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Etherstack lands big kahuna with $11.6m Samsung 5G integration deal

When working in telecommunications, a tick of approval doesn’t come much bigger than one from Samsung which has agreed to integrate wireless tech company Etherstack’s (ASX: ESK) products into their 5G networks.

The 5-year deal valued at $11.6m will see Samsung embed Etherstack’s MCPTX network component into their 5G networks. This will enable the facilitation of existing digital narrowband public safety network infrastructure used by public safety agencies globally, and the new 5G network. Essentially, it brings old world technology into the 21st century of hi-speed 5G communications.

“Samsung and Etherstack have been working on joint carrier pursuits for MCPTX over the last two years and it is fantastic to notch up our first carrier win with Samsung,” said Etherstack CEO, David Deacon.

“Samsung are clearly the leader in 5G network deployments and we are confident that this initial win will lead to further carrier awards”.

The integration of these legacy systems into the world’s newest telecommunications network overcomes common hurdles where many Governments have regulatory requirements in the interest of public safety for 5G to be rolled out in their jurisdictions.

Although the deal has been contracted for 5 years, the anticipated lifetime of the 5G network is estimated to be 10-15 years which would create future opportunities for Etherstack to extend their licensing and service contracts.

Etherstack estimates that over the next 3 to 5 years, telecommunications providers in OECD countries alone will roll out between 60 to 90 5G networks incorporating next generation MCPTX over LTE capabilities.

To now have Samsung in their corner is a major achievement for Etherstack which has been steadily developing their wireless communications tech and signing up major clients along the way over the past two years. They join the likes of conglomerates Thales, Cisco, Lockheed Martin and NEC as other tech companies using Etherstack products.

As the world becomes even more interconnected and reliant on big-data, the 5G network will facilitate many of society’s impending advancements. Being the 5th generation of mobile network, 5G delivers higher peak data speeds, ultra low latency, and more reliability at a time when the Internet-of-Things is creeping more and more into everyday life.

For the Half Year ended 30 June 2021, Etherstack reported USD $4.2m revenue which represented a 76% increase on the previous year.

Alfred Chan

Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.

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