Broadband provider Perlico plans to move into the mobile market in 2007 as it prepares for an initial public offering on the Alternative Investment Market (AIM) in London next September.
Chief executive Iain MacDonald said the company was in talks to rent wholesale airspace from an established mobile player to set itself up a mobile virtual network operator (MVNO).
He declined to say who the other party was, but said Perlico hoped to be in a position to offer a regular 2½G service as well as a more advanced 3G service. Information for briefings with potential advisers suggests the service will be called Perlico Mobile.
In business since 2003, Perlico's owners include Mr MacDonald and his father Malcolm, a former corporate financier with ICC and Bank of Scotland. Shareholders include Ged Pierse of Pierse Construction, and non-executive directors David Martin (formerly of IAWS) and entrepreneur Dr Jim Mountjoy.
Perlico has expanded its broadband and fixed-line subscriber base to 65,000 from 10,000 at the start of this year. Mr MacDonald said it aimed to have in excess of 140,000 customers by the time it takes out a listing on the AIM next autumn. "The reason that we are not floating before that is that we don't have to . . . The aim is to create a large, profitable business and an Irish success story," said Mr MacDonald.
He said the company should be seen more as a "service retailer" than a telco, as it planned to use its highly-targeted direct marketing model in the electricity and financial services sectors.
Mobile operator O2 recently looked at buying the company but the talks were inconclusive.
With the declaration of Perlico's intention to float coming as rival Smart Telecom struggles for survival, Mr MacDonald argued his firm's model is more efficient.
Perlico expects to record revenues of €70 million in the 12 months to September 2007 and it expects to be profitable in that period. However, soon to be filed abridged accounts for 2005 will show the deficit in Perlico's profit-and-loss account widened by €1.5-€2 million.
Mr MacDonald declined to say how much of Perlico will be floated but said it hoped to raise €25 million in the process. The money will be used to fund the expansion into mobile and the provision of new services such as on-demand television and video on broadband networks.
Perlico's direct marketing system is similar to that of Dell. The system enables Perlico to track the uptake of customers from individual marketing campaigns, and its direct telephone and online ordering system is automated. "We believe there's a tremendous opportunity to replicate the model in EU accession states in the next two to three years."
Perlico bought small-scale electricity supplier Direct Independent Energy in February and will expand that business when its judges the time to be right.
