# 5GG - Pentanet Limited



## System (15 January 2021)

Pentanet is a Perth-based licensed telecommunications carrier and internet service provider (ISP), delivering high-bandwidth internet services via its own fixed-wireless network and other fixed-line networks, with an emphasis on local service, support and excellent customer experience. 

Founded in 2017, the Company provides a range of services for residential, commercial and enterprise customers. Pentanet owns and operates Perth’s largest fixed-wireless network, delivering superfast speeds within the 2,000sqkm of coverage across the metropolitan area. Wholly owning and operating the quality telecommunications network enables the Company control over wholesale costs, plan capacity, operation, and maintenance, to deliver a premium internet experience backed by local Perth-based customer service. The network has been designed to enable a rapidly deployable and scalable service offering.

The Company also delivers services on the National Broadband Network (NBN) and Local Broadband Network (LBN), as well as commercial fibre and 10Gbps multi-gig internet access services - the fastest retail internet service in Australia.  

It is anticipated that 5GG will list on the ASX during February 2021.









						Internet Provider Perth - nbn™ Plans & Fixed Wireless | Pentanet
					

Perth's local internet provider. Powering WA with internet plans for home, family, business or enterprise across nbn™, Fixed Wireless, OptiComm & fibre.




					pentanet.com.au


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## samuilk (15 January 2021)

Do they use their own lines? Or rent of telstra/optus ?


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## samuilk (15 January 2021)

samuilk said:


> Do they use their own lines? Or rent of telstra/optus ?




I sent an inquiry to the company ill update the thread when/if I get a response


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## Dona Ferentes (30 January 2021)

*this one snuck on ; probably no need for trumpets and alarums when IPO price is 25c and makes a nice 150%+ entry*

*1. GROW SUBSCRIBER BASE *

 Introduce new technology to increase on-net network coverage
 Deliver high-quality customer experience 
 Limit churn 
 Customers become advocates 
 Competitive service offering 
Targeted marketing and media strategy

*2. EXPAND NETWORK TO EXPAND POTENTIAL MARKET*
• Australian-first deployment of wireless technology developed by Facebook 
• Increase available speeds to 1Gbps for more fixed-wireless customers 
• Line of sight to tower no longer required. 
• Increase market penetration with greater fixed-wireless coverage across Perth metro area.

*3. EXPAND MARGINS*
• Migrate off-net customers to on-net services 
• Off-net GP = 4% On-net GP = 68% 
• Diversify product offering (VOIP, 4G backup) 
• Exclusive NVIDIA GeForce NOW partner to bring cloud gaming platform to Australia


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## Dona Ferentes (30 January 2021)

*USE OF FUNDS*

_Telecommunications infrastructure $10.5m_
_NVIDIA cloud gaming infrastructure $4.0m_
_Working capital and cost of offer $8.0m_


and one for the Garpalator

CLOUD.GG


> CLOUD GAMING: PENTANET HAS A PARTNERSHIP WITH NVIDIA CORPORATION, TO BECOME THE ONLY *GEFORCE NOW* CLOUD GAMING ALLIANCE PARTNER IN AUSTRALIA


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## Dona Ferentes (30 January 2021)

Two big points of differentiation

1. is the above Gaming partnership 
2. is that current service offering is somewhat limited, but the link with FaceBook technology may be a real stepchange
_SUBSCRIBERS CURRENTLY CONNECT TO 'MACRO TOWERS' WITHIN LINE OF SIGHT  
• CURRENT FIXED WIRELESS INVESTMENT COVERS APPROX ~32% OF HOMES IN THE PERTH METRO AREA 

*WIRELESS NETWORK EVOLUTION*
• FIRST DEPLOYMENT OF THIS NEXT-GENERATION WIRELESS TECHNOLOGY IN AUSTRALIA  (FB)
• COST-EFFECTIVE SOLUTION WITH FASTER SPEEDS 
• SIGNIFICANTLY LOWER CAPITAL COST (COMPARED TO NBN FIBRE) 
• MULTIPLIES COVERAGE MATERIALLY  .. EACH SUBSCRIBER FORMS PART OF THE EXPANDING NETWORK CAPACITY 
• SUBSCRIBERS NO LONGER NEED TO SEE MACRO TOWERS, ONLY OTHER SUBSCRIBERS 
• INCREASES AVAILABLE SPEEDS 5-10X USING 5G MILLIMETER WAVE TECHNOLOGY_


> "Terragraph allows you to efficiently extend the reach of your existing fibre network wirelessly throughout dense urban/suburban environments   providing your customers reliable internet" – Jay Parikh Head of   Engineering and Infrastructure, Facebook


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## verce (1 February 2021)

Hi Dona - are you holding?


