View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
August 21, 1997updated 03 Sep 2016 1:58pm


By CBR Staff Writer

Ionica Plc, the Cambridge, UK telecoms company pioneering a local loop telephone service based on low installation cost radio telephony units, has seen its fist quarter losses deepen as start-up costs increase. The company floated simultaneously in London and on the Nasdaq in July but the shares are currently trading at a 6% discount to their issue price of 390 pence. Net losses for the quarter were 30.3m pounds, up from losses last year of 1.3m pounds on revenue of 2.0m pounds up from 26,000 pounds. Heavy cash spending amounted to 34m pounds on operating costs and a further 22m pounds from expenditure on network and other fixed assets. Ionica claims to have connected 24,552 customers up to June 30th, most of whom will have been poached from British Telecommunications Plc as Ionica targets areas where until now, phone users have had no alternative to BT. Ionica’s network of base stations (which connect radio linked subscribers to the main telecoms infrastructure) now covers an estimated 1.4 million homes, mainly in the midlands region of the UK, with claimed penetration rates as high as 2.8%. Ionica is also claiming a high uptake of its second line facility in conjunction with free connection from VirginNet, the Internet Service Provider. All subscribers are provided with a double socket automatically and the second line can be switched on remotely. Future periods may see alternative and additional sources of revenue from overseas as the company currently has its technology on trial with 20 different service providers.

Content from our partners
Powering AI’s potential: turning promise into reality
Unlocking growth through hybrid cloud: 5 key takeaways
How businesses can safeguard themselves on the cyber frontline

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.