We’ve spent a lot of time discussing the benefits of next-generation 911 (NG911) given how mobile devices have changed the way we communicate. However, it’s important to understand that NG911 also makes emergency response more effective by integrating with legacy technology.

Let’s look at Arizona as an example. Arizona is a state that has been making significant headway in its NG911 transition, and recently reported that its NG911 system allowed responders to better locate 911 callers by using latitude and longitude coordinates. They could locate someone calling with a cell phone within 150 feet, but could also better identify the origin of a landline call based on geolocation versus relying on billing addresses.

According to a recent report, almost 30% of homes in the US still have a landline. Particularly for adults that are aged 65 and older, that number increases to nearly 50%, and there are still 2% of homes that rely on a landline alone. While we have become more reliant on our cell phones, they haven’t completely replaced the fixed phones we once found in every household.

Taking a deeper look, a recent study by the National Center for Health Statistics found that there are two key characteristics of adults that rely entirely or mostly on landlines: as referenced above, they are 65 and older, but they also live in more rural areas. Elderly populations are already at a greater risk of a medical emergency, and rural areas have fewer identifying landmarks to determine a specific location, which is why precise emergency response in these instances is critical. In fact, adults aged 65 and older still accounted for over 17% of the US population and generally lived outside of metro areas as of 2022.

As technology continues to evolve, it’s important that emergency services evolve with it. However, it’s equally important that these new services also work with pre-existing infrastructure, especially as that infrastructure serves people who are more likely to need a swift emergency response.

At Comtech, we know the importance of NG911 and the opportunities it represents for our business. We’re a proud provider of NG911 services to the state of Arizona, having recently completed the statewide transition earlier this year, as well as a number of other states across the US. Stay tuned to learn more about the NG911 market and our place in it.

Let’s first look at how satellite communications is evolving as an industry. One of the biggest use cases for satellite technology is defense, and Comtech has been proudly working with the U.S. Department of Defense (DoD) for years. The threat environment today has changed drastically with the introduction of more sophisticated methods of attack on communications, including cyber warfare. As a result, defense organizations are moving away from large, fixed legacy communications systems to alternatives that are more agile and distributed, so that they have multiple networks to route data traffic through anywhere, at any time. These flexible and resilient systems are key to keeping communication flow open and uninterrupted under extreme conditions, when it matters most.

As a result, there has been a growing need for digital ground station infrastructure and multi-orbit constellations, inclusive of Low, Medium and Geostationary Earth Orbit (LEO, MEO, GEO) satellites. Other solutions, such as troposcatter technology, can also help bridge the gap between legacy and new systems, moving from network-centric infrastructures to highly distributed, data-centric models.  

What does this mean for our business? It means more opportunity in a growing market. Take the LEO market as an example. On its own, it is worth an estimated $5.4 billion now.  Projections anticipate growth to over $25 billion by 2032, with North America projected to lead this growth. Additionally, the Canadian government also recently invested several billion dollars to support the advancement of LEO satellite networks. 

While defense is an obvious application, LEO technology also demonstrates the commercial appeal of modern satellite solutions as well: LEO satellites are key to establishing the connectivity we need for everyday activities such as monitoring weather forecasts or helping connected devices reliably operate via mobile broadband. This kind of application is demonstrative of the high potential inherent in the military-to-civilian innovation cycle, as technology traditionally used by the government finds a variety of downstream applications in the commercial sector. 

Aside from LEO as an example, we’ve also recently discussed the growing satellite ground station market, and how it is projected to grow to $6.6 trillion by 2028 – expanding at a 6.89% CAGR beginning this year. As mentioned above, solutions that fall in this space – such as troposcatter and VSAT technologies – are key to bringing legacy and modern infrastructures together, and provide the flexibility organizations, defense or otherwise, need to establish communications in difficult and ever-changing environments.  

We’re constantly innovating to modernize communications architecture, and make it more dependable and adaptable to meet our customers’ modern-day needs. A great illustration of this is the new digital common ground modem product line we announced in September to support the DoD and coalition partners in establishing interoperability with hybrid networks. We believe this product line has multiple applications, and we are only at the beginning of a demand cycle that will be driven by new technologies.

