Virtual goes real

Inotel, which provides telecommunication services over the internet, has begun construction of its fixed-line network. This year the company plans to invest zł.7.7 million in the project, a sum that will grow to zł.32 million by 2008. "Half of the funds should come from the income from the already created network, the rest from the issue of debt papers," the president of Inotel, Jakub Dwernicki, said.

The president claims that having a telecommunications network should stabilize the business.

"Thanks to this [investment], Inotel will gain a stable client base. The clients will use both our internet access and telecom services on a subscription basis," he explains. Dwernicki expects the investment to pay back within two years.

Today Inotel has 5,000 homes in Swarzędz within its reach and 500 subscribers. Currently the company is working on reaching an additional 8,000 flats. Dwernicki also disclosed that the company is also carrying out similar investments in Gniezno and Oborniki Wielkopolskie. "By the end of the year we expect to have 30,000 households within the reach of our network and we should have around 3,000 internet and telecom subscribers," Dwernicki said. He hopes that by 2008 over 100,000 flats should be within the network's reach and the number of internet and telephony subscribers should reach 18,000 and 15,000 respectively.