Field Solutions Holdings Ltd (ASX: FSG) shares lifted today after the company announced a wholesale supply, management and partnership contract. At the market's close, the Field Solutions share price was trading hands at 8.8 cents, up 3.5%.
What did Field Solutions announce?
The Field Solutions share price jumped higher today after the company provided its positive update to the ASX.
According to its late afternoon release, Field Solutions has executed a wholesale supply, management and partnership agreement with FlipConnect.
Established in 2015, FlipConnect is a telecommunications and entertainment brand located in Australia, which provides internet and over-the-top TV entertainment.
FlipConnect will be the second major customer to take advantage of Field Solutions' virtual wholesale broadband agreement (WBA) product. The platform is designed to remove the costs of using internet service providers (ISP) or managed service provider (MSP) when delivering nbn services.
As a result, ISP companies such as FlipConnect can pay for backhaul, transit and termination on a per-subscriber model, while focusing on driving sales growth.
Terms of the deal
Under the deal, Field Solutions will deliver national nbn, network management, and orchestration services to FlipConnect. In return, FlipConnect will resell Field Solutions' products across its regional non-nbn fixed wireless network. This opens up new opportunities for Field Solutions in capturing new market share.
The contract will run for an initial three-year period and generate $24 million in revenue for Field Solutions. Project commencement is expected to occur sometime in April and will take around two months to complete.
Management commentary
FlipConnect CEO Steve Kotzohambos commented:
FSG's orchestration platform across nbn products, as well as voice, business and mobile services allows us to expand our offering and reach, which, combined with our excellent customer experience, gives us a truly unique and competitive advantage.
Field Solutions share price performance
The Field Solutions share price has accelerated by 340% in the last twelve months and is up 120% year to date. The company's shares reached a multi-year high of 9.1 cents this month before retreating to their current levels.
Based on the current share price, Field Solutions has a market capitalisation of about $45.4 million.
