Why the 5G Networks (ASX:5GN) share price is climbing today

The 5G Networks Ltd (ASX: 5GN) share price is climbing today after the company released a positive update. We take a closer look.

The 5G Networks Ltd (ASX: 5GN) share price has started the day strongly, while most of the ASX is in negative territory. This comes after the company announced the launch of its partner sales channel.

At the time of writing, the telecommunication carrier's shares are trading at $1.005 apiece, up 2.55%.

happy investor, celebrating investor, good news, share price rise, up, increase

Image source: Getty Images

Expanded offering

Investors are snapping up 5G Network shares after digesting the company's latest positive update.

According to this morning's release, 5G Networks has launched 5GN Wholesale to its Melbourne customers. Both Brisbane and Sydney launches are expected to follow suit in the next few weeks.

The enhanced offering from 5G Networks is set to improve service capability to all managed service providers (MSP) across Australia. As such, customers will have access to the following:

  • High-speed data connectivity to international locations in Japan, Singapore, New Zealand, and North America;
  • Connectivity services of up to 100 gigabytes;
  • IP transit with DDOS capability of over 600 gigabytes; and
  • Cloud and bare metal services to create a personal cloud environment.

The latest offering is projected to generate around $10 million in revenue per annum.

Recently, 5G Networks completed a number of development and investment initiatives. These included the acquisition of Intergrid Group, and the integration of ColoAu to accelerate growth of 5G Networks' digital infrastructure capabilities.

In addition, the company's wholesale ordering portal, 5GN Wholesale, offers customers speed and flexibility in service delivery.

5G Networks managing director Joe Demase said:

5GN is very excited to be strengthening our partner sales channel with the launch of 5GN Wholesale, we believe the combination of our fibre network and data centre connectivity will allow our wholesale partners significant flexibility and an alternative to the traditional providers

We have been actively investing in our infrastructure footprint and now clearly demonstrate the capability to meet Australia's accelerating demand for cloud and data centre connectivity.

About the 5G Networks share price

Despite today's gains, it's been a rocky start for the 5G Networks share price in 2021. Year-to-date performance has seen the company's shares largely follow a continuous decline, down almost 30%.

5G Networks presides a market capitalisation of roughly $113 million, with more than 114 million shares on issue.

Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends 5G NETWORK FPO. The Motley Fool Australia has no position in any of the stocks mentioned. 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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