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Association of American Railroads Selects dot16 Protocol Pioneered by Ondas Networks for Next-Generation HOT-EOT ("NGHE") Communications

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Ondas Holdings (NASDAQ:ONDS) announced that the IEEE 802.16t Direct Peer-to-Peer (DPP) protocol has been selected by the Association of American Railroads (AAR) as the new standard for Next Generation head-of-train/end-of-train (HOT-EOT) communications.

The protocol, known as 'NGHE Gen4,' enhances safety and operational improvements in train telemetry operations by providing better over-the-air security, reduced latency, and seamless data exchange. This advancement particularly addresses challenges in operating longer trains.

Ondas Networks estimates that approximately 70,000 systems in North American rail infrastructure will require upgrades, including 25,000+ locomotives needing HOT upgrades and 45,000 EOT devices. The company expects to generate development revenue starting in the second half of 2025, with NGHE upgrades beginning in 2026.

Ondas Holdings (NASDAQ:ONDS) ha annunciato che il protocollo IEEE 802.16t Direct Peer-to-Peer (DPP) è stato selezionato dall'Associazione delle Ferrovie Americane (AAR) come nuovo standard per le comunicazioni di testa e fine treno (HOT-EOT) di nuova generazione.

Il protocollo, noto come 'NGHE Gen4', migliora la sicurezza e le operazioni nel telemetria dei treni fornendo una migliore sicurezza su rete, latenza ridotta e uno scambio di dati senza soluzione di continuità. Questo progresso affronta in particolare le sfide legate all'operatività di treni più lunghi.

Ondas Networks stima che circa 70.000 sistemi nell'infrastruttura ferroviaria nordamericana richiederanno aggiornamenti, compresi 25.000+ locomotive necessitando di aggiornamenti HOT e 45.000 dispositivi EOT. L'azienda prevede di generare entrate da sviluppo a partire dalla seconda metà del 2025, con gli aggiornamenti NGHE che inizieranno nel 2026.

Ondas Holdings (NASDAQ:ONDS) anunció que el protocolo IEEE 802.16t Direct Peer-to-Peer (DPP) ha sido seleccionado por la Asociación de Ferrocarriles Americanos (AAR) como el nuevo estándar para las comunicaciones de cabeza de tren/final de tren (HOT-EOT) de nueva generación.

El protocolo, conocido como 'NGHE Gen4', mejora la seguridad y las operaciones en la telemetría de trenes al proporcionar mejor seguridad sobre el aire, menor latencia e intercambio de datos sin interrupciones. Este avance aborda particularmente los desafíos de operar trenes más largos.

Ondas Networks estima que aproximadamente 70,000 sistemas en la infraestructura ferroviaria de América del Norte requerirán actualizaciones, incluyendo 25,000+ locomotoras que necesitan actualizaciones HOT y 45,000 dispositivos EOT. La compañía espera generar ingresos por desarrollo a partir de la segunda mitad de 2025, con las actualizaciones NGHE comenzando en 2026.

온다스 홀딩스(NASDAQ:ONDS)는 IEEE 802.16t 직접 피어 투 피어(DPP) 프로토콜이 미국 철도 협회(AAR)에 의해 차세대 열차 머리/끝(HOT-EOT) 통신의 새로운 표준으로 선정되었음을 발표했습니다.

이 프로토콜은 'NGHE Gen4'로 알려져 있으며, 열차 원격 측정 작업에서 더 나은 공중 보안, 낮은 지연 시간 및 원활한 데이터 교환을 제공함으로써 안전성과 운영 개선을 강화합니다. 이 발전은 특히 더 긴 열차 운영의 도전 과제를 해결합니다.

온다스 네트웍스는 북미 철도 인프라에서 약 70,000 시스템이 업그레이드가 필요할 것으로 추정하고 있으며, 25,000대 이상의 기관차가 HOT 업그레이드가 필요하고 45,000 EOT 장치가 필요합니다. 이 회사는 2025년 하반기부터 개발 수익을 창출할 것으로 예상하며, NGHE 업그레이드는 2026년에 시작될 것입니다.

