Racal Telecommunications Plc and Mercury Communications Ltd have set up Merrac Ltd, a new company that will develop and supply radio-based data communications networks. The two parents each have 50% of Merrac, which will launch services in early 1990; it will initially supply networks for point of sale retailing and financial services, with the originator sending the data by Racal radio and the Mercury network intercepting it for delivery. The companies see growth potential in the market for wireless and mobile data communications that are, for instance, able to supply companies that only require networks for temporary applications; the Department of Trade & Industry has given Merrac permission to use radio links around the 160MHz bandwidth as a means of access to networks. Merrac’s chairman will alternate annually between Cable & Wireless and Racal Telecom management: the position will be filled by Mercury deputy managing director Peter Howell-Davies until March 1990; the new company will be based in Newbury, Berkshire.
