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Motorola Augments 900 MHz Portfolio With Improvised Solution

Zacks Equity Research

With an aim to fortify low-latency data communication, Motorola Solutions, Inc. MSI recently unveiled 900 MHz private broadband solution for the development of U.S. critical infrastructure entities. The addition of advanced communication solutions is expected to significantly boost the mission-critical ecosystem and render seamless connectivity to effectively mitigate operating risks.

Demonstrating its adaptability in both defense and first responder markets, the Chicago-based company will leverage its much-acclaimed Land Mobile Radio (LMR) communication for easier access, enhanced coverage and stronger security across oil, gas and utility sectors. These sectors utilize 900 MHz broadband spectrum for the deployment of unified voice and narrowband data transmission and long-range data communications with reduced encumbrance to its LTE space.

Equipped with a high adjacent channel power ratio, private broadband LMR solution offers best-in-class broadband data capabilities across voice, IoT and video platforms. This, in turn, streamlines the critical wide area communications with reduced intrusion of neighboring narrow-band license holders and improved network performance. Apart from its usage in utility sector, the product initiation is triggered by the anticipation that the Federal Communications Commission (“FCC”) will repurpose the 900 MHz spectrum band for use by the enterprise private networks to address end-to-end market needs with augmented capacity.

Motorola’s MOTOTRBO Nitro broadband network, which was specifically designed to provide an end-to-end enterprise communications solution with quality interoperable communications and fast private broadband data, will also have an access to its 900 MHz broadband spectrum. Using the Citizens Broadband Radio Service spectrum, the state-of-the-art solution offers commercial enterprises with easy deployment of cost-effective and secured voice and data connectivity.

As one of the leading providers of mission-critical communication products and services, Motorola generates steady revenues from this niche market. The company intends to fortify its position in the public safety domain by entering into strategic alliances with other players in the ecosystem. It remains poised to benefit from organic growth and acquisition initiatives, disciplined capital deployment and favorable global macroeconomic environment.

Moving forward, the company expects to witness strong demand across LMR products, services and software. These systems drive demand for additional device sales, and promote software upgrades and infrastructure expansion. The comprehensive suite of services ensures continuity and reduces risks related to critical communications operations. Its competitive position, healthy balance sheet and an attractive portfolio for large addressable market augur well for growth.

Motorola has a long-term earnings growth expectation of 8.5%. Driven by robust demand across its mission-critical communications platform, the stock has rallied 54.8% compared with industry’s growth of 29.7% in the past year.

Motorola currently has a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader industry are America Movil, S.A.B. de C.V. AMX, BlackBerry Limited BB and ATN International, Inc. ATNI. While America Movil and BlackBerry sport a Zacks Rank #1 (Strong Buy), ATN International carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

America Movil has a long-term earnings growth rate of 17.2%.

BlackBerry outpaced estimates twice in the preceding four quarters, the positive earnings surprise being 68.8%, on average.

ATN International exceeded estimates twice in the trailing four quarters, the positive earnings surprise being 143.9%, on average.

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