5GG - Pentanet Limited

[System]

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 | Local and Reliable nbn™ Deals & Fixed Wireless Plans | Pentanet

Perth's local internet provider. Powering WA with internet plans for home or business across nbn™, Fixed Wireless with 5G performance, OptiComm, neXus & fibre.

pentanet.com.au

 

[samuilk]

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

 

[samuilk]

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

 

[Dona Ferentes]

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

 

[Dona Ferentes]

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

 

[Dona Ferentes]

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

 

[verce]

Hi Dona - are you holding?

 

[Dona Ferentes]

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

 

[verce]

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)

 

[verce]

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

 

[samuilk]

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

 

[verce]

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

 

[samuilk]

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?

 

[verce]

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

 

[Dona Ferentes]

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:

 

[Dona Ferentes]

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.

 

[Dona Ferentes]

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.

 

[Dona Ferentes]

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

 

[So_Cynical]

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

 

[Dona Ferentes]

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