Ondas Holdings (NASDAQ:ONDS) a annoncé que le protocole IEEE 802.16t Direct Peer-to-Peer (DPP) a été sélectionné par l'Association des Chemins de Fer Américains (AAR) comme nouvelle norme pour les communications tête de train/fin de train (HOT-EOT) de nouvelle génération.

Le protocole, connu sous le nom de 'NGHE Gen4', améliore la sécurité et les opérations dans la télémétrie des trains en fournissant une meilleure sécurité sans fil, une latence réduite et un échange de données fluide. Cette avancée répond particulièrement aux défis liés à l'exploitation de trains plus longs.

Ondas Networks estime qu'environ 70 000 systèmes dans l'infrastructure ferroviaire nord-américaine nécessiteront des mises à niveau, y compris plus de 25 000 locomotives nécessitant des mises à niveau HOT et 45 000 dispositifs EOT. L'entreprise s'attend à générer des revenus de développement à partir de la seconde moitié de 2025, les mises à niveau NGHE commençant en 2026.

Ondas Holdings (NASDAQ:ONDS) gab bekannt, dass das IEEE 802.16t Direct Peer-to-Peer (DPP) Protokoll von der Association of American Railroads (AAR) als neuer Standard für die Kommunikation von Kopf-zu-Zug/Ende-zu-Zug (HOT-EOT) der nächsten Generation ausgewählt wurde.

Das Protokoll, bekannt als 'NGHE Gen4', verbessert die Sicherheit und die Betriebsabläufe in der Zugtelemetrie, indem es eine bessere Sicherheit über Funk, reduzierte Latenz und nahtlosen Datenaustausch bietet. Dieser Fortschritt adressiert insbesondere die Herausforderungen beim Betrieb längerer Züge.

Ondas Networks schätzt, dass etwa 70.000 Systeme in der nordamerikanischen Bahninfrastruktur aufgerüstet werden müssen, darunter 25.000+ Lokomotiven, die HOT-Upgrades benötigen, und 45.000 EOT-Geräte. Das Unternehmen erwartet, ab der zweiten Hälfte von 2025 Einnahmen aus der Entwicklung zu generieren, wobei die NGHE-Upgrades 2026 beginnen sollen.

Positive
  • Large market opportunity with 70,000 systems requiring upgrades
  • Revenue generation expected to begin in H2 2025
  • AAR's selection validates Ondas' technology leadership in rail communications
  • Protocol improvements enable operational efficiency and safety enhancements
Negative
  • Revenue generation won't start until H2 2025
  • Significant time gap between protocol selection and revenue realization

Insights

The AAR's selection of the IEEE 802.16t protocol for next-generation HOT-EOT communications represents a significant commercial opportunity for Ondas Networks. The company has strategically positioned itself by pioneering this technology since 2020, and this industry adoption validates their development approach.

The market opportunity is substantial and well-defined: upgrading approximately 25,000+ locomotives and 45,000 EOT devices across North America's rail infrastructure. This represents an impressive total addressable market of 70,000 systems that will need upgrading to meet the new NGHE Gen4 requirements.

The protocol addresses critical technical challenges in operating longer trains - particularly maintaining consistent communication between train ends, ensuring real-time safety monitoring data transmission, and managing signal interference over extended distances. These capabilities deliver tangible operational benefits that create a compelling case for adoption.

Revenue timeline expectations are realistic, with development revenue beginning in H2 2025 and product introduction in 2026. This gives investors a clear horizon for when this opportunity will begin materializing financially. The standardization potentially creates a multi-year revenue opportunity as the North American rail sector implements these upgrades.

Beyond the immediate NGHE application, this establishes Ondas' dot16t technology as a potential foundation for broader industrial applications, creating additional long-term growth vectors beyond this initial railroad sector implementation.

This standardization win represents a pivotal moment for Ondas in the industrial wireless communications sector. By having their protocol selected as the foundation for next-generation HOT-EOT systems, they've secured a position at the core of rail safety infrastructure modernization.

