Aussie rural telecom provider Field Solutions Holdings (ASX: FSG) has secured a new contract with Networking Tasmania. This five-year agreement, valued at $1.3 million, marks FSG’s first win under a new Standing Offer Arrangement (SOA) with the Tasmanian government agency.
The contract signifies a major step for FSG in Tasmania. It will be supplying critical IP Transit capacity to Tasmania Digital Strategy and Services (DSS), while also expanding its service offerings to include Data and Internet Services. This broadens FSG’s reach beyond its existing Infrastructure-as-a-Service (IaaS) contract with the Tasmanian government.
CEO of FSG, Andrew Roberts, said, “This agreement with DSS marks the first under the new SOA and underscores FSG’s commitment to Tasmania, as well as utilising our extensive digital infrastructure and Security capabilities in the region. We now have the ability to work with all other government agencies to deliver Internet and WAN services with Integrated Security capabilities such as Threat detection and fully Encrypted Software Defined Networking, where traditionally, Telstra was the only available option.”
Field Solutions was invited to enter into a Standing Offer Arrangement with Networking Tasmania late last year. This was to supply Data and Internet Services (on top of its current Infrastructure as a Service long term contact) to Tasmanian Government agencies.
This win builds on FSG’s recent momentum. The Company recently secured a $2.6 million contract to upgrade connectivity infrastructure for Glencore’s Rolleston village. Moreover, in H1 FY24, its revenue increased by 19% on pcp to $30.1 million against a loss of $3.2 million. Its EBITDA saw a 20% uptick to $2.1 million.
FSG has a busy second half of the year planned. It will be launching new products for agriculture and mining, and continuing to build out its Government-funded telecom infrastructure. As part of the Government Telcom Infrastructure Build program, 44 sites were completed as of December 31, 2023 (38% completion), as forecast.
Additionally, it will be collaborating with Optus and the Government on a domestic roaming trial, and launching private LTE (long term evolution) services for resources and agribusiness sectors.
The announcement underscores FSG’s relationship with Tasmania. The Tasmanian Government renewed FSG’s contract to provide IT infrastructure (IaaS) for two more years. This strengthens FSG’s position in Tasmania’s digital infrastructure and boosts their business.
After acquiring Tasmanet last year, FSG is expanding its offerings for Tasmanian government agencies. It plans to use this successful model with other government agencies in Australia. It is also partnering with the Internet Association of Australia to launch a new local internet peering service in Hobart on March 27, 2024.
Roberts added, “We are very grateful to Network Tasmania and DSS for entrusting FSG with critical services which underpin the state’s digital strategy. This collaboration highlights the trust and confidence the Tasmanian Government places in FSG’s ability to deliver high-quality, reliable services that meet the critical needs of public sector entities.”
As the Company gears up to achieve its second half goals, its FY24 outlook remains positive. It forecasts its consolidated revenue to be in the range of $69 to 75 million and EBITDA in $5.5 to 7 million.
Alinda is a Business Reporter for The Sentiment
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