The Field Solutions Holdings Limited (ASX: FSG) share price hit a multi-year high today after the company announced a partnership agreement with MyRepublic Australia Pty Ltd.
In late-morning trade, the Field Solutions share price shot up 54% to a high of 7 cents, before retreating to 5.3 cents at the time of writing, up 20.4%.
The telecommunications carrier and technology company provides connectivity for rural, regional and remote areas. It builds fixed wireless networks, employing technologies such as fibre and fixed wireless spectrum.
Image source: Getty Images
What's driving the Field Solutions share price?
The Field Solutions share price is up there among the top ASX performers today after its market update this morning. The company reported that it has signed a non-binding wholesale supply, management and partnership agreement with MyRepublic.
The deal is the culmination of 12 months spent by Field Solutions developing its virtual wholesale broadband (WBA) agreement product. The platform is designed to removed costs of using internet service providers (ISP) or managed service provider (MSP) when delivering nbn services.
In effect, ISP companies such as MyRepublic can pay for backhaul, transit and termination on a per subscriber model, while focusing on driving sales growth.
Terms of the deal
Under the agreement, Field Solutions will provide National nbn point of interconnect (POI) backhaul, network management and orchestration services. This will also allow the company to expand nationally and into other government and enterprise sectors.
In addition, Field Solutions will resell some of MyRepublic's nbn products, and vice-versa, with MyRepublic reselling Field Solution's rural network products.
The contract is valid for a minimum term of 6 years, and is expected to generate around $45 million in revenue. The project is scheduled to begin next month, and will take between 6 to 9 months to complete.
Management commentary
Field Solutions CEO Andrew Roberts welcomed the deal, saying:
FSG's Virtual WBA is highly scalable and capable of managing nbn's consumer and business products for multiple ISPs and MSPs. Comprehensive connectivity nationwide to all 121 nbn's POIs allows us to deliver services in every state, helping to position us for growth opportunities.
MyRepublic's country manager for Australia, Ji Jing, added:
Given the unique Australian telco landscape, partnering with FSG gives us the opportunity to outsource the network management layer, in turn bolstering operational efficiency and sharpening our customer-centric focus.
FSG's orchestration platform across nbn products allows us to expand our offerings. We will also be able to leverage FSG's enterprise and rural networks, delivering business services as well as accelerating our delivery of consumer 1Gbps services. Combining this with our customer experience will enable us to offer a unique product in the market.
