WAM!NET has dismissed rumours that it will go under and says it is on target to become self-financing by the end of the year.


Speculation has surrounded it since the news that Vio was to cease trading this summer. This was fuelled by comments from its auditors in documents WAM!NET filed with the US Securities and Exchange Commission on the need to secure additional funding to carry on operations.


"Its encouraging that people take that amount of interest," said European managing director Chris Friend.


"The industry needs WAM!NET," said TAG Worldwide director Steve Parish, a Vio and WAM!NET customer. "People have only realised their dependence on these services now one is being taken away."


A company statement said it remained confident in its ability to raise the necessary finance. Since the filing of the documents at the end of last year it has secured 21m ($30m) of financing and is negotiating for more.


To cut costs it laid off 105 workers in the US last week, about 20% of the workforce, but there were no losses in Europe, said Friend.


It has new services such as ISDN Connect and a new pricing structure will be launched next week.


Story by Barney Cox