Hitting the road: Siyata Mobile aiming to revolutionize trucking with 4G devices
Siyata Mobile Inc. (TSXV: SIM | OTCQX: SYATF) is getting huge interest in the latest iterations of its 4G enterprise handsets that could revolutionize the way teamsters handle cabin communications and data collection.
The Canadian company provides 3G and 4G cellular communications systems for commercial fleets, trucks, buses and government cars under the Uniden Cellular brand. In April, Siyata Mobile received a US$400,000 purchase order from a two-way radio vendor for its 4G devices, shortly after the release of the latest iteration for the product. A month later, the same company followed up with a US$1 million order.
The company is basing its strategy on replacing legacy, analog two-way radios used in trucks, with cellular based Push-to-Talk solutions, providing clearer voice calls, Android-based automotive applications and multi-media content.
“We’ve never seen this level of interest and our next generation products are picking up momentum,” Arlen Hansen, investor relations consultant said.
According to Hansen, radio still accounts for 95% of two-way radio dispatch compared to Siyata’s technology, which has the added advantage of allowing truck drivers to make both Push to Talk call as well as cellular phone calls. The company was named a Venture Top 50 company in 2017.
In Israel the company currently has three large operators selling the new solutions and is in the process of getting approval from additional carriers in Canada and the US.
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AT&T, Verizon and Sprint have over 10 million commercial vehicles on their networks, according to Hansen and have been trying to get into the trucking business which has been dominated by traditional two-way radio system.
Hansen says Siyata is the first to offer a cellular based PTT solution allowing a massive price advantage with the system fully installed all-in-one unit costing some US$1,000 compared to US$4,000-10,000 for the current multiple devices we replace. Siyata can almost make other equipment in the cabin obsolete through the device’s functionality. The company is a disruptor with best-in-class technology and a first-mover advantage, said Daniel Kim, an analyst at Paradigm Capital. Competition can only really come from companies that develop products in similar spaces, such as Samsung or radio-maker Kenwood.
“It’s the value proposition really. We can do push to talk in a long haul truck from Los Angeles to New York for US$40 a month. A two-way radio would be over US$200.
According to Hansen, Siyata’s phones have numerous advantages over regular commercial smartphones, including sound proofing with echo cancelling technology, which is needed for mission critical vehicles such as ambulances or in loud cabin environments.
“Retail phones are great for us, but they are horrible inside a commercial vehicle. Trucks require a dedicated device with Echo cancelling technology,” Hansen said.
Siyata’s equipment also connects to the battery of the vehicle so it’s always powered and provides more accurate GPS readings.
“Siyata does it better than anyone on the planet,” he said.
Siyata Mobile posted US$17.7 million in 2017, a 44% yoy growth from a year earlier and is expecting similar growth this year.
According to Hansen the company has a target market of 12 million commercial vehicles that are still using archaic two way technology.
The executive believes that with its advanced technology it will provide better analytics and fuel consumption statistics.
“Trucks currently have multiple different pieces of hardware – we could do the features in one handset over a nationwide cellular network. We want the carriers to sell this to their customers.”
Large Tier 1 carriers, like an AT&T, or Verizon are big potential customers as they are currently converting the First Responders in the United States to a smartphone network based on Band 14 from a push-to-talk technology. Siyata could supply a lot of it “because we are Band 14 compliant.”
Matt Craze has covered commodity markets for more than 20 years, working as a researcher at CRU International, and for over 10 years as a ... <Read more about Matt Craze>