ipstar turmoil

... Press Release

LISP Pty Limited

LISP Pty Ltd (LISP) has provided regional customers with internet services since 1995. LISP was sold to its current owners in January 2008 and continued providing internet services to customers using Wholesale Broadband Pty Ltd (Wholesale Broadband) as its satellite service provider. Many of LISP’s services were funded under the Australian Government’s regional broadband initiatives.

Recently IPSTAR Australia Pty Limited (IPSTAR) have made comments in the media in regards to the relationship between LISP and Wholesale Broadband and the ability of LISP to continue providing its customers with internet services. LISP wishes to circulate this press release in order to address some of those comments made by IP Star.

On Thursday 9th October 2008, IPSTAR terminated its satellite service to Wholesale Broadband, causing LISP to suspend its internet service to regional customers until the satellite service was reinstated or an alternative satellite service provider was located. This would ensure that LISP’s customers maintain continuous access to internet services while the dispute between IPSTAR and Wholesale Broadband was addressed.

When it became apparent that IPSTAR would not be reinstating its satellite service to Wholesale Broadband, LISP approached IPSTAR to provide a direct satellite service to LISP or alternatively, to reinstate the service temporarily until a replacement satellite service provider could be located by LISP.

IPSTAR has refused to agree to either alternative and proposes to terminate LISP’s customers’ access to satellite services.

LISP is an independently owned and operated company. Wholesale Broadband has no relationship with LISP other than as a contracted supplier of its satellite and internet bandwidth services. LISP currently services approximately 2,500 regional consumers in remote areas of Australia and is committed to finding a way to continue providing broadband services to those valued customers.

To this end, LISP has approached the Australian Consumer Competition Commission, NSW Department of Fair Trading, the Australian Communications and Media Authority and the Telecommunications Industry Ombusdman for advice. It has also instructed its lawyers to investigate any potential breaches of the Trade Practices Act by IPSTAR in misusing its market power to deny satellite services to LISP.

Craig Rohrich, Director, said:
“We believe IPSTAR has misused its market power and breached the Trade Practices Act. If our lawyer, Craig Higginbotham advises us that LISP has an action against IPSTAR we will vigorously prosecute our case.”

Should any of LISP’s customers require any further information in relation to the provision of its broadband services, [Craig Rohrich or Scott Woods] may be contacted on [1300 699 477 (Voice mail Only) or Email [email protected] ].