Kitz Forum
Broadband Related => ISPs => Topic started by: tickmike on May 11, 2021, 09:51:23 PM
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Looking around at some 'smaller' isp's, I have noticed some in there company accounts at .gov.co.uk are A dormant company . :hmm: but they are still trading. !
Should I keep away from these company's as they could go bust. ?
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Dormant isn’t bust. Likely they are trading in a different style, rather than under their company. Or they haven’t submitted their confirmation statement
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Have they got a valid OFCOM RID?
https://www.ofcom.org.uk/phones-telecoms-and-internet/information-for-industry/numbering
Reseller identification codes (RIDs) are a type of code that Ofcom allocates to communications providers (CPs) for administrative purposes. They are three-character alphabetic codes which are used in the Notification of Transfer (NoT) switching process and can be used it identify a reseller of wholesale services.
It's updated every Wednesday, direct link to the file is http://static.ofcom.org.uk/static/numbering/RID.xlsx
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Big groups, say like national public transport e.g. Go Ahead, often have dormant cos of legacy brands.
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Some companies have sub-companies that only exist on paper, set up when they thought they might use such a sub-company in the future but then plans changed and it never happened, or the other way round, a reorganisation after which the company isn’t needed so becomes ‘dormant’. Dormant is exactly what it says, just sleeping, no activity, and as said earlier, the use of the term doesn’t mean anyone has gone bust or is dodgy.
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The two I have spotted (business ISP's) are still trading with a £1 profit and the other a £2 profit, seems odd to me.
One looked tempting to go with but it's made me think again.
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I don't think I'd touch them. About 10+ years ago there were quite a few small niche ISPs, but the majority have fallen by the wayside. If they are dormant they are hardly likely to have much of a network even if they are resellers. They shouldn't be trading if they are dormant as they've classified themselves as having no other assets nor income other than the declared £1/£2.
Check carefully that the company name exactly matches - Weaver has already mentioned sub companies where the name may have been bought for future use... or is the webpage actually current and actively live.
Whilst it doesn't mean they have gone bust, I still wouldn't touch them. There is supposed to be better protection for the EU these days, but I guess the horrendous experiences when ISPs have gone bust in the past and difficulties getting your line migrated to another ISP is still too fresh in my mind.
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A little snooping of Companies House Beta of the Directors' other appointments can be revealing too of a dormant company's links in very complex group structures.