ISP may issue writ against BT for breach of contract

BT could face legal action this week after ISP, NextCall, announced it was going to issue a writ against the telecommunications giant for breach of contract.

NextCall claims BT failed to fulfil its contractual obligations to provide a service for its Calls and Access product - a system allowing other phone companies to use its cable network to provide services.

BT stands accused of a long list of failings including not transferring customers on time, giving an incomplete service and not billing customers correctly.

Andrew Harrington, CEO, NextCall, said: "We purchased Calls and Access last year and BT have statutory and contractual duties. Over the course of the past year they have singularly failed to meet those obligations.

"I am seeking compensation, aggravated and exemplary damages. Our first rule was to reach an agreement, but BT has shown very little signs of being willing to offer an amount of money we can accept."

Harrington said BT owed his company £20m for lost and inconvenienced business. He claimed QC and the company's lawyers had been instructed to issue the writ. But, he would not say when this would happen.

BT denied the claims stating it refused to "shoulder the blame" for problems with its "relatively new and novel offering".

However, Oftel says BT should be held responsible. It has already taken regulatory action against BT by issuing two provisional orders telling the company to fix the problems. The deadline for the second order, issued in October, is due to run out on Wednesday.

An Oftel spokeswoman said: "What happens next depends on Wednesday's outcome. If everything is alright and BT have complied satisfactorily, then the provisional order will be lifted and it is the end of the matter. But if not, then a third or final order can be imposed. This is quite a rare thing. It does happen, this is not the first, but I cannot remember the last time we issued two against a company."

If Oftel decides to impose a final order, BT has 28 days to comply or risk losing its licence.

Harrington said: "For the first time, Oftel has issued two provisional orders about the same product. This is hugely embarrassing for BT, they went into this product without a high degree of enthusiasm. Suffice to say, we are advised that in seeking damages we have a good chance of getting them."