BigAir to offer 1Gbps fixed wireless links

Stuart Corner
Monday, 20 November 2006 15:02

Business IT - Networking

Sydney based wireless network operator, BigAir (ASX: BGL) is planning to upgrade is present 100Mbps offering to 1Gbps in 2007.

The company announced at its AGM on 20 November that it also plans to build an additional 10 wireless base stations within the next year to meet growing customer demand for its symmetric business-grade broadband services. It has given no indication when in 2007 its 1Gpbs service will be launched.

BigAir Sales revenue increased by 112 percent from $3.2 million to $6.9 million in the year to 30 June 2006 and chairman Tony Tobin told the AGM that annualised revenues were now running at $9.5 million. "Our first quarter for 2007 also showed further revenue growth...All of these indicators do not show any deviation from the value proportion contained in the prospectus." However he expressed disappointment at the company's share price

"Shareholders, like the board, would like to see a better performance from the share price. As with most market related matters it is difficult to understand why the share price remains around its current level, given that the company has achieved the goals it set itself in the prospectus – in particular 10,000 subscribers well before 20 October 2006 and has announced and completed a number of very strategic acquisitions."

BigAir listed on the ASX in April 2006 following an IPO of 40 million 25 cent shares, 42.5 percent of the company's shares. Today its shares are trading around the 14 cent mark on very low trading volumes, 8000 shares.

Tobin said: "The board and management are making every effort to continue to improve the performance of the company in order to increase shareholder value...We have engaged a specialist investor relations firm to assist with ongoing investor relations aimed at increasing the company's market exposure with the goal of broadening our shareholder base and of boosting the share price."

He added: "The board does not believe that anything has occurred to change the value proportion for the company as described in the Prospectus and will continue to work to ensure that the value is recognised in the market and in the share price."