Q3 2021 Anterix Inc Earnings Call
The line and we'll be right back with you.
[music].
Thanks for holding and we appreciate your time and patience. Please stay on the line and we'll be back and just a moment.
[music].
Uh huh.
[music].
Good afternoon, ladies and gentlemen, and welcome to the enteric third quarter Investor update call. At this time, all participants have been placed on a listen only mode and the floor will be opened for your questions and comments after the presentation and it is now my pleasure to turn the floor over to your host of toss Rebecca rally ma'am the floor is yours.
Good afternoon, and thank you for joining US with me today are Mark and O'brien, our executive Chairman, Rob Schwartz, our president and CEO, Ryan Gerbrandt, our CLO and.
So gray our CFO.
Before I turn the call over to Rob who will deliver our prepared remarks, I'll remind you that any statements. We make during this call that are not based on historical facts represent forward looking statements and our actual results could differ materially.
The discussion of the factors that may affect our future results is contained in our SEC filings, which are available on our investor Relations website.
A replay and transcript of this call will also be made available on our website.
Following our discussion we will open the call to take questions from the audience.
And with that I'll turn it over two and charged as president and CEO Rob Schwartz.
Thanks, Hitachi and good afternoon, everyone and thanks for joining our fiscal Q3 investor call.
It's been just a short time since our last investor call and we announced our Ameren contract. So today I'll provide a brief update on our continued progress since then.
Really excited about and Texas current market position with continued customer progress growing macro demand and strong regulatory tail winds.
As we enter this fourth fiscal quarter of a big year for and Terex, Let me start with how we're tracking against our stated goals of thus far.
And this fiscal year, we've delivered on the FCC decision to bring broadband to 900 megahertz. We've secured our first long term customer contract demonstrating the considerable value of our nationwide spectrum asset to utilities.
We've cultivated the expanding interest and 900 megahertz of private LTE, which can be measured through a growing number of pilots experimental licenses and industry collaborations.
We continue to see and foster strong tailwind from the legislative and regulatory environment, including for the administration regarding their focus on modernizing the electric grid to support the expansion of renewable energy.
Despite the challenges of operating during the pandemic, we've expanded and develop the leadership team that of successfully executing on our business plan.
And lastly, and most importantly, we've continued our development of a robust and maturing customer pipeline that we believe will enable us to achieve our business goals.
I want to focus on three key takeaways and my remaining comments today first our continued progress with target customers second and momentum that is now beginning to translate into an industry movement towards private LTE.
And third the positive legislative and regulatory trends that we're seeing and as a result of the energy policy focus of the new administration.
So starting with their progress with target customers. We're solidly on track with our stated goals and remain confident and our ability to report additional customer progress with at least one or two more customer agreements before fiscal year end of March 31 of this year.
Our sales funnel continues to strongly developed and accordingly, and our upcoming fiscal year. We're now targeting the signing of an additional two to three customer agreements and fiscal year 2022.
Which puts us right on track for our previously stated fiscal year and 2024 customer goals.
Our confidence is based and the continued progress and the seasoning of our customer funnel, which is the direct result of the growing industry demand for private LTE.
Further we're already seeing utility customers react positively and show stronger interest based on average commitment to private LTE.
In addition, our top down initiatives continue to develop increased industry awareness that the modernized private and 900 megahertz communication solution that and Terex is offering to utilities is essential to support the modernizing the electric grid.
A recent example of this continued progress is our announcement.
With excel energy and Motorola.
<unk> is one of the largest values with four operating companies, providing energy to over 12 million people across eight western and Midwestern States.
And Motorola the leader and private two way radio communications for industrial users is providing an innovative private LTE solution called Nitro.
This offering effectively expands legacy two way radio systems with a high powered overlay of 900 megahertz, LTE and with the ability to complement the deployment with CBR S.
As Tim Peterson, and CIO of Excel energy stated about their private LTE initial appointment quote this new telecommunications technology will provide a basis for new solutions, which can improve grid operations enhance system security and ultimately deliver a better experience for our customers unquote.
