Superloop Limited (ASX: SLC) has announced achievement of Milestone 4 in its exclusive six-year wholesale internet agreement with Origin Energy, with the Superloop Origin Contract Milestone 4 now seeing over 250,000 Origin broadband subscribers on its network as of 4 March 2026. The milestone triggers a share issuance obligation, with shares priced at the 30-day VWAP and subject to shareholder and regulatory approval.
The telecommunications infrastructure provider signed the exclusive contract with Origin Energy Retail Ltd in March 2024, positioning the agreement approximately two years into its six-year term. Reaching this subscriber threshold activates performance-based consideration structured as share issuance rather than cash payment, with a 12-month voluntary lock-up period applying to the milestone shares.
What are wholesale internet services?
Wholesale telecommunications operates on a business-to-business model where infrastructure providers supply network capacity to retail brands. In this arrangement, Superloop provides the underlying network infrastructure whilst Origin handles the retail customer relationship under its own branding.
This structure allows Superloop to scale subscriber numbers without bearing direct retail marketing costs or customer acquisition expenses. Origin leverages Superloop’s established network to deliver broadband services to its customer base, focusing on retail operations rather than infrastructure investment.
For investors, wholesale agreements provide capital-light revenue growth with predictable margins. Long-term exclusive contracts reduce customer churn risk for the network operator, as subscriber volumes are tied to the retail partner’s customer acquisition efforts over the contract period extending to 2030.
Join thousands of readers who start here
Our best articles, sent straight to your inbox. You can unsubscribe anytime.
Understanding the milestone payment structure
The Origin contract includes performance-based milestones tied to subscriber growth thresholds. Each milestone achievement triggers share issuance rather than cash payments, aligning Origin’s interests with Superloop’s share price performance over the contract term.
Shares are priced using the 30-day volume-weighted average price (VWAP) methodology calculated on the milestone achievement date. The 12-month voluntary lock-up period prevents immediate selling pressure following share issuance.
| Element | Detail |
|---|---|
| Pricing mechanism | 30-day VWAP at milestone date |
| Approval requirements | Shareholder and regulatory |
| Lock-up period | 12 months from milestone |
Share-based consideration preserves Superloop’s cash position for operational requirements and growth initiatives. The lock-up provisions demonstrate Origin’s commitment to long-term partnership value rather than short-term liquidity.
Superloop’s infrastructure advantage
Superloop’s platform combines physical infrastructure assets including fibre, subsea cables, and fixed wireless networks with proprietary software platforms. This Infrastructure-on-Demand model enables challenger retail brands, including Superloop’s own Superloop and Exetel brands, to compete in the consumer and business connectivity markets.
The company provides connectivity and services across three market segments: Consumer, Business, and Wholesale. Hundreds of thousands of homes and businesses currently rely on Superloop and Exetel networks for their connectivity requirements.
Owned infrastructure creates operating leverage as subscriber volumes grow, with incremental subscribers generating revenue without proportional cost increases. Multi-segment exposure diversifies revenue streams beyond pure wholesale operations.
Enjoyed this article?
We publish high-impact stories like this a few times a week. No spam.
What this means for Superloop investors
The milestone validates the commercial trajectory of the Origin partnership approximately two years into the six-year exclusive term. Continued subscriber growth toward future milestones could trigger additional share issuances under the same pricing and lock-up framework.
The exclusive six-year agreement provides revenue visibility through to 2030, with the wholesale model delivering recurring revenue tied to Origin’s retail subscriber base. Key investor takeaways include:
- Origin subscriber base continues to grow on Superloop’s network
- Share-based milestone payments align partner interests with share price performance
- Six-year exclusivity provides long-term revenue visibility in the wholesale telecommunications segment
The announcement confirms execution on Superloop’s largest wholesale customer agreement, with the growing subscriber base signalling recurring wholesale revenue growth locked in for the remaining contract term.
Want the Next Telecom Deal in Your Inbox?
Join 20,000+ investors receiving FREE real-time ASX alerts with expert analysis at Big News Blast. Get breaking telecommunications and infrastructure news delivered within minutes of release—before the market moves. Click the “Free Alerts” button to stay ahead on emerging sector opportunities.