Australian telecommunications infrastructure company GigaComm has successfully raised additional growth capital to extend their ultra-fast internet network to more apartment complexes and businesses along the east coast. The capital raise was headed by Macquarie Capital and received support from existing shareholders, such as Palisade Impact. This follows the $40.5 million that the company managed to raise over the two previous years.
GigaComm is addressing a market need for faster and reliable internet connectivity. While standard internet connection speeds for apartment buildings generally max out at 100Mbps, GigaComm strives to deliver gigabit connectivity, aiming to be 10 times faster than existing speeds. This is specifically targeted at apartment dwellers and commercial properties within strata buildings.
By using the growth capital, GigaComm plans to continue the expansion of its network. After implementing successful network builds in 180 suburbs stretching from Sydney to Brisbane, the company now aims to extend its services into an additional 100 suburbs. Strata managers, owners and occupants whose need for fast and affordable internet speed remains unmet drive the demand for this ultra-fast connectivity.
An interesting aspect of GigaComm's expansion lies in its focus on disadvantaged communities. Reports suggest that about 800,000 school students, or 20% of the total, come from the lowest income bracket, pulling in less than $35,000 on a yearly basis. These households reportedly devote a larger percentage of their disposable income (10-15%) to communications compared to an average household which spends about 3.5%. The company has completed the design of the network for four social housing properties in New South Wales and plans to commence building the network at these locations soon.
GigaComm Co-Founder and CEO Sophearom En stated, "We are extremely pleased to be providing Australians with our strong digital infrastructure and affordable, high-speed connectivity. Our latest funding round, thanks to the support of Macquarie Capital’s investment and our existing shareholders, ensures the Company is well-positioned for growth to address the strong demand for GigaComm’s services."
En further highlighted their focus on bridging the digital divide and helping low-income households gain access to reliable and affordable internet, stating that with the rising cost of living, it is more important than ever to offer better, faster and affordable internet connectivity.
Presently, over four million premises in Australia, many of which are apartment buildings, struggle with limited connection speeds of 100Mbps or less due to the constraints of legacy copper connections. GigaComm offers connectivity to its network at zero initial cost with plans starting from just $79 per month, offering 200Mbps for a similar price to what some are paying for 50-100Mbps download plans.