The Field Solutions Holdings Ltd (ASX: FSG) share price is soaring today after the company shared news it has secured $20 million worth of government funding.
The Australian rural, regional and remote telecommunications carrier was awarded the funding by the Federal Government's Regional Connectivity Program Fund (RCP).
After the news broke, the Field Solutions share price soared 50%. It has since dropped to trade for 16 cents, which is still a gain of 10.71%.
Let's look closer at the news from Field Solutions.
Delivering broadband to previously underserviced Australian areas
Field Solutions said the funding from RCP will help it deliver new networks in 5 states and territories where broadband and connectivity are lacking.
The telecommunications company will use RCP funding to build network infrastructure in 12 local government areas. The infrastructure will span New South Wales, Queensland, Victoria, Western Australia and the Northern Territory.
Construction on the projects is expected to begin in August 2021. Field Solutions hopes to have revenue coming in from them as early as the second half of the 2022 financial year.
Field Solutions' other projects include deploying 5G on selected networks and its aim to grow to more than 160 towers across Australia over the next 18 months.
The company estimates, across all its projects, its total grant funding pool will be in excess of $600 million. That number includes both state and federal funding.
Commentary from management
Field Solutions' CEO Andrew Roberts commented on the company's funding from RCP. He said:
[Field Solutions'] community approach to building telecommunications infrastructure has been recognised as a viable, cost-effective and forward looking way of delivering true broadband solutions for rural, regional and remote areas…
Our aim is to deliver feature rich, quality telecommunications services, equivalent to what is available in metropolitan areas.
Field Solutions share price snapshot
The Field Solutions share price is having a party on the ASX lately.
Currently, it's up by 325% year to date. It's also up by 750% over the last 12 months.
Field Solutions has a market capitalisation of around $76 million, with approximately 543 million shares outstanding.
