Bricks thrown through windows as Hughes controversy escalates

A person claiming to be Dr Ronald Gander, the man at the centre of the Hughes/Ericsson controversy, has contacted ZDNet Australia reporting that bricks have been thrown through his windows.

The controversy began when Gander contracted a Queensland call centre to field calls, which would result from an advertisement he placed in the Brisbane Courier Mail. Gander allegedly told the call centre he would be offering wireless broadband connectivity at AU$70 per month with an initial set up fee of $360, using an Israeli-developed technology for which he held the patents. To back up his claims, he said that he represented US-based Hughes Corporation, and that Ericsson in Australia was providing the infrastructure behind the technology.

Both Ericsson and Hughes have categorically denied the claim.

However, in an attempt to verify Gander's claims that US-based Hughes Network Services was attempting a "soft" launch of a revolutionary wireless broadband connectivity, the call centre general manager Anthony Partridge approached ex-Ericsson contractor Mike Haynes. After meeting with Gander, Haynes contacted Ericsson in Australia, and Hughes Corporation in the US.

"It seemed too good to be true," Haynes told ZDNet Australia. "If it looks like a duck, and quacks like a duck, then we figured it must be a duck, so we had to get it checked out with Hughes and Ericsson."

An e-mail obtained by ZDNet Australia, sent from Hughes Network Systems in response to Haynes' query and dated March 5, reads in part: "Hughes Network Systems is deploying our DIRECWAY broadband by satellite system in Australia through the prime contractor, Ericsson for Telstra Australia."

No mention was made of Dr Gander in the correspondence, and both Partridge and Haynes took this confirmation as proof of Gander's claims. Playing it safe, Partridge took measures to ensure that none of the credit details would be processed until the service began to be rolled out.

The ad appeared in the Courier Mail as planned and received an unprecedented response after being picked up by broadband aficionado Web site Whirlpool.

Similarly suspicious Whirlpool subscribers began to call the 1300 number published in the ad en masse, to ask questions regarding the technology behind the advertised service. When their questions were allegedly answered "inadequately" by the call centre staff, who were in no way trained in the technology, many became concerned the offer was a sham. Hughes Network Systems in the US, Ericsson in Australia, as well as various government agencies subsequently became aware of the allegedly bogus offer, being made by Gander.

Hughes has since released a statement confirming its relationship with Ericsson but denying any relationship with the Queensland company or Dr Gander.

"Hughes Network Systems, a wholly owned subsidiary of Hughes Electronics Corporation, is not affiliated in any way with a person/company in Australia calling itself "Hughes" and claiming to be affiliated with Ericsson Australia and General Motors Corporation," the statement said.

The statement goes on to deny any relationship to the company claiming to be Hughes, which published the advertisement in the Queensland Courier Mail

"Please be advised that neither HUGHES nor Hughes Network Systems manufactures or sells any product by this name [Hughes AXs card], nor is there any related Internet service offering available," the statement said.

Similarly, Tony Malligeorgos, director of marketing for Ericsson Australia, contacted ZDNet Australia directly to affirm its relationship with Hughes Network Systems, but deny any relationship to the Queensland outfit headed up by Gander.

"There has been a relationship between Hughes and Ericsson in Australia for sometime," Malligeorgos said. "It has been on the public record and it would be quite easy for people to find out about people involved in that relationship."

Malligeorgos confirmed that Ericsson would be pursuing legal action against any parties found to be making unsubstantiated claims regarding their relationship to the telecommunications infrastructure provider.

-Our legal people are pursuing various avenues at the moment," Malligeorgos said.

In the meantime, ZDNet Australia has been contacted by a person claiming to be Gander. He was very distressed and said that bricks had been thrown through his windows, but didn't suggest who might have been responsible or what action he might take as a result.

However, consequent attempts to contact him have failed. As recently as March 6, the Australian Securities and Investment Commission (ASIC) also listed a company under the name of AXS Hughes Corp, based in Stafford Queensland.

The call centre which Anthony Partridge represents has ceased answering the 1300 number with appeared in the original ad, and Partridge has reiterated that none of the credit details left with the call centre have been processed.

-We will be calling back those people who were informed the service would be rolled out by a certain date, I don't think it is going ahead at all at this stage," Partridge said.

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Talkback 5 comments

    HAHAHAHAHAHAHAHAH. Serves the ...Anonymous -- 07/03/02

    HAHAHAHAHAHAHAHAH. Serves the **** right. Its bad enough that Telstra screws us all and can't be bothered by the consequences, now this idiot just comes along and makes poeple even angrier.

    And now he is trying to pretend that he is the innocent one?? I hope that Ericson and Hughes sue him for a large sum of money.

    Firstly, if Dr. Gander is purp ...Alan Richardson -- 08/03/02

    Firstly, if Dr. Gander is purporting a sham, may he suffer all the necessary "bricks". If he is not...we are obviously facing something much bigger. All kudos to the good folk who were awake and smelling the coffee nonetheless!

    In my opinion, Dr. Gander is p ...Anonymous -- 09/03/02

    In my opinion, Dr. Gander is probably innocent, he is smart enough to pull off the biggest scam of the decade, but not be able to hide his own name in email messages? I don't think so.

    The reason people have a grudge against Dr. Gander is the simple fact that they don't have anyone else to blame, the scam group have disappeared and not one knows where they have gone. And the person 'NAMED' Dr. Gander 'SOUNDS' like the most appropriate person to blame.

    Whether it is a scam or not, t ...Anonymous -- 11/03/02

    Whether it is a scam or not, the big thing to note was the absolute ferver of people to sign up and get out of the Australian Internet loop. If this was a scam to show to the world that we want another alternative, they've succeeded increadably well and my, what a ripple in the big pond it was. I hope to see more. The whole thing must be a total embarrassment to Tel$tra and the Federal Government. It seems no one really wants them.

    "It looks like a duck and ...Anonymous -- 14/03/02

    "It looks like a duck and quacks like a duck"
    we now must remember
    could be
    a goose called Gander.
    There's no Golden Egg,
    Mr Haynes,
    just chook poo
    for our pains.

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