Newly listed 5G Networks (ASX: 5GN) has secured its Australian carrier licence and extended its partnerships with Microsoft, HP and Telstra.
The combined high-speed internet and cloud infrastructure provider was granted the licence on 13 September 2017, which allows it to provide data telephony and internet services to customers within Australia.
As a network owner, 5G Networks also manages its own telecommunication infrastructure.
Via its wholly-owned subsidiary Enspire Australia, 5G Networks has key partnerships with Microsoft, HP and Telstra.
Under its partnership with Microsoft, Enspire has become a Microsoft Tier 1 cloud service provider. Enspire will service businesses using the Microsoft product suite and provide customers with a direct line to Microsoft.
With HP, Enspire has been named HP’s Silver Status Business Partner. As part of this relationship, Enspire will provide HP products and services.
Meanwhile, via a wholesale agreement with Telstra, Enspire will act as a reseller and it will work with its own and Telstra’s customers to roll-out several Telstra products and services.
According to 5G Networks, it provides end-to-end control and responsiveness with the required upload and download speeds to enable businesses to have access to cloud-based computing.
The company claims its end-to-end service affords users security and reliable service.
5G Networks was officially admitted to the ASX on the 15 November, with 16 million shares on offer at A$0.25 each to raise a minimum of A$4 million.
The funds raised were used to acquire Enspire, its network rollout, ASX-listing expenses and general working capital.
The purchase agreement for Enspire involved 5G Networks making a $800,000 cash payment and issuing A$1 million-worth of its shares.
In its prospectus, 5G Networks estimates Australia’s telecommunications market at A$42 billion. The ASX debutant claims the telecommunications market has stagnated, with the NBN under-delivering and underperforming, resulting in low uptake and a lack of customer faith in the infrastructure.
As a result of the NBN’s under performance, 5G Networks said it opens opportunities for other providers, especially those targeting mid-market business that are reliant on a high-speed network to retain an edge in the global economy.
Additionally, the cloud computing scene is one of IT’s fastest growing sectors. However, many small and medium-sized businesses have not ventured into the cloud computing arena. This is despite 90% of larger businesses embracing the technology.
Shares in 5G Networks surged more than 50% in trade today, before ending the day at A$0.37 – up 42.31%.