One of Marconi's goals was to develop a practical wireless signalling system. His ideas attracted enough attention for interested financiers to set up the Wireless Telegraph and Signal Company in 1897. In order to achieve a more effective fundraising (probably based on the drawing power of Marconi's name), the name of the company was changed to "Marconi's Wireless Telegraph Company, Ltd." (Hereafter called British Marconi). Marconi understood the potential of long range communications for both maritime and international use.

Although the transmission medium was beyond anyone's control, the newly-formed company planned to own the facilities at both ends of their communications pathways. To assure control of marine communications, the shipboard stations were rented, not sold. The limited range of both ship-board stations and (in the early days) land stations, meant that a chain of stations had to be installed throughout the world.

Therefore additional companies had to be set up in several nations. World-wide communications could eventually be developed by increasing power, building larger antennas and improving detectors. Besides maritime messaging, the land stations could also be utilized to serve world-wide business interests. To carry out both functions, it was decided to put two subsidiary companies in place. The first was to operate between Europe and America and serve ships sailing in western waters. This was accomplished in 1899. The new company was incorporated in the state of New Jersey as the Marconi Wireless Telegraph Company of America (hereafter called American Marconi).

The second subsidiary company was organized in 1900 as the Marconi International Marine Communications Company. Shortly after it was set up, it opened stations in England and Ireland. The primary source of income for the Marconi companies was the marine message service. Initially this was not a big business, but with the recognition of the importance of wireless communications to ship safety (Titanic) it grew quickly. As the number of stations and the revenues they earned increased, the Marconi companies became a world force.

Modest growth continued until the beginning of World War I, when the Navy took over nearly all of American Marconi's facilities, including the coastal stations and the shipboard stations on ocean-going vessels. This put American Marconi out of the trans-Atlantic message service business but not out of the radio equipment manufacturing business.

After the war, the Navy was reluctant to return the bulk of American radio communications to what seemed to be a foreign agency. Though it was argued that American Marconi was not really a foreign company, the Navy knew that the controlling interest was held by British Marconi. The solution to the problem was to have the British interests bought by an American company. At that time (1919), General Electric was negotiating with Marconi. It was arranged for GE to start a new company that could take over the British interests and receive the stations held by the Navy. That company was incorporated in November 1919 as the Radio Corporation of America. Almost all of the assets, financial, capital, technical and human were transferred from American Marconi to the Radio Corporation. American Marconi was dissolved as a corporation in April 1920.

Based on an article in the AWA Journal, 1992.