FX Internet company yesterday announced the launch of its own web access network by wireless technology on 3.5 GHz bandwidth. The service is called FX Metropolis and covers 80% of Bucharest territory.
"The network, the first of this kind in Romania to become operational, is based on state-of-the-art technology and allows total aggregation up to 272 Mbps on 1,75 MHz channels," Andrei Neagu, the company's general manager, told Ziarul Financiar.
The investment for the total project amounted to 600,000 dollars. The Spike Broadband equipment uses backbone structure provided by Lucent.
"The service will be available at a price starting from 150 dollars monthly. FX Metropolis only targets companies. For the clients, the cost is confined to the service charge, as FX Internet charges no rent for the equipment it installs and gives to the users," Neagu added.
FX Internet last year registered 1.2 million dollars in turnover and expects 10-15% higher value this year. "We hope to retain as many as possible of our dial-up clients and attract 400-500 new clients on TV cable broadband and 400 on wireless," Andrei Neagu said.
Although the company did not disclose the number of subscribers, 80% of them are corporate clients and most of them resort to dial-up Internet.
"Most corporate clients choose dial-up at the beginning and head for broadband afterwards. Those wanting only broadband services have either given up another supplier or are subsidiaries of foreign companies that know what high speed Internet means," the official commented.
The ratio between broadband and dial-up clients is 1 to 50. According to the FX Internet manager, broadband services generate 60% of the company's overall earnings.
Total investments made in the company over the past 12 months amounted to 3.5 million dollars and their amortisation was the main factor having contributed to net losses posted in Q1 this year. The investments on the first six months aimed at the acquisition of the cable network of Targu-Mures based NetSoft, which held 80% of the local market.
"We have already opened an operational pilot able to provide services to 2,000 dial-up Internet subscribers and we hope to conclude the project at the beginning of next year," Neagu said.
FX Internet over the first semester updated the cable network on which Romsat Cable & Radio SA operates. "Romsat investment is a long-term one, at least 5-10 years, because even if the initial costs are high, the operational and maintenance costs are low," Neagu said.
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