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Motorola (MSI) P25 Standard Enhances Oaxaca's Public Safety

Zacks Equity Research
·4 min read

Motorola Solutions, Inc. MSI recently announced that it has been tapped by the Government of Oaxaca to upgrade the latter’s radio communications infrastructure. Per the collaboration, the Southern Mexico state will capitalize on the innovative P25 technology as well as Critical Connect platform from Motorola’s avant-garde suite of mission-critical products and solutions to provide best-in-class support to the public safety agencies based in Oaxaca. Markedly, the latest move highlights the Chicago, IL-based company’s commitment to mitigate operating risks and minimize the growing incidences of crimes, while boosting productivity for seamless operations with greater efficiency and safety.

Apparently, Oaxaca is the first state that complies with the guidelines of the National Radio Communication Network to implement the P25 standard. In fact, the modernization initiative is the result of a collaboration between the State Government and the Secretariat of the Navy (SEMAR), and the National Information Center. The combined synergy arising from the alliance is likely to not only establish a streamlined radio communications infrastructure with enhanced coverage but also aid security agencies to make the most of public resources to strengthen public safety in Oaxaca. Further, the upgraded network has been specifically designed to provide seamless coverage along the Trans-Isthmic Railroad route.

Motorola’s P25 is a global standard that facilitates two-way radio communications for public safety. Critical Connect is a flexible solution that public safety agencies rely on for interoperable Push-To-Talk communications. Specifically designed to deliver cross-jurisdictional communication under adverse situations, Critical Connect enhances multi-state situational awareness and leverages a unified secure interface to provide seamless communication for a coordinated response. Notably, the cost-effective solution will be built on the existing P25 network of the SEMAR, while enabling public safety agencies to exchange end-to-end encrypted video, voice and data. The partnership is expected to not only boost the mission-critical ecosystem of Motorola but also improve Oaxaca’s public safety infrastructure.

As a leading provider of mission-critical communication products and services worldwide, Motorola garnered a steady revenue stream from this niche market. The communications equipment maker intends to boost its position in the public safety domain by entering into strategic alliances with other players in the ecosystem. It projects robust demand across land mobile radio products, services and software, which ensures continuity and reduces risks related to critical communications operations. The company is poised to benefit from organic growth and acquisition initiatives, disciplined capital allocation as well as favorable macroeconomic climate. Its competitive position, along with an attractive portfolio for large addressable market, bodes well.

Motorola has a long-term earnings growth expectation of 9%. The Zacks Rank #3 (Hold) stock has gained 12.7% compared with the industry’s growth of 18.1% in the past three months.



Some prominent players in the industry are Ubiquiti Inc. UI, Aviat Networks, Inc. AVNW and Clearfield, Inc. CLFD. While Ubiquiti and Aviat Networks sport a Zacks Rank #1 (Strong Buy), Clearfield carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ubiquiti pulled off a trailing four-quarter positive earnings surprise of 27.9%, on average.

Aviat Networks pulled off a trailing four-quarter positive earnings surprise of 11.8%, on average.

Clearfield pulled off a trailing four-quarter positive earnings surprise of 44.3%, on average.

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