Mitsubishi Electric Internet Services (Menet) will be shutting up shop in September, just four months after it launched free web access to businesses in the UK.
About 20,000 customers, mainly SMEs, have been told their internet service will be discontinued and that they will need to change their email addresses and find an alternative web hosting service.
In February, Mitsubishi Electric launched a range of services under the Menet brand for SMEs, in partnership with Computer 2000. They included a basic net access service and a high-end service, offering dedicated web server hosting at Menet's operations centre (PC Dealer, 10 February).
In an email sent to customers, Paul Braham, UK general manager at Menet, blamed the demise on Mitsubishi's "substantial reorganisation, following poor financial results".
In April, the Japanese manufacturer reported a loss of Y113.7bn for the year ended 31 March, which it blamed on charges associated with the restructuring plan. In June, the company officially closed down the manufacturing arm of the PC hardware design business of Apricot Computers.
A spokeswoman for Mitsubishi said: "We have to give 14 days' notice and we've given customers much longer to find another ISP."
Daniel Bieler, internet consultant at Ovum, said: "Free dial-up access is offered by more than 50 ISPs and is only profitable for a few. You only start to make money from advertising and web transactions when you have the right number of subscribers."
A spokesman for C2000 said it would not be involved in migrating customers to another service and the decision to end the service had come from Mitsubishi.
Businesses also admit to holding data without permission of subjects
Zedsphere says end-point security vendor's offerings will be a 'key' feature of its wider portfolio
New acquisition will bring UK cloud service provider's global headcount to over 700
Law firm claims that Oracle lied to investors over what is driving its cloud revenue growth and boosted sales through 'threats and extortive tactics'