Leader: Lessons from Aramiska's failure

The sudden failure of satellite broadband provider Aramiska at the end of last week once again focuses minds on just how cut-throat much of the tech and comms world can be - and just how important it is for user organisations to have a 'plan B'.

Dozens of hacked off (now former) customers wrote in to silicon.com and we're betting many hundreds more turned to us and other online media to find out what was going on following a way-too-short email from the provider informing customers of the shut down on Friday.

Their searches online may seem strange but we've heard a few stories of individuals dusting down old modems or - much better still - able to switch to speedy alternatives.

We remember well the launch of the company, back in 2001 when swathes of rural Britain and many parts of other countries could only dream of fast, always-on connections through phone lines or cable TV networks. A pan-European footprint, albeit with some limitations inherent in satellite, was a welcome option.

It wasn't only SMEs and branch offices that took up the offer. Some community broadband groups used Aramiska for backhaul, typically stringing together groups of homes and businesses using wireless LANs.

All these customers will have been hit hard, though we applaud the scrambling efforts of many activists including groups such as the Community Broadband Network (CBN).

This publication has also heard from some who prepaid a long way ahead. A reader from the Ukraine told us he stumped up some €15,000 for future services.

Our previous news stories on this subject made it clear what customers think of such a sudden and poorly conveyed notice that the company had foundered. We can only hope most get up and running again soon. Other satellite operators are stepping in and fortunately some of those affected now have access to ADSL.

But there are lessons. As analyst house Ovum wrote: "The failure of Aramiska suggests that the satellite-based broadband service providers are operating under perilously difficult conditions with fragile business models."

Even many mainstream telcos and ISPs aren't immune from failure. The pricking of the telecoms bubble taught us that.

So again we call for user organisations to be vigilant and carry out some 'what if' analysis. What if your provider were to disappear tomorrow? What if a technology you use becomes subject to a lawsuit? What if a natural disaster strikes a key site?

All good heads of IT and communications are good planners. Suppliers failing is a fact of life and, for all their crassness, there's no point in beating up on those that ran Aramiska too much. It's far better to take all the steps possible. Risk management is for everyone.