Government Deal Sends 5G Networks Share Price 10% Higher (ASX:5GN)

It’s no secret that telco companies have been integral in our post-pandemic society.

Facilitating many of the digital workplace transformations across the country. Ensuring working from home isn’t just possible, but efficient.

However, that doesn’t mean there isn’t still room for improvement. And with the next generation of wireless technology (commonly known as 5G) on the way, that improvement is coming.

For companies dedicated to rolling out this technology, like 5G Networks Ltd [ASX:5GN], that is obviously a huge boon. Especially when they’re landing lucrative government contracts like 5GN has today…

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South Australia embraces the cloud

The crux of today’s deal is a $300 million commitment for digitising infrastructure. With the SA government looking to upgrade and maintain new digital platforms and systems.

That includes bringing many of their key services into a modern, cloud-computing setting.

Basically, without giving too many details, 5GN is simply looking to streamline SA’s digital transition. Catering for a more seamless, and hopefully more efficient system for people to engage with.

As 5GN Managing Director Joe Gillett comments:

In working closely with SA agencies for many years, we now look forward to the next phase in the journey by enabling new innovative models of service delivery.

The panel will also benefit from our direct investment in South Australia as we further develop our managed infrastructure platforms. This includes the continues development of the 5GN Cloud platform in Adelaide, which provides hybrid cloud services across both private and public clouds.

In other words, the government clearly trusts 5GN to help them with their digital needs. A deal that should prove lucrative for this tiny telco/tech stock in the months and years to come.

And for shareholders, that is definitely a key win for this company moving forward.

What’s next for 5GN Share Price?

With little else to say on the matter, the timeline for this SA project doesn’t appear to have any concrete time frame.

However, 5GN will clearly be looking to get things underway as fast as possible. Showcasing their prowess and capabilities in order to secure further work. Especially with their well-established network of data centres across Adelaide, Melbourne and Sydney.

A network that has already attracted plenty of interest. But, as with most tech companies, growth is on 5GN’s mind.

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Ryan Clarkson-Ledward,
For Money Morning

Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

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