Powertel and UEComm are competitors in that they both have fibre in the CBDs of capital cities. However Powertel also has inter-city fibre connecting Sydney Melbourne and Brisbane. Consolidation between PWT and UEC must be on the cards because their combined customer bases would be more like a critical mass. PWT have signed with Macquarie Corporate and have a captured growth market as they cut the Macquarie network over onto their fibres.
UEC have just achieved EBITDA positive status and PWT are getting close - probably this quarter. So both in their own right are speculative improvers based on fundamentals, but if consolidated they would be a significant force. Worth a buy and probably a hold as the whole sector will recover within 6 months - the trends are very clear.
PWT Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
