Hamilton ISP Lloyd Group has filed papers in the high court against Telecom over the incumbent’s decision to disconnect the ISP from its network.
Telecom pulled the plug on the ISP claiming it owed more than $220,000 on its account. Gallagher vehemently denies this, saying the dispute goes back to 1998 and that Telecom was charging for circuits he hadn’t asked for.
“We filed papers yesterday and we’re preparing the class action suit against them now,” says company founder Lloyd Gallagher. “They put a statutory demand on us and we’ve filed proof and evidence stating that they’re full of crap." Gallagher says he has accumulated 40 pages of proof.
Gallagher says the company has moved to a new provider for international bandwidth but in the meantime his customers were cut off. He says some customers have since switched to other providers.
In July of last year Lloyd Group said it would take further action against Telecom after a complaint alleging anti-competitive behaviour was rejected by the Commerce Commission. The complaint was laid in August of 1999 and related to the ISP's attempt to offer DSL services using the Telecom network.
Telecom spokesperson Mary Parker says the company won't be commenting directly on the issue except to say it will be seeking reimbursement for the money owed by Lloyd Group. Parker says the outstanding amount is in excess of $200,000.