The Field Solutions Holdings Ltd (ASX: FSG) share price soared to a multi-year high after announcing a positive update. Here’s the details.
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The Field Solutions Holdings Ltd (ASX: FSG) share price is rising in late afternoon trade. This comes after the company announced it had secured 5G spectrum for rural, regional and remote parts of Australia.
The telecommunications carrier and technology company provides connectivity for rural, regional and remote areas. It builds fixed wireless networks, employing technologies such as fibre and fixed wireless spectrum.
After reaching a multi-year high of 8.2 cents in morning trade, the Field Solutions share price is trading up 7.35% at 7.3 cents, at the time of writing.
What did Field Solutions announce?
In today’s release, Field Solutions advised it has been allocated 5G millimetre wave spectrum (26GHz) to 85% of Australia’s landmass.
The company currently operates networks in New South Wales, Queensland, Tasmania, Victoria, and the Northern Territory. A recent government contract award approved Field Solutions to develop infrastructure assets in rural areas across the grain belt region. The company estimated its network would cover more than 90,000sq km by the end of the year.
The granted licences will enable Field Solutions to deploy its network in locations that don’t have 5G services. The company noted that the agricultural sector and a change in working trends were driving the increase in regional areas.
The company expects to start rolling out its 5G network within the next 6 months. Field Solutions revealed that deployment areas were based on local demand, government funding, and business strategy.
Words from the CEO
Field Solutions CEO Andrew Roberts welcomed the progress, saying:
FSG has secured 5G spectrum holdings to ensure that rural, regional and remote Australia is not left behind in the rollout of 5G services. We needed to secure this spectrum to ensure we can deploy superfast services within our target markets.
5G deepens our long-term commitment to the bush, and ensures FSG remains the leading provider of services for rural, regional and remote Australia.
Field Solutions share price review
After falling to a 52-week low of 1.8 cents in April last year, the Field Solutions share price has accelerated since. The company’s shares reached a multi-year high of 8.2 cents today, reflecting a gain of more than 300%.
Based on the current share price, Field Solutions has a market capitalisation of close to $40 million.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.