Ionica (company)

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 company’s initial aim was to take twenty per cent 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.

In particular the technology used spectrum at 3.5 GHz, which limited line-of-sight range to the base station and was narrowband, which meant it could not provide broadband Internet access.

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 August 1998 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 1999 many observers predicted its imminent demise.