At Comtech, we understand the importance of continued information flow, whether it’s sharing tactics across a battlefield or allowing our smartphones to connect from around the world, and we’re thrilled to see the satellite market continue to reach new heights. We’re already well-established and ready to capture more opportunities – just take a look at the Satellite & Space wins we have from the last year alone. Stay tuned for more exciting news about the satellite industry. 

Forward-Looking Statements

Certain information in this blog post contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results and performance could differ materially from such forward-looking information. The Company’s Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such Securities and Exchange Commission filings.

As we’ve discussed the market opportunities in the public safety space over the past year, we’ve focused a lot on state-level needs, innovation and infrastructure. Comtech has also separately announced a number of important contracts with state customers that we are proud to serve.

Today, we wanted to unpack another aspect of the growing, critical 911 market:  the federal government. Importantly, it’s not only a regulatory and rule-setting body – it also acts as a customer.

The federal government operates hundreds of call centers across the U.S. on behalf of a variety of facilities, including military bases and national parks. With a vast number of people living or working in, or even visiting, these spaces, the need for effective emergency response is just as important as it is in any other neighborhood across the country. The 233 call centers the federal government is in charge of are spread across 11 federal agencies. According to a new report, seven of the 11 agencies are in the process of upgrading their systems to NG911, showing the strength of the renewal cycle even at the federal level. 

How does this relate to Comtech? It’s another proof point for what we’ve been saying for months now, that this market is large and growing, and that reliable, cost-effective NG911 solutions are more important than ever. In fact, in the U.S. alone, the NG911 market is expected to be worth $1.2B by 2026. As a provider, we have a variety of offerings to aide with NG911: carrier services that accurately identify a caller’s location, solutions that establish data transfer between sender and recipient (e.g. images or video) and cloud-based capabilities, such as layers of AI that can transcribe, analyze and diagnose calls, and then successfully route them to the appropriate dispatch team.

At Comtech, we’ve also helped service a number of NG911 customers at the state level, having been awarded contracts with Massachusetts, Washington, Arizona, Iowa, South Carolina, Ohio, Pennsylvania and Texas. We’re also experienced at working with departments of the federal government.

At its core, Comtech is about establishing the connections people need when they matter most, and public safety is an incredible example of the important work we do. Stay tuned to learn more about our public safety business and the industry as a whole.

Forward-Looking Statements

Certain information in this blog post contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results and performance could differ materially from such forward-looking information. The Company’s Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such Securities and Exchange Commission filings.

Significant technological developments, particularly in cyber warfare, electromagnetic spectrum operations (EMSO), and precision fires, are fast becoming more accessible to opponents, thereby threatening to change the delicate landscape of global security and power dynamics.

According to Comtech’s Chief Strategy Officer and President of the Company’s Satellite Network Technologies business, Daniel Gizinski, today’s threat landscape looks wildly different from five to 10 years ago.

“There’s been a dramatic adjustment, both in terms of the capabilities and how and where they’re being deployed,” he explained.

“We’ve seen some pretty significant developments as a result of innovations and change, and over the last several years, we’ve had the opportunity to look at very different levels of what’s possible and what can be done. And from a product development and program fielding perspective, this change has put a lot of emphasis on how we design and develop products that can last over a long-term period in the field,” he continued to describe.

According to Daniel, the pivot towards strategic competition presents an “enormous challenge” to the US Department of Defense (DoD) and its international partners as they look to build and design products capable of being fielded for the next 10 to 25 years.

To support the warfighter both today and in the future, Comtech continues to focus on upgrading legacy systems as well as the development of emerging, next-generation technologies.

“The net result of this change has been a shift away from the development of bigger, more expensive, more hardened systems including advanced wideband waveforms and satellites capable of tolerating levels of spectral interference towards enormous investment in building out resilience in connectivity,” Daniel explained.

“Resilience on the battlefield lies in the diversity of multiple networks capable of providing the necessary levels of connectivity to route traffic via the best available network. Ultimately, the goal isn’t necessarily to keep a network running at all costs—it’s to keep data getting to the right place at all costs. And there are sometimes more efficient ways to do that, and you must bake in that headroom and that ability to adapt via software updates to maintain pace with a rapidly changing threat,” he added.

