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What is a difference between motorola airwave and sepura tetra
1. What is a difference between motorola airwave and sepura
tetra
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Sepura PLC , a provider of walkie talkies and mobile radio products to the public and private
sectors, anticipates significant mid- and long- term growth opportunities in the U.S.,
particularly in the commercial market, and is preparing to take advantage of them by growing
a U.S.-focused sales team, signing up partners and getting its products approved, its chief
executive said Thursday.
“[Geographical] diversification will continue over the next few years, but I think that the key
opportunity for the business in the medium- to longer-term has to be the focus on the North
American market,” CEO Gordon Watling told Dow Jones Newswires in an interview.
He explains the potential he sees in North America as two-fold. Firstly, older analogue
systems are being updated to newer digital technologies and secondly, the U.S. has, since
September, permitted use of Terrestrial Trunked Radio, or TETRA technology, having
previously been closed to anything but Motorola’s competing APCO-25 offering.
TETRA, Sepura’s mainstay, is a European standard that was specifically designed for use by
government agencies, emergency services, the military, public safety networks, and rail staff.
“Between Motorola not licensing TETRA technology and the FCC [US Federal
Communications Commission] also not allowing the use of TETRA in North America, it has
effectively secluded about a third of the world’s market to Sepura,” Mr. Watling said.
He estimates that there are about 26 million analogue, professional, mobile radios in
deployment today, of which about 9 million-10 million are in North America. He noted that
even with the market steadily going through an analogue-to-digital transition over the past ten
years, the market today is only about 20% penetrated.
However, despite the large market, the CEO doesn’t expect to be able to operate in its
traditional market of public safety networks.
“We expect, of the 9 million-10 million [analogue] radios that are available in North America,
there’s about 2 million that are public safety and we believe that market will remain APCO-
25, so the real opportunity is to get into all the traditional commercial verticals–the extraction
industries, utilities and transportation,” he said.
Despite the shift in its target market, Mr. Watling isn’t concerned and highlights the
company’s successes in the commercial sector over the last few years.
2. “We’ve gone from a standing start of a 95% public safety revenues and 5% commercial to
now, where we are at about 35% commercial. We can do it, but in North America, we’ve
obviously got a challenge in a country that we haven’t traded in before,” Mr. Watling said.
In the six months to Sep. 28, group revenue from commercial customers almost tripled, with
total group revenue rising 34% to EUR43.5 million. The company swung to a pretax profit of
EUR2.6 million from a loss of EUR5.0 million a year ago.
In light of its confident outlook, the group raises its interim dividend 7% to 0.51 pence.
At 1200 GMT, Sepura shares were down 0.4 pence, or 0.4% at 93.5 pence, in a slightly
higher FTSE Small Cap index–up 0.3%.
Source - What is the Sepura connection type