Innovation, however, isn't only being realized within the utilities I'm also excited about the movement towards 900 megahertz private LTE from other entities that will drive future innovation.
Texas State University recently received what is now the ninth FCC 900 megahertz experimental license to focus on applied research for connected infrastructure embedding smart technology into utilities cities transportation and renewable energy.
The bringing together a broad group of innovators and thinkers to test evolutionary use cases, taking full advantage of the powerful capabilities made possible by private LTE networks. We're looking forward to working with Texas State University and its technology partners as the work gets underway.
As a result of the continued progress we're making on the customer front, we've garnered substantial additional experience with prospective customers and.
And we now better understand some important dynamics of our business model and I'd like to share with you.
As we've said before our customer contracts will be diverse and size for mid sized deals of tens of millions of dollars to larger deals at hundreds of millions of dollars and contracted proceeds and we continue to see and increasing desire for these customers to prepay.
Future opportunities may come as one large transaction and others could be done as incremental steps by the regulated operating companies within the large utility holding companies.
Our addressable market opportunity includes the FCC designated complex systems, where our target customers are also significant 900 megahertz licensees and these situations will be creative and our deal structures and will target path forward. They are accretive for our shareholders.
Predicting the precise timing of the signing of these contracts is not easy. These customers are managing critical infrastructure and networks and events do happen the contemporary shift their priorities. Despite any of these short term timing challenges, we remain confident and the positive trend line of future transactions, we believe future transactions.
And will mark the value of the nationwide spectrum asset on our balance sheet, just like it did with the Ameren agreement and demonstrate the growing demand and continued willingness to pay fair market value for our scarce low band spectrum.
And these deals may also close and irregular intervals not necessarily correlated to our fiscal quarters.
We may go quarters without announcing new deals only to be followed by extremely strong quarters.
This dynamic is the nature of our unique and valuable business model and we're confident that the broader trend line will demonstrate the opportunity for continued and long term value creation.
So as we continue to learn more from the closing of customer transactions will continue to provide updates.
Additionally, it's worth pointing out the recent C band auction results, where prices well exceeded analyst and market expectations.
This reflects the increasing value of licensed spectrum and provides further support for our spectrum negotiations.
Looking more broadly at the utility industries sharpening focus on private LTE.
There was accelerating momentum and dialogue across the collective industry and support of 900 megahertz private LTE adoption.
Across the country utilities are making bold commitments to net zero carbon emission goals and as a result of our planning to invest billions of dollars and generation transmission and distribution infrastructure to expand strengthen and modernize the grid and support of these goals.
Through our efforts more and more of these utilities are becoming aware of the foundational role of 900 megahertz private LTE and achieving these important objectives.
This increased focus on private LTE is translating into action and customer engagement.
We see all of this activity validation of the momentum across the utility sector as a movement the entire ecosystems broad embrace of private LTE U will result in the networking benefits that we've discussed in the past.
And that move and extends beyond the utility and vendor community.
It's illustrated in our press coverage webinars seminars and round tables, focusing on private LTE.
And it's also reflected and legislation as well as the new administrations policies regarding climate change and the focus on clean and renewable energy.
Working with the industry working with industry associations individual utilities and thought leaders. We've educated policymakers regarding the critical importance of having a modern and secure broadband platform as part of any grid modernization.
Those joint education efforts are beginning to bear fruit and December the Energy Act was included as part of the Covid relief package that was signed into law. It requires and the department of energy to investigate the intersection of New technologies Communications and grid monetization with the specific focus and cyber security.
Multiple sections of the act along with her efforts and our mission to deliver of secure broad broadband solution for utilities.
In addition to the legislation adopt and December the administration's focus on environmental issues also aligns with our goals. The president is calling for of clean energy Revolution to address the climate emergency.
To realize the energy future and envisioned by the administration utilities will need to implement communications networks that our robust secure and support the integration and management of new and distributed energy resources.
