Packet Fabric and PCCW will ramp up aggressively. I’m looking at...

Packet Fabric and PCCW will ramp up aggressively. I’m looking at PCCW as a buy on the HK exchange. The sector will win so best to hedge and bullish on both of the listeds being MP1 and PCCW.

The recent capital raising would no doubt have been in response to these competitive threats. Capital Group would also know how MP1 is placed against competition before it closed its stake.

PCCW holds a competitive advantage with a great infra network throughout the world and needed the software component, so game on. Megaport is the reverse...has good tech but needs to stitch together the fabric though IRU or ownership.

It’s a bit like Microsoft entering the cloud. Was late to the party but still had an envious client base and is now doing well in that space. Why would PCCWs client base now look to megaport if their current supplier can satisfy their requirements? So this is likely to the detriment of MP1 in terms of market share in addressable market.

On the positive, what it may do is further open the eyes of PCCWs main comp to the threat of PCCWs new offering. I would see one of these parties as the logical owner of MP1 long term if not Digital Realty.