UK ISP Zone Corporation is reported to be suing BT for £37 million
because it claims that BT failed to fulfil a contract for wholesale
unmetered internet access. The company says BT changed the terms
only days before launch of the Zone service.
Zone claims it intended launching a free 0800 number dial-up
service in June, based on a fixed rate contract for ports on BT’s
network. Zone alleges that days before the launch of the service,
BT told the company that there would also be a per-minute charge.
Zone says that this new condition made its proposed service no
longer financially viable.
The case against BT is seeking recovery of advertising costs and
lost revenues. BT denies that contract terms were agreed that
provided unmetered access and denies that the cost to Zone could
have been £37 million.
Unrelated to the Zone dispute, BT is being investigated by
Oftel, the telecommunications watchdog, over the availability of
wholesale, unmetered access on its network for ISPs. It follows
problems reported by other ISPs following their negotiations with
BT.