The technological advantages of the IEEE 802.16t DDP protocol address critical operational challenges: enhanced over-the-air security, reduced latency, and seamless data exchange - all essential for mission-critical rail operations. These capabilities enable the operation of longer trains while maintaining safety parameters, a key efficiency driver for freight rail economics.

What's particularly valuable is the protocol's status as an open, interoperable standard rather than a proprietary solution. This approach typically accelerates industry adoption while still allowing Ondas to maintain technological leadership through their implementation expertise and first-mover advantage.

The previous successful demonstrations at MxV Rail (the AAR's testing subsidiary) indicate the technology has already undergone rigorous validation within the industry ecosystem. This reduces implementation risk and increases confidence in the projected 2025-2026 revenue timeline.

Strategically, this positions Ondas' software-defined radio portfolio as the natural choice for railroads implementing the standard. While the immediate opportunity focuses on HOT-EOT applications, the broader implications for Ondas becoming the wireless communications backbone across multiple rail applications could substantially expand the long-term addressable market beyond the initial 70,000 system opportunity.

Ondas Networks Has Led the Development of the IEEE 802.16t ("dot16") Wireless Standard in Close Collaboration with Industry

Ondas Networks Estimates 70,000 Systems Will Need to be Upgraded in the North American Rail Infrastructure

The IEEE 802.16t DDP Protocol Enables Enhanced Safety and Operational Efficiencies for Train Telemetry Supporting the Operation of Longer Trains

SUNNYVALE, CA / ACCESS Newswire / April 13, 2025 / Ondas Holdings Inc. (NASDAQ:ONDS) ("Ondas" or the "Company"), a leading provider of private industrial wireless networks and commercial drone and automated data solutions, announced today that the IEEE 802.16t Direct Peer-to-Peer ("DPP") protocol has been selected by the Association of American Railroads ("AAR") as the new standard for Next Generation head-of-train / end-of-train ("HOT-EOT") communications or "NGHE Gen4." This new protocol for train telemetry operations enables new safety and operational improvements to existing HOT-EOT applications.

Operating longer trains presents certain technical challenges, including maintaining consistent communication between the head and end of the train, ensuring real-time data transmission for safety monitoring, and managing increased signal interference over extended distances. The adoption of the IEEE 802.16t DDP protocol addresses these issues by providing a more robust and reliable communication framework. This protocol enhances over-the-air security, reduces latency, and supports seamless data exchange, thereby improving operational efficiency and safety in train telemetry systems.

"Ondas Networks is proud to have played a central role in the development of the 802.16t standard," said Markus Nottelmann, CEO of Ondas Networks. "The AAR's adoption of this standard for NGHE applications is a major milestone for the freight rail industry. It enables a smooth migration from legacy HOT-EOT systems to next-generation NGHE capabilities - all while introducing substantial improvements in safety and operational efficiency."

Ondas Networks has been a leading force in the development of the IEEE 802.16t ("dot16t") industrial wireless standard since 2020. Purpose-built for private industrial networks, 802.16t is an open, interoperable technology specifically engineered for mission-critical industries such as railroads.

Ondas Networks believes there is a significant installed base of legacy NGHE systems within the North American rail infrastructure which will be upgraded to the new NGHE Gen4 requirements. The Company estimated that the installed base includes 25,000+ locomotives in the freight rail sector fleet that will require HOT upgrades, and that the current installed base of associated EOT devices is approximately 45,000 units. Ondas expects to generate development revenue as soon as the second half of 2025 in order to support product introduction and NGHE upgrades beginning in 2026.

"As railroads increasingly rely on digital infrastructure, we believe the 802.16t technology will serve as the wireless backbone of future communication systems," added Nottelmann. "This is just the beginning. We look forward to supporting the broader adoption of 802.16t across other critical rail and industrial applications."

Ondas Networks previously conducted demonstrations of 802.16t DPP technology at MxV Rail, a subsidiary of the Association of American Railroads (AAR), which conducts advanced testing of railway equipment for member railroads. Ondas Networks supplies railroads with a portfolio of software-defined radios which conform to the 802.16t protocol.

About Ondas Holdings Inc.

