Actelis Networks, Inc. engages in the design, development, manufacturing, and marketing of cyber hardened, hybrid fiber, networking solutions for IoT and Telecommunication governmental agencies and companies. The company’s customers include governmental agencies, providers of telecommunication services, enterprises as well as resellers of its products.
The company provides cyber-hardened, rapid-deployment networking solutions for wide-area IoT applications, including federal, state and local go...
Actelis Networks, Inc. engages in the design, development, manufacturing, and marketing of cyber hardened, hybrid fiber, networking solutions for IoT and Telecommunication governmental agencies and companies. The company’s customers include governmental agencies, providers of telecommunication services, enterprises as well as resellers of its products.
The company provides cyber-hardened, rapid-deployment networking solutions for wide-area IoT applications, including federal, state and local government, intelligent traffic systems (ITS), military, utility, rail, telecom and campus applications. The company’s unique portfolio of hybrid fiber, environmentally hardened aggregation switches, high density Ethernet devices, advanced management software and cyber-protection capabilities, unlocks the hidden value of essential networks, delivering safer connectivity for rapid deployment.
The company’s networking solutions use a combination of newly deployed fiber infrastructure and existing copper and coaxial lines which its patented technology can upgrade to Fiber-grade to jointly create what is to be a secure and quick-to-deploy network. The company’s patent protected hybrid fiber networking solutions deliver excellent communication over fiber to locations that may be easy to reach with new fiber.
The company offers Triple-Shield protection of data delivered with coding, scrambling and encryption of the network traffic. The company also provides secure, encrypted access to its network management software, and are working to further enhance system-level and device-level software protection. The company is also working to introduce additional capabilities for network-wide cyber protection software as an additional SW and license-based service.
In addition, the company’s solutions can also provide power over existing copper and coax lines to remotely power up network elements and IoT components connected to them (like cameras, small cell and Wi-Fi base stations sensors etc.). The company’s products and solutions have been deployed with more than 100 telecommunication service providers worldwide, in enterprise, residential and mobile base station connectivity applications. The company’s operations are focused on its fast-growing IoT business, while maintaining its commitment to its existing Telco customers. In 2023, the company introduced new product offering, some of which could serve both the IoT markets and its Telco customers.
The company derives a significant portion of its revenue from a limited number of its customers. The company’s technology is both powerful and compact and is built as a relatively small set of feature-rich network elements, that serve as building block in many IoT verticals. These elements include switches, typically enhanced with signal processing SW, concentrators, reach extenders, data encryption elements, power sources and a smart networking software that allows for remote management and monitoring down to the single element and line performance, configuration management making complex network topologies easy to deploy, analyze, debug and remote SW download to help with remote handling of large and small networks.
The company’s solutions can also provide remote power over the same existing copper lines to power up network elements and IoT components connected to them (like cameras and meters). The company’s products work over all types of wireline media on the global data network, whether owned or operated by telecom service providers or a private network operated by enterprises or government organizations. The company’s products are structured as building blocks for most IoT applications and are feature-rich.
In another project, the company has been selected to provide networking for a major city that has fiber installed to 15% of its traffic junctions, however 85% of its junctions are connected to low performance copper lines susceptible for bad actors to tamper with. The company’s hybrid fiber-copper network allowed for the city to use its 15% fiber deployment, upgrade instantly the performance of its existing 85% copper lines to fiber-grade and joins the two under a comprehensive management and security software package from Actelis to create one seamless network, while providing major savings of both time and money.
In 2022, the company released its first product family of hardened, hybrid, encrypted fiber-copper product family with 10Gbps switching capacity.
In 2023, the company introduced the next-generation product families for hybrid-fiber-copper (or in short hybrid-fiber) Gigabit grade connectivity under the product family name, Gigaline or GL. Under the Gigaline families of hybrid-fiber networking solutions for fiber, copper and coax environments, the company solved new challenges faced by its IoT and telecom customers and expanded its offerings.
