$20.5m funding for new telco that plans to beat TPG, Telstra
Summary
We founded and formed the business really with the purpose of building that next level of digital infrastructure here in Australia, so that more people be it individuals, homes, or businesses could access that ultra-fast, reliable internet.Other investors in GigaComm include former Appen CEO and chairman Chris Vonwiller, AustralianSuper director Jim Craig and Aurizon chairman Tim Poole.Having begun rolling out its network in 2019, GigaComm is now present in 28 metropolitan suburbs across Melbourne and Sydney.Its plans start at $79 per month for 200mbps download and 50mbps upload speeds. Its premium business plans, giving 1000mbps download and upload speeds costs $695 per month.GigaComm now has more than 100,000 premises able to be connected to its network.The capital raised will be used to expand into more suburbs in Sydney and Melbourne, as well as enter the Brisbane and Canberra markets.With us, everyone can get gigabit speed services, whether theyre in a residential house, apartment or business, Mr En, a former Macquarie Capital vice president, said.Were adding new suburbs and buildings every week. Competition is a good thing ... We are focusing on leveraging new technologies and new ways to deploy infrastructure so that we can be the lowest cost operator in the market, putting us in good stead against competitors.There has been a wave of consolidation in the local telco sector recently. Last year the Federal Court approved the $15 billion merger between TPG and Vodafone, Macquaries MIRA and Aware Super took the reins at Vocus Group, and in 2020 Uniti Group spent $700 million in an acquisition spree.Palisade Impacts Jeremy Wernert said investing in GigaComm was a multifaceted opportunity.GigaComm represented a unique opportunity for us to invest in a company that is both commercially and socially driven, ultimately to improve access to high-speed internet that is just as critical as water and electricity to everyones day-to-day lives, Mr Wernert said.In addition to the broader rollout of GigaComms network, as part of our investment we will work with GigaComm to deliver the network to social and affordable housing residents. This will ensure we can actively address digital inclusion in Australia and provide more of the right kind of infrastructure to more Australians.