Unlock stock picks and a broker-level newsfeed that powers Wall Street. Upgrade Now
MSI to Boost Radio Communication System in Australia: Stock to Gain?

In This Article:

Motorola Solutions, Inc. MSI recently announced that it has inked a long-term agreement with the Department of Justice and Community Safety of the Victorian Government to advance the capabilities of state emergency services with Motorola’s advanced Mobile Radio Network. Motorola already has a strong presence in the region. Since 2005, Victoria’s public safety agencies have been utilizing the Metropolitan Mobile Radio Network (MMR), and it has played an essential role during several crisis situations in the region, such as the 2023 flood crisis and the 2009 Black Saturday bushfires. 

The recently signed contract with the Victoria Government is valued at approximately $330 million. Under the deal, Motorola will strengthen the radio communication network and support the state’s first responders for the next 10 years.

Frontline workers and first responders often have to operate in hostile situations. In such time, effective communication becomes a vital component of conducting an efficient operation. Lack of communication severely undermine situational awareness, leading to delayed response and higher risks of accident. Motorola’s robust radio communication solutions promptly address these issues.

Per the new contract, Motorola will boost the coverage and reliability of the existing MMR network. The network will be accessible to multiple state safety agencies, including Victoria State Emergency Service, Fire Rescue Victoria, Ambulance Victoria, Victoria Police and more. Comprehensive availability of the radio service throughout the state will allow multiple agencies to cooperate with each other during critical incidents. Motorola’s operation center and field engineers will offer 24/7 support and services to ensure optimum functionality of the network. 

Moreover, Motorola will provide 1600 APX NEXT all-band smart radios in Ambulance Victoria’s regional units. Motorola’s cloud-based service, SmartConnect, will facilitate automatic switching between land mobile radio, WiFi, Satellite and broadband networks. This will significantly bolster agencies’ coverage beyond Motorola’s radio coverage areas. Integration of such advanced features will significantly bolster emergency response services across Victoria state.

Will This Contract Extension Drive MSI’s Share Performance?

As a leading provider of mission-critical communication products and services worldwide, Motorola has ensured a steady revenue stream from this niche market. The communications equipment maker intends to boost its position in the public safety domain by entering into strategic alliances with other players in the ecosystem. Around 13,000 Motorola land mobile radio networks are deployed across 100 countries. Several governments, including Norway, Portugal, Denmark and Austria, have recently renewed their contracts with Motorola for radio communication networks. This growing investment in mission-critical communication networks worldwide augurs well for the company’s long-term growth.