Cybersecurity
The company’s products all include cyber safety features that it is constantly developing. They include network traffic encryption and coding. The company has developed and implemented a multi-layered Triple Shield technology that includes information coding for resilience and security (for copper wires); multi-line information scrambling for increased resilience and added security (for copper wires); and an additional 256-bit hardware-based real-time encryption of data running over fiber, coax or copper — creating end-to-end protection for the entire hybrid network. The company’s network management software is also cyber-hardened and helps protect the system. The company’s systems have been selected for deployment in sensitive applications with U.S. DoD and other governments and military organizations, airports, utility companies, oil and gas companies, smart cities, rail and traffic applications globally.
The company continues to invest in further strengthening its focus on cybersecurity capabilities and solutions for its customers. The company has invested in software and hardware capabilities enhancing encryption of the data carried by its systems; it has introduced encrypted, cyber-hardened network management protocols; it has also introduced encryption of operating systems running on its devices. Furthermore, the company successfully completed the certification of its product lines for Federal Intelligence Protocol Standards (FIPS) and were approved by the DoD’s Joint Interoperability Test Command (JITC) for interoperability and cybersecurity approved product list (APL) in 2024. The company is exploring directions to provide software services to its customers that would allow them to flexibly safeguard their critical networks, and intelligently isolate and protect from bad actors attacking their networks. The company refers to such objective as Cyber-Aware Networking.
Solutions
The ocmpany’s Triple Shield technology includes signal processing software that is implementing optimization of multi-line signal coordination, the elimination of interference to boost connectivity performance, the optimization of coding for resilience and security, multi-line data scrambling for low latency, increased resilience, and added security. The company’s solutions also offer implementation of 256-bit encryption of transmission for data running over fiber or copper for network-wide protection of data. The company’s technology is packaged into a small set of compact, hardened, feature-rich network elements (such as switches, concentrators and reach extenders) — the MetaLIGHT product family — that are used as building blocks addressing the needs of most wide-area IoT verticals and applications, in a space-and energy-saving fashion.
In 2023, the company introduced the next-generation product families for hybrid-fiber-copper (or in short hybrid-fiber) Gigabit grade connectivity under the product family name, Gigaline or GL. Under the Gigaline families of hybrid-fiber networking solutions for fiber, copper and coax environments, the company solved new challenges faced by its IoT and telecm customers and expanded its offerings.
One such product line, the GL800 aims at extending multi-gigabit fiber-grade connectivity to buildings, enterprises, IoT installations, campuses, and 5G/4G base stations.
A second product line, the GL900, extends Gigabit connectivity from fiber installations outside buildings (homes passed by fiber) into individual offices and apartments within MDUs and MTUs, without the need for landlord investment in re-wiring buildings with fiber. MDU/MTU market in the U.S. alone is estimated by the company to include more than 18M buildings. A third product group, GL5000 and GL6000, that was introduced in 2023 includes over 40 variants of hardened, 10Gbps fiber switches to expand the company’s fiber offering into the IoT market.
The company’s product offering includes its EMS network management software, providing built-in automation to help configure, manage, monitor, safeguard, install and maintain complex, hybrid networks of thousands of elements remotely. The company’s EMS management Software was enhanced to support these new products and strengthened with advanced security features to support better cyber production and meet DoD demands. The company’s products are also built for future integration with enhanced security services it may introduce in the future.
Products
Gigaline 800/900/5000/6000 Series: Advanced, software managed, temperature and cyber-hardened, layer 2 and layer 3, hybrid-fiber-copper switching devices, at multi-gigabit speeds of up to 10Gbps. These devices deliver a much broader selection of solutions for large and small networks, at higher speeds, and better security, in support of hybrid-fiber networks that contain more fiber, and covering IoT, MDU and MTU markets.
