The latest instalment in the incredible saga of NUS Online involves the failure of the company at the other end of the NUS's controversial deal.

It was in September 2000 that the NUS unveiled its link-up with ITM Communications Ltd. Describing it as an 'online revolution', they launched ITM Activate, which would be responsible for NUS Online. In return for 5% of the new company when it floated - an estimated £50 million - the NUS signed away the rights of its website for thirty years. And not just its own website, but also the websites of any of the affiliated unions that chose to be hosted by the same company, who would be charged for the benefit. The deal also included exclusive advertising rights and the creation of a mailing list to bombard NUS members with emails on products and special offers. Understandably, take-up amongst its members was slow.

Unfortunately for the NUS, the DotCom bubble burst and ITM Activate lost a huge proportion of its estimated value. The NUS share was estimated at just £5 million - one tenth of the original figure it was promised.

Now the NUS aren't likely to get anything at all. ITM Activate never floated and there is little chance of ITM Communications' receivers coughing up. It has since emerged that at the time the deal was first agreed, ITM Communications was already in debt to the tune of several million pounds.

A hurried release from NUS HQ advises its affiliates not to panic, as 'students' union (sic) websites hosted through ITM will stay up' in the short term whilst they try to negotiate 'a seamless solution'. But with ITM's get-out clauses that 'do not guarantee any level of service' and allow for websites to have 'unlimited downtime', the long-term prospects do not look good. This is presumably why, 'as a precaution [the] NUS advises unions with sites hosted by ITM to ensure that they take a back up'.

The release concedes that 'the situation ... is very difficult' and that 'NUS fully realises that the ITM deal has not been without its critics.' It seems those critics might have had a point.