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## Dona Ferentes (1 February 2021)

verce said:


> Hi Dona - are you holding?



No, but it's emergence has caused me to rejiggle the ICT watchlist. Such a fast moving field. Microsatellites in orbit, the densification of networks, 5G needing closer networks. And NBN. Is there going to be one winner or a hybrid mix?

*I like the gamer angle


*


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## verce (1 February 2021)

Dona Ferentes said:


> No, but it's emergence has caused me to rejiggle the ICT watchlist. Such a fast moving field. Microsatellites in orbit, the densification of networks, 5G needing closer networks. And NBN. Is there going to be one winner or a hybrid mix?
> 
> *I like the gamer angle*




Yes the NVIDIA thing seems like a huge deal. Especially if they retain exclusivity for Australia (which I believe they have the option to via additional investment)


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## verce (1 February 2021)

I decided to take a small position thanks to Dona’s well presented summary. Cheers!


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## samuilk (3 February 2021)

Unfortunate they never got back to my email may have bought into their IPO.


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## verce (3 February 2021)

I anticipate this going over $1 in a matter of weeks.


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## samuilk (3 February 2021)

verce said:


> I anticipate this going over $1 in a matter of weeks.




With a good catalyst it could. hmm, maybe I should buy in with a small position.

At what price did you buy in?


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## verce (3 February 2021)

samuilk said:


> With a good catalyst it could. hmm, maybe I should buy in with a small position.
> 
> At what price did you buy in?




66 cents


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## Dona Ferentes (5 February 2021)

announced (proudly) there are 10,000 subscribers, in Perth,. This is not a big number.


> ... continuing subscriber growth comes as Pentanet is poised to commence the expansion of its fixed-wireless network, increasing network coverage across the Perth metropolitan area and reaching more prospective customers.  Expansion of Pentanet’s owned fixed wireless network is a key strategic focus for the business given the substantially better margins than reselling the NBN to end users.




so, it will be an exercise in how they position themselves, and market. With the _Terragraph _technology, clusters will be advantageous.

SP holding up well over the first  6 days ; _15 minute chart:_


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## Dona Ferentes (26 February 2021)

Pentanet Limited (ASX:5GG) is pleased to announce strong market interest in the Australian launch of *GeForce NOW *... NVIDIA's premiere cloud-based game streaming service. This week marks one month since the public announcement of the NVIDIA Alliance Agreement. 

On 27 January 2021, Pentanet commenced online registrations of interest by allowing future Australian users of GeForce NOW to reserve their usernames and register for an invitation to the Beta Program, to capture a good understanding of potential market demand for the service across the country.

Since the 27 January announcement, over *24,300 *gamers have registered, _significantly exceeding our expectation of the early interest _for the upcoming new service. This level surpasses our initial business case expectations and provides strong confidence to scale up our initial launch plans.  

Therefore, Pentanet has proceeded with the placement of an initial hardware order with NVIDIA in line with the cloud gaming strategy outlined in the IPO Prospectus.  The strong registration response has justified an increased initial purchase order for 18 RTX game servers (up from 12 servers) at an approximate capital cost of AUD $3.2 million. The servers will be split across two deployments, one in Perth and the other Sydney, with the increased capital spend allocated from working capital reserves.

Pentanet aims to roll out the Australian GeForce NOW beta this year, with a commercial launch to follow.


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## Dona Ferentes (19 March 2021)

*Ally Selby (Livewire Markets):* Next up, we have *Pentanet*, it listed earlier this year, is it a buy, hold or sell?

