Telecommunications carrier 5G Networks (ASX:5GN) will continue to boost expanding revenue flows following the launch of its high-speed managed data network (MPLS) to the Australian market.
The launch of the nationwide network across Australian capital cities has been a key component of the company’s strategy since its ASX listing in 2017.
MPLS will enable 5G Networks to extend its fibre and wireless network to its customer base with controlled capital expenditure, swapping out third party services with its own.
According to the company, the fully operational data network with dedicated speeds up to 10gb will mesh secure and private access to existing cloud, hosting and managed services with seamless connectivity to all 5G Networks data centres.
The Melbourne-based company expects the MPLS will drive continued growth of revenue and earnings before interest, tax, depreciation and amortisation by accelerating the current data network revenue growth rate of 112%, in addition to reducing reliance on third party providers.
5G Networks managing director Joe Demase said the launch of MPLS marked a significant milestone for the company and its continued strategic execution.
“We are proud to have built a fully operational network, with an MPLS backbone spanning coast to coast,” he said.
“Importantly, we are continuing to invest in infrastructure to deliver our commitment of seamless digital services for our customers.”
Meanwhile, 5G Network national sales director Garry White said the launch was in line with the future needs of its customer base.
“It’s not just about going live today,” he said.
“It’s about having the strengthened capability as a key partner in supporting the digital transformation of our customers.”
5G Networks is currently focused on the growth of its data network services by augmenting and integrating its existing fibre and fixed wireless infrastructure.
Its overarching vision is to be Australia’s provider of choice for unifying a seamless digital experience for its customers across data connectivity, cloud and managed services. The company already has more than 2,000 customers on its books in both private and public sectors
The company is currently experiencing exponential growth having recorded a 1,900% year-on-year increase in revenue of $23.5 million for the first-half of 2019.
5G Networks’ shares were travelling 8.1% higher in afternoon trade to $0.80.