Uniquely Positioned

Consequently, Comtech continues to focus efforts on a series of technology areas of interest to support DoD and international partners.

Focus areas include Assured Communications and EMSO, with Daniel explaining how the company remains “hyper-focused” on the transition away from heavily stove-piped satellite systems towards digital satellite ground infrastructure and other capabilities that allow the warfighter to rapidly reconstruct networks based on the requirements of any given day.

Similar sentiments were shared by Comtech’s Executive Vice President of Business Development and Sales, Roly Rigual, who explained how Assured Communications can support operations against near-peer adversaries today and in the future.

“It’s been a long time since the major powers have had to ‘fight to get to the fight’ so assured and protected communications are more important today than ever,” Roly explained, highlighting the proliferation of multi-orbit (LEO, MEO, and GEO) constellations.

“It’s just starting, but there’s a lot of technology that still needs to be developed and deployed alongside the relevant standards supported by the ground infrastructure. I believe Comtech is in a very good position to help the customer solve these challenges,” he said.

In terms of EMSO, Comtech has focused on developing new understandings and techniques over the past decade, particularly relating to improved coordination of electronic attacks and electronic support through communications.

Dual Use Expertise

As it continues to support DoD and international partners, Comtech benefits from expertise in both commercial and defense markets.

“As a company that’s got its roots in dual-use technology development, we design a lot of cutting-edge commercial technologies with a unique set of abilities and capabilities to develop defense articles,” Daniel explained.

“I wouldn’t necessarily say one is universally ahead of the other, but having a foot in both camps allows us to take clever commercial innovations and bring them to the defense market and vice versa.”

Daniel highlighted satellite and troposcatter communication solutions as two of the most relevant dual-use capabilities that, when stitched together, can offer DoD and international partners significant value across a battlespace.

Specific Comtech successes include the US Army’s Enterprise Digital Intermediate Frequency Modem (EDIM) program, which has its roots in commercially developed technology. Awarded a contract in October 2023, Comtech is on track to deliver an initial tranche of systems to the army in the coming months.

Elsewhere, Comtech continues to support a resurgence in Troposcatter technologies across the US Army, Marine Corps, and international partners.

“Troposcatter was viewed as legacy technology-heavy, expensive, and hard to deploy. But it’s been fun to see the look of realization and appreciation that sets in with certain customers when they realize the art of the possible with modern solutions,” Daniel said.

Furthermore, Comtech is in the process of rolling out a next-generation of satellite modems capable of supporting exquisite platforms such as combat air aircraft.

“We recently received an award to bring some of the most advanced military jets into the overall network, so this is a pretty exciting growth opportunity and part of a new modem family we’re in the process of releasing over the next six or so months,” Daniel said.

Finally, Comtech remains dedicated to ensuring customers benefit from ‘Zero Trust Architecture’ as they move away from traditional network-centric infrastructures towards more data-centric models.

“One of the biggest challenges we see is bridging legacy and new networks together. I think everyone likes to imagine that we will flip a light switch and have zero trust architecture rolled out next year, but it’s going to be a 10-plus year roll-out process,” he concluded.

As the contemporary operating environment continues to change, so too must connectivity products and solutions over the long term to ensure the warfighter benefits from truly resilient communications.

Only increasing levels of investment and diverse inventories of products and concepts of operation will support those who need it most as they continue to observe uplifts in asymmetric warfare around the world.

Forward-Looking Statements

Certain information in this blog post contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results and performance could differ materially from such forward-looking information. The Company’s Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this blog post is qualified in its entirety by the risks and uncertainties described in such Securities and Exchange Commission filings.

Real-Time Call Transcription:

Deploying AI to transcribe calls as they’re unfolding will help eliminate confusion between callers and dispatchers so there is an accurate record of their discussion to determine next steps. Aside from cataloging the conversation, AI could also determine sounds and sentiment for additional analysis.