*James Dougherty: (Lennox Capital Partners) :*


> _It's a buy as well. It has a very similar business to Aussie Broadband, it is an ISP. There are only so many ways you can really differentiate yourself as an ISP. It is latency and customer service. They've got a fixed wireless network, their own infrastructure, which means they get great speed, and they've got local call centres, which means you get great service and they continue to take share. The management team, the  Cornish brothers, actually sold their house to start this business and  have not sold a share into IPO._




*Ally Selby:* How about for you, Nick? Is it a buy, hold or sell?

*Nick Guidera: (Eley Griffiths Group):*


> _Yeah, it's a buy for us. It reminds us a lot of iiNet in the early days, another Perth ISP. The former CEO is chairman, they share similar colours and they have got a significant focus on customer service. As James touched on, the fixed wireless model that they are pioneering with  technology out of Facebook, I think is a pretty interesting space and one the majors are probably watching pretty closely to see if they can improve the quality of NBN speeds through fixed wireless technology._





> _They have also got a decent opportunity in the gaming space through their partnership with Nvidia, which is pretty amazing given Nvidia is a NASDAQ listed company. This is an emerging micro cap that ultimately has been able to negotiate a partnership for 12 months to see them utilise that gaming technology over time. I think it is a buy for us and one that  we are watching pretty closely, albeit in its early stages._




_Disclaimer: The information contained in this presentation is general in nature and should not be relied upon. Before making any investment of financial planning decisions, you should consult a licensed professional who can advise you whether the decision is appropriate for you. Contributors to this show may have commercial or financial interests in the companies mentioned._


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## Dona Ferentes (21 March 2021)

Dona Ferentes said:


> *Ally Selby (Livewire Markets):* Next up, we have *Pentanet*, it listed earlier this year, is it a buy, hold or sell?
> 
> *Ally Selby:* How about for you, Nick? Is it a buy, hold or sell?



someone has thought it to be a Buy over the last two or three days


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## So_Cynical (21 March 2021)

A few game streaming services have come and gone over the last 3 years, The Microsoft backed mixer didn't last long.


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## Dona Ferentes (21 March 2021)

So_Cynical said:


> A few game streaming services have come and gone over the last 3 years, The Microsoft backed mixer didn't last long.



It would be all about latency, wouldn't it?

I can see an opportunity, if the gaming could link up with the Terragraph 5G technology ... should keep some happy. But this would work only for Pentanet getting a high density uptake, but that would be localised.

_Only watching:  DNH_


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## Dona Ferentes (22 April 2021)

HIGHLIGHTS from the Quarterly:
_• $2.9 million in quarterly cash receipts from customers, which represents a 112% YoY increase (+19% QoQ) 
• 10,993 subscribers at 31 March 2021, up 15% on 31 December 2020. Net new subscriber growth rate up 21% QoQ. 
• On-net customers made up 42% of total subscribers. On-net new subscribers up 54%, with 596 in March 2021 quarter compared to 386 in December 2020 quarter. 
• 35,224 gamers have claimed their username with GeForce NOW in Australia as at 31 March 2021, confirming strong market interest in NVIDIA’s premier cloud-based game streaming service powered by Pentanet. 
• Recurring customers represented 87% of total revenue. 
• $0.9 million committed to expansion of the Fixed Wireless network and core network infrastructure during the quarter, and $2.9 million to cloud gaming following an upgrade of the initial purchase order with NVIDIA from 12 RTX servers to 18 servers_

Pentanet aims to roll out the Australian GeForce NOW beta product this year, with a commercial launch to follow. The inviteonly beta will be for users who have pre-registered at gfn.pentanet.gg, with Pentanet customers to receive priority access.


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## Dona Ferentes (23 April 2021)

5GG has been successful in securing a 15 year licence for high band 5G spectrum in the 26 GHz April Auction conducted by the Australian Communications and Media Authority (ACMA). 



