Airborne Wireless Network (OTCMKTS:ABWN)
Airborne Wireless Network (OTCMKTS:ABWN) announced this past Friday that they have completed their proof-of-concept tests in Roswell, NM and will make the results known shortly. The results could, literally, change the direction of the global communications industry – and it is no stretch to believe that the entire communications world is waiting for the results with baited breath. Hundreds of billions of dollars in communication infrastructure spending, maintenance, and operations could vanish if Airborne Wireless Network (OTCMKTS:ABWN) is able to execute their vision. While that is a good thing in terms of cost savings for companies that want to expand their coverage and lower their expenses, it is likely bad news for the vendors that supply the labor and materials to those same communications companies.
Airborne Wireless Network (OTCMKTS:ABWN) has a unique vision – to bring communications to the entire world through a network of airplanes that already exist in the world’s air routes. Think of it as an “ultra low” satellite communications constellation. The model is similar to Iridium Communications Inc (NASDAQ:IRDM). Iridium is the acknowledged leader in global communications technology. Iridium’s hardware, a satellite phone, connects to a satellite and then to any phone in the world – global communications that are geographic agnostic.
But Airborne Wireless Network (OTCMKTS:ABWN) believe they have gone one step better – their technology utilizes existing aircraft, hence no need to launch expensive satellites. If you look at a global map of airline routes one could certainly conclude that, intuitively, the vast amount of the earth’s surface is at some time flown over by an airplane with some regularity. And what if you connected a ground-based communication to all those airplane’s that are also connected to every other airplane in the sky? If Airborne Wireless Network (OTCMKTS:ABWN) proves this concept, voice and data customers virtually anywhere will now have connectivity without the expensive need for additional towers, cables, or satellites.
If you are thinking “what a great idea!” you are not alone and investors that got in early could be bragging for a long time. The patent for this technology was issued on September 4, 2001 and was obtained by Airborne Wireless Network (OTCMKTS:ABWN) in 2016. A little over one year later they have completed their proof-of-concept. Clearly this company knows how to move.
Airborne Wireless Network (OTCMKTS:ABWN) does not plan to sell the service directly to consumers, rather they see themselves as part of the global communication’s infrastructure. They will sell the bandwidth they create to existing communications providers. In essence, Airborne Wireless Network (OTCMKTS:ABWN) will act as a bandwidth wholesaler. A mobile phone user will use their service exactly the way they do now but, hopefully, with better geographic coverage and speed. The proof-of-concept results are clearly one development that communication’s industry executives and investors want to be aware of sooner rather than later.
I own (am long) shares of ABWN and have no plans to change any ABWN positions within the next 72 hours. All information, or data, is provided with no guarantees of accuracy.
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About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.