BigAir touts wireless market opportunities

Aggressive natioanl expansion planned

Despite the impending launch of vividwireless, BigAir (ASX:BGL) has expressed its bullishness over the state of its position in the Australian wireless market.

In an investor presentation the fixed wireless provider said it was currently looking at aggressive network expansion across the country.

“We intend to retain our position as the number one fixed wireless operator in terms of coverage and capability and we intend to continue to expand our network to all major cities across the country,” the presentation reads.

During the half year to 31 December 2009 the company had also increased coverage and capacity in Victoria, South East Queensland and Perth.

The company said it was also targeting new markets such as the high-speed short-term service market – utilised by organisations such as construction companies across multiple building sites as it sought to expand.

“Recent power grid failures and network outages have highlighted the need for the business to implement networks with greater infrastructure and carrier diversity,” the presentation reads. “BigAir is aggressively targeting this growing market with its wireless Backup and Disaster Recovery services.”

BigAir added that it also saw potential opportunities for the use of its fixed wireless services caused by the current hold up of the Telstra separation Bill.

“Continuing regulatory uncertainties have resulted in some carriers delaying investment in potentially obsolte copper and competing fibre infrastructure,” the presentation reads.

“BigAir owns and operates a Telstra-independent network which is less likely to be subject to the outcomes of current negotiations between the government and Telstra and also NBN Co’s plan regarding a wholesale-only or retail hybrid model.”

Even if the NBN proceeded much faster than current expectations, it expected that business and government organsiations would still require physically diverse backup and disaster recovery solutions, the company said

IN February the company said it had experienced “exceptional” financial performance in the half year to 31 December 2009 with year-on-year on-net revenue up 40 per cent to $3.3 million, EBITDA up 68 per cent to $1.45 million and after tax profit up 122 per cent to $625,000.

Mobile off-net revenue declined 95 per cent to $71,745 reflecting the closure of the company’s iBurst business in financial year 2009.

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