Through our combined efforts policymakers at the national level are beginning to recognize the integral role the private secure communications will play and helping the country reached its clean energy goals.
Before I conclude I can't say enough positive things about our expanding team and the trusted position. They are established for and terex throughout the utility sector.
We are becoming an integral part of our prospective customers.
And when combined with our industry leaders and our advisory Council, we're proving ourselves as compelling industry force striving to establish the and Terex name is synonymous with private LTE.
Together, we are laser focused on achieving our mission of what is now of collective movement towards private LTE network adoption.
That concludes our prepared remarks, I'll now turn it over the operator for questions.
Ladies and gentlemen, the floor is now open for questions.
Any questions or comments, please press star one on your phone now.
That will posing your question you. Please pickup your handset if of CN speakerphone and to provide optimal sound quality.
Please hold them of leipold for questions.
Your first question is coming from Phil Cusick.
Your line of lives.
Hey, guys. Thanks.
I guess first can you give us any more detail on the funnel anyone in or out as well as the prospects for the one or two more deals you have expected the design and the next couple of months.
Hi, Phil.
Absolutely I mean, I'll start and and Ryan can flow into the details.
So as I mentioned, we see.
And continued progress Brian gave a lot of detail any of our last call about the the movement of utilities through the funnel based on what we're seeing again, we remain confident about what we can we can deliver and this is remaining a period of of the fiscal year. Ryan you want to give some more perspective.
Yeah, I'll grab and go out a little more color yeah, we've talked a little bit about kind of the 40 accounts fill in the past in terms of their maturity. Obviously, we've been working with the expanded sales team that we've been putting in place across a variety of these even and parallel while we were working to get them.
To get the amarin and signing.
Nothing has fallen out and I think that's one of your specific questions.
So we're not seeing we're not seeing anything like that.
And continue to see you don't kind of of the momentum that's been building that we've been working to capture really coming out of the ongoing conversations that have spurred both directly and indirectly as we've announced the ameren and the positive signs of that is created.
Okay, and then maybe Rob you could talk more about the customer interest and prepaying can you dig into that what does it tell you about your funding needs. Thanks again.
Absolutely.
I think and we were approached our last public funding and we've talked about that we believe that would.
Fully fund our business model and and built into that was an assumption that we'd be seeing proceeds from <unk>.
Future customer contracts and with the completion of the Ameren agreement and those were seeing and the pipeline.
And Tim has mentioned in the past, we do see growing.
Growing preference for the potential prepaid agreements, obviously, it's positive for us from a cash flow standpoint and.
And we do see that we're going to continue to see that trend and that will provide.
The sources of capital for US to continue to fund fund our business model. So prepaid is really being driven by.
The utility customers desire to be able to capitalize their costs of of the spectrum and some utility and you're seeing a greater ability to do so if they can prepay. It obviously of the extent that we can get the the the.
Cash upfront for the law and and maintaining our long term relationships, it's a win win for us.
If you find yourself with excess cash what what makes sense to do with it.
I think I think Tim's talked about that also in the past, we obviously of a lot of a lot of different alternatives I would say that it would be a good problem to have and we get there. We're doing some careful analysis now to understand what our options are and.
And we anticipate that debt when we run into that that good problem to have that will that will have a decision made about what we wanted with the capital Tim anything you want to add to that.
Tim you may be on mute if you're talking.
Sorry about that.
Two things that I wanted to mention and having additional cash and prepaid as we move forward, we'll get us some additional strategic options including share buybacks.
And second is.
One of the things that we've thought about it's been a little over two years since we last held in the Investor day, and we're going to schedule relatively soon of virtual investor day to talk about.
Prepaid those impacts and other apps.
Aspects of our model moving forward.
Great. Thanks, guys.
Thank you Phil.
Your next question is coming from Simon Flannery.
Your line of live.
Great. Thanks, Good evening, Thanks for your time Tonight.
And the Q you mentioned on the Ameren deal you still need the board of directors approval could you just take us through the status of the of the Ameren contract at this point.
Sure Yeah I.
