Anterix Inc (ATEX)

History and Background

Anterix Inc. (formerly pdvWireless) focuses on acquiring, managing, and licensing spectrum in the 900 MHz band across the United States. The company initially focused on wireless communications for mobile workers and has shifted its focus towards providing private broadband for utilities and other critical infrastructure industries. Their origins date back several years, evolving from a push-to-talk (PTT) communication provider to a spectrum licensing company.

Core Business Areas

• Spectrum Licensing: Anterix's core business involves leasing and licensing their 900 MHz spectrum to utilities, transportation companies, and other critical infrastructure entities for private broadband network deployments.

Leadership and Structure

Rob Schwartz serves as the President & CEO. The company operates with a structure designed to facilitate spectrum management, sales, and customer support for private broadband solutions.

Key Offerings

• 900 MHz Spectrum Licenses: Anterix offers exclusive licenses to use their 900 MHz spectrum band for private LTE networks. This spectrum is particularly valuable for utilities needing secure and reliable communication for grid modernization, smart metering, and other critical operations. Market share is difficult to pinpoint due to its unique niche, but they aim to capture a significant portion of the utility private LTE market. Competitors are other spectrum holders or technologies like fiber optic networks.

Industry Overview

The private LTE and 5G market is growing, driven by the increasing need for secure, reliable, and low-latency communications in various industries, especially critical infrastructure. Utilities are investing heavily in grid modernization, which requires robust communication networks.

Positioning

Anterix is uniquely positioned with its nationwide 900 MHz spectrum licenses, offering a dedicated and protected band for private broadband. This gives them a competitive advantage over using shared or public networks.

Total Addressable Market (TAM)

The TAM for private LTE/5G networks in the utility sector alone is estimated in the billions of dollars. Anterix is positioned to capture a sizable portion of this market with its exclusive spectrum licenses. Estimates range from $10B to $20B over the next decade.

Key Competitors

• DISH (DISH)
• Verizon (VZ)
• AT&T (T)

Competitive Landscape

Anterix's key advantage is its exclusive spectrum band. However, it faces competition from other telecommunications companies and vendors offering alternative private network solutions using different spectrum bands or technologies like fiber.

Historical Growth: Historical growth has been limited due to the long sales cycles and regulatory processes involved in spectrum licensing.

Future Projections: Future growth is projected to be significant as utilities deploy private LTE networks using Anterix's spectrum. Analyst estimates vary but generally project substantial revenue growth in the coming years. Some project $100M+ revenue in 3-5 years.

Recent Initiatives: Securing major licensing agreements with utilities, expanding partnerships with technology vendors, and advocating for favorable regulatory policies.

Anterix is a unique play on private LTE with a focus on utility companies and infrastructure. Its exclusive spectrum licenses provide a competitive advantage, but high operating expenses and losses are concerning. Future success hinges on the rate of deployment of its customer private LTE networks and effective cost management. Any regulatory changes could also present a threat.

Data Sources:

• SEC Filings
• Company Investor Relations
• Market Research Reports
• Analyst Estimates

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Investment decisions should be based on individual research and consultation with a financial advisor.