Semtech Elevates Global IoT Connectivity with HL78 Modules Enhanced by NTN Capabilities
- None.
- None.
Insights
The integration of Non-Terrestrial Network (NTN) support into Semtech's HL series modules represents a strategic move in the telecommunications industry, potentially disrupting traditional connectivity paradigms. Satellite communication, once a niche and expensive option, is increasingly becoming mainstream, thanks to advancements in technology and greater demand for global coverage. Semtech's collaboration with Skylo could open up new markets and applications where continuous connectivity is essential, such as maritime and logistics, emergency services and remote monitoring.
The potential impact on the business is multifold. Firstly, the ability to maintain connections in remote areas can lead to increased adoption of IoT devices, which could, in turn, drive up the demand for Semtech's modules. Secondly, the partnership with Skylo could create a competitive advantage by offering a differentiated product that leverages Skylo's network, which may not be readily available to competitors. This could potentially lead to increased market share and revenue for Semtech. However, the adoption rate and the practical performance of the technology in real-world conditions will be critical to monitor.
From a market perspective, the software update enabling NTN capabilities is a significant value proposition for customers in industries where connectivity is non-negotiable. The decision to provide this update as a software enhancement to existing products can be seen as a customer retention strategy, ensuring that current users of the HL78 modules see immediate benefits without additional hardware investments. This could lead to increased customer loyalty and potentially reduce churn.
Furthermore, the move to integrate NTN support aligns with the growing trend of 'always-on' connectivity and could position Semtech as a forward-thinking player in the IoT space. However, the long-term success of this initiative will depend on the effectiveness of the commercial rollout, the reliability of the Skylo network and the ability of Semtech to communicate these benefits to potential customers. The market will be watching closely to see how this development affects Semtech's financial performance in the quarters following the commercial release.
Investors should consider the implications of Semtech's announcement in the context of the company's growth strategy and potential return on investment. The move to enhance the HL78 modules with NTN support could be seen as a proactive investment in product development, which may lead to increased revenue streams in the future. The partnership with Skylo indicates a strategic alliance that could lower the barriers to entry into the satellite connectivity market and potentially improve profit margins through shared infrastructure and technology.
It is important to note that while the announcement is promising, the actual financial impact will depend on the successful execution of the software update, market adoption rates and the scalability of the solution. Investors should also consider the potential risks associated with the reliance on a single partner for network capabilities and the need for ongoing investment in technology to maintain a competitive edge.
Semtech Sierra Wireless HL781 Series Module with NTN capabilities (Graphic: Semtech)
Connectivity is crucial for ensuring safety and driving business success. Semtech’s LPWA HL78 modules, now upgraded with NTN support via a straightforward software update, enable devices to maintain dependable global connectivity through satellite networks, supporting continuous connection even in the most isolated regions.
Semtech has partnered with Skylo, a pioneer in offering satellite over cellular services, to integrate NTN capabilities into its HL series modules. As a result of this collaboration, Semtech’s upcoming software update, slated for commercial release in Q2 and pending testing and certification on Skylo’s network, will provide access to Skylo’s expansive network. This strategic partnership is a testament to Semtech’s commitment to enhancing global connectivity options, enabling devices equipped with HL78 modules to maintain reliable communication links, even in the most remote areas.
Providing customers with the option to connect using NB-IoT over a satellite network when traditional terrestrial coverage fails, not only enhances the reliability of global communication but also greatly minimizes waste and loss. This is especially crucial for sectors like shipping and emergency management. The ability to maintain continuous coverage, particularly in applications like container tracking, addresses the challenges posed by the limitations of conventional cellular networks, marking a significant advancement in enabling consistent connectivity.
“By incorporating NTN support into our HL78 modules via a straightforward software update, we are enhancing the capabilities of our existing products, providing our customers with a substantial competitive edge,” stated Michael Buonassisi, Director Product Management LPWA modules at Semtech. “This initiative demonstrates our dedication to innovation and our proactive approach to addressing the market’s evolving needs.”
“We are thrilled to partner with Semtech to bring the power of Non-Terrestrial Networks to the HL series modules. This collaboration marks a significant milestone in our mission to bridge the connectivity gap, providing reliable, global communication solutions that meet the needs of today’s digital world. Together with Semtech, we are setting a new standard for connectivity, ensuring that no device is left unconnected, no matter where it is located on the globe,” said Dr. Andrew Nuttal, CTO and Co-Founder of Skylo.
In addition to supporting satellite, the highly versatile HL78 modules can also support terrestrial LPWA networks using Cat-M and NB-IoT. By pairing with AirVantage® Smart Connectivity, customers can take advantage of one global SIM as well as a single point of access to both device and SIM lifecycle management. This compatibility underscores Semtech’s commitment to providing comprehensive connectivity solutions, from device to cloud, that cater to a wide range of customer needs.
“As the communication industry evolves towards more integrated and versatile solutions, Semtech continues to lead the way, driving innovation and delivering technologies that connect the world,” added Nicolas Damour, Senior Director of Strategic Partnerships at Semtech.
Semtech invites you to join us at embedded world (9 - 11 April 2024) to learn more about our NTN support and the extensive capabilities of our HL78 modules.
Customers interested in exploring the pricing options available for this solution can also contact sales for more information.
About Semtech
Semtech Corporation (Nasdaq: SMTC) is a high-performance semiconductor, IoT systems, and cloud connectivity service provider dedicated to delivering high-quality technology solutions that enable a smarter, more connected, and sustainable planet. Our global teams are committed to empowering solution architects and application developers to develop breakthrough products for the infrastructure, industrial and consumer markets. To learn more about Semtech technology, visit us at Semtech.com or follow us on LinkedIn or X.
Forward-Looking and Cautionary Statements
All statements contained herein that are not statements of historical fact, including statements that use the words “will” or other similar words or expressions, that describe Semtech’s or its management’s future plans, objectives or goals are “forward-looking statements” and are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of Semtech to be materially different from the historical results and/or from any future results or outcomes expressed or implied by such forward-looking statements. Such factors include those risk factors set forth in Semtech’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (www.sec.gov) on March 30, 2023 as such risk factors may be updated, amended or superseded from time to time by subsequent reports that Semtech files with the Securities and Exchange Commission. Semtech assumes no obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release, except as required by law.
Semtech, the Semtech logo and AirVantage are registered trademarks or service marks of Semtech Corporation or its subsidiaries.
SMTC-P
View source version on businesswire.com: https://www.businesswire.com/news/home/20240327462605/en/
Kathrina Brigola
kbrigola@semtech.com
Source: Semtech Corporation
FAQ
What is the significance of Semtech's announcement regarding NTN support in its HL series LPWA modules?
Who has Semtech partnered with to enable NTN capabilities in its HL series modules?
When is Semtech's upcoming software update with NTN support expected for commercial release?
How does the integration of NTN support benefit customers using Semtech's HL78 modules?
What other networks can the HL78 modules support besides satellite?
