Glance at three ASX communication stocks amid the evolving telecom trends

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Glance at three ASX communication stocks amid the evolving telecom trends

 Glance at three ASX communication stocks amid the evolving telecom trends
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Summary

  • The digital disruption due to the pandemic has changed the way the telecom industry functions. Technologies such as AI and IoT are now shaping the industry, and there is more emphasis on customer-focused services and improved efficiency.
  • Chorus conveyed MAR submission to the Commerce Commission for the initial regulatory period from 2022 to 2024.
  • 5G Network launched 5GN Wholesale, which will provide access to connectivity services and data centre.
  • Flexiroam delivered a normalised EBITDA profit of AU$1.0 million and entered into partnerships during FY2021.

The telecom sector is at the centre of digital disruption. The industry has changed the way we work and live over the past few years. The telecom space has witnessed migration to 5G networks, increased IoT applications, and the growing adoption of technologies such as AI. On the downside, regulatory pressures and ever-increasing competition have been the major challenges the industry players are facing.

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Experts believe that the companies that could adapt and drive new value with agility in this ongoing trend would be successful in the future.

A few ASX-listed telecom players include  Telstra (ASX:TLS), TPG Telecom (ASX:TPG), Chorus (ASX:CNU), 5G Networks (ASX:5GN), Field Solutions Holdings (ASX:FSG), Flexiroam (ASX:FRX).

This article will walk you through three stocks in the telecommunication space and their recent developments.

Chorus Limited (ASX:CNU)

Chorus Limited, the owner and operator of nationwide fixed-line access network infrastructure in NZ, conveyed its maximum allowable revenue (MAR) submission to the Commerce Commission for the initial regulatory period from 2022 to 2024.

The MAR submission depends on the conservative beginning Regulated Asset Base of NZ$5.5 billion offered to the Commission in later March 2021. The submission results in yearly revenue between  NZ$720 million to NZ$820 million during the period. The numbers are in line with the projected fibre revenues in the initial regulatory phase.

Chorus CEO JB Rousselot stated:

The Company is working together with the Commission on other facets of the new regulatory framework.

Also Read: Why Chorus (ASX:CNU) shares could be in focus today

5G Network Limited (ASX:5GN)

Licenced telecommunications carrier, 5G Network Limited that operates across Australia, recently announced the launch of 5GN Wholesale. Through this launch, the Company would be able to strengthen its service capability to all Managed Service Providers throughout the country. It would be able to enhance its suite of wholesale and include data centre & connectivity services, IP transit, along with cloud services.

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The Company now expects its revenue to grow by AU$10 million per annum. 5G Networks introduced 5GN Wholesale, its partner sales channel, to the Melbourne base, with releases in Sydney and Brisbane in the upcoming weeks.

The update comes after 5GN concluded a string of development & investment programs, involving the Intergrid's acquisition, ColoAu's integration with 5GN infrastructure, development of a 5GN Wholesale Ordering Portal, as well as its 5GN Wholesale website.

The Company continues to invest in service offering. It continued the roll-out of fibre through parts of Sydney, Melbourne, Brisbane, Perth & Adelaide, linking 80 data centres with services like Dark Fibre.

Interesting Read: Did the March quarter updates for 5GN, JBH, CPT bring cheer to the market?

Flexiroam Limited (ASX:FRX)

Flexiroam Limited, the super-connector offering important links between touchpoints & information repositories, announced 12 months results (period ended 31 March 2021). Throughout FY2021, the Company responded to the COVID-19 impact by rearranging the cost base & aligning the business for a travel recovery. FRX prioritised developing the business to be an IoT connectivity solutions provider.

During FY2021, FRX delivered a normalised EBITDA of AU$1.0 million. The Company had a positive operating cash flow in Q4 FY2021. It signed several key partnership deals centred on customer acquisition to place the Travel business for recovery as soon as international travel constraints get gradually lifted.

The Company also entered into the BNPL space, signing a deal with Split, offering Split as a Flexiroam Wallet payment alternative to buy Flexiroam products. The agreement further boosts the potential scale of FRX's customer base in SE Asia, where there is a vast population of unbanked customers.

FRX signed a deal with Split to enter the BNPL space (Source: © Maigi | Megapixl.com)

FRX also signed an agreement with the top blockchain-based travel booking platform of the world, Travala.com. The partnership would position the Company to benefit from a return in international travel.

Stock Information (as on 25 May)

Source: ASX Data

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