PSINet troubles deepen as key customer jumps ship

Embattled ISP PSINet has had its lucrative customer BIW poached by hosting specialist Attenda.

The deal will see Attenda will host and fully manage BIW's internet collaboration platform for the construction industry.

David Godwin, VP of strategy and marketing at Attenda, said he was delighted to have struck the deal. "The bottom line was that we could offer a 100 per cent outsourced solution - including software and applications - which BIW just couldn't get with PSINet," he said.

The deal marks is another blow for PSINet, which is struggling to keep its European business afloat in the wake of its US parent filing for chapter 11 bankruptcy protection earlier this month.

Malcolm Johnston, marketing director for PSINet in the UK, declined to comment on the details of the contract loss other than to say that he was disappointed.

He told silicon.com: "They have to make a business decision, and we have to respect that."

However, he denied European customers were worried about whether the business was going to survive. "It is quite clear. Customers aren't confused about the situation in Europe, they need have no fear for the business," he added.

PSINet's UK arm reported a profit last year of £7m on revenues of £50m.