Conduit flotation set to facilitate expansion

Conduit Europe, a Dublin-based information service provider, will use the €60 million (£47.2 million) raised from its flotation on the Neuer Markt at the end of the month to introduce services in the UK, enhance software development and set up a call centre in Switzerland, said its managing director, Mr Liam Young.

This would create 250 jobs in the firm's operations in Ireland, Britain and Switzerland by the end of the year. Up to 200 of these will be at Conduit's new premises at the East Point Business Park in Dublin.

Mr Young (36), founder of Conduit Europe, which offers the 11850 directory assistance service in Ireland, said €15E20 million would be invested in the UK market alone.

A consultation process on liberalising directory assistance services begins shortly and the UK telecoms regulator may enforce deregulation early next year, he said. Conduit Europe last week announced the creation of a UK-based joint venture company, 118 Ltd, with Finnish telecoms operator Sonera. The firm would begin to put facilities in place, build infrastructure and probably a call centre to give the company a head start on competitors, said Mr Young.

But regardless of the regulator's decision, Conduit is well-placed due to a series of directory assistance deals made with individual telecoms operators, he added. A four-year contract with British mobile operator Orange provides a steady income. "Even if we were to sign no new business for the next year we would still generate more revenues."

Introducing a rival directory service is expensive. Conduit has spent about £750,000 on the 11850 advertising campaign in the Republic already, said Mr Young. He estimates the company has doubled its market share to around 30 per cent in the time since the 1190 number went.

Though a former Eircom employee, Mr Young said relations between Conduit and the former State monopoly remain strained. Conduit is pursuing legal proceedings against Eircom in the High Court, claiming the firm is cross-subsidising its directory services from call charges.

Conduit is repositioning itself to provide third-generation mobile phone services and is developing the software end of the business, said Mr Young. The European market is another target. Conduit is in discussions with Italian and Swedish telecoms operators. It already has an operation in Switzerland, where it secured a contract to supply Orange's Swiss customers with directory assistance. But despite the potential for growth in the UK and European market Conduit will remain an Irish firm, said Mr Young.