MetaLight ML500/600/700/Series: EADs (Ethernet Access Devices) are a series of products which are cost efficient, compact and hardened Ethernet switches for long-distance hybrid-fiber networks, located near the IoT devices connected to the network. For example, the company’s EAD is used to connect street traffic lights and nearby controllers, cameras and IoT devices to the traffic control center, where either fiber, copper or coax infrastructure cabling exists. This product family can be installed either indoors or outdoors, including under extreme weather conditions.
ML2300 Aggregator Series: This product is designed for large, medium, and small aggregation/operating and control centers. Network aggregators can connect hundreds of locations or elements. For example, control centers of highways could use such aggregators to communicate with hundreds of EADs installed in cabinets along highways in order to securely connect IoT devices (e.g. security cameras) to the highway network.
XR239 Series: This product is installed on long copper lines and can be remotely powered from the data lines themselves, while a special algorithm (Dynamic Spectral Software) is ensuring minimal interference with other signals running on adjacent conduits in the same cable. It features a repeater to extend connectivity range to long distances, in some cases up to 100Km. The repeater is installed outdoors and is resistant to cold, hot, rain, ice or snow. The company’s repeaters have been installed along rail systems in Alaska and Canada and have been safely performing for more than five years.
The company also offers support and maintenance services together with the sales of its product. This includes consulting, telephone troubleshooting and remote support, training, product repairs, and software updates.
Product Specifications
The company’s products use advanced signal processing implemented at the system level, with an approach that treats multiple copper lines as one multi-line channel. The company focuses its efforts and implemented technologies in its products in order to achieve the following:
Transmission in the copper lines to take into account signals in neighboring lines to minimize crosstalk interference and be Spectrally Friendly;
Multi-line spatial coding scrambling of data in a way that enhances connection immunity to interference, and makes tapping into the data very difficult;
Integration of remote powering and data on the same copper pairs;
Minimizing transmission delay to support delay-sensitive applications; and
Ability to safely, and accurately transmit clock signals for cellular base station synchronization (not available yet for 5G).
The company’s products and solutions have been deployed with more than 100 telecommunication service providers worldwide, in enterprise, residential and mobile base station connectivity applications. The company’s operations are focused on its fast-growing IoT business while maintaining its commitment to its existing Telecom customers.
Sales and Marketing Strategy
The company operates through two regions — Americas and International (consisting of EMEA, or Europe, Middle East and Africa, and APAC, or Asia Pacific) in a matrix with a vertical structure that is described below. The ocmpany’s r sales and support teams are located in the United States, Mexico, Germany, Israel, and India. The company also executes its sales and marketing plan through a multi-channel by vertical global approach that combines its expertise with the expertise of its trusted business partners. The company’s business partners, as well as the partners it will seek in the future, are system integrators, distributors, contractors, resellers, and consultants. The company’s business partners are located in North America, Central America, Europe, India, Singapore, China, Australia, Vietnam and Japan. The company chieved UL laboratories compliance with FIPS 140-2 cybersecurity standard required by the United States Department of Defence (DoD) and the Joint Interoperability Test Command (JITC) labs approval of the Company’s products for cybersecurity and interoperability, putting the products in the DoD Approved Products List (APL).
The company operates a vertical-based marketing plan where it dedicate tailored solutions and individual resources to each specific vertical. The company’s verticals include Intelligent Traffic Systems (ITS), rail, smart city, Telecom, utilities, federal and military.
ITS
ITS include customers who manage road system,s such as departments of traffic on either the municipality, county, state, or national level. The types of applications in this vertical that require communication include road cameras, lane management systems, and road signs.
Rail
Rail systems include customers who own and operate traditional inter-city rail lines as well as light rails. Some applications requiring communication in this vertical are central train control systems, rail signals, safety cameras and alert sensors, and rail station communication. The company has projects within this vertical in North America, Europe, and Asia Pacific.
Federal and Military
The company’s current and future federal and military federal aviation authorities, US military, Air Force and Navy bases, and other government and military facilities. For example, during 2022, the company was selected by Norseman Defense Technologies as an authorized sales partner to provide its solutions to all branches of the US Military and Government. The types of applications within this vertical that requiring communication include radars, perimeter security systems, energy systems, offices, laboratories and residences. The company has projects within this vertical in North America, Europe and the Asia Pacific.
