Zipt 2.0, page-302

From Morgans, discussing SDA:

https://my1.morgans.com.au/r.cfm/8835B89E-824A-4FA2-A02B-912004EBC42B

SpeedCast has three other revenue lines with more limited growth potential:
- Communications services to Afghanistan supporting agencies and personnel associated with NATO activities that are now winding down.
- Equipment sales, typically customer equipment in support of service provision.
- Wholesale VoIP.

We believe these services have relatively limited value-creation potential. Services to agencies and personnel in Afghanistan are reducing rapidly with the winding down of NATO’s military presence, although some government and NGO operations remain. Wholesale VoIP is a relatively low-margin resale business. Equipment sales have a better margin but the sale is ‘one-off’ in nature compared with the on-going earnings and margin potential of service sales. Both lines are important mainly as an adjunct to higher-value ongoing service lines.

Obviously, the analyst belief that Wholesale VoIP is of "limited value creating potential" was based on the view that the margins were low. The ZIP deal fixes that - SDA now retains 50% of that money and given wholesale VoIP is SDA fastest growing market, well...