pdvWireless, formerly known as Pacific DataVision, acquired $100 million worth of 900 MHz spectrum from Sprint in January. It is now preparing to roll out a two-way radio service and cloud-based mobile workforce management solution geared toward utilities and other dispatch-centric verticals. Motorola Solutions, Inc., the leading provider of two-way radio technology to utilities in North America, has invested in the company.
Ironically, pdvWireless is headed by Nextel founders Morgan O’Brien and Brian McAuley. Most of the licenses purchased by pdvWireless were acquired by Sprint in conjunction with its $30-plus billion purchase of Nextel in 2005. That move proved disastrous for Sprint, which has more recently been dismantling much of the former Nextel network and repurposing—or selling—the associated spectrum.
pdvWireless has raised more than $225 million over the past year and trades on NASDAQ under the symbol PDVW (as of February 3). Shares closed at $50 on March 31, up from $20–$25 per share paid by private investors in mid-2014. Once again, O’Brien is proving adept at creating value for investors with spectrum and push-to-talk (PTT) technology.
The company’s new two-way radio solution, dubbed DispatchPlus, will be deployed to 20 major U.S. cities, beginning in the northeastern and southern United States and later extending to markets further west. DispatchPlus is a next-generation PTT solution utilizing digital two-way radio technology integrated with pdvWireless’ proprietary cloud-based mobile resource management solutions, including worker tracking, status mapping, and intelligent call prioritization. The solution enables communications to be sent simultaneously to one or many recipients, whether the recipient is on pdvWireless’ two-way service, a cellphone, or at an Internet address.
Medium or Large
Motorola Solutions invested $10 million in pdvWireless in mid-2014 and has also paid $7.5 million in prepaid spectrum leasing fees. Historically, pdvWireless has made its solutions available through wireless carriers; the company has not yet generated revenue under its new service offering. Revenue for the nine months ended December 31, 2014 was $2.1 million, down from $2.6 million the prior year. The company’s new strategy is to become the nation’s leading private wireless carrier, dedicated solely to serving businesses and critical infrastructure entities.
Utilities appreciate PTT technology for their mobile work crews, and access to private—as opposed to unlicensed—spectrum is always preferred. But most large market utilities already have two-way radio systems, which can cost millions of dollars. With near nationwide spectrum coverage, I wonder if it wouldn’t make more sense for pdvWireless to focus on midsize markets—at least from a utility point of view.