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  • 12 years later...
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The Bevan Slattery "fan club" has just had another big-name institution enter its lounge. RBC Capital Markets this morning called out Slattery's network infrastructure company Superloop [ASX:SLC] with an "outperform" recommendation ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâہ¡ÃƒÆ’‚ predicting its stock would rise from yesterday's closing price of $2.97 to $5.00.

 

Superloop last week raised $65 million in just one hour and then shelled out $205 million for a takeover of fixed wireless provider BigAir.

 

"We see SLC as a compelling investment opportunity. We start our coverage with a 'speculative risk' qualifier due to the early stage and low-present-earnings nature of SLC ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâہ¡ÃƒÆ’‚ however, we see great potential for SLC to grow earnings at a rapid rate," RBC said in a note to clients.

 

RBC Capital Markets singled out Superloop's dark fibre business as a differentiator. The company operates dark fibre ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâہ¡ÃƒÆ’‚ the "pipes" that privately connect data centres without the provider adding any other services ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâہ¡ÃƒÆ’‚ in Australia and Singapore, with a Hong Kong network currently under development.

 

"Its strategy is to connect data centres and submarine cable-landing stations with key CBD office buildings via the shortest, lowest latency path. This differentiates it from incumbent telcos whose networks are designed around mobile/broadband products," said RBC Capital Markets.

 

Morgans and Macquarie Capital closed the $65 million capital raising after just one hour last Tuesday night. The investor loyalty was perhaps unsurprising: Superloop has tripled shareholders' money in the 15 months it has been listed on the ASX.

 

Superloop was formed in late 2014 after Megaport divested out its physical assets. Megaport is now a purely software-defined bandwidth provider that allows customers to dial up and down capacity on demand.

 

RBC pointed to Slattery's similar experience with Pipe Networks, another dark fibre provider that multiplied its share price 15-fold between 2005 and 2010, and said the BigAir acquisition makes strategic sense. "SLC represents an opportunity to back management to succeed again, but in more lucrative markets with market structures similar to Australia in 2005. A backdrop of significantly higher data consumption and a migration towards cloud computing provide additional tailwinds," read RBC's statement.

http://www.businessinsider.com.au/rbc-capi...gbusters-2016-9

 

also in the press critiquing the NBN

[bevan Slattery has] warned that the retail profit margins of Optus and TPG Telecom would at least halve. While David Forman, executive director of the Competitive Carriers Coalition, said the industry had reached a point where some retail telcos could "go broke".Mr Slattery has calculated that telcos offering consumer NBN broadband packages at $60 a month would lose money if they offered speeds that the super fast broadband network is supposed to deliver of 50Mbps to 100Mbps. He said the only way telcos could make a 10 per cent profit on such a monthly broadband package would be through offering an average download speed 0.59Mbps or a maximum usage of 170GB a month.

 

"Australia will have not only the most expensive broadband in the developed world but also the least utilised as users will not be able afford to use its potential," Mr Slattery said.

 

"Today retail internet service providers can give customers almost 10 times more data download on their ADSL infrastructure for the same cost as mandated by the NBN wholesale offering. This is because of both the cost of access to Telstra's copper network is quite inexpensive compared to the NBN access charges, but mostly because their existing ADSL infrastructure has no CVC fee, or as I call it, an 'internet usage tax' associated with it."

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  • 2 weeks later...
Adelaide is the first Gig City in Australia to offer ultra-fast internet speeds of up to 10-gigabits-per-second across key innovation precincts. With ultra-fast internet, entrepreneurs and start-ups can develop leading-edge ideas that will drive economic development, create new jobs and position South Australia as a world-leader in a rapidly evolving innovation economy.

http://gigcity.com.au/

 

The South Australian government has pledged AUD$4.65 million to connect the capital city's technological workspaces with up to ultra fast internet service this year. Speeds of up to 10 gigabits per second will be achievable if businesses invested in additional end-user technology.

