Feeds

Iomart sells Madasafish

And slams Oftel over broadband

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

Iomart, the Scottish-based ISP has sold its Madasafish consumer operation to an undisclosed buyer for £3m in cash.

The company will stick to web hosting for businesses and other Internet operations.

Although the sale of Madasafish improves Iomart's cash reserves, which stood at £12m at December 31, and reduces its operating losses (current cash burn is £500K a month), the company sounds pretty bitter about the consumer ISP experience.

Against a competitive backdrop and reduced marketing spend, the company had managed to increase registrations for Madasfish by 200,000 over the year, a credible performance, the company argues.

But the "whole industry was ambushed by companies with naive and inexperienced management teams clambering over one another to announce ever more 'free' services to the customer," chief executive Angus Macsween said in a statement.

Iomart had neither the resources or the desire to go down the free road. Its decision to avoid this route had been vindicated by the number of ISP failures and collapsing values for the survivors, according to Macsween.

"This climate was also compounded by ill-informed commentators who were bemoaning the high-cost of Internet access in the UK. In fact for average users of around 400 minutes or less per month the UK has had probably the cheapest Internet access in the world," he claimed.

Macsween also attacked Oftel over the ADSL local loop unbundling pricing policy the regulator had agreed with BT.

"We quickly learned that building any competing network to BT under the scenario envisaged by Oftel was untenable, as the economics are fundamentally flawed by the BT price structure agreed by Oftel. In the absence of a major policy shift, we believe that BT will remain a de facto monopoly for the forseeable future."

For this reason, Iomart restricts itself to reselling BT's broadband prodcuct - it reckons it is third or fourth in the ADSL market in terms of installed connections and "sales continue to grow".

Iomart announced the disposal of Madasafish at the same time as its annual results. The company lost £4.4 million prior to one-off costs on sales of
£3.6 million.

Security for virtualized datacentres

More from The Register

next story
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Blockbuster book lays out the first 20 years of the Smartphone Wars
Symbian's David Wood bares all. Not for the faint hearted
Bonking with Apple has POUNDED mobe operators' wallets
... into submission. Weve squeals, ditches payment plans
This flashlight app requires: Your contacts list, identity, access to your camera...
Who us, dodgy? Vast majority of mobile apps fail privacy test
Apple Watch will CONQUER smartwatch world – analysts
After Applelocalypse, other wristputers will get stuck in
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.