I think referred to that's kind of of customary issue within the agreement.
And what we're finding is that some utilities.
You know are able to include the the payment for spectrum potentially in and existing budgetary approval others need to to go for a broader approval somewhere looking at spectrum as a single line item of where others roll it into our larger plan for their overall deployment of a of a.
The grid modernization program. So the they put together rate cases for grid monetization, that's really where amarin spitz. So for us while we've got all of the right positive momentum were working with them already on their planning and deployment.
We were working from the C suite on down to their engineers.
And on how they move forward. They have a board approval date that will happen sometime probably by the by the middle of this year, but we see it everything is green light and so far from all of their commitment and all of their public statements and you've probably seen that they've been.
Support of ours not just through.
Through the the transaction itself, but theyre also been out.
On the podiums with us as part of a number of the industry conferences that are actually helping us with outreach to other utilities, there even hosting other utilities that want to learn from their pilots and experiments and helping drive and forward. So every sign of their commitment you know from watching their feet from us gives us the confidence that our debt that board approval will be something that debt.
As required, but we don't think there's going to be any challenges and getting it and that's something that will allow them to sort of a gating item to getting recognizing revenue and getting the first installment of sat right.
That's correct.
And on the 22, thank you for the color on signing two to three more leases I know, it's lumpy, but it might is.
Is it fair to think that this is could happen at any point or is it more of a second half of first half or still too early to say.
Yeah, I think it's probably too early to say on the specific timing within the year at this point.
And I made some comments, obviously about the the the difficulty in predicting the timing of closure anyway with all of the utility agendas as well.
But we're confident really and I think what's important Simon is to see the that's the right step that fits within our plan to get to our 2024 goals that we're confident that debt based on the breadth and depth of the pipeline that Ryan's described.
That will be able to achieve that.
And that many many customers to be able to continue on that and just following up on that you you reiterate the customer goes he also reiterating the financial goals.
Yeah.
Yes, yes, we are so I think as Tim said, where we're targeting and investor day to really be able to refine that.
Further based on our learnings.
And a lot of the has to do with what we said I believe and he was the last call.
As we're seeing prepayment and what the impact of that is on what we originally described is annual recurring revenue, obviously prepayment is of different cash flow impact.
And does have an impact on that on that recurring revenue. So we're we're confident that we're going to put 50% of our spectrum to work at least by that 2024 day and we'll see the customer proceeds.
And that relates to that.
As they get prepaid that has an impact on on on the the.
The way in which we book those revenues and so that's one and get deeper into as we're seeing that trend happening Tim anything you want to add to that.
No Rob I think you.
Can you handle that one so anything else Greg.
Great. Thank you.
Your next question is coming from Mike Crawford.
Your line of life.
Thanks, Mike Crawford from B Riley Securities. So can you.
And you talk about how.
Potential license to.
Texas State University or you P S.
And the other license would affect.
And the utilities seeking the new spectrum and regions where other.
Enterprises.
Also we desire and the use of spectrum.
I'll give you the broad answer to the I think the question that youre asking about whether whether those experiment of license will impair our ability to create commercial licenses and I think generally the answer is no meaning there, they're really just sort of temporary authority to use it for experiments, but obviously, we have the ability to.
Bring those out it has broader commercial licenses, but right and maybe worth of you're giving a little more detail as you're bringing up on the tech State University and.
Sort of our excitement about that opportunity.
Yeah happy to yeah, well whats exciting about Texas State University as you know really what they're doing in terms of looking within their labs across the student base and across.
And the ecosystem of companies and partners that'll be affiliated with us and the future to really explore.
The variety of new drivers and use cases, and I would say we've talked a lot about the existing utility use cases and at the end of the day, that's what underpins.
And the utility of adoption that goes with them.
But beyond that really becomes kind of the next generation of what can be done with the various applications and use cases that can leverage.
And the capabilities of private LTE and just beyond that.
To the to the.