Airports
Airports include customers who are either a State or Federal airport agency, or a service provider to the airport industry. The types of applications within this vertical requiring communication are airport security, baggage management, and airport Wi-Fi. Since 2022, the company is delivering to its airport integration customer, who is a worldwide market-leader in airport operation technology, with which it signed an agreement to provide its solutions to hundreds of airports in 39 countries.
Energy and Water
Energy and water include customers, such as electric utilities, oil companies and water utilities. The types of applications within this vertical that require communication are sub-station monitoring, oil and gas pipeline and refineries, electric and water flow monitoring, and perimeter security. The company has projects within this vertical in North America and Europe.
Smart City
Smart city customers include such municipalities. The types of applications in this vertical requiring communication include security cameras, parking management, energy and water management, waste management, digital signs, and provision of Wi-Fi connectivity. The company has projects in more than 100 cities, mostly in North America and Europe.
Telco
Telco customers include communication service providers of both wired and wireless services (including 4G and 5G). The types of applications within this vertical requiring communication include enterprise offices, branch offices, residential buildings, educational facilities and back-haul for mobile base stations.
Channel and Territory coverage
The majority of the company’s business is conducted indirectly through various types of business partners, namely system integrators, distributors, contractors, resellers and consultants. Nevertheless, the company’s team often accompanies a channel partner during the selling process to help secure a deal with an end-user. The company seeks to cover the geographic territories in which it sells, in combination with the target verticals. The company takes advantage of existing strong relationships with business partners in the United States, Canada, Europe, Latin America, and Asia Pacific and also seeks to recruit new business partners that can help it expands its coverage.
In addition, the company maintains a website (at www.actelis.com) tailored to the IoT strategy and is expanding its marketing initiatives (professional organizations, shows, online targeting, online campaigns and lead generation) to grow its opportunity pipeline.
The company operates through two main regional sales teams — Americas and International (consisting of EMEA (Europe, Middle East and Africa) and APAC (Asia Pacific)) in a vertical model similar to that which was described in its marketing strategy above and generates its pipeline of leads and opportunities through a combination of channel presence, on-line presence as well as direct touch. The company’s sales teams are very experienced in the target verticals and have significant competencies in the target networks of decision makers. The company intends to invest in expanding this presence and strength.
Software and Services
The company’s products consist of hardware and an embedded software that function together to deliver the product’s essential functionality. The company’s products are sold with a two-year warranty for repairs or replacements of the product in the event of damage or failure during the term of the support period, which is accounted for as a standard warranty. Services relating to repair or replacement of hardware beyond the standard warranty period are offered under renewable, fee-based contracts and include telephone support, remote diagnostics, and access to on-site technical support personnel.
The company also offers its customers its EMS management software, either as perpetual or term-based. EMS is optional and is being sold separately from its hardware products, and has been sold either as a per-element license, or as a license for a whole network.
The company’s customers may request added functions and features for their specific need which it can customize for an additional fee.
The company also offers its customers product support services which include telephone support, remote diagnostics, and access to on-site technical support personnel. Such support service is sold as a standalone contract or in combination with EMS management software and is offered for a term, usually 12 months with a renewal option.
Additionally, the company’s customers can purchase software support service which allow them to receive some additional features or free upgrades. Such support service is sold as a separate contract.
The company offers service contracts at different levels (Silver, Gold, Platinum), which may include different levels of support (remotely or in the field), hardware repairs, spare parts, help with network design, and SW/HW upgrades. Such service contracts are sold separately from the sale of hardware products and may be sold combined with its EMS software licenses. It usually covers periods post the expiration of its warranty period and would be renewed on an annual basis.
Competition
The company’s key competitors include Moxa Technologies, FlexDSL Telecommunications AG, EtherWAN Systems, Inc. and Belden Inc.