Live Translation:

In addition to recording what is being said, AI can also determine in what language it is being said in so it can quickly translate it for dispatchers to make faster decisions. This will help make emergency response more inclusive, while improving response times.

Call Categorization:

AI can help categorize calls in two ways – by triaging them and prioritizing them. When a call comes in, AI can determine the level of emergency by analyzing the audio and text transcripts, and then route to the appropriate dispatch team, whether it requires the medical, police or fire department.

Call Analytics:

As AI tools analyze calls, it can help PSAPs identify patterns for potential emergencies. For example, if several callers are reporting breathing issues, it could lead PSAPs to conclude that there is a localized gas leak and respond appropriately before it affects more of the surrounding community. Another application of this type of analysis could help police identify suspects if a PSAP is getting calls from people about being robbed and callers report their attackers leaving in a similar model or color vehicle.

With AI NG911 capabilities, PSAPs will be able to better handle call volume and respond to emergency requests with more accuracy. With this in mind, Comtech has already begun integrating AI into its NG911 solutions. This summer, we launched SmartAssist which helps PSAPs assess incoming emergency calls to prioritize them and then route them to the appropriate agency. With SmartAssist, PSAPs can address staff shortages and budget constraints while reducing response times and maintaining high service standards with limited resources. It’s an offering we’re excited to expand on in the future, and help make emergency response as efficient as possible.

Forward-Looking Statements

Certain information in this blog post contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results and performance could differ materially from such forward-looking information. The Company’s Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such Securities and Exchange Commission filings.

As you’ll recall from recent Signals posts, we’ve spent a lot of time talking about the public safety market, including growth opportunities associated with next-generation 911 (NG911) and the expansion of 988 services. Comtech’s opportunity set, however, remains larger, with two distinct businesses, each of which we believe benefits from a set of long-term growth drivers. We wanted to spend some time today taking shareholders and other financial stakeholders through the basics of this key market.

The first point worth making, especially for newer shareholders: satellite communications solutions are foundational to who we are as a company. The second is that satellite tech – which was once highly-specialized in its application – has become essential across a huge range of daily activities. 

The growth forecast for the satellite market highlights why Comtech’s expertise and capabilities matter. The report documents the breadth of this fast-evolving market, noting that a key driver of that change is demand for seamless connectivity everywhere. Strong bandwidth that doesn’t fail is increasingly a must-have, even in (or more accurately, especially in) harder-to-reach parts of the world. 

This demand takes many forms, and comes from multiple constituencies – from defense applications in geographies that can’t support traditional communications infrastructure (e.g. mountainous regions), to devices and IoT applications connected and communications flowing on land, in air, and at sea. More broadly, an important part of Comtech’s opportunity in this market relates to the military-to-civilian innovation cycle at play. Solutions that have been used primarily by governments often have major downstream commercial applications for the private sector. A great example of this cycle for Satellite & Space comes from the oil and gas industry where companies need reliable data flow regarding the status and function of pipelines in harsh environments. Another opportunity would be to outfit rural communities that do not have legacy infrastructure with technology to support their need for digital connectivity to support emerging, everyday activities, such as remote learning. 

At Comtech, we offer a variety of solutions for customers looking to alleviate these types of communications challenges, including our VSAT and troposcatter technologies. However, we are also a leading supplier of satellite components that are key for establishing satellite connectivity. In fact, we recently announced a new line of Digital Common Ground modems that will be beneficial for both defense and commercial customers. These solutions represent a significant opportunity for Comtech as customers such as the Air Force enter new upgrade cycles for their communications equipment. We’ve also already discussed how we have and will continue to capture more of the troposcatter market. We’re excited to see the industry reporting on what we’ve been saying all along, and look forward to continually demonstrating that dependable satellite communications is synonymous with Comtech.  

Forward-Looking Statements

Certain information in this blog post contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results and performance could differ materially from such forward-looking information. The Company’s Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such Securities and Exchange Commission filings.

There is a whole ecosystem of stakeholders and sophisticated technology that makes 911 services possible, and it’s a community we are proud to support. In this infographic, we pull back the curtain on how public safety infrastructure works.

Forward-Looking Statements

Certain information in this blog post contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results and performance could differ materially from such forward-looking information. The Company’s Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such Securities and Exchange Commission filings.

