Dispute Between netTALK And Third Party Provider Affects Customers [UPDATED]

If you rely on netTALK VoIP hardware to get your phone service in Canada, you’ve likely been living through a disruption in service where any any of their customers who have a Canadian number are not able to receive incoming calls from non-netTALK subscribers. Receiving calls from netTALK subscribers or making outbound calls is not an issue. This issue has been going on for a few days now with no resolution. But today, netTALK sent an email to their customers explaining the nature of the issue that they’ve been experiencing. I have reprinted the e-mail below in its entirety:

To our valued netTALK customers in Canada,

We are keenly aware that you have very likely been affected by the service outage affecting all of our Canadian phone numbers. If you are not aware, please be advised that any DUO and smartphone apps with a Canadian number are not able to receive incoming calls from non-netTALK subscribers. Receiving calls from other netTALK subscribers is not, and will not be, affected. In addition, making outbound calls is not, and will not be, affected.

By way of explanation, since 2013, we have worked with Iristel in Canada to provide us with the Canadian phone numbers that you have chosen. Unfortunately, disputes have arisen with Iristel, and on Dec 30th of 2015, we received noticed from counsel representing Iristel demanding we make arrangements to port all Canadian phone numbers to another carrier by Jan 15th, 2016, at noon EST. We, of course, complied with the demand in full and made arrangements to port all numbers seamlessly to a neutral third-party provider, which would have involved no changes or interruptions to your service. Our new provider made multiple attempts to initiate the transfer prior to the deadline, but received no responses at all to those requests. At 12:10 pm on January 15, 2016, your Canadian phone numbers were unilaterally taken offline by Iristel. At 1:28 pm EST that same day (1 hour and 28 minutes after the deadline), we received the “official” rejection from Iristel to our requests to port your numbers to a new carrier. Our attempts to remedy that rejection have been refused by counsel for Iristel, and Iristel has refused to remedy this situation, which was caused by its wrongful conduct.

netTALK believes this tactic by Iristel and its affiliates is in violation of the contract, is unprofessional, and most importantly, leaves innocent customers like you in the crossfire. We know many of you rely on your netTALK phone service to communicate with friends and loved ones. We have received letters from some of you who can’t receive calls from their doctors, or who can’t receive calls from loved ones abroad. That is very troubling to us. Please be assured that we are working with our attorneys both in the United States and Canada, and we are going to pursue Iristel with every legal remedy available to us and to you.

However, we know that does not solve your immediate issue. What you can do now is contact Iristel directly at 1-866-779-IRIS (4747) to try and get your number ported. As an individual telephone subscriber, you should have that right. If you like your service with netTALK, you can try to direct Iristel to port your number to our alternative provider, which we can help arrange with you to directly associate it to your netTALK account. In addition, we are in the process of providing everyone with an additional telephone number. If you like that new number, you can keep it or you can choose a new one from the CONNECT portal, and there will be no need to port your old number. We are also offering discounts on your next renewal. We know this is not easy and does not immediately remedy the disruption you’re enduring, but we hope one of those paths provides an ultimate solution that works for you.

In conclusion, we at netTALK work very hard every day to provide you with a great telecommunications experience at the most competitive prices. These are no doubt challenging times for both of us and we are making the changes necessary to try and resolve this. We are committed to do so, on behalf of all of you who helped build netTALK in Canada and abroad.

Sincerely,
The netTALK Team

So in short, a company called Iristel is in a dispute between them and netTALK. As a result, customers phone numbers, which might as well form their identity to a degree, are being held hostage. Now from what I can tell about this company, Iristel is a company that has multiple lines of business including the porting of numbers. But they also provide VoIP services to businesses, consumers, and wholesale customers. I am guessing that their relationship with netTALK falls into the latter category. I am also guessing that the fact that their VoIP business is something that is in conflict with netTALK’s VoIP business. It could also be the usual reasons like someone didn’t get paid at all or enough, or someone got someone mad. But all those are just guesses. I am reaching out to Iristel for comment. If I hear anything, I’ll let you know.

In the meantime, customers for netTALK are getting the shaft. Now it’s good on netTALK’s part to offer discounts on renewals. But asking consumers to choose a new number is a non-starter. After all, phone numbers form part of ones identity and it’s painful to make that change. It’s also a non-starter for netTALK to ask customers to phone Iristel to get their number ported. Clearly this is a pressure tactic on the part of netTALK. But I am not sure how effective that will be. What is clear is that these two sides need to sort out their issues and restore service to netTALK customers. Otherwise, neither side will win from a PR standpoint.

UPDATE: Iristel responded to me rather quickly via Bob Brehl who thanks to my favorite search engine appears to do media relations for Iristel. Here is their statement in full:

Dear netTalk customers,

We sincerely apologize for the inconvenience you are currently experiencing with your netTalk service in Canada. U.S.-based netTalk is a reseller and not licensed to provide telecom services in Canada so the company rents numbers from Iristel (including yours).

