NextNav's Strategic Moves in 5G Indoor Positioning: A High-Growth Investment Opportunity

The race to secure resilient positioning, navigation, and timing (PNT) solutions in the 5G era is accelerating, driven by vulnerabilities in GPS and the urgent need for indoor positioning accuracy. For investors, NextNav (NN) stands at the intersection of technological innovation and strategic partnerships, positioning itself to capitalize on a high-growth niche: 5G-powered indoor positioning. While direct collaborations with AT&T remain limited to public safety networks, indirect synergies and NextNav's demonstrated capabilities suggest a compelling long-term opportunity.

The 5G Indoor Positioning Imperative

Indoor positioning is a $12.3 billion market by 2030, growing at a 24% CAGR, according to a MarketsandMarkets report. Traditional GPS fails indoors, leaving a gap for 5G-based solutions that leverage existing infrastructure. NextNav's Positioning Reference Signal (PRS) technology, validated in lab and field tests using commercial 5G equipment, offers precise 3D positioning and timing synchronization demonstrated in standard equipment tests. By integrating PRS with standard 5G networks-such as those operated by AT&T-NextNav avoids costly infrastructure overhauls, enabling scalable deployment, as shown in a 3D PNT milestone.

Strategic Partnerships: Oscilloquartz and Beyond

NextNav's partnership with Oscilloquartz (an Adtran subsidiary) is a cornerstone of its strategy. Together, they've developed a 5G-based terrestrial timing service that acts as a GPS backup, distributing UTC-aligned time indoors and outdoors, as documented in an 8-K filing. This collaboration aligns with FCC initiatives to diversify PNT sources, addressing national security concerns and critical infrastructure needs. While Oscilloquartz focuses on synchronization, NextNav's PRS technology provides the spatial component, creating a dual-layer solution for redundancy, as described in their partnership announcement.

Indirectly, AT&T benefits from NextNav's advancements through its Pinnacle network, a FirstNet initiative for public safety. In October 2025, NextNav extended its agreement with AT&T to support Pinnacle's operations, including enhanced E911 services. Though not explicitly tied to indoor positioning, this partnership underscores AT&T's reliance on NextNav's terrestrial PNT capabilities-a foundation that could expand into commercial applications as 5G adoption grows.

Technical Validation and Commercial Viability

NextNav's recent milestones validate its commercial potential. In February 2025, the company demonstrated its PRS-based PNT solution using Lekha Wireless Solutions' 5G base stations, proving simultaneous data transmission and positioning accuracy in industry tests. This compatibility with off-the-shelf equipment reduces deployment costs, a critical factor for carriers like AT&T. Additionally, NextNav's use of barometric pressure sensors to enhance vertical accuracy addresses a key limitation of GPS, making its solution ideal for multi-story buildings and subterranean environments.

Investment Thesis: Securing a Resilient Future

The convergence of regulatory tailwinds, infrastructure modernization, and 5G's rollout creates a favorable environment for NextNav. Its partnerships with Oscilloquartz and AT&T-direct and indirect-position it to capture market share in both public safety and commercial sectors. For AT&T, integrating NextNav's technology into its 5G network could unlock new revenue streams in logistics, retail, and healthcare, where indoor positioning is transformative.

Risks and Considerations

While the outlook is optimistic, challenges remain. Competition from proprietary solutions (e.g., Apple's UWB) and regulatory delays in spectrum allocation could slow adoption. Additionally, NextNav's reliance on partnerships means its success hinges on collaborators like AT&T prioritizing terrestrial PNT integration.

Conclusion

NextNav's strategic alignment with 5G infrastructure, coupled with its validated PRS technology and extended agreements with AT&T, positions it as a key player in the indoor positioning revolution. For investors, this represents a high-conviction bet on a sector where national security, commercial demand, and technological innovation intersect. As 5G networks mature, NextNav's ability to deliver resilient, cost-effective PNT solutions could drive outsized returns.