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Wednesday, November 15, 2006

Crumbling Biscit

9,500 Broadband Users of Biscit (aka v21.co.uk) are left without service as the wholesale DSL provider, Netservices plc, have withdrawn their services.

Netservices is a small loss-making data services company who only floated on AIM in March. In its interims in Feburary, it claimed 54k wholesale DSL customers presumably through small ISPs. In the Pre-Close Trading Update issued on the 13th September, it made a bad debt provision for £750k and commented:
The 'free' broadband season arising immediately after our IPO has destroyed more reseller businesses than anyone in the sector appears to have anticipated, ourselves included.
Definitely not a company that the faint hearted should consider investing in.

This is after last weeks failure of Fast24. The smaller reseller market is really struggling.