Cable & Wireless has pulled the plug on troubled unmetered ISP according to a statement posted on Nutshell's website.

"Nutshell is currently in a dispute with Cable & Wireless over modem allocation," said the statement. "Nevertheless, Cable & Wireless has chosen to… terminate Nutshell's service."

Cable & Wireless refused to confirm termination of the service.

Nutshell, meanwhile, is only promising a full refund to customers who purchased an account within the seven days prior to 19 October — the date the service was suspended.

The defunct ISP claimed to be seeking full compensation from Cable & Wireless for all customers, but said it was unable to offer refunds at this time.

In other words if you were a Nutshell customer prior to 12 October and are seeking compensation for the faltering service provided by the ISP, don't hold your breath.

Net in a Nutshell launched back in March, offering an HP PC internet access finance package and started flogging unmetered access in May.

The unmetered service offered five email addresses and 5MB of Webspace, at a cost of £29.99 for the first 3 months, payable in advance.

After an initial honeymoon period in which the ISP attracted rave reviews, the service ground to a halt with users complaining of poor download speeds and engaged tones.

PC Advisor reader James Veale was lucky. He received a letter this morning from his credit card company confirming a full refund for the £29.97 three month sign-up, which was debited by Nutshell on 8 October. So well done James.

The demise of Nutshell will come as a blow to non-BT phone customers — it was one of the only viable unmetered option bar AOL.

All customers who believe they are entitled to receive a refund once settlement is reached should send an email requesting to be added to the list for refunds through [email protected].