5GN flags $10m revenue boost with major wholesale channel launch, shares climb
Link copied to
The new wholesale channel is a direct result of 5GN’s strategic commitment to building out its infrastructure footprint across the Australian market.
Data infrastructure company 5G Networks (ASX:5GN) highlighted its strong operating momentum with an important new partner channel capability introduced this morning.
The company announced the launch of 5GN Wholesale, which will give all of the company’s MSP (managed service provider) clients direct access to its five owned and operated data centres around Australia.
The new service will also provide high speed data connectivity to international locations in Japan, Singapore, New Zealand, and North America.
On a morning when most ASX tech companies faced selling pressure in the wake of more US market jitters, shares in 5GN rose back toward $1 in early trade following the announcement.
Commenting on the expanded product rollout, 5GN managing director Joe Demase said it was the result of strong execution by the executive team to build out the necessary infrastructure through strategic M&A.
Central to those moves was the acquisition of hosting service provider Intergrid in March, and the integration of ColoAu into the 5GN systems and infrastructure footprint.
“A terrific example of this capacity was our recent announcement of the 5GN fibre rollout in Sydney, where we have joined our north and south points of presence to create a network of high-speed fibre which inter-connects over 80 data centres across Australia and the Asia Pacific region,” Demase said.
It amounts to a competitive new offering in the market for wholesale fibre connectivity, and 5GN said it expects to grow revenues by another $10m per year via its new sales channel.
“We believe the combination of our fibre network and data centre connectivity will allow our wholesale partners significant flexibility and an alternative to the traditional providers,” Demase said.
As well as data centre connectivity, customers will also get access to IP Transit with DDOS security along with seamless access to the 5GN cloud services platform.
To illustrate the strength of its data centre connectivity , 5GN sales director Garry White said it now has the power to provide high-speed data for wholesale clients, inter-connecting DC’s at speeds of 10Gb/s.
“Our wholesale customers are seeking more responsive, agile digital infrastructure partners to enable their continued growth and flexibility,” White said.
“We are excited to celebrate our new channel capability with some awesome solution offers which have been created to support and disrupt the market in accord with what our customers are asking for.”
The launch of 5GN Wholesale will initially be introduced to the company’s Melbourne customers, with similar events planned in Sydney and Brisbane for the coming weeks
This article was developed in collaboration with 5G Networks, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.