Vocus buying bigger slice
Telecoms infrastructure company Vocus has bought Challenge Networks as part of a private mobiles push.
The company says the purchase - which it will not disclose the value of - will complement its $1 billion investment strategy, headlined by the Project Horizon cable in the Pilbara; connecting Port Hedland and Geraldton in Western Australia.
Vocus says it is responding to growing demand for private mobile networks on mining sites, a rising need for connectivity in remote areas for automation and other tasks.
“The demand is high either for applications for new mine sites, extended mine sites or companies pushing for automation on the mine sites,” says chief executive for enterprise and government Andrew Wildblood.
“It is their experience of 20 years in those complex environments, married with the capacity we have with fibre, our satellites, our submarine cables.
“Challenge was the first company to do underground mining private LTE [long-term evolution broadband], so it has pedigree in very difficult engineering situations that have proved hard for mobile operators to do.”
Mr Wildblood said the pairing of Vocus and Challenge should see it occupying a substantial part of the Australian market.
“I would hope we would take a good share of the market areas where we choose to play. It is hard to determine as a percentage, but I would hope at least double digits and more over the next five years,” he said.