Bigblu signs deal to provide satellite broadband in New Zealand

Alternative broadband operator Bigblu Broadband has signed an exclusive preferred partner agreement with Asia Pacific-focussed broadband satellite operator Kacific Broadband, it announced on Monday, to provide a high-speed broadband internet service across New Zealand.

The AIM-traded firm said Kacific would provide internet bandwidth via its Kacific-1 satellite, launched in December 2019, and would also provide financial support including the investment in customer terminals and marketing.

In return, Bigblu would provide all sales, marketing and end user support functions, including billing and installation of equipment.

It said it expected to invest up to £1m in the first year of the agreement, as the new business scaled up through the provision of in-country field operations and reseller activities as it attracted new customers and sales.

The investment would be partially offset by revenue share earned from new customers, with Bigblu expecting that, given the scale of the expected roll-out, the project would break even within around 20 months of launch, and would be earnings accretive thereafter.

It said the expansion into New Zealand would be managed from its regional headquarters in Brisbane, Australia, and would initially target up to about 3,500 new customers over the next 18 months.

The revenue share model would be split across a range of broadband packages being offered, including packages with download speeds of up to 75Mbps.

Bigblu said it was the first time that super-fast satellite broadband would be made available to consumers in New Zealand.

“We are really excited to be working with Kacific in this region,” said chief executive officer Andrew Walwyn.

“As per the European operations that we successfully sold, we aim to deliver faster, cheaper broadband with increasingly attractive data packages.

“Importantly, this will provide us with a basis to further grow recurring revenues and also provides an entry point into the wider Asia-Pacific region.”

At 1226 GMT, shares in Bigblu Broadband were down 1.7% at 106.66p.