Beleaguered ISP 08002go.com, which offered 24/7 unmetered internet access for £9.98 per month, has been cut loose by its telco CWC (Cable & Wireless), sources claim.
A senior industry figure has alleged that 08002go.com owed CWC — which operates the majority of its cabling network — over £500,000 in unpaid phone bills, prompting the telco to shut down its domain name server.
This prevents customers from seeing 08002go's website and therefore connecting to its service.
"It [08002go] has unpaid bills that amount to over half a million pounds," said the source.
Industry watchers have speculated that a decision to block server access by CWC could finish the ISP off. It is claimed that 08002go.com had a 'virtual ISP' deal with CWC, in which all equipment used by the ISP was owned by CWC.
But Dennis Cawley, managing director of 08002go.com denied claims that CWC had shut down the ISP's server and refuted suggestions that it owed the cable operator half a million pounds.
"We may owe them [CWC] some money on accounting purposes, but the figure of half a million pounds is silly money."
He suggested that 08002go.com's website was down due to internal technical issues.
Hitting back at speculation about the company's ability to provide a reliable service, Cawley said: "They'll be blaming us for the war next." Cawley then issued an assurance to all customers: "If by any chance we've overcharged you we'll pay you back."
The ISP voluntarily suspended net access to its customers last week, but claims that it will launch four new internet access services — with new terms and conditions — on 28 October.
Details of 08002go.com's problems emerged last month, when the UK ISP Users Group website reported the service was frustratingly slow.
08002go.com is owned by the Zone Corporation, based in Manchester. The company was supposed to file its accounts with Companies House on 27 August this year, but has so far failed to do so.
In December last year, the Zone Corporation filed a writ against BT for alleged breach of contract. The ISP claimed BT pulled out of a deal to provide it with unmetered internet access.