> _The licence is for 200 MHz of 5G millimetre wave  spectrum covering the Greater Perth area in Western Australia including Perth, Mandurah, Bunbury and Margaret River (see Figure 1).  The licence fee of $8.0 million will be able to be paid in equal instalments over a 5 year period, with $1.6 million paid in FY 2021 out of existing cash reserves.  _





> _Identified as optimal for the delivery of 5G wireless broadband services, the 26 GHz band allows for significantly increased spacing between transmission towers and equipment, providing scope for Pentanet to increase network coverage and backhaul more quickly and at reduced cost.  _


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## Country Lad (28 April 2021)

Probably more good luck than good management, I had a stop if it closed at or below 82.  As it looks right now could be another breakout. Momentum good at the moment but could change as it tends to do late afternoon.


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## Dona Ferentes (30 April 2021)

Country Lad said:


> Probably more good luck than good management, I had a stop if it closed at or below 82.  As it looks right now could be another breakout. Momentum good at the moment but could change as it tends to do late afternoon.



and another breakout .... had made it to $1.11 today (for a while)

_There is also another bit of spectrum coming up for auction; it looks like Telstra may be constrained in its bidding, which would favour Optus and Vodafone, plus smaller players:_


> TPG Telecom and Optus may score an advantage at an upcoming spectrum auction after draft rules for the sale included set-aside slots for the pair and competitive limits that would severely restrict Telstra’s influence on the sale. These conditions – revealed by the Australian Communications and Media Authority earlier this week – are largely consistent with submissions from Optus regarding the 850/900MHz spectrum auction slated for November.





> This low-band spectrum is particularly important because it is suitable for *rolling out new 5G networks in regional Australia* as – despite being slower than the super-fast 26Ghz millimetre wave spectrum that was auctioned off this month – it can cover much larger areas by using less energy to travel.


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## Dona Ferentes (1 June 2021)

Dona Ferentes said:


> and another breakout .... had made it to $1.11 today (for a while)



that didn't sustain itself. Back to the 80c level.  The _gaming and eSports aspects could differentiate 5GG from other ICT outfits, but will they be wildly successful?

*INTERNET SERVICES*_
 Active customers exceeded 12,000 in May 2021. This represents new growth of 9.2% since the Company's Q3 2021 result announced on 31 March 2021. Active Fixed Wireless subscribers have now surpassed 5,000. Of the new 1,277 customers added in the two-month period since 31 March 2021, 586 were new Fixed Wireless customers, showing further growth in the on-net run rate. 

*CLOUD GAMING SERVICES *- GEFORCE NOW 
Market interest in GeForce NOW, NVIDIA's premiere cloud-based game streaming service powered by Pentanet, continues to exceed initial expectations. As per the Company's announcement on 26 February 2021, an expanded hardware order was placed with NVIDIA for 18 RTX game servers (up from 12 servers). Given the increased size of the initial pilot deployment, Pentanet and NVIDIA will soon confirm a new commercial launch date extending beyond 31 May 2021. With current registrations of interest now exceeding 45,000, Pentanet has shifted focus from pre-marketing to beta play and national release. Based on the existing level of user interest, the Company's intended pilot program is expected to be _oversubscribed_.

*ESPORTS *- PENTANET.GG 
Pentanet.GG, the Company's esports arm, continues to successfully build awareness of gaming and esports in the Australian ecosphere.  PGG made history as the first Australian esports team to progress past the Group stages in an international League of Legends tournament, placing sixth in the world at the recent Mid-Season Invitational tournament in Iceland.


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## Dona Ferentes (16 June 2021)

84c to 76c then a trading halt, for a capital raise. 


Mmmmm


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## Beaches (16 June 2021)

Dona Ferentes said:


> 84c to 76c then a trading halt, for a capital raise.
> 
> 
> Mmmmm




Timing was definitely poor.


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## peter2 (17 September 2021)

Like this chart of *5GG* and the follow up break-out  above 0.70 resistance level. Chart based spec position as I barely understand the company's principle activity.


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## Dona Ferentes (17 September 2021)

peter2 said:


> . Chart based spec position as I barely understand the company's principle activity.



*Latency*. or level playing field for gamers. That is the aim


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## peter2 (17 September 2021)

So if *5GG* can provide minimal latency or at least the same latency for all the gamers simultaneously no matter where they are in the world, is this a BIG thing or is it just a nice thing?  What I don't know is, can this functionality provide huge subscriptions in the future? Will gamers flock to this platform over all the others?


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