The Texas University initiative is really it's its application across sectors and so as Rob said they are exploring not just individual use cases, but the intersection of those use cases across utilities and cities transformations and renewable aware, there's a lot of future opportunity the live for our prospective customers in terms of of how they can consider.
Advantage of the capability under the umbrella of the Bill private LTE network.
And you get Mike that said just bring you back to your question those are all experimental licenses and pilots and so theres nothing in them that prevents us from moving forward commercially and any of those regions.
Okay. Thank you and then.
Yes.
As you know deeper into the engagement with potential.
And the other.
The utilities.
Regarding.
And your spectrum.
What.
Are you finding.
The the most effective channels.
All of them and reach of these customers as the other or is it more of just getting the straight to the C suite or or or.
Where are you seeing the most residents with what you're proposing.
I'll start there again, and then pass to Ryan, but I think the answer is yes, meaning all of those channels are of central elements and we've really taken a multi pronged approach to it.
Driving the the decision, making getting these customers to yes. It really it really is these are complex organizations and each one comes at it from a different place I always talk about sort of the point of entry we have some of that come in as a member of other they happen to be at of distribute tech event and they come by and the here about what's going on and the space others, you know happened to be in of <unk>.
And for them, where they hear it from another utility and so at the the Genesis of the idea of comes from other and places, but I think what we are seeing is the the C suite really correlated to what I described as the top down activities, becoming more and more important because theres more and more compelling rationale for the C suite to be involved and this right the.
The the challenge of these renewable energy goals that utilities are setting at the C level and having to achieve them. The cyber security issues and challenges that are coming up these of boardroom issues that now we're getting the C level involved.
Hey, Rob It's Robert Rob, It's Morgan and I think something we should mention also is it is the specific example, if you look of what's happening in California, where the where the major utilities out there had to report annually on what Theyre doing for wildfire mitigation and and the investments, we're making to reduce risk I mean, there's.
As an example of regulators pulling utilities towards solutions that we've been advocating so it's it's.
And ecosystem that.
And is developing <unk>.
Around the.
Clean energy and where we're just a part of it we like to say we're of foundational part because you sort of have to have that locked down before you do a lot of the yet others, but.
These these proposal six these up.
The issues for grid modernization are coming from from all directions.
Okay. Thank you.
Your next question is coming from George Sutton.
Your line is live.
Thank you I just wanted to follow on the Texas State University issue first.
And and what we were seeing it looked like they were that deal's going to include partners like of the Department of Energy Department of Defense are that's where we were so and trained with that deal. Specifically can you talk about how involved they are in the specific experimental license and what that might mean per other opportunities.
Those agencies.
Yeah, Hey, George Ryan here.
Yes, I mean, a lot of other activities.
Still a little early and the planning process I do know that they've had kind of a broad swath of potential partners. Both from government and obviously from from private enterprise and in fact, even some interest from potential customers, who can all be part of the exploration.
So I don't I don't know specifically yet in terms of the interlock between kind of the D O E and other aspects there as it relates to it but the nice thing with these programs are certainly once they get going they.
Create both research that drives innovation across the technology rounds, but they do kind of tackled a lot of the other aspects around the adoption and the opera.
Operational Isaac of of those solutions and that it can absolutely see of potential intersection there.
And and.
Good morning, and let me just add one other factor.
<unk>.
I think Texas really is focusing on smart cities.
And we've had a little trouble.
Persuading the utilities that.
And they really have a tremendous.
The amount of gain from becoming part of that smart cities and and Flushing out how their infrastructure.
And there's a lot of the questions Southern and raised about is there a good business case for smart cities. So I was particularly excited about this opportunity to.
To put private LTE right at the heart of distinction and that's going on about the smart city and all of the peripheral transportation and other benefits.
And this to me is the is a real.
The green light for us.
And with utilities and made out of and thinking this way.
Gotcha.
AT&T recently abandoned plans the lease spectrum of utilities for private networks that was.
Something they had been looking to do for multiple years.
Can you just give us a sense from your perspective is that just competitive reality that theyre seeing with your new position or is that a broader challenge of utility customers.
