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DAVNET LIMITED 2000-11-14 ASX-SIGNAL-G HOMEX - Melbourne +++++++++++++++++++++++++ As you have heard, during the 1999-2000 financial year, Davnet entered new markets, formed significant new alliances, attracted new customers, and added an array of products and services. Our approach is summed up by our vision statement. This vision statement is to deliver reliable, innovative, scalable, broadband solutions to business users. Solutions that are guaranteed. How are we making our vision a reality? Through our strategy. Our strategy has a technological component and a business component. The technological component uses our aggregation principle: aggregating services to each customer; aggregating the services in a building; aggregating buildings round a hub; and aggregating the hubs across our entire network. All of which are IP driven, so each customer can link to the full power of IP communications solutions through a single Ethernet socket in his or her office. The business component is the way we target blue chip and multinational organizations located in premium properties in central business districts. We target managers and owners of those properties who need to attract and retain premium tenants. In parallel we offer tenants in those properties low-cost, high-speed broadband solutions that meet their increasing need for seamless voice, data and enhanced communications services, often across the globe. As well as connectivity, we encourage customers to use additional bandwidth by offering enhanced and value-added services, such as e- Data`s managed data offering, or third party offerings. What does this strategy mean in practice - in the real world? The business space that Davnet is in is the New Internet World. This space is characterised by an evolving range of new products in Data Technology, Mobile Tehnology, Web Content and Applications. The New Internet World is one that is seeing end users demanding more sophisticated products and services. We see a business service migration from what are low margin, low challenge products such as voice access, through to high margin and high business challenge products such as e-Commerce, Streaming Video and Data Storage. We see ourselves as providing more and more products and services at the upper end of this curve - because that is what our customers increasingly want in order to conduct their businesses successfully. And we can deliver the right solutions because we are a pure IP carrier. The beauty for Davnet in the New Internet World is that it is an IP based world and Internet Protocol telecommunications is where we started. We are not bound to legacy systems and sunk investment that makes so many of our potential competitors slow to move. It`s important to note the massive size of the potential market, which Davnet is targeting. The US market alone is forecast at US$120 billion with the data transfer category estimated to grow at over two-and-a-half-thousand per cent between 1998 and the year 2002. And we are starting reap the benefits of being part of this new world. We are starting to deliver. A year ago, we told you about our plans to licence and cable buildings. This time last year, we reported a handful of live buildings with clients. At the end of the 1999-2000 financial year, this had grown to 93 on three continents with many more being licensed. Today, I can tell you that we are announcing that many of these buildings are generating significant revenues. Many of Davnet`s "early adopter" buildings, cabled in the first twelve months of our operation, have paid back the investment we made in wiring them up and are generating significant revenues. Buildings such as the Rialto Towers, which achieved A$1,042,000 in gross revenue to August this year, on a capital expenditure of just A$70,000 in October 1998. 101 Collins Street has achieved A$832,000 in gross revenue on a capital expenditure of A$63,000 since February 1999. Another five buildings of Davnet`s "early adopter" buildings in Australia are now generating substantial cash flows. As other buildings in Australia and overseas come through what I call our funnel, and we link up to more clients in those buildings and they enjoy the benefits of our aggregated IP solutions, revenues will continue to flow. These sorts of returns justify our investment strategy both in Australia and beyond. This is a key to our future business success. In closing, I would like to thank the management team and staff for their dedication to the task at hand, my fellow directors for their input, guidance and support, and to you, our shareholders, for your continuing commitment to the Company. Thank you. |
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| aus der Diskussion: | Davnet |
| Autor (Datum des Eintrages): | TOM_MOORE (14.11.00 05:45:29) |
| Beitrag: | 18 von 58 (ID:2340738) |
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