Deal to keep phones connected

Customers were due to be cut off on Sunday

A £500,000 eleventh hour deal has been done to stop customers of beleaguered telcoms firm Atlantic having their phones cut off.

The lines were due to stop ringing on Sunday for 2,000 businesses and 10,000 domestic customers.

But it was confirmed on Saturday that the stop-gap package had been agreed by the Scottish Executive and the Department of Trade and Industry.

The company was placed in administration last month after debts soared to £700m.

Atlantic Telecom customers will now have until January 2 to find a new supplier.

Cost thousands

Businesses affected by the collapse say they are angry at having to change their numbers, a move which they reckon will cost them thousands of pounds.

They want their numbers to be transferred to other providers, which are stepping in to take on their services.

But providers such as BT have so far ruled out the switch as too costly and time-consuming.

Businesses and jobs across the country were at risk - despite real legal and technical constraints hard work won through

Douglas Alexander, DTI minister

In June, the Aberdeen-based firm, which operated business telecoms networks in the UK, Germany and the Netherlands, reported mounting losses.

However, just under two years ago, Atlantic was valued at more than £1bn.

By August it confirmed it was in talks about its future and the following month some bondholders were pressing for Atlantic to be wound up.

Now it is has collapsed and is desperate to find a buyer which will take over.

Wendy Alexander announced the deal

The deal to help customers was announced on Saturday by Douglas Alexander, from the Department of Trade and Industry, and Scotland's Enterprise Minister Wendy Alexander, who is the sister of Douglas.

Mr Alexander said: "Action was needed, so we listened, we worked, and we have now delivered this rescue package.

"The package is the result of intense discussions involving DTI, Scottish Executive, Oftel, BT, the administrators for Atlantic and telecom providers.

"Businesses and jobs across the country were at risk. Despite real legal and technical constraints hard work won through."

Smooth transition

Mr Alexander added: "Now this rescue package has been delivered, we will consider whether action is needed to ensure the regulatory framework meets the challenges of a competitive market."

He said the parties involved would continue to work together to seek the smooth transition of services and minimise the disruption to businesses affected.

Don McKay is still not happy

However, Ms Alexander added: "Despite a number of difficult legal and technical issues, we were determined to ensure that Atlantic subscribers have enough time to arrange their transition to other telephone providers and help businesses alert their customers to the new arrangements.

"Hurdles such as state aids and insolvency legislation have been overcome by hard work all round."

And Atlantic customer Don Mackay says he remains unhappy with the situation.

"What I want to see happen is to be given an opportunity for my business to thrive on the business number it was founded.

"That is my goal and that is the goal of every other Atlantic customer.

"If that is taken away from us then it sends us all back to a perilous position," he said.