Hi Llati.

Thanks for the post, I think you’ve raised some really good points there. I have a counter view on the business with regards to network effects. I think the network effects come from the cross connections (both physical and elastic) side of the business which currently has nearly 16000 interconnections across their network. This makes up 7.3% of their recurring revenue, some of the overseas competitors this number is a lot higher so there’s potentially a lot of upside there too.

Here’s a link of Gourav Sodhi from about 22:30-24min giving a good explanation of the business model and articulating how the interconnections fit in as part of that. I don’t think the network effects are as cut and dry as they are in some other businesses but I still see them at play here.

Disc: Held

https://www.ausbiz.com.au/media/the-call-monday-31-january-?videoId=18920