Siyata Mobile (TSX-V SIM) has had quite the year
In Q1 of 2017, Siyata Mobile announced that its Uniden UV350, the world’s first 4G/LTE in-vehicle cellular device is compatible on Band 14. What’s Band 14 is a frequency for the FirstNet Network, a network built in collaboration with AT&T, which is dedicated to America’s first responders.
This turned out to be a significant event, resulting in sales of $4.85MM CDN in revenue for Q3 2017 and a 30% YoY increase over the company’s Q3 2016 sales of $3.7MM CDN.
In fact, the first 9 months of 2017 has been the strongest the company has ever experienced, marking a 78% increase over the first nine months of 2016.
Why the FirstNet Network is so important
FirstNet is an independent authority within the U.S. Department of Commerce. Its mission is to develop, build and operate the nationwide, broadband network that equips first responders to save lives and protect U.S. communities. In March 2017, The First Responder Network Authority announced the selection of AT&T to build the FirstNet network.
As the FirstNet Network rolls out and improves, all first responder vehicles will be required to upgrade legacy LMR and Two-Way Radio hardware with in-vehicle hardware that has Push-to-Talk solutions and is “Band 14” compatible. This is great for Siyata, who is the first-mover in this space.
More milestones to come
In Q2 of 2017, Siyata began PTCRB approval process for its Uniden UV350 4G/LTE in-vehicle cellular device.
It’s important to note that the Siyata technical team has successfully walked previous generation models (Truckfone, Voyager) through technical approvals including PTCRB and look forward to completing the process.
Once the company receives PTCRB approval for the UV350 device, the company can begin its commercial rollout with leading carriers in North America. In 2016, sales in North America only represented 23% of the company’s total sales.
The U.S. market opportunity
According to the United States Department of Transportation, in 2015 there were over 12,000,000 US commercial vehicles with 2-way radios. These vehicles will require an update to Push-to-Talk compatible devices in the coming few years.
Assuming each device is sold at a price point of $600, the commercial vehicles market represents a $7.2 billion total addressable market for Siyata.
As a result of the above growth catalysts, Siyata has publicly released revenue estimates of $50MM by 2020, representing nearly 300% growth from 2016 revenues and a CAGR of 41%.
We will continue to follow Siyata Mobile and keep updated with their major milestones. We encourage you to do the same and not miss out on any major growth catalysts.
Montreal-based Siyata Mobile Inc. is a leading global developer and provider of innovative cellular communication systems under the Uniden Cellular brand. Siyata’s “Connected-Vehicle” devices and accessories are specifically designed for professional fleets including trucks, vans, buses, emergency service vehicles, government cars and more. Siyata aims to provide greater mobile connectivity for professional drivers and to facilitate replacement of the aging in-vehicle, multi-device status quo with a single device that incorporates voice, push-to-talk, data, and fleet management solutions.
Siyata also markets and sells Uniden cellular signal boosters and accessories as well as rugged mobile phones for both the consumer and enterprise markets. Siyata’s customers include cellular operators, commercial vehicle technology distributors, and fleets of all sizes in Canada, the US, Europe, Australia, and the Middle East.