APJAPJ, i was going to respond to your point about ME and the...

APJAPJ, i was going to respond to your point about ME and the possibility of a "pump and dump" going on however I guess the recent change in substantial holding notice answers the question rather emphatically. I dont work for ME or have any pecuniary interest in their funds so am purely speculating here however I think they are in BGL for the long term. The have been covering the company since february last year (since the 12 cent days) and have provided a number of reports since as the dynamics for the business have changed so thats a pretty long "pump" one would think. Also one important point to note is that a large part of ME's position was acquired through their holding in CVA. Basically it would appear that ME were sold on the WiMAX business model and initially chose CVA as their investment medium on this theme. They did also take a smaller position in BGL. On the takeover ME acquired a much bigger slab of BGL stock via exchange for their CVA stock. Since consummation of the CVA takeover ME have continued increasing their stake in BGL over the last few months and appear to be continuing to do so. I am sure that they have a fair value target in mind however I would be amazed if it was anything less than 50 cents given BGL potential. Even if its 40 cents then that still provides a pretty good margin for profit.

Mike in terms of the community internet space its a good point and something worth thinking about. I have certainly been thinking about it. For instance, in addition to university internet options can BGL compete with wireless broadband packages offered by other players such as telstra. I guess most universities are connected via copper/fibre optic and may offer some WiFi wireless however that is only going to be effective close to hotspots. Campus accomodation is usually sheltered off from the main part of the campus so not sure WiFi is going to provide connectivity. Also its common for universities to subcontract out the campus accomodation aspects (i.e. not in their core business) so the universities may be less interested in ensuring connectivity (i.e. someone elses problem - want good internet come to the campus library etc). So it would largely be up to the accomodation providers to sort out the connectivity issues. Again from what I read its a niche space and BGL via recent acquisitions is a dominant player, so wouldnt it make sense for accomodation providers to sub-contract out this aspect to a solid stand up operator? I suppose also the inherently lazy nature of humans will provide some buffer. Think about it. If you are a young student coming onto campus accomodation (paid for by your parents)(and most res students are first or second year - you could only live there a while before going made) and the accomodation providers offer you the ability to connect without hassles via the big air network which offers great speed and download size at least competitive with or better than say wireless broadband players (including on pricing points as well) are you really going to worry about going with an alternative provider? I think not. You are going to be worried about getting down to the campus club to sink beers with your mates and chase girls/boys or whatever.

BGL management seem to have a lot of confidence in this area (and other other community internet applications) as an area of considerable growth so I take some comfort from this.