Firecrest Group Plc is set to sell its worldwide rights to the Internet Transphone and Collect loyalty scheme to newly-formed Netex Network Communication Corp. London-based Firecrest began life as an advertising and marketing company, but redirected its focus towards the Internet after it flotation on London’s Alternative Investment Market last August. Around the time of the flotation, Firecrest purchased UK and Ireland distribution rights to the DigiPhone Internet telephony software from Dallas, Texas- based Camelot Corp, with options to buy the worldwide distribution rights.The software enables users to make long- distance telephone calls via the Internet at the cost of a local call. The service was far from ideal. Instead of a standard handset, users need speakers and microphones, and each call is charged via a credit card. Due to security worries and the less than brilliant sound quality of the DigiPhone, Firecrest decided to relinquish its distribution options, and concentrate on developing a secure, high quality Internet telephony service. The company now has a working prototype of the Internet Transphone, developed in partnership with secure electronic financial transaction specialist Dione Development Corp, and said it hopes to have the product on the shelves in time for Christmas. The telephone unit needs no additional speakers or microphones and all calls, or anything purchased via the Internet, are paid for with a Smart Card via an in-built port. TransPhone’s distribution rights to Germany, Austria and Switzerland have already been sold to London-based Telecom Credit Europe Plc, and Scandinavia has gone to Multi Media Publishing AS. Now the company is looking to crack the US market. Netex comprises a group of international investors. Firecrest will receive $6 m cash over the next two years and $6m on completion by the issue of 500 ordinary shares, equivalent to $12,000 per share, or 50% of the share capital of Netex. So, is off-loading 50% of its interests in the TransPhone tantamount to selling the fami ly silver? Not really – Without a partner with established contacts in the US, Firecrest wouldn’t stand a chance selling the TransPhone. At this stage it is not clear whether Netex intends to retain the distribution rights itself or sell them on to third parties, but the company said it is preparing to float on Nasdaq in the short term. When the US market is established, Netex will launch the Collect Internet loyalty scheme; similar to the multiple supermarket and gas station schemes, users will gain points from Internet service providers – though Manning could offer no clues as to the rewards. Firecrest will be left to develop its Global On line Directory, modestly refered to as GOD, the Internet directory service it claims helps Internet users find what they seek from the morass of information available on the computer network. Since GOD’s launch in January, its estimated the service receives anything up to 100,000 hits a day, and the company said it is working on a scheme to run advertising alongside the service.
