Signalling the end of British Telecommunications Plc-Mercury Communications Ltd duopoly in the UK telecommunications market, the Department of Trade & Industry yesterday granted a full carrier licence to Ionica L3 Ltd, the Cambridge company that wants to provide a full nationwide telephone service using digital radio communications. The main shareholders in Ionica are Yorkshire Electricity Group Plc, 3i Plc, Kingston Communications (Hull) Plc and Robert Flemings Investment Trust Ltd. Ionica says it aims for a 5% share of the market within 10 years and promised to undercut British Telecom across the board, signing its first subscriber by the end of next year. It is forecasting that peak funding, the point at which revenue balances expenditure, will be no more that UKP100m; it expects to be profitable after three years, going after the residential and small business markets; it says it has been talking with Mercury and British Telecom about interconnection for about a year and will see which one comes up with the best deal. Ionica has a short list of two contending to be the manufacturing partner for the radio equipment that will form the basis of the network. In making the announcement, the Department of Trade & Industry said that no decision had yet been reached on the applications for licences from WorldCom International Inc, National Network Ltd and Millicom (Holdings) Ltd, and that public consultation will take place on licence applications for a variety of services by Vodafone Group Plc, Telecom Electric Ltd, Scottish Hydro-Electric Plc, Scottish Power Plc, Millicom and City of London Telecommunications Ltd.
