- Etherstack is a wireless technology firm that mainly deals in mission-critical radio technologies for wireless device producers and network operators globally.
- ESK has joined forces with Samsung Electronics for next-generation Mission Critical Push To Talk (MCPTT) over LTE solutions.
- After a robust 2019, ESK reported a superb beginning of 2020.
Etherstack (ASX: ESK) is a wireless technology company that focuses on the resource sectors, transportation, utilities, public safety, and defence. It mainly develops, manufactures, and license mission-critical radio technologies for wireless device producers and network operators’ companies worldwide. ESK has R&D facilities in Sydney, New York, London, and Yokohama. Radio communications devices used in the most critical conditions have Etherstack technology and solutions used in them.
To offer next-generation Mission Critical Push To Talk (MCPTT) over LTE solutions to governments and telecommunications carriers all around the world, Etherstack plc has signed a global teaming contract with Samsung Electronics. MCPTT will be delivered using Etherstack digital LMR (Land Mobile Radio) soft-switching technologies incorporated within Samsung advanced network solutions.
The alliance will lead to Samsung freshest mobile network offerings to carriers for public safety communications used by first responders (fire, police, and EMT(ambulance) officers) and the Etherstack two decades of experience in digital LMR and Push to Talk soft switching to come together.
Etherstack is the prominent name in the world's leading licensor of wireless technologies for the LMR industry. It creates wireless products for the leading digital radio communications standards known as TETRA, P25, DMR, and APCO. In more than 25 years, over 20 wireless device producers have licensed LMR technologies from Etherstack for use in their products.
MCPTT over LTE is a new emerging cellular standard that offers public safety grade PTT (Push-To-Talk) solutions within 4G and 5G mobile networks. There is robust demand for the MCPTT services and devices by telecommunication providers and end-user agencies. The demand is expected to rise further over the next 36-48 months.
If we talk about the Samsung networks, it is a pioneer in the successful delivery of 4G and 5G end-to-end networks solutions. Mobile carriers use their advanced solutions across the globe. Alongside, Samsung continues expansion in Japan, Canada, NZ, Korea, and the US.
Networks Business at Samsung Electronics, Senior Vice President and Head of Product Strategy, Wonil Roh said, Etherstack was the obvious choice to partner within the MCPTT market as Samsung recognised ESK’s unique technologies and expertise in the global LMR market.
ESK's global trace in mission-critical markets and innovative technologies, also its commitment to open standards, will allow Samsung to offer premier solutions to the world's cellular carriers for MCPTT.
Mr David Deacon, Etherstack CEO, said, ESK was working with Samsung over the past twelve months creating safe and practical solutions to combine public safety networks used by first responders and next-generation cellular networks.
ESK enjoyed working with the global leader and solving the intractable interoperability problems via innovation and existing Etherstack standards-based technology. The issues have troubled the LMR sector for decades. In Samsung, ESK has a partner assigned for open standards-based solutions for the LMR industry.
The Global Teaming contract explains in which manner Samsung and Etherstack have collaborated. ESK will derive profit from this global teaming contract in the coming time when both the companies together will supply technologies to Samsung's customers.
The agreement is estimated to have an initial period of 2 years and contains provisions under which the contract may be extended for another two years.
As per the Appendix 2A released by the company, ESK issued 6,666,667 convertible notes in August 2019, of which on 30 June 2020, 3,333,333 are currently being converted into fully paid ordinary shares. The remaining 3,333,334 unconverted notes, at the noteholders election, may be converted within two years of the date of issue.
ESK in 2019 reported the strategic wins with robust positive cashflow and EBITD. Furthermore, it reported a solid start to 2020.
Public Safety: Key delivery milestones reached on federal and state policing networks in the US, Australia, and Canada. Also, digital radio network development orders expected in H2 2020.
Utilities: New H1 2020 network deliveries giving substantial half revenues and future aid growth.
Resources: Key resources digital radio network agreement win in Western Australia announced in May 2020. Follow on development orders anticipated in H2 2020.
Strategic Partnerships: ESK continues to develop a strategic alliance in new technology divisions such as Mission Critical Push-to-Talk (MCPTT) over LTE. The company expects to disclose the new long term relationships and deals in this area during H2 2020.
New Technology Licensing Deals: ESK is at advanced stages of negotiation on two new technology licensing agreements that will offer material revenue during H2 2020.
Tactical Network Sales: The completion of the ESK's tactical network product line has witnessed business growth to several govt clients in multiple regions. It was driven by the company's highly secure ad-hoc terrestrial and satellite network products.
New Products: ESK continues to extend its product portfolio producing leading-edge decisive communications products.
ESK is trading at $1.250 on 2 July 2020 (AEST: 3:16 pm).
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