Imperial Wireless Chain
The stations exchanged commercial and diplomatic text message traffic transmitted at high speed by Morse code using paper tape machines.
Starting around 1908, industrialized nations built global networks of powerful transoceanic wireless telegraphy stations to exchange Morse code telegram traffic with their overseas colonies.
[4][5] In 1910 the Colonial Office received a formal proposal from the Marconi Company to construct a series of wireless telegraphy stations to link the British Empire within three years.
[6] An expert committee also advised that Marconi were the only company with technology that was proven to operate reliably over the distances required (in excess of 2,000 miles (3,200 km)) "if rapid installation and immediate and trustworthy communication be desired".
[8] Meanwhile Germany successfully constructed its own wireless chain before the war, at a cost equivalent to two million pounds sterling, and was able to use it to its advantage during the conflict.
Parliament's decision came shortly after legal action initiated by Marconi in June 1919, claiming £7,182,000 in damages from the British government for breach of their July 1912 contract, and in which they were awarded £590,000 by the court.
Parliament finally approved an agreement between the Post Office and Marconi to build beam stations to communicate with Canada, South Africa, India and Australia, on 1 August 1924.
[22] Even before the final link became operational between Australia and Canada, it was apparent that the commercial success of the Wireless Chain was threatening the viability of the cable telegraphy companies.
An "Imperial Wireless and Cable Conference" was therefore held in London in January 1928, with delegates from the United Kingdom, the self-governing Dominions, India, the Crown Colonies and Protectorates, to "examine the situation which arose as a result of the competition of the Imperial Beam Wireless Services with the cable services of various parts of the empire, to report upon it and to make recommendations with a view to a common policy being adopted by the various governments concerned.
Due to such factors Cable and Wireless were never able to earn the revenue which had been forecast, resulting in low dividends and an inability to reduce the rates charged to customers as much as had been expected.
[26] To ease the financial pressure, the British Government finally decided to transfer the beam stations to Cable and Wireless, in exchange for 2,600,000 of the 30,000,000 shares in the company, under the provisions of the Imperial Telegraphs Act 1938.