We regret the fact that netTalk customers are in the middle, but we have no choice in this matter. The regulator, the Canadian Radio-television and Telecommunications Commission (CRTC), does not allow Iristel to deal with the customers of our re-sellers. Our hands are tied: netTalk customers must deal with netTalk.

For the past two years, although you have been paying fees to netTalk for your phone service, netTalk has failed and/or refused to make any payment to Iristel for your telecom services provided in Canada. netTalk has run up outstanding fees approaching $2 million owed to Iristel. netTalk’s behavior when it comes to paying its vendors was discussed publicly by netTalk’s employees in the past on forums: http://www.dslreports.com/forum/r29027673-General-NetTALK-Forum

After months and months of payment requests, Iristel gave final notice to netTalk in December to either pay the overdue amount, or we would have no choice but to shut off the phone lines. We asked them to move your number to another provider by January 15, 2016 so you would not be turned off. Unfortunately, they did not respond until less than 24 hours before the deadline, and did not even ask to move your number until after the deadline and after your line was shut off. We cannot operate a business without receiving payments for services rendered.

We strongly recommend you contact customer support at netTalk immediately, and demand that they make payment of their overdue Canadian fees so that your number gets turned back on. You can also contact their CEO, Anastasios Kyriakides, at takis@netTalk.com to make the same demand. 

If you are truly dissatisfied with the way that netTalk has handled the situation, it is completely within your rights to complain to the CRTC using this link http://www.crtc.gc.ca/eng/question.htm

It sounds like both sides are pointing the finger at each other. That means that this is unlikely to get resolved soon. A pity for those who’s numbers are being held in limbo.

9 Responses to “Dispute Between netTALK And Third Party Provider Affects Customers [UPDATED]”

  1. NetTalk Bill
    Actions

    Anastasios Kyriakides (takis@nettalk.com)
    Add to contacts
    7:50 AM
    [Keep this message at the top of your inbox]
    To: Ron Poppe
    takis@nettalk.com
    Dear Ron,

    We apologize you are unfairly caught in the middle of this situation. That is not fair to you. As Iristel stated, they should allow you to move your number to their independent Voice Over IP service, or to another provider.

    As we mentioned in prior communication, disputes have arisen with Iristel, and on Dec 30th of 2015, we received noticed from counsel representing Iristel demanding we make arrangements to port all Canadian phone numbers to another carrier by Jan 15th, 2016, at noon EST. We, of course, complied with the demand in full and made arrangements to port all numbers seamlessly to a neutral third-party provider, which would have involved no changes or interruptions to your service. Our new provider made multiple attempts to initiate the transfer prior to the deadline, but received no responses at all to those requests.

    We understand this is not easy and does not immediately remedy the disruption you’re enduring. We will extend your service for one entire year for free. This option will be available in the CONNECT portal after approximately 2pm EST today:

    CONNECT Portal: http://www.nettalkconnect.com

    To sign in, use the email associated with your DUO as the Username, and the same password for the Password field.

  2. We are keenly aware that you have very likely been affected by the service outage affecting all of our Canadian phone numbers. If you are not aware, please be advised that any DUO and smartphone apps with a Canadian number are not able to receive incoming calls from non-netTALK subscribers. Receiving calls from other netTALK subscribers is not, and will not be, affected. In addition, making outbound calls is not, and will not be, affected.

    By way of explanation, since 2013, we have worked with Iristel in Canada to provide us with the Canadian phone numbers that you have chosen. Unfortunately, disputes have arisen with Iristel, and on Dec 30th of 2015, we received noticed from counsel representing Iristel demanding we make arrangements to port all Canadian phone numbers to another carrier by Jan 15th, 2016, at noon EST. We, of course, complied with the demand in full and made arrangements to port all numbers seamlessly to a neutral third-party provider, which would have involved no changes or interruptions to your service. Our new provider made multiple attempts to initiate the transfer prior to the deadline, but received no responses at all to those requests. At 12:10 pm on January 15, 2016, your Canadian phone numbers were unilaterally taken offline by Iristel. At 1:28 pm EST that same day (1 hour and 28 minutes after the deadline), we received the “official” rejection from Iristel to our requests to port your numbers to a new carrier. Our attempts to remedy that rejection have been refused by counsel for Iristel, and Iristel has refused to remedy this situation, which was caused by its wrongful conduct.

    netTALK believes this tactic by Iristel and its affiliates is in violation of the contract, is unprofessional, and most importantly, leaves innocent customers like you in the crossfire. We know many of you rely on your netTALK phone service to communicate with friends and loved ones. We have received letters from some of you who can’t receive calls from their doctors, or who can’t receive calls from loved ones abroad. That is very troubling to us. Please be assured that we are working with our attorneys both in the United States and Canada, and we are going to pursue Iristel with every legal remedy available to us and to you.

