Published on 18 Jun 2024 on Zacks · via Yahoo Finance

Anterix (ATEX) Spectrum Powers Oncor's Private Wireless Network

Anterix Inc. ATEX signed an agreement with Oncor Electric Delivery Company LLC, enabling the latter to acquire 900 MHz broadband spectrum essential for establishing a private wireless broadband network across its service territory. The strategic move aims to revolutionize Oncor’s communication capabilities, enhancing grid awareness and operational intelligence.The Spectrum License Sale agreement, valued at $102.5 million, provides Oncor with 900 MHz broadband licenses, facilitating the deployment of a private LTE network. This network will empower Oncor with next-generation broadband for critical data and voice services, promising improved resilience, efficient data transmission and superior communication. The benefits extend beyond Oncor, showcasing the advantages of private LTE technology within the utility sector.Oncor, headquartered in Dallas, operates the largest electricity transmission and distribution system in Texas. Serving more than 4 million homes and businesses, Oncor’s robust infrastructure will significantly benefit from the enhanced capabilities offered by the new network.The agreement underscores the advantages of private LTE and expands Anterix’s network of utility partnerships nationwide. The collaboration aims to bolster energy resilience and reliability within the Electric Reliability Council of Texas market.Key aspects of the agreement include:•    Assignment of 6 MHz of broadband spectrum across 95 counties in Oncor’s service territory.•    Anterix’s commitment to clear third-party incumbents from the spectrum allocation.•    Expected completion of spectrum delivery by fiscal 2026, with phased payments totaling $102.5 million.Upon completion, Anterix will address another FCC-designated “complex system,” defined as systems with 45 or more integrated sites. This agreement illustrates ATEX’s flexible approach to monetizing its 900 MHz spectrum, particularly in collaboration with utilities managing such complex systems.Headquartered in Woodland Park, NJ, Anterix is a premier wireless communications firm. It reportedly holds the largest licensed spectrum in the 900 MHz band, with coverage throughout the United States, Alaska, Hawaii and Puerto Rico. Anterix expects to monetize its spectrum assets to generate long-term value. The partnership not only enhances Oncor’s operational capabilities but also highlights Anterix’s pivotal role in advancing private wireless networks across the utility industry.The ATEX stock has gained 17% over the past year against the industry’s decline of 55.6%.

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