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Ionica (company)
Encyclopedia
Ionica was a domestic telecoms provider based in Cambridge
, UK
, between 1995 and 1998.
Founded in 1991 Ionica offered an alternative to British Telecom, but technology costs and limiting factors caused the company to cease trading.
The Ionica system used a microwave
transmitter in order to provide the local loop
, thus avoiding reliance on British Telecom for this final link to the consumer. The technology, known as Wireless local loop
(WLL
), was developed in partnership with Nortel
.
At the peak of the dot-com boom Ionica was valued at over one billion pounds, making it the first Silicon Fen
company to take such a distinction. The company floated in July 1997 with shares initially trading at 390p.
The company’s initial aim was to take twenty percent of the domestic market with offers such as multiple ringing tones and a free second line but the technology used proved to be limited, with heavy rain and local radio transmissions interfering with calls. Despite the technology having been used with great success in remote areas of Canada
, it proved to be unsuitable when placed in a British
urban setting.
First signs that Ionica was in trouble came when expansion plans were put on hold in an attempt to improve service and add much needed capacity in existing markets such as Yorkshire
, The Midlands
and East Anglia
.
By March 1998 the company was looking to bring in an outside investor
and shortly after failed to agree terms with existing investors for the £300 million debts already accumulated. By August of that year Ionica had failed to find a 'strategic partner', and despite strong assurances that cash resources of £45 million would keep the company solvent
until January many observers predicted an imminent end.
On Thursday October 29, 1998 administrators
were finally called in and the company's assets were valued at £250 million. The following Monday administrators made half the company's 1,200 staff redundant.
From December 1998 onwards Ionica's 62,000 customers were gradually migrated to BT with special prices being offered. In the mean time BT also supported Ionica financially, allowing customers to continue using their phones.
Service finally stopped on February 28, 1999.
The former Ionica building was constructed in 1994 and is located on St John’s Innovation Park, adjacent to the A14. Despite an apparently desirable location the building has remained vacant for much of the time since the demise of Ionica. CSR plc
moved into this building in May 2007.
The administration process was finally wound up in March 2009.
Cambridge
The city of Cambridge is a university town and the administrative centre of the county of Cambridgeshire, England. It lies in East Anglia about north of London. Cambridge is at the heart of the high-technology centre known as Silicon Fen – a play on Silicon Valley and the fens surrounding the...
, UK
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, between 1995 and 1998.
The Ionica system used a microwave
Microwave
Microwaves, a subset of radio waves, have wavelengths ranging from as long as one meter to as short as one millimeter, or equivalently, with frequencies between 300 MHz and 300 GHz. This broad definition includes both UHF and EHF , and various sources use different boundaries...
transmitter in order to provide the local loop
Local loop
In telephony, the local loop is the physical link or circuit that connects from the demarcation point of the customer premises to the edge of the carrier or telecommunications service provider's network...
, thus avoiding reliance on British Telecom for this final link to the consumer. The technology, known as Wireless local loop
Wireless local loop
Wireless local loop , is a term for the use of a wireless communications link as the "last mile / first mile" connection for delivering plain old telephone service and/or broadband Internet to telecommunications customers....
(WLL
WLL
WLL can refer to:* Wireless local loop* West London Line, a railway line in London.* With Limited Liability, referring to limited liabilitiy companies * Whole Lotta Love, song by the band Led Zeppelin...
), was developed in partnership with Nortel
Nortel
Nortel Networks Corporation, formerly known as Northern Telecom Limited and sometimes known simply as Nortel, was a multinational telecommunications equipment manufacturer headquartered in Mississauga, Ontario, Canada...
.
At the peak of the dot-com boom Ionica was valued at over one billion pounds, making it the first Silicon Fen
Silicon Fen
Silicon Fen is the name given to the region around Cambridge, England, which is home to a large cluster of high-tech businesses focusing on software, electronics, and biotechnology...
company to take such a distinction. The company floated in July 1997 with shares initially trading at 390p.
The company’s initial aim was to take twenty percent of the domestic market with offers such as multiple ringing tones and a free second line but the technology used proved to be limited, with heavy rain and local radio transmissions interfering with calls. Despite the technology having been used with great success in remote areas of Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
, it proved to be unsuitable when placed in a British
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
urban setting.
First signs that Ionica was in trouble came when expansion plans were put on hold in an attempt to improve service and add much needed capacity in existing markets such as Yorkshire
Yorkshire
Yorkshire is a historic county of northern England and the largest in the United Kingdom. Because of its great size in comparison to other English counties, functions have been increasingly undertaken over time by its subdivisions, which have also been subject to periodic reform...
, The Midlands
English Midlands
The Midlands, or the English Midlands, is the traditional name for the area comprising central England that broadly corresponds to the early medieval Kingdom of Mercia. It borders Southern England, Northern England, East Anglia and Wales. Its largest city is Birmingham, and it was an important...
and East Anglia
East Anglia
East Anglia is a traditional name for a region of eastern England, named after an ancient Anglo-Saxon kingdom, the Kingdom of the East Angles. The Angles took their name from their homeland Angeln, in northern Germany. East Anglia initially consisted of Norfolk and Suffolk, but upon the marriage of...
.
By March 1998 the company was looking to bring in an outside investor
Investor
An investor is a party that makes an investment into one or more categories of assets --- equity, debt securities, real estate, currency, commodity, derivatives such as put and call options, etc...
and shortly after failed to agree terms with existing investors for the £300 million debts already accumulated. By August of that year Ionica had failed to find a 'strategic partner', and despite strong assurances that cash resources of £45 million would keep the company solvent
Solvent
A solvent is a liquid, solid, or gas that dissolves another solid, liquid, or gaseous solute, resulting in a solution that is soluble in a certain volume of solvent at a specified temperature...
until January many observers predicted an imminent end.
On Thursday October 29, 1998 administrators
Administrator (law)
In law an administrator can be:* a person appointed by the court to handle the estate of someone who died without a will ....
were finally called in and the company's assets were valued at £250 million. The following Monday administrators made half the company's 1,200 staff redundant.
From December 1998 onwards Ionica's 62,000 customers were gradually migrated to BT with special prices being offered. In the mean time BT also supported Ionica financially, allowing customers to continue using their phones.
Service finally stopped on February 28, 1999.
The former Ionica building was constructed in 1994 and is located on St John’s Innovation Park, adjacent to the A14. Despite an apparently desirable location the building has remained vacant for much of the time since the demise of Ionica. CSR plc
CSR plc
CSR , or Cambridge Silicon Radio, is a company based in Cambridge, England. CSR is a fabless semiconductor company whose main product lines include connectivity, audio and location chips. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index...
moved into this building in May 2007.
The administration process was finally wound up in March 2009.