Orbital Energy Believes It Has The Gravitas To Play A Big Role In Building America Back Better

Orbital Energy Believes It Has The Gravitas To Play A Big Role In Building America Back Better

More than 30 years after the advent of the World Wide Web, the increasing adoption of internet and broadband and the rapidly growing use of smartphones across America, income still plays a role when it comes to Americans’ digital lives, according to reports.

An estimated 27.6 million American households still didn’t have home internet in 2021, and nearly one-fourth (22.5%) of U.S. households use public Wi-Fi or dial-up to access the internet.

The lack of high-speed internet access became an arguably even bigger issue during the coronavirus outbreak in 2020, bringing the disparity into full focus as much of daily life, including work and school, moved online. Lower-income families reportedly found it difficult to navigate an increasingly digital environment.

What Is The American Rescue Plan?

In March 2021, the Biden administration rolled out the American Rescue Plan Act of 2021, a $1.9 trillion rescue package aimed at helping the U.S. recover from the economic and health impacts of the pandemic.

A priority of the program, run by the U.S. Department of Treasury, was to make funding available for reliable, affordable broadband infrastructure and other digital connectivity projects.

In June, the Biden administration announced $25 billion of new investments from the American Rescue Plan to help provide Americans with access to affordable, high-speed internet. The investments are being routed through the capital projects fund, state and local funds and emergency connectivity funds.

According to reports, several states are making major investments to boost broadband with an emphasis on community-driven solutions enabling local governments to use the funds to bring high-speed Internet service to the underserved. California, for example, is making a gigantic investment in middle-mile infrastructure and support for local internet solutions while Maryland is making huge investments in municipal broadband.

Telecom companies including Comcast Corp. CMCSA, Verizon Communications Inc. VZ and Mediacom Communications Corp. MCCC announced large telecom projects using funding from the American Rescue Plan.

Texas-based Orbital Energy Group Inc. OEG says its telecom division Gibson Technical Services (GTS), a broadband and wireless infrastructure service provider, plays an active role in the expansion of broadband infrastructure and providing high-speed internet access. The company believes it has a unique portfolio of services that will allow it to successfully penetrate the telecommunications market.

GTS reports being awarded multiple contracts, including the construction and engineering of a 700-mile fiber project across central Mississippi.

GTS has also secured a contract from Charter Communications Inc. CHTR to build over 1,900 miles of a rural broadband network in Virginia. The project follows GTS’ earlier award from Charter to construct an 8,600-mile rural broadband network across Louisiana and Alabama.

Full Moon Telecom LLC, another Orbital subsidiary, worked with GTS to complete the deployment of 5G services for multiple U.S. wireless carriers in Atlanta.

Orbital reported revenue of $70.3 million in the first quarter of 2022. The company expects its full-year consolidated revenue of between $375 million and $425 million and adjusted EBITDA earnings before interest, taxes, depreciation and amortization (EBITDA) of $38 million to $43 million.

This reflects year-over-year revenue growth of 382% and an improvement of $67.5 million in adjusted EBITDA for the full year of 2022 compared to 2021, according to the company website.

"Our first-quarter results reflect the continued progress of building out our infrastructure services platform, and we accomplished a significant milestone in achieving positive adjusted EBITDA," said Jim O'Neil, Orbital vice chairman and CEO. "Our backlog and end-market drivers remain strong, as well as customer demand for our services, and we believe we are well-positioned to achieve our 2022 financial guidance."

Learn more about Orbital Energy and its telecom companies by visiting its websites here and here.

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