what does mul do?

In other words what will the satellite do?One customer does this...........

Transcomm PLC

CE says Transcomm is a profitable company with a strong balance sheet and good cash position

ANDREW CARVER is the Chief Executive of Transcomm plc

TWST: Can we start with an introduction to Transcomm (London:TRC.L) and then bring us up-to-date with how you see the company positioned today?

Mr. Carver: Transcomm (LSE: TRC.L - news) owns and operates a national wireless data network across the UK for the provision of business critical mobile data services and is listed on the AIM exchange in the UK. It was formed through the acquisition and merger of several companies, the main component being RAM Mobile Data, which had been operating in the UK since 1992 and was bought from BellSouth (NYSE: BLS - news) in June 2000. Some of the acquired group companies that were primarily involved in software and mobile product development were subsequently divested of in 2001 because they were not contributing to the profitability of the core network services business and were in conflict with several of Transcomm's distribution Partners.The core business for Transcomm now is in providing network services for enterprises with large workforces of mobile data users or with widespread installations of remote devices throughout the UK. Our network has been specially designed to meet the needs of business critical communications. We have been successful across a wide range of industries such as the emergency services, transport and distribution, local authorities, field services and telemetry. Together with our software and system integration partners, we provide solutions for applications such as automatic vehicle location (AVL) using GPS satellite tracking, load monitoring of trucks and vehicles, proof of delivery for courier dispatch organizations, wireless credit card authorization, messaging, secure database access and machine monitoring. Our proposition is straightforward; we seamlessly connect the offices, the mobile staff, and the customers of companies around the UK making up-to-the-minute information available whenever and wherever it is needed, securely and reliably. This allows companies to run their business more efficiently and more profitably.

TWST: Can you give us a further insight into Mobitex technology? Why is it an effective choice for wireless data communications?

Mr. Carver: The Mobitex technology was developed by Ericsson (Stockholm: ERICb.ST - news) and has proven to be very secure and very reliable. There are now 31 different Mobitex networks operating around the world in 21 countries. Ericsson continue to sell Mobitex networks, the most recent being in China and also Brazil. We still work very closely with Ericsson for both ongoing network development as well as joint sales activities. Our network has an established and proven track record which is of significant importance to existing and new customers. The fact that many of our customers are in emergency services and use our network without any additional encryption endorses the security of data that is carried over our network. Recently launched GPRS data services provided by mobile phone operators by contrast need additional encryption and software which results in a significant data overhead to provide suitable levels of security and data auditing. This is why our network is chosen by companies who depend on knowing that their mobile data will always get there whatever the circumstances. That's why we focus on those sectors for whom reliable mobile data is an essential requirement for their business.

TWST: What are your key objectives for the next 12 to 24 months and what accomplishments will make that time period a success?

Mr. Carver: The key objective is to maintain the profitability of the business and then obviously grow upon that. You know, there has been a checkered past to the company in its previous incarnation. Over the years it has not been a profitable organization. It is now, and we will continue to grow that profitability and add new subscribers to the network, but in the key sectors that we want to operate in rather than across the board. And in terms of ARPUs, we will aim to ensure there's a mix across the different sectors, because it varies depending on the type of application and amount of data being transferred by each user each month. We will also continue to invest in the network this year to enhance network efficiencies and minimize operating costs.In terms of the future, we will continue exploring ways of adding value to our core network service offering. It's not realistic for us to provide all of the elements of a mobile data solution on our own, so we will build on the very close working relationships with our Partners with a view to adding value to their solutions and working with them to address new markets. Some of our Partners, for example, may be very good at technical developments, licensing software or developing hardware, but packaging that offering, getting it out to the end users, and putting a proposition around that may not be their strength. That's something we add value to. So, part of our strategy over the next 12 months is to work closer with strategic partners through joint sales and marketing activity for a larger share of the value chain beyond the transport of data across the network. This would involve professional services and the provision of network integration services to enhance our network coverage into new markets. We do not intend to write applications because that's what our Partners do. But there is a requirement for middleware, which allows the applications to talk efficiently to our network. We will carry on our with the development of middleware as necessary, supporting Partners and continuing to adapt our services to meet evolving customer needs and new emerging markets.