Ondas Networks develops and markets its FullMAX™ software defined radio (SDR) platform to critical infrastructure markets globally. FullMAX is a next-generation private wireless connectivity platform compliant with the IEEE802.16 (“dot16”) standard for mission-critical industrial applications. Ondas Networks is currently delivering its dot16 wireless technology to the rail sector, in partnership with Siemens and supporting the FCC-mandated upgrade to the 900 MHz North American Class 1 Rail network.
Next-Gen Industrial Wireless Ecosystem
Ondas Networks provides wireless connectivity solutions enabling mission-critical Industrial Internet applications and services. We refer to these applications as the Mission-Critical Internet of Things (“MC-IoT”). Our wireless networking products are applicable to a wide range of MC-IoT applications, which are most often located at the very edge of large industrial networks. These applications require secure, real-time connectivity with the ability to process large amounts of data at the edge of large industrial networks. Such applications are required in all of the major critical infrastructure markets, including rail, electric grids, drones, oil and gas, and public safety, homeland security and government, where secure, reliable and fast operational decisions are required in order to improve efficiency and ensure a high degree of safety and security.
We design, develop, manufacture, sell and support FullMAX™, our patented, Software Defined Radio (“SDR”) platform for secure, licensed, private, wide-area broadband networks. Our customers install FullMAX systems in order to upgrade and expand their legacy wide-area network infrastructure. Our MC-IoT technology supports the evolution of the IEEE 802.16 wireless broadband standard for private, mission-critical industrial networks.
North American Class 1 Rail Network
We have targeted the North American freight rail operators for the initial adoption of our FullMAX™ platform. These rail operators currently operate legacy communications systems utilizing serial-based narrowband wireless technologies for voice and data communications. These legacy wireless networks have limited data capacity and are unable to support the adoption of new, intelligent train control and management systems. In addition to data capacity challenges, rail operators need to reliably cover the vast and often remotely located rail track and related infrastructure which extends nationwide. The rail operators require a next-generation, robust broadband system with significantly increased data throughput capacity and flexibility to adopt new applications. This upgrade cycle is being driven by a recent key event which occurred in August 2020 in which the Class 1 rail systems in the U.S. were awarded new nationwide “greenfield” wideband radio spectrum by the Federal Communications Committee (“FCC”). As part of the award, the rail operators are required by 2025, to vacate a series of legacy narrowband channels.
Mike Nolan, Vice President of Freight and Product Solutions at Siemens Mobility, states, “The new frequency allocation from the FCC along with the standardization process around IEEE 802.16, lays the groundwork for a new, nationwide, rail-owned, general purpose IP data network that extends a Railroads’ corporate network along the right-of-way for reliable, real-time access to mission critical devices, sensors, and trains.”
Based upon management estimates, we believe the addressable market for the four private North American Railroad networks is approximately $1.3 billion. We believe the 900 MHz network will be the first network upgrade to adopt our FullMAX technology and we estimate that the market size for the 900 MHz network is approximately $450 million.
A Critical Upgrade to Enhance Safety
The North American Rail Network is vast in scale, consisting of 140,000 miles of track, 25,000 locomotives, and 1.6 million railcars. Within this large footprint, we estimate there are 200,000 highway crossings, with at least 65,000 of the crossings equipped with electronic systems today, a number which is expected to increase in the coming years.
The need for increased safety has been highlighted by recent train derailments in the United States, including the East Palestine, Ohio disaster. Key to enabling increased use of safety-critical sensors and flow of rail track and railcar health information is the adoption of upgraded networking bandwidth.
