TTP Comms brings investors into ip.access for £8.5m in drive for expansion
Stephen Mallinson, ip.access' CEO, said the investment "will enable us to accelerate the development of our 3G Access Point to allow operators to cover homes and small businesses and provide converged fixed-mobile services at prices competitive with fixed-line services where people live and work.
"It also helps us to expand our GSM market, addressing new opportunities such as those opened up by the forthcoming auction of 1800 MHz spectrum in the UK."
TTP is a holding company controlling three organisations involved in different areas of mobile communications technology: After the transaction is signed off, TTP will hold 47.5% (42.0% fully diluted) of ip.access.
ip.access will seek a further £2m to be used to re-purchase shares held by TTP, which would reduce TTP's holding to 36.5% (32.3% fully diluted).
Revenue above expectations
TTP MD and ip.access chairman Tony Milbourn (pictured) said that ip.access' revenues have exceeded original expectations this year and "are poised to grow sharply again in the year ahead".
But, he said, "it became clear early last year that if the business was going to capitalise on the technology lead that our investment to date had given it, then it would need to extend its product range to cover 3G and for this additional investment would be required".
The deal will enable the business to reach profitability during the next twelve months, he said. At 31 March 2005, the most recent reporting date, ip.access had gross assets of £4.7m and recorded losses before tax for the year then ended of £4.6m.
Founded in 1999, ip.access produces and sells globally the world's smallest GSM base stations, designed to be deployed inside buildings to communicate with operator's infrastructure using standard broadband IP links.
Its nanoGSM equipment is used by operators including T-Mobile USA, Telfort (Netherlands), Spring Mobil (Sweden), Smart (Philippines), and Eurotel in the Czech Republic. In 2004 the company signed a global Original Equipment Manufacturer (OEM) agreement to allow Siemens Mobile to distribute nanoGSM as part of its enterprise portfolio.
13th March 2006
