MEDIA BACKGROUND

Sydney, 11 November 2021 - With the installation of Australia's national broadband network (NBN) now essentially complete, pent-up demand from businesses and consumers wanting to challenge the status quo remains for reliable, high-speed telco services that are easy to manage and easy to scale.

That's the proposition put to investors on Thursday 11 November by listed telco company Superloop, in an update on its plans to acquire market share in Australia's telco services market.

The company made the point that 92% of Australia's Internet market is still with just four incumbents. Telco challenger market share in Australia has doubled in three years, but at 8% it is still lower than challenger growth in banking and energy retail (both 26%). In the US, retail Internet challengers have market share as high as 39%.

With the telco challenger growth in Australia at one-third of that in other industries, and one-fifth that of the US telco challengers, Superloop is positioning itself as a challenger telco with the infrastructure and services needed to take market share from the incumbents in its own right, and to support other internet service providers to also take market share. 

Superloop believes that telco challengers can collectively take as much as 30% market share from incumbents, and believes it can grow its own market share from 1.5% to 4-5% in the medium-to-long term.

The company has spent over six years building its own high-speed fibre network which is connected to all 121 points of interconnection (POIs) to the NBN. Over the past 12 months, the company has completed a number of changes, culminating in June with the acquisition of Internet retail services provider Exetel, and the freeing of capital with the divestment of its Hong Kong network and some of its Singapore network in September. In FY21 the company increased its underlying EBITDA by 108%, increased connectivity revenues by 22%, grew consumer home broadband subscriptions by 62%, and now has significant liquidity in its war chest to invest in new services and infrastructure in Australia.

Superloop's strategy for challenge growth in market share

Superloop will continue is Accelerated Growth Strategy, started in September 2020, as follows:

• infrastructure on demand, to provider faster scale and more agile access for challengers to high-speed network infrastructure at lower cost
• services over this digital infrastructure to consumer end-customers, to business end-customers, and to retail service providers (RSPs) via wholesales services
• completion of Tier 1 network build allows new customers to be added at marginal incremental cost
• automated network management, for Superloop and its users
• business broadband Internet services to small, medium and large companies, using Superoop and Exetel brands
• wholesale services now focused on Australia, with co-ownership of INDIGO cable to Asia retained, and new partnership with Columbia Capital and Digital Bridge to provide services to Hong Kong and Singapore

Superloop background information

• On-net data centres/buildings in Australia/worldwide: 466
• INDIGO capacity available for sale: >5 Tbps
• Network route kilometres: >100,000
• Fixed Wireless Towers: 378
• Metro NBN POIs with dual fibre backhaul capable at scale > 1 Tbps: 100%
• Subscriber aggregation and termination capacity: >1 million
• Provisioned third-party capacity to business customers: >2 Tbps

ENDS

About Superloop

Superloop (ASX:SLC) is an independent provider of connectivity services. The company designs, constructs and operates networks throughout the Asia-Pacific metropolitan region. 

The company owns and operates 1,047 km of carrier-grade metropolitan fibre networks in Australia, Singapore and Hong Kong, connecting more than 464 key data centres and bandwidth-intensive commercial buildings. These extensive carrier-grade, metro fibre networks deliver high-performance, connectivity solutions to wholesale and end-user customers that are scalable and reliable.

In addition to its own fibre network, Superloop is connected to all NBN Points Of Interconnect across Australia and operates its own nationwide fixed wireless network that collectively delivers high performance connectivity solutions to businesses and homes underpinning the region’s digital economy.

Strategic acquisitions continue to increase Superloop's network utilisation, and the company's transformation into an end-to-end provider of connectivity and cloud services.

Visit www.superloop.com to learn more.

Contacts

Superloop is at:

Web: https://www.superloop.com/
Twitter: https://twitter.com/superloopnet
LinkedIn: https://au.linkedin.com/company/superloop
Facebook: https://www.facebook.com/SuperloopHomeBroadband/
Instagram: https://www.instagram.com/superloop.homebroadband/

For more information: 

Contact Alan Smith. Phone: +61 404 432 700. Email: media@superloop.com.au