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[i]I don't really understand the data centres bit of the business and why they are acquiring them at a rapid rate. I want to know if there is anything special about their data centres that differentiates them from other data centres? Or, how they tie in with the other services they offer in some way?[/i]

My thoughts are that the intercontinental fibre traffic business offers good margins but they are likely to reduce over time as the amount Vocus can charge for this service reduces (prices are always coming down for these services). The volume growth will offset this to some degree. Vocus has also effectively offset this margin contraction by accelerating the repayments on the lease, which will be made within 5 years for an IRU that they have access to until 2025. This means that post 2017 any revenue generated on the current IRU goes straight to the bottom line.

Cloud computing (data centres) and the dark fibre businesses offer excellent opportunities for Vocus. They are both higher margin than the intercontinental fibre business but highly complimentary - there are lots of cross selling opportunities between all 3 businesses. Most important though is the rate of growth in the data centre and dark fibre businesses - it is exponential growth at the sweet spot on the curve. A little capex now will deliver fantastic profits capturing this growth into the future.

I think the main competitive advantage that Vocus has in the space is their management team - obviously no slouches when it comes to understanding the industry. Additionally, with all 3 businesses they are able to offer an integrated product to clients. There is lots to like about this company.