I just watched Kissner's 15 minute interview on ON24.
He didn't say anything that I didn't already know,
but perhaps its still worthwhile to mention some
of the points he made:
o DMIC is in the Broadband Fixed Wireless Access market.
o DMIC is currently the market share leader in this market.
o This is currently a $1B market and, while some service
providers are predicting 100% to 120% annual growth in
this market, DMIC is (characteristically) being more
conservative in their projections. DMIC expects this
to be a $4B to $8B market within 5 years.
o DMIC is seeing new orders come in at a "stunning" rate.
They've had over $100M in new orders in each of the
last 2 quarters.
o DMIC has the most spectrum efficient products available
on the market today. Their Altium radios offer 155 Mbps
capacity in only a 28 MHz wide section of the spectrum.
No competitor offers this much capacity in less than a
56 MHz wide section of the spectrum. Since service
providers paid good money for these spectrum licenses,
it would be foolish for them to buy other products that
use this spectrum inefficiently.
o DMIC is not really a "microwave" company any more. First,
from a technical perspective, their equipment operates
at "millimeter wave" frequencies now... these frequencies
are higher than "microwave" frequencies. More importantly,
DMIC is becoming more of a "solutions provider" whereas,
in the past, they've been just a "box builder". Today,
they offer the broadest range of Broadband Fixed Wireless
equipment in the industry; moreover, an increasing portion
of their revenue is coming from network management and
other services.
o DMIC is currently the Gorilla in this market and it
will be hard for any newcomer to unseat them. The
high barriers to entry in this market include: the
difficulty of closing the communications link at
long distances, the difficulty of achieving high
capacity in a narrow portion of the spectrum, and
the difficulty of manufacturing these products in
high volume. DMIC has already overcome these difficulties.
Operationally, DMIC continues to focus on cost efficiency.
They recognize that they are in a highly competitive market
and cost efficiency is necessary so that they can profitably
offer competitively priced equipment and services.
Rob |
