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Red faces at IS over contentious UUNet offer

Paul Vecchiatto
By Paul Vecchiatto, ITWeb Cape Town correspondent
Johannesburg, 25 Jul 2002

Solutions (IS) has stirred the ire of rival UUNet following an e-mail sent to UUNet clients capitalising on its link to troubled US telecommunications group WorldCom and offering an alternative Internet service.

The e-mail has been recalled by IS after it received telephone calls and lawyers letters from UUNet.

The e-mail was sent in the name of Graeme Schippers, an IS corporate account manager, who told ITWeb this morning: "I am just an innocent purveyor of information."

The e-mail said: "Following the latest news that WorldCom, the holding company for UUNet, has filed for bankruptcy, placing a huge cloud of uncertainty upon corporate SA with the recent lay-off/dismissal of 17 000 staff, simply means that service for the global service provider may suffer."

It goes on to say: "...Internet Solutions are offering clients with services presently with UUNet the solutions for Internet access. These solutions will allow clients to subscribe to our service until the darkened clouds on the horizon disperse."

Schippers says the e-mail has been recalled following objections "by our opposition". He refused to answer further questions.

IS CEO Angus MacRobert says the company has distanced itself from the e-mail. "We don`t condone the e-mail, it is not our style, but it is factually correct. It was sent by an overzealous staff member."

MacRobert says IS has received calls from a number of UUNet clients looking for a backup service following a report by US IT industry research firm Gartner recommending that WorldCom clients would be well advised to find a backup service for their Internet requirements.

UUNet CEO David Meintjies adopted a conciliatory tone today, saying he had received a written response from MacRobert and that both agree that such a communication should not have been sent.

"We pointed out factual inaccuracies in the e-mail and IS responded positively," Meintjies says.

He says UUNet has never been dependent solely on the WorldCom and that 75% of its international connections are with telecommunications companies other than WorldCom.

"There is no question that IS has had contact with our client base. But our clients are well informed and there is no question mark about either the financial or the network stability of UUNet," Meintjies says.

UUNet is 100%-owned by WorldCom, which filed for Chapter 11 bankruptcy protection on Monday following an accounting scandal that showed the group had "mis-accounted" $4 billion. This is the largest Chapter 11 case in US history.

However, UUNet has stated that it is not dependent on the US parent for cash and that its operations will continue as usual.

In an interview with ITWeb in May, Meintjies predicted a R650 million turnover for the service provider in the current year.

Last week he said the 17 000 job cuts planned by WorldCom, equating to 20% of its global workforce, would have no impact on local operations.

A former IS client who is now an MTN Networks customer forwarded the e-mail to ITWeb. He says it came to him on circuitous route that included UUNet clients.

"I have nothing against IS as such and think they are a good company. But this e-mail is just bad business. It is kicking someone when they are down," he says.

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