Very difficult for a large player to enter and cannibalise the...

Very difficult for a large player to enter and cannibalise the market. This is because the large players (Telstra, TPG, Optus and the massively smaller M2 and Macquarie) have established enterprise clients for whom they have set pricing.

These guys are also dedicated to fixed line or their own mobile as opposed to fixed wireless networks.

Also note that the acquisition of Clever will increase BigAir's NPAT by around 300% and its EBITDA by around 50%. I don't think this is fully built in to the share price yet.

The other key point is BigAir's 2yr forward EBITDA multiple is around 3 whereas competitors are as high as 6-7 eg TPG, M2, Vocus. [Its also just lazy (or a try-on) of M&A types to quote 1yr forward or LTM EBITDA]

This means we should see a 50% increase in shareprice to adjust for the accretion of EBITDA in the acquisition of Clever [most of which seems to be built in already] and then multiple expansion of in the order of 100%.... i.e. an overall 300% increase to bring its 1st July valuation in line with that of Vocus, TPG and M2.

So I'd be putting a short term target price of around 50c on this one with a lot of organic upside to come.

As far as growth outlook goes, TPG is in a hard place as it is squeezed between Telstra and NBN Co in the consumer market, although their vertical integration is what I think supports their 50% multiple premium compared to say iiNet [which is almost irrovocably screwed] which has around the same consumer scale as them.

Meanwhile BigAir is protected from the Telstra / NBN squeeze as it is building its own radio access network and it is small enough to cherry pick business clients to grow for the next 5 years or so.

As far as a potential takeover goes, Vocus's equity valued at 7x forward EBITDA will be used to acquire BigAir's valued at 3x forward EBITDA.... This is still earnings accretive with a 100% premium.

Meanwhile there are a number of telecoms companies specialising in corporate and enterprise who would be in favour of taking out BigAir and replacing its network with NBN fibre as and when it becomes available- so the bidder universe is distinctly larger than just Vocus.