The failure of Ionica to find a buyer may mark the end of fixed wireless telecomms in the UK, according to analysts.
Ionica, founded by Nigel Playford, had been confident of rescue by a new investor, but last Friday called in administrators and said it was "unlikely that any transaction on terms acceptable to Ionica shareholders can be concluded before Ionica's cash reserves are exhausted" (see Newswire 30 October).
The commercial failure of Ionica and the relatively slow speed of its technology means few other companies will be willing to make similar attempts to roll out fixed wireless networks.
The company had ambitious plans to roll out a national fixed wireless telecomms network to rival BT's access to homes and offices, but was hampered by software problems.
According to one prospective customer, the company was taking deposits for network installations from the public until the day before it made the announcement.
"I put a #100 deposit down on Thursday morning, they said they would ring back to schedule an installation that day. When I rang on the Friday I got the message about the administrators," he said.
Ovum consultant Adrian May said that, while fixed wireless is successful in mainland Europe and in Scotland, "a lot of people have been burned, and anyone that says they are building a wireless network will be laughed at. You won't be able to raise money to do that now".
Steve Ranger is a reporter on Computing.
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