Growth Strategy
The company intends to leverage the customers, partners, and representatives’ presence in over 30 countries including the Americas, Europe and Asia, brand recognition developed over more than 10 years, and the fact that its products are differentiated, and offers unique value — to expand into virtually all IoT verticals, and become the vendor of choice for cyber-protected building blocks for all IoT networking globally.
In order to achieve the right level of global coverage, the company continues to expand its network of partners and representatives, as well as reputable advisors, and aim increasingly at partnering with larger numbers of companies with global presence. These can be system-integrators, value-added resellers, contractors, distributors, and consultants. For example, in 2022, the company selected Norseman Technologies to serve as a business partner integrator of its products to the Federal and military markets in the U.S. through their acquisition contracts. Additionally, the company signed up new business partners in Europe and the Asia Pacific, such as in Singapore, China, Vietnam and Malaysia.
The company intends to expand this strategy by investing in sales and marketing presence to extend the length these contracts and add many others. The company’s products are already capable of delivering sensitive information for many critical IoT applications, and it is investing more in making this a strong differentiator, and to have its products recognized as the most cyber-safe IoT building blocks in the growing secure IoT communication market.
The company is investing in growing its sales, channel management and support teams, and dedicate resources which specialize in specific verticals in each of the theaters. In July 2023, the company hired a new SVP of Sales, Americas who is executing campaigns its sales strategy in the United States, Canada, Central and South America. The company continued in 2023 to invest in marketing activities through social media, industry shows and conferences and other online means. The company is investing in lead-generation and management internally and through third-parties who specialize in this practice.
The company continues to evaluate potential growth through mergers and acquisitions opportunities in situations where that a transaction will fill business gaps or add key business operations without requiring it to wait years for marketing and sales cycles to materialize.
Intellectual Property
The company has registered Actelis Networks as a service trademark in the United States, and it is the registered holder of the domain name Actelis.com that includes Actelis Networks, Inc. The company also has 17 registered patents in the United States; 5 registered patents in Europe, 1 registered patent in Mexico, 1 registered patent in Indonesia, and 1 WIPO patent application, all of which in the general area of high-speed carrier class Ethernet service and transport over bonded VDSL2, G.SHDSL, as well as Fiber covering various aspects of its technology.
Without accounting for any potential patent term adjustments or extensions or other forms of exclusivity with respect to the company’s U.S. issued patents, 4 expire between 2024 and 2026, 5 expire between 2027 and 2030, and 8 expire between 2031 and 2038. Any patent issuing from the pending WIPO patent application will begin to expire in 2041. With respect to the company’s European patents, 3 European patents are expected to expire between 2024 and 2026, and 2 European patent is expected to expire between 2027 and 2038. The company’s Mexican patent is expected to expire in 2026 and its Indonesian patent is expected to expire in 2028.
Research and Development Expenses
The company’s research and development expenses for the year ended December 31, 2023, amounted to $2.7 million.
Government Regulation
The company’s products are required to be certified for safety and local standards in each country that it sells in as needed. In the United States, Canada, Europe, and Japan its products are UL certified (safety), EN (emissions Regulation), VCCI (Japanese emissions standard), CISPR (European emission standard), ICES (Canadian radio frequency emissions standards), ETSI (European electromagnetic compatibility standard), CFR (US Federal Broadcasting Regulation), as well as IEC (European Safety Standard). The company has also received the JITC (Joint Interoperability Test Command) certification of meeting certain cybersecurity standards required by the U.S. Department of Defense.
The company is subject to numerous federal, state, provincial, local, and foreign laws and regulations relating to the storage, handling, emission, and discharge of materials into the environment, including the Comprehensive Environmental Response, Compensation, and Liability Act; the Clean Water Act; the Clean Air Act; the Emergency Planning and Community Right-To-Know Act; the Resource Conservation and Recovery Act; and similar laws in the other countries in which it operates.
History
Actelis Networks, Inc. was founded in 1998. The company was incorporated in 1998.
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