deal earlier this year - leaving the fledgling ISP high and dry.

It is a sign of its confidence in its case that 08002go.com has put aside £2.3 million to fight the case.

The unmetered product - which would have allowed 08002go.com to offer 24/7 unmetered Net access for just £5.83 a month - was not based on BT's SurfTime product or its wholesale unmetered equivalent, FRIACO.

Dennis Cawley, MD of 08002go.com, told The Register: "Three times BT said it would provide unmetered Net access - and then we got a call to say the deal was off.

"They couldn't tell us why," he said.

Cawley still doesn't know why BT pulled out.

He said the figure of £37 million was based on loss of revenue and interest.

Despite its troubles, the ISP has not been put off by its experience. It intends to offer a 24/7 unmetered service from the end of January 2001 with another, as yet, unnamed telco. It already has 720,000 users signed up for the service, said Cawley, although he has a limit of a million users.

A spokeswoman for BT said the monster telco would be defending the claim "vigorously".

She also disputed the amount of damages involved, saying it was nearer £500,000.

08002go.com threatened legal action against BT back in the summer and despite negotiations to settle amicably, Cawley said he was left with no option but to take legal action against BT. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.