Scottish Telecom has halted the rollout of a fixed wireless access service based on the same technology as failed operator Ionica.
"We are not selling the service at the moment but we provide it for existing customers," admitted a spokesman for Scottish Telecom.
Wireless technology has been touted as a way of providing low cost telecoms services to residential and small business customers because it does not require digging up roads and laying cables.
The spokesman added: "It is on hold so we can have a look around to see what we can do to provide the best service to customers." He refused to say whether the service, which has 6,000 customers, would be rolled out further or closed altogether.
In April 1997, Scottish Telecom unveiled its plans to push into the residential market with a £90 million investment in the fixed wireless access service based on Nortel's Proximity technology, as used by Ionica.
Ionica and closed its services in February last year. Its wireless links suffered problems, such as obstruction by tall buildings.
Ovum analyst John Matthews said Ionica failed because it did not establish a working model for its service, not because of any fault with the technology. He added, however, that wireless technology is better suited to areas where there is no alternative to the monopoly telco.
"This sort of service is squeezed between the cheap and cheerful and new broadband services," he noted.
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