Ann: Chairman's Address to Shareholders , page-7

I think we might be referring to two quite different moats. I know that TPG is an indirect competitor in the Dark Fibre business, but they compete using only their own fibre, not Vocus' fibre. The businesses compete in the market, but as each company's own fibre is not necessarily laid in the same geographies as the other, they don't always compete for the same customers. In fact, other than perhaps the skyscraper centres of the CBD's, it really isn't in either company's interest to lay their own dark fibre at great capital expense alongside a competitor's dark fibre cable. It just doesn't make sense to invest in capacity when a great deal already exists (note Vocus currently using only 10.7% of installed capacity). To lay alongside a competitor would result in ever diminishing returns for both businesses (note the effect on Qantas v Virgin at the moment). This is the moat. The fibre already laid is unlikely to be subject to much competition as long as other non-competitive greenfields potential exists.

Vocus do not wholesale their Dark Fibre for other businesses to re-sell. It is quite a different business model to the International Transit capacity, where Vocus' major clients ARE re-sellers of that capacity to the retail market.

The way I read Ormond's reference to the moat was as a barrier to entry on the dark fibre already installed. Vocus has plenty of spare capacity on this fibre, and any further revenues from it will translate straight to the bottom line.