Ondas Holdings Inc. ("Ondas") is a leading provider of private wireless data solutions via Ondas Networks Inc. ("Ondas Networks") and commercial drone solutions through Ondas Autonomous Systems Inc. via its wholly-owned subsidiaries American Robotics, Inc. ("American Robotics" or "AR") and Airobotics LTD ("Airobotics"), which we operate as a separate business unit called Ondas Autonomous Systems.

Ondas Networks is a developer of proprietary, software-based wireless broadband technology for large established and emerging commercial and government markets. Ondas Networks' standards-based (802.16t), multi-patented, software-defined radio FullMAX platform enables Mission-Critical IoT (MC-IoT) applications by overcoming the bandwidth limitations of today's legacy private licensed wireless networks. Ondas Networks' customer end markets include railroads, utilities, oil and gas, transportation, aviation (including drone operators) and government entities whose demands span a wide range of mission critical applications.

Ondas Autonomous Systems Inc. (OAS) specializes in designing, developing, and marketing autonomous drone solutions via its two advanced drone platforms: the Optimus System, the world's first FAA-certified small UAS (sUAS) for aerial security and data capture, and the Iron Drone Raider, a counter-drone system designed to combat hostile drones. Both platforms are highly automated, AI-powered, and capable of continuous, remote operation for critical defense, infrastructure, industrial, and government applications. American Robotics and Airobotics have achieved industry-leading regulatory milestones, including the first-ever FAA Type Certification for the Optimus System and the first drone system approved by the FAA for automated beyond-visual-line-of-sight (BVLOS) operations without an on-site human operator.

Ondas Networks, American Robotics and Airobotics together provide users in defense, homeland security, public safety and other critical industrial and government security and infrastructure markets with improved connectivity, situational awareness and data collection and information processing capabilities.

For additional information on Ondas Holdings, visit www.ondas.com or follow Ondas Holdings on X and LinkedIn. For additional information on Ondas Networks, visit www.ondasnetworks.com or follow Ondas Networks on X and LinkedIn. For additional information on American Robotics, visit www.american-robotics.com or follow American Robotics on X and LinkedIn. For additional information on Airobotics, visit www.airoboticsdrones.com or follow Airobotics on X and LinkedIn. For additional information on Ondas Autonomous Systems, follow us on LinkedIn.

Information on our websites and social media platforms is not incorporated by reference in this release or in any of our filings with the U.S. Securities and Exchange Commission.

Forward-Looking Statements

Statements made in this release that are not statements of historical or current facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance, or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including the risks discussed under the heading "Risk Factors" discussed under the caption "Item 1A. Risk Factors" in Part I of our most recent Annual Report on Form 10-K or any updates discussed under the caption "Item 1A. Risk Factors" in Part II of our Quarterly Reports on Form 10-Q and in our other filings with the SEC. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date, except as required by law.

Contacts

IR Contact for Ondas Holdings Inc.

888-657-2377

ir@ondas.com

Media Contact for Ondas

Escalate PR

ondas@escalatepr.com

Preston Grimes

Marketing Manager, Ondas Holdings Inc.

Preston.grimes@ondas.com

SOURCE: Ondas Holdings Inc.



View the original press release on ACCESS Newswire

FAQ

What is the estimated market size for Ondas Networks' NGHE Gen4 upgrades in North American rail?

Ondas estimates 70,000 systems need upgrades, including 25,000+ locomotives and 45,000 EOT devices in North American rail infrastructure.

When will Ondas (ONDS) begin generating revenue from the NGHE Gen4 protocol implementation?

Ondas expects to generate development revenue in the second half of 2025, with NGHE upgrades starting in 2026.

What technical improvements does the new IEEE 802.16t protocol bring to railroad operations?

The protocol enhances over-the-air security, reduces latency, and improves data exchange for better safety and operational efficiency in train telemetry systems.

How does the new NGHE Gen4 protocol address challenges in operating longer trains?

It maintains consistent communication between train ends, ensures real-time data transmission for safety monitoring, and manages increased signal interference over extended distances.
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