Our 150,000 square-foot, state-of-the-art tech and innovation facility will also now serve as an office to anchor operations, as well as provide space for both engineering and manufacturing.

While this is a new corporate-level development, our ties to Arizona are long-standing, as we have supported commercial and defense and government customers local to the area for over 25 years.

The relocation reinforces proximity to our customers, which include the Department of Defense, humanitarian agencies, satellite service providers, cruise lines, emergency response agencies and some of the largest cellular carriers in the country. It also puts us in a superior position to take advantage of a thriving technological community.

With a presence in Chandler, we’re able to capitalize on opportunities that are inherent to the city and surrounding communities. Chandler, and the broader Phoenix area, is robust from an economic perspective. In 2023, the number of tech jobs in Arizona increased nearly 4% from the previous year and is already experiencing another 3% increase in 2024 so far. These numbers are projected to keep climbing, with an expected 9% growth in tech jobs by 2028.

The new Chandler location also places Comtech in close proximity to potential suppliers, including semiconductor manufacturers. Since 2020, upwards of 35 companies in the semiconductor industry—e.g., Intel, Microchip, NXP—have announced plans to expand or relocate to Arizona. Establishing Comtech down the road from cutting-edge chip development will also help us quickly modernize our own solutions that are reliant on these chips.

We look forward to elevating our business within this thriving metropolis, and have full confidence that this relocation will help us capitalize on the ever-growing communications market.  

Forward-Looking Statements

Certain information in this blog post contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results and performance could differ materially from such forward-looking information. The Company’s Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such Securities and Exchange Commission filings.

This is a significant step forward because many states have experienced protracted delays and prolonged costs in transitioning away from legacy 911 systems due to a lack of cooperation from certain communications companies. Managing 911 traffic on both legacy and IP networks can also result in an increased risk of 911 outages. With this new ruling in place, NG911 stakeholders will be able to avoid unnecessary spending on legacy 911 networks, freeing up significant resources to accelerate this transition across the country.

We’ve spent a lot of time in the past few months discussing how important the switch to NG911 is, and the potential scale this untapped market represents. It’s a growing market as well, expected to reach $1.2 billion by 2026, because modernization efforts have been lagging community demand. If you’re curious about why that is, we encourage you to read our recent post which discusses how the public safety market got to where it is today in detail, here.

In short, almost every stakeholder in the complex community that supports 911 services agrees that the systems currently in place require upgrades to support digital modes of communication and the information they transfer. With an explosion of connected devices capable of providing relevant emergency information (from our smartphones to traffic cameras and weather sensors), to new forms of data (including voice, text, images and location), legacy communications infrastructure built to route emergency calls from landlines must evolve to operate in the world we live in today.  

While there have been attempts at the federal level to support NG911 deployments across the U.S., this FCC ruling is unequivocally the most concrete step to-date to accelerate the technology upgrade process.

At Comtech, we’ve been at the forefront of this generational shift and doing our part to make it happen. We’re excited about the possibilities this ruling creates, and look forward to helping drive NG911 into the future. If you’re interested in learning more about the public safety market and our role in it, please find more posts here: https://comtech.com/category/investor-content/

Forward-Looking Statements

Certain information in this blog post contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results and performance could differ materially from such forward-looking information. The Company’s Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such Securities and Exchange Commission filings.

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In the past year, we’ve made great headway in both of our businesses, Terrestrial & Wireless Networks and Satellite & Space Communications. In this infographic, we highlight key contract wins, with a total realized & potential value of over $1 billion. We have best-in-class technology, people and services, and we’re successfully operating in growing markets to meet the needs of customers who have high expectations for quality and reliability. We’re winning new business, and building on existing relationships – validating Comtech’s business is not only built on a strong foundation, but can scale to meet demand.

We encourage you to read more about how we’re performing in these markets here, and if you’re interested in learning more about these specific deals, you can learn more from the formal announcements here.  

Forward-Looking Statements

Certain information in this blog post contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results and performance could differ materially from such forward-looking information. The Company’s Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such Securities and Exchange Commission filings.