Sigma signs ?5m antenna technology deal with O2

Sigma Wireless Technologies has signed a contract for new antenna technology with O2 Ireland believed to be worth in excess of €5 million.

The provision of the technology to O2 Ireland is one of a number of contracts completed by the Dublin-based firm and flowing from the development of what it says is "breakthrough" mobile phone network technology created during a €6 million research and development (R&D) programme.

Contracts completed, or near completion, with other telecommunications companies around the globe for the antenna technology are believed to be worth approximately €20 million. Also Sigma says six leading international mobile phone operators, in Europe, the US and Asia, have the antennae in trial at present and that further contract announcements are expected.

The company says it has "global aspirations" and is opening new offices in Milan, Italy and Beijing, China. It has begun employing new staff at its plant in Finglas, Dublin, and expects the immediate overall number of new jobs arising from new antenna technology sales to reach 70. The company already employs 400 people.

The company says the global market for third generation (3G) antennae is expected to be worth up to €1 billion over the coming three years and that it has targeted at least €150 million of this.

The new technology allows antennae tilt to the prevailing flow of traffic, thereby significantly increasing the quality of the service. The technology can be used on existing second generation and 2.5 generation networks as well as 3G ones.

"The future of manufacturing in Ireland has to be based around indigenous companies with deep R&D roots, combined with high-value manufacturing," said Mr Tony Boyle, chief executive of the Sigma Wireless group. Mr Boyle owns 60 per cent of Sigma. Mr Michael McGinley and Mr Peter Crowley each own 20 per cent.

Mr Boyle said the contract with O2 Ireland "is hopefully the first of many and indicates that it is possible to achieve global leadership and secure valuable telecom markets for Ireland."

Ms Danuta Gray, chief executive of O2 Ireland, said that in awarding the contract to Sigma it was supporting the creation of "an excellent R&D initiative".