Energis says the success of the UK's free ISP Freeserve could drive its network traffic up substantially over the next few years.
Uptake of the Freeserve service from Dixons has been "remarkable" since its launch in September, and the long term impact on Energis' traffic could be substantial, according to Energis' chief executive Mike Grabiner.
Freeserve, has signed up more than 475,000 customers since September. Dixons Group operates Freeserve using Planet On-line, Energis' ISP division, which itself uses Energis' network.
"Whilst it is still too early to judge the long term traffic growth, the indications are that this could be substantial," Grabiner said in his remarks accompanying the company's latest financial results.
Energis said that it had almost halved its operating losses during the last few months. For the six months ending 30 September, the telecomms network operator reported a pre-tax net loss of #16.1 million, compared with #31.7 million during the same period last year.
Turnover for the six months increased by 76 per cent to #121.7 million. Basic telephony generated #42.3 million and advanced services, such as virtual private networks and frame relay, pulled in #55.4 million.
Demand for broadband advanced voice and data services is growing rapidly, according to Grabiner. New major customers include Renault, for a national data network, and both DHL and Whitbread for VPN services.
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