Australian ISP still on the run

With the demise of One.Tel grabbing headlines for weeks, the collapse of Globalfreeway has, by comparison, escaped unscathed -- with major debt in tow.

In March this year, the free ISP collapsed in a heap after a lengthy period of capacity problems in which 70,000 registered users in regional and rural areas were left without Internet connections for weeks at a time. The company had a total of 210,000 subscribers Australia-wide.

The whereabouts of the three company directors is still unknown.

According to one source, the ISP lost over AU$70 million in a six-month period to Ericsson and the French Telecom-owned telecommunications provider Global One.

The ISP's receivers KPMG Australia have remained silent since the ISP shutdown, saying they have a -no comment policy on Globalfreeway to the media".

Both Globalfreeway and its receivers KPMG have failed to inform its 210,000 users that the ISP has shutdown.

Furthermore, employees still have not received their remunerations after the collapse, according to the source.

Company documents lodged on the Australian Securities and Investment Commission Web site revealed that, just two days after one of its directors resigned on March 14th, the company received a court order to -wind up and appoint a liquidator".

ASIC, however, was not able to confirm or deny whether the company is being formally investigated.

The free ISP is 100 percent owned by US-based company ci4net and has a number of partnerships with companies, including Yahoo.

Global One confirmed to ZDNet that it terminated network services to Globalfreeway on March 3rd, 2001. The telco was used to support Globalfreeway's Internet and email product offerings.

Sources claim Globalfreeway owes Global One around AU$55 million.

-Global One is owed an undisclosed sum from Globalfreeway for the provision of these services," a statement said.

-It was only after exhausting all other reasonable avenues to resolve the matter that we decided to take this step," a Global One spokesperson said.

-Global One reserves all of its rights to take action against Globalfreeway."

Ericsson also confirmed it is owed an undisclosed figure.

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