- IEEE 802.16t protocol chosen as new rail communication standard by Association of American Railroads.
- Ondas Networks (ONDS, Financial) anticipates development revenue in H2 2025, with protocol upgrades beginning in 2026.
- Approximately 70,000 North American rail systems, including 25,000+ locomotives, require updates.
Ondas Holdings Inc. (NASDAQ:ONDS) announced a significant milestone as the IEEE 802.16t Direct Peer-to-Peer 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, known as 'NGHE Gen4'. This innovative protocol aims to enhance safety and operational efficiencies in train telemetry by providing superior over-the-air security, reduced latency, and seamless data exchange.
With this selection, Ondas Networks estimates that approximately 70,000 systems across the North American rail infrastructure will need upgrades. This includes more than 25,000 locomotives that require HOT upgrades and approximately 45,000 EOT devices. The company is positioning to generate development revenue starting from the second half of 2025, with actual NGHE upgrades expected to commence in 2026.
The advancement primarily addresses the technical challenges posed by operating longer trains, such as maintaining consistent communication between train ends, real-time safety data transmission, and managing signal interference over longer distances. Ondas Networks' involvement in the development of the 802.16t standard underscores its technological leadership in modernizing rail safety infrastructure.
The adoption of this new protocol substantiates a substantial commercial opportunity for Ondas, establishing a long-term potential for increased revenue as the rail sector transitions to NGHE Gen4 capabilities. Beyond immediate applications, this standardization enhances Ondas' position in broader industrial wireless communications, potentially extending its market scope.
