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BT gets more time to mull writ action

UK ISP Zone Corporation has given BT an extra fortnight to prepare its defence against a writ issued for breach of contract.
Written by Kate Hanaghan, Contributor

UK ISP Zone Corporation has given BT an extra fortnight to prepare its defence against a writ issued for breach of contract.

Earlier this year, Zone Corporation claimed it had signed a contract with BT for unmetered access at a fixed price. However, on 5 May, BT told the Manchester-based ISP that it could not meet its side of the agreement. Zone, trading as http://www.08002go.com, claims BT did not give a satisfactory reason for this reversal. Subsequently, the ISP's legal representatives have written to BT requesting that it be reimbursed for costs incurred. It also applied a 54-day deadline. BT has since requested that this be extended by 28 days, but Zone has only agreed to fourteen. Dennis Crawley, chief executive at Zone, said BT's response has been characterised by "total apathy". He said: "I'm convinced BT thought we would just go away. But we have substantial backing to take this case all the way. We've been very patient with BT we just want them to uphold the service they promised. I don't think anybody at BT knows what they're doing." A month after BT notified Zone that it could not provide the service it originally proposed, the telco reached an agreement with Oftel on flat rate internet access call origination (Friaco) to give ISPs an unmetered service on a capacity basis. A spokesperson for BT refused to discuss the fine legal detail adding: "These claims are totally without substance and will be defended vigorously." BT has until 22 January 2001 to respond to Zone's accusations. Zone's original claim was for £37m. The figure is now believed to be closer to £500,000.
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