Relations between Domainz and the country's major ISPs are being strained by the continuing failure to perform of the new Domainz Registry System.
Ihug director Tim Wood said on Friday afternoon in a posting to the Isocnz newsgroup and mailing list that "unless we get the situation sorted, legal action is assured from this ISP."
Late on Friday, Xtra issued a statement confirming that its customers "have recently been experiencing some problems with the domain registration system," but said it had "received assurances from Domainz that it is taking prompt action to correct these problems, and is pleased that the issue is being speedily resolved."
At issue is one of the most serious flaws in the new system - its continuing failure to automatically notify name service providers of domain transfers.
Although Domainz CEO Patrick O'Brien had apparently promised ISPs that the problem was fixed, many transfers last week were not notified - meaning the ISP formerly hosting the domain had not known to delete it from its name servers.
In other words, if a domain is moved from Xtra to 2Day.com without Xtra being notified, no Xtra customers can connect to sites associated with that domain.
Some Xtra hosting customers who moved their domains are understood to have mistakenly thought Xtra was blocking their sites when they were subsequently unavailable to Xtra customers. ISPs have been working amongst themselves to notify each other of the changes, as they did during the first week of the system.
2Day.com managing director Peter Mott, a vocal opponent of the new system, said the failure of the DRS to notify such changes was building up problems over billing for services, with customers likely to be surprised in the next few months by invoices from service providers who had registered the closing of their accounts for name service.