Superloop surges as broadband demand soars during pandemic

Shares in Superloop have surged 18 per cent as the internet provider reported a 30 per cent spike in traffic.

Technology entrepreneur Bevan Slattery is offering free online learning for 5000 struggling Australian families.

ASX-listed broadband provider Superloop has joined a throng of tech companies to see an upside to the COVID-19 pandemic, with the company reporting strong fibre connectivity and cyber security sales as digital demand continues to climb.

Superloop listed in 2015 as a wholesale “dark fibre” provider but has since expanded to providing consumer NBN plans, and the company said in an update on Monday that it demand for its internet services had ramped up significantly in the last month.

It said traffic over its global network soared by 30 per cent in a matter of weeks.

Superloop shares spiked on the news, closing up 18 per cent, or 17c, at $1.15 each.

In a statement to the market, the group said the increase in customer demand “ has almost entirely been delivered on our existing domestic and international assets.

“The company still enjoys significant spare capacity on most international routes, meaning there is further opportunity to continue to grow this business segment, without significant increase to operating or capital costs.

“This demand has been driven by our growing customer base, encompassing our consumer, business and wholesale portfolios.”

The company added that despite challenging market conditions, it’s continuing to track towards the midpoint of guidance.

Last year Superloop posted a $72m net loss and didn’t pay a dividend, with the company hampered by its cloud managed services business, which it decided to exit.

Superloop announced last month it would offer 5000 free NBN plans to unconnected low-income households until the end of September, after NBN Co announced a new $50m temporary price promotion scheme.

Superloop’s chairman and founder Bevan Slattery said he’d “been pretty vocal” in seeking the support of the NBN to deliver a “broadband backstop” for disadvantaged Australians.

“I’m delighted they have delivered and I’m equally delighted that Superloop is able to do our part in helping many young Australians enable their remote learning over the next six months,” he said.

“I’m glad to be the first, but am hopeful more RSPs will follow our example.”

NBN Co reported strong demand for both data and new connections last week, as Australians continue to work and study from home.

The company, which said the NBN is close to completion, reported weekly download throughput of 12.6 terabits per second (Tbps), down slightly from the record high of 13.9 Tbps a week earlier, but up 30 per cent up from the pre-COVID-19 baseline.

Download rates were up a whopping 93 per cent last week on the daytime business hours baseline, while early evening download rates were up 43 per cent.

“Despite these challenging times, our field technicians and delivery partners across Australia continue to roll out the network, connect premises and quickly repair any faults that may arise, and we are pleased to report that faults across the network are at an all-time low,” NBN Co chief customer officer Brad Whitcomb said.