Internet service provider Spirit Telecom (ASX: ST1) has struck a $1.1 million deal with the Victorian State Government that will deliver fast 5G-enabled internet in rural Victoria.
Through the new deal Spirit has secured $2.8 million in state government contracts over the past 12 months.
5G aims to usher in a new era of wireless telecommunications that will facilitate economic opportunities and set the stage for a futuristic modern society.
The new contract means Spirit will provide 5G connectivity to Victorian regional town Morwell with Spirit saying it is “thrilled” to be delivering super-fast internet in the region.
The tender means Morwell, a town with a population of around 13,000, will eventually have the same access to internet services as a metropolitan, interstate and international counterparts which helps to close the digital divide between metro and regional areas.
According to Spirit, its Sky-Speed Internet product range is a fixed wireless alternative which delivers internet speeds of up to 1,000Mbps while supporting a network built using its own IP and engineering developed as a result of similar deployments in Melbourne, Sydney, Gold Coast and Brisbane.
More specifically, Spirit said it plans to install multiple radio towers across Morwell that transmit telecommunications traffic for both consumers and businesses.
The towers will transmit Spirit’s Internet using “beam-forming technology”, which is the first ratified technology of the global 5G standard, the company said. Spirit declared that transmission will be via the air and will cover a 10km radius from each tower covering the entirety of the town.
In time, there is also scope for bandwidth to be extended to Traralgon and Moe –neighbouring towns that are expected to be clamouring for 5G connectivity in order to catch up with their pioneering neighbours.
Working in Spirit
Spirit says that it is currently Australia’s leading alternative to the NBN, providing super-fast internet speeds through the air, ensuring over 8,000 businesses and residential customers can stream, game, work and connect without disruption.
The ASX-listed company owns its advanced fixed wireless network, delivering symmetrical speeds of up to 1Gbps for business and 500Mbps to residential customers – that amounts to being over 16-times quicker than the national average.
In October last year, Spirit was awarded a $1.7 million contract to provide broadband internet speeds to another regional Victorian town, Horsham.
Spirit’s managing director Geoff Neate said the deal with the state government was a testament to the company’s strong offering in the market and its ability to deliver broadband internet to rural communities across Victoria.
“We believe our offering is market leading and will put to bed the mindset that 5G technology is purely a mobile play. We will deploy a super-fast internet ring around Morwell using the latest technology via a partnership with the state government,” said Mr Neate.
“The project will reinforce Spirit as a leader of high-speed internet in the telco industry and fulfils the demands of businesses and consumers for a fast, reliable broadband service that delivers on what it promises. This is what we hang our hat on and are looking forward to strengthening Morwell’s access to super-fast internet,” he said.
Expanding telco coverage
Earlier this week, Spirit acquired Sydney-based Internet Service Provider (ISP) Building Connect for $300,000.
The acquisition was widely seen as a pathway for the company to expand its fixed wireless network in Sydney, enabling more businesses in Australia’s fastest growing economic region of Western Sydney to access its high-speed Sky-Speed Internet range.
The acquisition was a direct way to extend Spirit’s network across 31 buildings and business parks, servicing 200 business customers and providing immediate geographic expansion into western Sydney.
Mr Neate said that “Building Connect has satisfied all of its conditions for sale in a quicker than expected timeframe, allowing us to settle and get on with growing Spirit.”