 

Truth: South Australia's "Gig City" plan is hyped-up nonsense https://delimiter.com.au/2016/06/28/truth-south-australias-gig-city-plan-hyped-nonsense/

 

who do you believe? No real 'unique' advantage and there are many companies providing similar. SLC has loop networks in Sydney, Melbourne and Brisbane, plus Singapore and setting up in Hong Kong. all this 10gig/sec talk - sure, if you want to pay for it.

SLC also has access to submarine cables, which are where the real 'pinch points' are for data, and can provide connectivity solutions between cable landing stations and data centres.

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  • 4 months later...

Superloop signs $20m, 15-year deal with Vocus https://www.itnews.com.au/news/superloop-si...th-vocus-452207

 

Dark fibre operator Superloop has signed a $20 million-plus agreement with telco Vocus to tap into the latter's local and international fibre networks for the next 15 years.

 

The deal will give Superloop access to Vocus' international, inter-capital, regional ethernet and metropolitan Australian fibre.

 

The indefeasible right of use (IRU) agreement means Superloop can avoid the cost of having to build significant infrastructure in order to "attain cost and network synergies in the already competitive Australian market".

 

It will also allow Superloop to "realise greater cost synergies" from its recent acquisition of BigAir, and "provide a platform for the dedlivery of scalable services" in Australia.

 

Vocus has a 30,000km fibre network across Australia and New Zealand, connecting more than 5500 on-net buildings.

 

Superloop will "immediately upscale" its metro, national, and international capacity, the company said.

 

Services will start coming online in July. The value of the deal will be "in excess" of $20 million over the deal's lifespan, Superloop said.

 

Superloop owns around 540km of fibre networks that connect 70 data centres across Australia, Singapore, and Hong Kong.

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  • 1 month later...

Trading Halt. Strategic acquisition telegraphed.

 

Can a capital raising be far behind? This might explain recent weakness.

 

And, so, insiders have been exiting, to gather cash to participate? Cash being a better proposition than more debt.

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Superloop Limited (SLC) is pleased to announce that it has acquired all the issued shares of SubPartners Pty Ltd.

SubPartners was established to develop high performance secure international cable systems capable of providing improved connectivity between Australia and the rest of the world.

 

The acquisition of SubPartners will deliver Superloop strategic assets including ownership of international submarine cable capacity as a member of the INDIGO consortium which is constructing the INDIGO West cable (Singapore to Perth) and the INDIGO Central cable (Perth to Sydney). The acquisition will also deliver Superloop a team with substantial submarine cable experience and an ability to lead or participate in other future potential undersea cable investments.

 

The INDIGO cable system is currently expected to be completed by mid-2019. Once complete, Superloop will have access to dedicated fibre spectrum capable of supporting initial capacity of at least 4.5 terabits per second. Due to the nature of the spectrum ownership Superloop will be able to further increase capacity as technological advancements are made.

undersea cables are the chokepoints for data, I'm told (= pricing power)
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This week, Vocus announced it had finalised contracts and technical specifications for its Australian Singapore Cable with Nokia's Alcatel Submarine Networks.

The rival INDIGO cable system, consisting of a consortium of Bevan Slattery's SubPartners, Singtel, Telstra, AARNet, Indosat Ooredoo and Google, signed an agreement for ASN to build its project on Thursday. The INDIGO cable system, understood to be of similar cost to Vocus's project, is expected to be completed by mid-2019 and will connect Singapore, Perth and then onto Sydney. It is understood Alcatel has also begun manufacturing cable for the INDIGO project.

 

Underwater cables provide the lifeline of the digital world, running along the ocean floor, carrying 97 per cent of the world's phone and internet traffic. Both projects are looking to tap into the expected significant rise in demand for data from south-east Asia. A report commissioned on the ASC project, undertaken by TeleGeography, estimates demand for bandwidth between Australia and Asia will exceed 50 terabytes per second by 2029 and the ASC project could capture a minimum of 15.5 Tbps, resulting in revenues of $US550 million ($729 million) over the period. The report also estimated that by 2019, 30 per cent of Australia's overall international bandwidth will be connected to Asia.

