Some positive press to start the day ---
From the Financial Times:
THURSDAY MAY 28 1998ÿÿTelecomsÿ
Energis reveals cost-cutting service
By Alan Cane
Energis, the UK telecommunications company, said yesterday it would be the first to offer business customers an advanced service which could sharply reduce their network management costs.
Called "virtual private data networking", the service is possible because of technological advances which enable much of the equipment which customers use to manage their network to be built into the network itself and controlled by the network operator.
The service will provide customers with digital voice and data communications based on internet technology without the need for equipment on their premises.
Energis, which sells to business customers, uses fibre optic lines wrapped round the cables of the National Grid, which has a majority stake in the group.
Chris Burke, Energis network director, said the group was leading the race to virtual data networking because of development partnerships it has signed with Northern Telecom and Newbridge Networks, Canadian based companies which are leaders in telecommunications and data networking.
He said Energis would provide virtual data networking in the third quarter of this year, although he did not expect customers to take the service in large numbers until 1999.
Energis also announced results for the year to March 31 slightly ahead of market expectations. The company, which floated last December, lifted turnover 73 per cent to œ167.9m while earnings before interest, tax, depreciation and amortisation were œ16.1m (œ14.3m losses). The gross profit margin before network depreciation almost doubled from 17.7 to 33.9 per cent. Mike Grabiner, chief executive, said revenues from higher margin, advanced services grew 82 per cent. The company had signed networking contracts with holiday group Going Places and consultancy Ernst & Young. It is also to install a new telecoms system for the National Grid, extending the network by a further 1,450km.
Mr Grabiner said Energis intended to apply for a "third generation" mobile phone licence when the necessary radio spectrum was auctioned next year to create a combined fixed and mobile phone company.
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