July/Aug 2004

Further roll-out of the QuikTrak radio tracking and communications network in the UK has been suspended while the company refocuses its activities here. It will continue to provide a service for the 50 or so companies already on the QuikTrak network, including courier operator Addison Lee.

The Australian company launched its spread-spectrum tracking technology on the UK market in amid much fanfare in autumn 2002. Initially concentrating on the London area within the M25, it aimed to have coverage of 65 per cent of the UK by this year, and a network of 350 beacons.

QuikTrak's problem is an imbalance between costs and revenue potential: although it is currently operating only on a regional basis, UK regulations insist it pays for a national licence. The company says the fees are higher than in the Netherlands, where it has a strong operational base.

Its new strategy is to secure agreements with prospective network operators, who would apply for licences on their own behalf while QuikTrak supplied technology support. In the UK, of course, it already holds the licence, and a spokesman says that here the company is seeking partners to develop a national network.

 

In July, QuikTrak issued 56,430 shares to raise a further £846,450 to finance its future expansion.

STOP PRESS

Just as m.logistics was being parcelled up and sent to the printer, we learned that the business and assets of QuikTrak Telecommunications (UK), the group's UK tracking subsidiary, were being offered for sale by joint administrators. We were unable to obtain further details, but will follow up in our next issue.