 

Mr Slattery advocated the consortium project model, stating the members get ownership economics, ownership control, reduced risk and reduced capex.

 

"The benefit of the open cable is people get their own allocation of dedicated spectrum. Each party can have their own set of equipment on the end of that," he said. "The board took the view that this is a strategic asset that will significantly benefit the business in the medium and long term. "Singapore has locked itself in and is one of the three major hubs, probably the biggest, for the major cloud providers," Mr Slattery said, referring to Google, Amazon and Microsoft.

 

Separately, Superloop purchased the 20 per cent of SubPartners it doesn't own for $US2.5 million worth of Superloop to be issued to minority shareholders at $2.255. Mr Slattery is chief executive of both companies.

AFR
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Listed telco Vocus has a fight on its hands as the race to build a submarine data highway linking Australia and Asia heats up.

 

Telstra, Google and Optus parent Singtel, along with Australia's Academic and Research Network and Indosat Ooredoo, have all signed up to veteran telco entrepreneur Bevan Slattery's newly christened Indigo cable project. Each investor will receive a slice of the spectrum available on the cable under an "open cable" arrangement, allowing them to independently upgrade capacity as needed over time.

 

Previously known as APX West and APX Central, Indigo will be about 9000km long to connect Singapore with Perth and then Sydney. There will be two additional fibre pairs connecting Singapore and Jakarta via a branching unit. The cable will land in existing facilities in Singapore, Australia, and Indonesia.

 

Telstra global services head David Burns said Indigo was an important piece of the puzzle for meeting its customers' needs. "With internet data consumption growing by 70 per cent in Asia last year alone these sorts of investments in international networks are critical," he said.

 

The system, set for completion by mid-2019, has had a difficult journey since inception in 2013, with SubPartners ­initially looking to build, own and operate the cable alone.

 

"It's not easy doing this all by yourself, so it's good to see the consortium come together," Mr Slattery told The Australian. "It was difficult at times to get all the parties together, especially as each is involved in doing something amazing on its own, so it was about getting the priorities right and making sure that it gets done right."

http://www.theaustralian.com.au/business/t...7d0ba2dc28cf6a6

 

- we'll see if there's XS capacity, or a comfortable duopoly emerging. The way data usage is growing, probably the latter?

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  • 1 month later...

Superloop will hyperscale the BigAir fixed wireless offering

SLC Wireless Roadmap

 

● Supercharge wireless POPs

 

● Upgrades include new cookie cutter deployment and provisioning model

 

● Start to integrate new next generation wireless tech into access roadmap

 

● Dark fibre backhaul to all metro POPs

 

● Deploy 100Gbps regional backhaul

 

● Targeted regional expansion

5G, baby
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  • 3 months later...

Asian headwinds/ challenges of scale, Big Air the biggest contributor, Market didn't like it

Growth scaling over FY17

 

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Revenue from ordinary activities up 755% to $59.8 million (FY16: $7.0 million)

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Reported EBITDA of $4.6 million; $10.2 million improvement (FY16: loss of $5.6 million)

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Underlying EBITDA of $9.0 million1; $14.6 million turnaround (FY16: loss of $5.6 million)

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Reported Net Loss after tax of $1.2 million; $6.0 million improvement (FY16: net loss of $7.2 million).

 

- Australian operations contributed revenue of $54.8 million (FY16: $5.5 million), including $40.6 million from BigAir Group for the period since 21 December 2016, and $2.9 million from SubPartners from 4 April 2017.

- Singapore network contributed revenue of $3.9 million (FY16: $1.5 million) having been launched in 1H16,

- Hong Kong network contributed revenue of $1.0 million, including non-recurring IRU revenue.

 

maiden dividend of 0.5c.
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