LONDON (ShareCast) - Radio group UBC will close the loss-making mobile phone version of its Cliq music downloading service and will instead concentrate on its digital radio variation.

The group said the consumer take-up of the mobile phone service since its launch in December 2007 has been slower than expected.

"The company has encountered greater than expected technical difficulties with the interim solution of a JAVA application on UK handsets and networks," it said.

No further funds will be invested in Cliq.

The group will now only concentrate on providing a business-to-business solution to manufacturers of connected devices, including Wi-Fi digital radios like Imagination Technologies, with whom it already has an existing relationship.

"For a variety of reasons, including the delay by manufacturers in bringing DAB connected devices to market, we have tried to lead this process in the interim on the JAVA mobile phone platform and have not succeeded," said chief executive Simon Cole.

"However, the technology, intellectual property and pending patents that we have developed during this process remain within the business. We believe we can exploit these without the need for the high risk, high cost exposure to a consumer service," he added.

In the year to March 31st 2009, UBC expects to make savings of £1.2m after closure costs of approximately £1.1m.

• News Channel