Unwired grabs 13,000 punters, reports loss

Wireless broadband provider Unwired had attracted 13,766 residential customers for the half year ending 31 December 2004.

Despite reporting solid subscriber numbers, the company on Monday reported a net loss of $21.27 million over the period. Sales revenue was $5.414 million, including $4.283 million operating revenue in the months since its launch on August 19.

Quoting recent IDC research figures, Unwired claimed it had secured 17 percent of Sydney’s 80,420 residential broadband customers between 1 August and 31 December.

“We are very pleased with our customer take-up so far.  It clearly demonstrates that wireless broadband is not a niche technology but a serious competitor to existing broadband technologies,” said David Spence, CEO at Unwired.
 
“It also shows that Unwired has a compelling proposition for customers.  The fact we offer a simple, portable and competitively priced broadband service is attracting a strong customer base,” Spence said.

IDC said Unwired’s growth gave it over four percent of the total Sydney residential broadband market by the end of 2004.

From launch, Unwired has been focused on the retail channel which has been responsible for 63 percent of its new customers. The company’s direct and wholesale channels attracted 30 and 7 percent of new customers respectively.

“We now sell through more than 110 retail outlets across Sydney via Harvey Norman, Dick Smith, Tandy, Dick Smith Powerhouse, Domayne, The Co-op Bookshop and select Apple stores. 2005 will see a stronger focus on the wholesale channel when our wholesale agreement with AAPT comes into force,” said Spence.