Troubled broadband provider calls in administrators

A Kent-based internet service provider (ISP) which was investigated by market regulator Ofcom over allegations it was making “illegal nuisance calls” has gone into administration.

True Telecom, which was recently fined £85,000 by the Information Commissioner’s Office (ICO) after employees were discovered cold-calling potential customers and giving them the impression they were from BT, appointed TCH Ball and MI Field as joint administrators last week.

A statement on the firm’s website states that the business will continue to trade while administrators explore “the most suitable options” going forward.

The firm will now be marketed for sale as a going concern, say TCH Ball and MI Field, who also confirmed that True Telecom was “unable to manage its cash flow requirements” or meet liabilities as they fell.

It has been reported that a large proportion of True Telecom’s workforce, believed to be over 100 employees, have been made redundant. HMRC had previously issued the firm with a winding up petition over unpaid tax bills.

The firm provides internet and related services for around 8,000 businesses in the UK but attracted a total of 201 complaints via the ICO in two years from people who had requested not to be contacted via telesales.

The firm’s director Mark Baines said that landing in hot water with regulators meant that administration was almost inevitable.

He previously told Kent Online: “We’ve had this issue a few times in the past. We’re looking to go into administration and are confident we can manage the company through that process”.

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