Feeds

Flashcom trades DSL customers like chattels

Indebted

  • alert
  • submit to reddit

Build a business case: developing custom apps

US ISP Flashcom.com has been forced to flog most of its DSL customer accounts in an effort to stem losses.

Debt-ridden Flashcom has already lost control of more than half of its accounts to wholesale service providers Northpoint Communications and Rhythms NetConnections - who have shifted users to different ISPs. The company is also looking to sell off the rest of its assets, including its other subscriber accounts - currently in the hands of Covad Communications and other regional providers.

The move follows the dotcom ditching its IPO and filing for bankruptcy protection under Chapter 11 in California last month. It is trying to reorganise itself to make a profit, according to a statement on its Website. It has also laid off around 75 per cent of staff, more than 100 employees.

But the remaining customers still under contract with Flashcom may have a rough ride. The ISP warns that if the accounts remain unsold, or if it cannot persuade the bankruptcy court that it can run them at a profit, "their service will be terminated, perhaps with little or no advanced notice".

If these DSL users are locked into a contract they are pretty much stuck and have to continue paying the monthly fee for the service, eveb though fewer customer service staff available. Flashcom says they cannot be released from their contracts without approval from the bankruptcy court.

Flashcom, which claimed to have 31,000 customers in May, is just one of many DSL providers scrambling to survive the US market. Earlier this month Seattle-based rival Bazillion shut its doors, giving users just days' notice their DSL service would stop.

More information can be found at Flashcom. ®

Related Stories

Bazillion shafts DSL users
Verizon sued for crap DSL service
US DSL market slows
Oftel chivvies up BT over DSL

Boost IT visibility and business value

More from The Register

next story
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
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.