Now, let me take a stab let me take a quick stab at answering which is that.
I think debt there.
Their spectrum.
Where it is and the and the ban relative to where ours is and and therefore, the total cost of ownership the applications plus the restrictions on that spectrum, including that it really wasn't usable for mobility.
If you start talking long term usage of broadband network to the utilities and you say of course should not be able to use the for mobility.
And that's had a tremendous down or so.
We're of course always happy to see of competitive drop out.
But it it just.
Confirms what we've been saying all along which is you.
900 megahertz, just happens to be a very.
Very well placed from a from a cost of coverage and very well placed in terms of how you can use multiple and how they're multiple use cases that can be supported on the spectrum not the least of which is that the power of restrictions are are somewhat relaxed and 900 megahertz opening the door for innovation and on.
The product side. So I think they just they are their spectrum just didn't hold up to that kind of and analysis when its compared to the 900.
Gotcha.
Rob you mentioned some quarters would be quiet seven quarters would be very active can you just outlined which quarters are going to be really active and that that'll help us of life.
And I always appreciate your questions George but obviously, that's not what I could hit on but I think that that's always our challenge in the business of big game hunting.
We do.
And the sequencing of it with these kind of calls we really like communicating with investors, but its really just trying to give everyone. An appreciation for the lumpiness of the business model that we have we think it's of great model and we think creates a lot of value, but it's going and it will probably have some quarters, we won't be able to have announcements about customers.
Gotcha I appreciate it thanks guys. Thank you.
Your next question is coming from James Ratcliffe.
Your line of.
Hi, Thanks for taking the question of two if I could first of all and you'll get the amarin deal how should we think about that having read throughs on pricing in particular for the rest of year base I mean, that's an area where the historically spectrum is and options like it's gone for perhaps left and the overall average.
Is that of read through or are the other factors involved.
And secondly, just on the Retuning costs and process. It looks like there was the only sort of $3 million or so and in spend and the quarter on that.
Update on where you think the total of returning cost comes out and just any color on timing over the next say eight to 10 quarters. Thanks, absolutely yeah. Thanks, James for the questions.
I'll take the first Tim and and you can cover the second but on Amarin and the read through we had our call in December as you know to talk about that deal specifically and put out of factsheet with the details and so if you look at the implied pricing of.
And where that deal was relative to you know, we like the sort of refer to the benchmarks of the of the we call the bookends of.
Both the 600 megahertz pricing and the need of the three auctions and that really came pretty straight down the fairway between the two a little above average probably between the two which we refer to as fair market value of somewhere in that range with the the good news is you know since then and I made reference to the <unk> the C band auction results.
Not directly comparable because it's mid band spectrum and traditionally low band spectrum has been been more valuable than mid band.
Our view is that that just continues to show that over time, and I know you've reported and steams that that spectrum values continue to appreciate.
And with the continued demand for spectrum and in that particular auction there was no one but carriers and and.
I guess, some speculators that walked away with that spectrum.
So from our view of the Amarin deal does imply that the you know what what the nationwide spectrum asset we have could be worse and that market is as you said a below average market, meaning if you look historically at the auctions.
It's the St. Louis is of Great area, but it's lower than the typical average pricing paid when you include all of the the highest value and we call the NFL cities into that as well.
And so you can imply from that nationally what spectrum is worth.
And we can expect to continue to see pricing hopefully close to fair market value and our future transactions.
And Hey, James This is Jim Yeah, and this quarter there were a couple of million dollars and spend on clearing.
But remember that we intend to spend the significant majority of the spectrum clearing costs over the next four years and our spend will vary at times and the pace of would be determined by several key factors, including customer demand and market opportunity. I also want to note now that we've got a customer signed and.
We will start to see some significant increases and occurring and our clearing spend as we move forward and I'll spend some more time as we get to the Investor day that I mentioned earlier.
With some clear guidance over the next.
Couple of years as far as of that is concerned, but we're still very much on track for the $1 30 to $1 60, and overall spend that we stopped it.
