What's happening with the Pentanet (ASX:5GG) share price today?

The Pentanet share price is falling today alongside that of its rival telecommunications giant Telstra.

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A businessman holds his glasses in concern, indicating uncertainly in the ASX share price

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The Pentanet Ltd (ASX: 5GG) share price is falling today alongside its rival telecommunications giant Telstra Corporation Ltd (ASX: TLS). Both companies are falling on the back of strong recent gains.

The Pentanet share price is down 2.7% today to 90 cents per share.

Pentanet is a Perth-based licensed telecommunications carrier and internet service provider (ISP). The company delivers high-speed internet services via its own fixed-wireless network and other fixed-line networks.

It's proven a disruptor in the established telecommunications space. Pentanet entered the market with an emphasis on local service, support and "excellent customer experience". The business was formed in 2017 and its share price has almost tripled since its initial public offering.

Pentanet's angle

Pentanet has grown to a market capitalisation of more than $160 million and has garnered significant interest through its partnership with massive US tech share Nvidia. 

Pentanet is not involved in bringing 5G to Australia or offering mobile networks. Instead, it specialises in fixed network connections and is aiming its marketing efforts at the gaming community.

Pentanet will be the first Australian company to bring Nvidia's GeForce NOW to Australia. This is NVIDIA's premiere cloud-based game streaming service. 

Pentanet's Founder, Stephen Cornish, explained the concept of cloud gaming and how Pentanet can help pioneer the technology:

With cloud gaming is basically someone like myself becomes a hyper-scaler. I build enough computer power in a data centre that can power thousands of people playing a game at any one time; I'm building a multi-million-dollar computer as opposed to the $4,000 computer," he says.

This is absolutely where the future is going to be, but the limitation currently is actually on the connection because you need to have internet that's fast enough so that your computer can kind of be off site.

You need to have that high bandwidth and low latency network to actually enable this cloud technology.

Pentanet share price snapshot

The Pentanet share price has risen 11% this week. Additionally, it has risen 51% over the past month and in 2021 so far. It's also up by that same margin over the past 12 months.

Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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