Investing in the next generation of infrastructure helps close the connectivity gap

Digital demand

Digital services and the internet are essential infrastructure in today’s world.

They play a crucial role in our daily lives, supporting education, work, and social connectivity. But the digital divide reinforces social inequality.

23.6% of Australians are categorised as being excluded to highly digitally excluded, meaning they experience barriers to equitably participating in social, employment, and day-to-day activities that necessitate internet use[1].

There is a large overlap between those who are digitally excluded and minority groups, including First Nations Peoples and those with a disability.

There is also a high correlation between digital exclusion and other inequality traits, such as living in public housing or being a low-income earner.

Digital exclusion reinforces the cycle of inequality for those at the margin, contributing to an amplified social and economic divide.

Next generation infrastructure: GigaComm

GigaComm is a next-generation internet service provider. Their mission is to build the future of digital infrastructure in Australia, and accelerate digital inclusion by providing fast, cost-effective network services.

Where traditional Australian internet networks provide download speeds 40% below the global average, GigaComm utilise new technologies to bypass the NBN and deliver faster speeds.

GigaComm has over 50 years’ combined experience growing telecom businesses from start-up stage and via mergers and acquisitions. They’re expanding rapidly across the east coast of Australia, with more than 3,600 homes ready to connect and across more than 120 suburbs.

Digital inclusion

As part of their mission to advance digital inclusion and connectivity, GigaComm established a product providing low-cost internet access[2] for Australians living in social housing through community partnerships.

GigaComm currently has five pilot projects underway, with the aim to reach over 1,200 social housing households. In doing so, the Program expects to provide affordable internet access to households that would otherwise go without, narrowing the divide for those experiencing digital exclusion.

Palisade Impact recognised the alignment between GigaComm’s vision of revolutionising digital infrastructure in a manner that is socially compassionate, and its own focus on next generation infrastructure addressing the Race to Zero.

Since its initial acquisition in March 2022, Palisade Impact has committed additional capital in support of GigaComm’s expansion. Palisade Impact is currently the largest shareholder in GigaComm.

As an integral addition to Palisade Impact’s portfolio, GigaComm occupies a defensible position as an essential service provider with recurring revenues, in a highly regulated industry with high barriers to entry. Its business model is scalable, and while past performance can't be relied on when considering future performance, it has provided returns in excess of growth capital costs.

Additionally, owing to our ownership stake and aligned relationship with the GigaComm management team, Palisade Impact can actively manage the asset through board representation.

[1] As defined by the Australian Digital Inclusion Index (2023).

[2] The pricing of the product will be competitive with the lowest NBN tier.