Great. Thank you.
Your next question is coming from Chase White.
Your line of life.
Thank you.
<unk>.
Good afternoon guys.
And so why do you guys get the sensor or have you seen an increase or uptick and interest from utilities and the wake of the Nashville incident that happened back in December that took out 18, At&t's network across the wide region.
I'm, just curious if that kind of demonstrated the stem utilities, whether or not and the need for a private network. The top of the commercial network of entirely.
And then well we will.
Yes, we wouldnt, we chase, it's Morgan, we Wouldnt, we wouldnt try to.
Take advantage of that but if anybody asked.
And it.
Yeah and illustrates.
And the dependents that.
Anyone who accepts the first and that proposition.
The dependents I have on somebody else's network decisions. There is no such thing as the wireless network the doesn't go down.
And at some point if it did it does sort of focus on it and I know that Theyre now I see it and the trade press that Theyre now.
Lots of sort of second guessing looking back at it and try to determine.
What could have been done differently, but all of that all of that does focus on the.
The difference between the private system and basically and the other.
And at Chase, if I could expand on that I think that that's really just the latest of a series of events that we go into utilities that we hear about that really have rationalized why they already operate private networks from the utilities most of their communications are on their own private networks, they're just typically narrow body.
And or unlicensed systems that this is about.
Modernization of the communication, so we hear stories about impacts of Sandy and.
The last places to be recovered, where some of the substations, where the utilities needed communications and what happened and the wildfires with some.
Workers getting throttled on other commercial networks and so Theres every utility pretty much has a story about the reliance on carrier systems, and where that has run into some challenges and I think that the.
And it's probably just one of the latest.
Gotcha.
My impression is that there's some feedback also on south wins and all of the security.
Involved there and again highlighting how important it is to have.
Sort of start to finish control of your network.
Gotcha and are there any.
Looking forward are there any potential opportunities for something like a revenue sharing arrangement with vendors like Motorola and the others that you worked with a lot.
You guys have worked with.
Motorola for example, and a lot of deployment and pilots and everything so obviously, bringing in a lot of business with these guys. I'm just curious if you could give us any color on.
If and when we could see something like that.
Well I think I think one thing you can assume his debt.
Motorola absolutely dominates.
Uh huh.
LMR land mobile radio business overall, and they also dominated with with the utilities and a lot of the systems are reaching points, where where they may need to be significantly upgraded or swapped out so are we.
Working with Motorola as they look at sort of where they want the direct these customers for four of mobility as well as for our fixed wireless services and it does give us a lot of opportunities to work together and and.
Thank you.
You can never go wrong.
Approaching somebody.
With that brand so.
We're excited.
And excited about the opportunity of working with them and and the others.
And it's.
The great opportunity for us to be the sort of the essential party and a lot of the different vendors.
And I liked offerings.
Yeah Chase.
All of them work, we're seeing.
And with with all of the industry movement, that's happening and private LTE and nine of Mega specifically strong vendor interest in joining in what we're doing and solving a lot of these complex needs of the customer. So I think youre going to continue to see developments with us and vendors.
And we obviously do look at and as you asked about you know economic opportunities for us beyond spectrum and working with these vendors as well and so that's something we're exploring and and I hope, we'll be able to share some things and the future of about that.
I'll tell you one thing that we've learned from the beginning of five plus years and and that is that selling through the utilities of course sort of.
The next generation.
Of the core at their business involves lots of different parties and.
Where.
Glad to be now recognized as part of the solution but.
And Theres a bunch of different players.
And that are involved and.
It makes really.
Great opportunities for us because of lots of different people talking to customers about our product.
Got you very helpful. Thanks, guys.
There are no further questions from the lines at this time.
Okay.
Everybody for the the good questions and the time and and.
Listening to us this quarter, we look forward to talk to everybody soon and with that we'll wrap up thank you operator.
Thank you ladies and gentlemen, this does conclude today's conference call. You may disconnect. Your phone lines at this time and have a wonderful day. Thank you for your participation.