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ISPs scramble for new connectivity as Carrier 1 stumbles

European "backbone" Internet company, Carrier 1, has jolted its customers - big and small ISPs - by revealing that its service level agreements (SLAs) are suspended while it runs as "a going concern" in administration.

The company went into receivership pending finding a new buyer on February 13th. However, most customers say that they weren't too worried about this, because the service provided has always been good. Then, yesterday, they received a frightening note from the administrators, saying that this good service was no longer guaranteed.
Administrator D Calverley wrote: "During this interim period the company's Network Operations Centre is continuing to function and customers IP, Bandwidth and Fibre services will be maintained, albeit at a reduced level from specified standard SLA's."
No reason was offered for the suspension of service level agreements, and it has put the wind up one or two of the Internet service companies who rely on Carrier 1 for links around Europe.
One ISP manager told the Mobile Campaign: "Normally, we would not think of leaving them; they've been very good, and we have no problems to report in the past. Also, we have a contract which lasts for several more months. However, if connectivity starts going wrong, then these contracts are void, and we'd want to switch to other, rival suppliers."
If enough customers of Carrier 1 think similarly, the search for a buyer for the company could become difficult. "Other backbone providers are likely to roll out the red carpet for these people, and it's hard to see them being tempted back once they've made the break," said one ISP who uses the Carrier 1 backbone today, but is now in talks with two or three other suppliers.