    However, we know that does not solve your immediate issue. What you can do now is contact Iristel directly at 1-866-779-IRIS (4747) to try and get your number ported. As an individual telephone subscriber, you should have that right. If you like your service with netTALK, you can try to direct Iristel to port your number to our alternative provider, which we can help arrange with you to directly associate it to your netTALK account. In addition, we are in the process of providing everyone with an additional telephone number. If you like that new number, you can keep it or you can choose a new one from the CONNECT portal, and there will be no need to port your old number. We are also offering discounts on your next renewal. We know this is not easy and does not immediately remedy the disruption you’re enduring, but we hope one of those paths provides an ultimate solution that works for you.

    In conclusion, we at netTALK work very hard every day to provide you with a great telecommunications experience at the most competitive prices. These are no doubt challenging times for both of us and we are making the changes necessary to try and resolve this. We are committed to do so, on behalf of all of you who helped build netTALK in Canada and abroad.

    Sincerely,
    The netTALK Team

  3. The CRTC is now aware of the problem and have contacted both parties. No one in this business wants to cross the all powerful CRTC, so hopefully a CONSMER based resolution is found very quickly. We have no incoming calls for days and it,s costing us money.

  4. Ron Savage Says:

    The villains here are Iristel. They are holding Canadians hostage in a money dispute. I have contacted them to port my number over as it is my only phone and I have a serious medical condition. My healthcare providers have provided me with an emergency number to call, however the oncall specialist phones back as soon as he is available. I cannot receive these calls. I have contacted Iristel but their reaction is contact Nettalk, have them pay us $2,000,000 in dispute and we will release your number, otherwise we are not interested in helping you. Obviously the health and even life of Canadians like me in this situation are not important to them.

  5. A Gauthier Says:

    I contacted CRTC and I got a case file opened. I was informed to contact : The Commissioner for Complaints for Telecommunications Services (CCTS)
    https://www.ccts-cprst.ca/complaints/how-to
    to make a formal complaint. I was also informed that if I wanted my “Iristel” phone number, I would probably have to select Iristel as my phone service provider…! This is a bummer as I recently renewed my service with Nettalk for additional years and I am not very happy with the idea of changing my phone number. My choices are limited: either I stick with Nettalk (until end of subscription) and go thru the routine of changing my phone number, or try to sign up with Iristel and keep my phone number (there is no guarantee that Iristel can give me back my phone number…!). I am damn if I do and I am damn if I don’t….!

  6. Something bothers me and I’d love to get some clarifications about Bob Brehl’s statement from Iristel made to you, and I quote:

    “We regret the fact that netTalk customers are in the middle, but we have no choice in this matter. The regulator, the Canadian Radio-television and Telecommunications Commission (CRTC), does not allow Iristel to deal with the customers of our re-sellers. Our hands are tied: netTalk customers must deal with netTalk.”

    Did (Iristel) get a special dispensation from the regulator over the weekend, because if they didn’t have the right to contact and/or deal with the customers of their re-sellers, how come they’ve sent me an e-mail on Monday morning at 6:28am sharp? Their hands weren’t tied at all! Pressure tactic…obviously.

  7. P. Enright Says:

    I don’t care who is to blame in the dispute between Iristel & NetTalk. The fact is that only Iristel can release my number so I can port it somewhere else.. or they can hold us all hostage. Regardless of wrongdoing by NetTalk, hostage taking is wrong. And it’s illegal to block number portability.
    IRISTEL – fight with NetTalk if you want to, and get your overdue payment, but stop the rhetoric and let us go. Allow everyone to port their number. This is our right !

  8. I Am a canadian customer of nettalk duo and l’ve got 3 nettalk duo
    Account since 3 years ago. I Think that nettalk is an irresponsable
    Cie and my décision is that l’m tonna cancel my account with net talk and make business with magicJack . I’ve already but my
    Knew magic Jack tel. It is important for me that my friends and family could call me in usa and dont havé to pay for long distance call

  9. Not sure what may follow but I have my phone line back with my old number.

    Email that arrived at 123:07 am –

    ALERT! netTALK Canada Service Restored‏ – To our valued netTALK customers in Canada,

    We are very pleased to announce that, effective immediately, all netTALK Canada telephone numbers and services are live and fully functioning.

    According to Anastasios Kyriakides, CEO of netTALK, “We cannot sufficiently express our thanks to our customers for their patience and loyalty, to the relevant Canadian regulatory authorities for their guidance and assistance, and to our telecommunications partners in Canada for their invaluable efforts to finally bring this to a conclusion. Working together, we reached the right result.”

    We will be in touch with each of you to provide any necessary further details, and to compensate you for your inconvenience. And most importantly, we truly appreciate your loyalty to, and trust in, netTALK.

    Sincerely,
    The netTALK Team
    ***Thank you itnerd for running this post to try and keep us all up-to-date on what you knew was happening.

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