Troubles at Energis hit hopes for cheaper phone calls
Sunday 30 July 1995
Consumer hopes that Energis would be able to offer them its cut-price service have receded at a time when Mercury, the only other nationwide competitor, has effectively withdrawn from the residential market.
Doubts over the strategy and prospects of Energis also throw into question the valuation to be placed on it as part of the flotation of the National Grid in November for an estimated pounds 3.5bn. That could affect the price of shares in the regional electricity companies, currently the focus of takeover fervour, which own the National Grid. The Grid in turn owns Energis, whose service is based on wires wound around the Grid's pylons and transmission network. One City analyst said some institutional investors would prefer to see Energis sold off before the National Grid was brought to the stock market.
Nigel Playford, chief executive of Ionica, a potential competitor to Energis in some markets, said: "Energis are entering the bulk traffic market 10 years after it was opened up and it is possible they are finding it difficult. It is not good to be the third entrant after the cream has been skimmed. They should have a cost advantage but they have obviously had a staff turnover problem."
He said Energis had a chance of success but noted that the company had not made much progress in signing up large cable telephone operators to provide an alternative local connection to that offered by BT. "All the power is with BT and the cable operators, because they are in people's homes."
Another City telecommunications analyst said: "Energis was a brilliant business plan for making use of the National Grid. But margins are very thin in the long-distance market. Energis's TV ad campaign telling consumers about savings was a mistake.
"It's difficult to work out what their strategy is," he added.
- 1 Scottish independence: Ireland since 1919 is a lesson for Scotland in what a Yes vote means
- 2 Thailand deaths: Pair's bloodied bodies found naked on Koh Tao beach
- 3 Lego breaks out of the toy box and heads for the gallery
- 4 Julian Assange and Edward Snowden join piracy mogul Kim Dotcom’s political campaign in New Zealand
Thailand deaths: Pair's bloodied bodies found naked on Koh Tao beach
Jihadi John': MI5 may have identified Isis militant who killed David Haines but options limited
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Scottish independence: Police will be on high alert on Friday whatever the result
David Haines beheading: David Cameron says Britain will hunt down Isis 'monsters' shown in video murdering aid worker
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Scottish independence: Yes campaign feels the heat as Alex Salmond's NHS claims come under furious attack
£23m Birmingham cycle scheme is attacked by Tory councillor for not catering to the elderly
Salmond accused of laughing off national debt with ‘what are they going to do: invade?’ joke
iJobs Money & Business
£20 - 24k (Uncapped Commission - £35k Year 1 OTE): Guru Careers: We are seekin...
£20 - 24k + Benefits: Guru Careers: This is a great opportunity for an enthusi...
£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...