A reseller of IPStar rural broadband satellite services has left users in the lurch, discontinuing services late last week after wholesale supply was cut off.

Service provider LiSP was forced to disconnect satellite customers late last week after an unidentified wholesale supplier of IPStar, thought to be LiSP-related company Wholesale Broadband, cut the service – with IPStar confusing the issue by washing its hands off responsibility for the service cut while indirectly offering affected users a free interim service.

LiSP, which describes itself as an ISP serving Lithgow, Blue Mountains, Bathurst and Bourke in NSW, left nothing more than a phone recording for customers informing them of the issue after connections were stopped without warning. Along with partner company GoBush Broadband—based in the NSW regional centre of Dubbo—customers contacting the providers were told to contact IPStar directly to reconnect internet services.

RECORDED MESSAGE:  “We regret to inform you that your internet service has been disconnected by IPStar due a dispute with our wholesale broadband provider,” said a recorded message to customers. “We have disputed IPStar’s right to terminate and sought legal assistance. To maintain interim internet services you should contact IPStar... LiSP will endeavour to resolve the internet access problem with IPStar as quickly as possible, we will provide the interim updates on the progress of the restoration of the service as developments occur.”

LiSP was unable to be contacted for further comment, the company’s central office telephone having been disconnected. But IPStar disclaimed responsibility for the disconnect yesterday, telling CommsDay the issue was between LiSP and its own wholesale supplier. “IPStar is not a supplier to LiSP,” said a legal representative for IPStar. “They are unable to get IPStar services from their supplier, I believe that’s the reason for the disconnection.”

IPStar is offering free 30 day connections for disconnected users, although the program is not specifically designed for LiSP customers lacking connectivity. “We’re not directly aiming this at LiSP end users, it’s just a program we’re running,” the legal representative said.

LiSP was said to be receiving its IPStar service from Wholesale Broadband—we were unable to make contact at press time. Wholesale Broadband shares a common director with LiSP—Joshua Boniface— and is not listed by IPStar as a service provider on its website!

The mass disconnection is the latest event in a bad year for IPStar. One year ago IPStar appointed the small listed Australian company ETT as its mainline wholesale channel—ETT’s relationship with IPstar broke down and ended with court action and contract termination about two months ago. The very public breakdown was a rare glimpse into the Byzantine world of IPStar’s complex service provider relationships– for example LiSP itself was apparently wholesaling to other service providers this year. One person close to the company told CommsDay “as to who was wholesaling to who, no one seems really sure! It’s all such a mess these days!”

IPStar’s parent company Shin Satellite is also restoring its corporate reputation after its association with ousted Thailand prime minister and company founder Thaksin Shinawatra and his controversial commercial relationships became a major political issue in its home market.

FUSION CONFUSION FOR ABG? But while the retail satellite services once provided by LiSP and GoBush Broadband were not backed by Australian Broadband Guarantee subsidies, the ABG program itself may have hit a hurdle after Optus was recently forced to cancel its Wireless Fusion offering. While applications for providers to register for the ABG were originally due to close mid-September, the Department extended the deadline to the end of October as it investigated Optus’ Wireless Fusion products “to determine whether they meet the definition of metro-comparable under the ABG Program.”

But the investigation appears to have been for nought, after Optus ceased new sales of the wireless broadband and telephony product saying the move was necessary to ensure service quality to existing customers. Optus has said it hopes to resume sales of the product at a later date, yesterday telling CommsDay “Optus has been working with the Department to provide the information they need to undertake a detailed assessment of this product for the ABG.”

 Luke Coleman & Grahame Lynch