Signing of the Group Framework Agreement10-year NaaS agreementRevenue sharing business model
QUEBEC, QC / ACCESS CABLE / July 21, 2022 / NuRAN Wireless Inc. (“NuRAN” or the “Company”) (CSE:NUR)(OTC pink: NRRWF)(ESF:1RN)a leading provider of mobile and broadband wireless infrastructure solutions, is pleased to announce the signing today, July 21, 2022, of a Group Framework Agreement (“GFA”) with MTN Group (JSE:MTN) for the deployment of rural sites under the Network-as-a-Service (“NaaS”) business model in the Middle East and Africa.
NuRAN participated in MTN’s rural RFP process for up to 19,000,000 network sites in more than 15 countries in the Middle East and Africa, as previously announced on April 28, 2022. After completing the RFP process, the Company is pleased to have been selected by MTN to participate in the GFA, which represents an important milestone for the Company. The GFA provides NuRAN with the opportunity to work with all MTN subsidiaries directly throughout the Middle East and Sub-Saharan Africa on substantive rural implementation opportunities. The framework agreement sets out the general terms of NuRAN’s engagement with MTN Group. MTN is determined to build more than 19,000 sites to meet your rural coverage needs. NuRAN is already in advanced talks with several MTN subsidiaries. NuRAN will enter into contracts with each subsidiary of MTN on an agreement by agreement basis.
“We are extremely proud to have entered into this partnership and agreement with MTN. We are already in advanced discussions with several MTN subsidiaries and this agreement gives us the necessary license to close several important NaaS opportunities. We believe that this agreement will allow our company to close an amount of 19,000 sites in the near future. We have set an overall goal of 10,000 sites under contract and this partnership will certainly help us achieve this goal,” said Francis Letourneau, CEO of NuRAN.
The NuRAN NaaS model facilitates network expansion for mobile operators by managing and controlling the construction, operation and maintenance of cell sites along with the associated capital expenditures. The sites are then monetized by providing connectivity based on the paid service. Leveraging its carrier-grade mobile network infrastructure solutions, as well as its extensive experience in building cost-effective cellular infrastructure, NuRAN can set up network operations from the ground up with an exceptional return on investment. While NaaS deployments require the company to make upfront investments, they generate significant value whereby NuRAN benefits from long-term recurring revenue with attractive returns. The Company intends to finance such deployments primarily through asset-based project financing or similar debt-oriented lines. These options and funding sources are being investigated with a view to carrying out deployments in the most efficient manner.
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MTN is an emerging market mobile operator at the forefront of technological and digital change. They provide a wide range of voice, data, digital, fintech, wholesale and business services to more than 280 million customers in 21 markets. Established in South Africa at the dawn of democracy in 1994 as leaders in transformation, serving communities in Africa and the Middle East.
About Wireless NuRAN:
NuRAN Wireless is a leading rural telecommunications company, meeting the growing demand for wireless network coverage in remote and rural regions around the world. With its affordable and innovative scalable solutions of 2G, 3G and 4G technologies, NuRAN Wireless offers a new possibility for more than one billion people to communicate effectively over long distances efficiently and economically. “Bridging the digital divide, one connection at a time.”
For more information on NuRAN Wireless: www.nuranwireless.com
Director and CEO
Phone: (418) 264-1337
Phone: (514) 969-5530
Neither the Canadian Stock Exchange nor its Market Regulator (as defined in the policies of the Canadian Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release contains forward-looking statements. Forward-looking statements may be identified by the use of words such as “expects”, “is expected”, “anticipates”, “intends”, “believes” or variations of such words and phrases or by asserting that certain actions, events or results “may ” or “will be” taken, will occur or will be achieved. Forward-looking statements include those relating to the terms and conditions of GFA’s definitive agreement and the proposed 19,000 sites and site revenues under GFA. Forward-looking statements are not a guarantee of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from projected results, expressed or implied by these forward-looking statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or anticipated. There can be no guarantee that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements, such as uncertainties regarding the risks included, such as uncertainties regarding the impact of the outbreak of COVID-19. and measures to prevent its spread, risks related to NuRAN’s business and the economy in general; NuRAN’s ability to refinance its long-term debt that is currently past due; NuRAN’s ability to properly restructure its operations with respect to its new NaaS service contract model; the Company’s ability to deliver technical capacity and import inventory to Africa and the Middle East at reasonable cost; NuRAN’s ability to obtain project financing for the construction of the proposed site under its NaaS agreements with Orange, MTN and other telecommunications providers, the loss of one or more major providers or a significant reduction in the volume of such providers; NuRAN’s ability to meet or exceed customer demand and expectations; current significant competition and the introduction of new competitors or other disruptive entrants into the Company’s industry; NuRAN’s ability to retain key employees and protect its intellectual property; compliance with local laws and regulations and ability to obtain all permits required for our operations, access to credit and capital markets, changes in applicable telecommunications laws or regulations or changes in regulatory and license fees, drops in customer business cycles; and insurance prices and availability of insurance coverage, the Company’s ability to effectively maintain or update information systems and technology; our ability to implement and maintain protective measures against cyber attacks and comply with applicable privacy and data security requirements; the Company’s ability to successfully implement its business strategies or achieve expected cost savings and revenue improvements; business development activities, including acquisitions and integration of acquired businesses; the Company’s expansion into markets outside of Canada and the operational, competitive and regulatory risks faced by the Company’s operations outside of Canada. Accordingly, readers should not place undue reliance on forward-looking information. Other factors that could materially affect such forward-looking information are described in the risk factors in the Company’s most recent annual management’s discussion and analysis which is available on the Company’s profile on SEDAR at sedar.com.
Estimates included in this press release relating to the calculation of gross revenue from the MTN deals are based on multiplying an average population per site by the expected penetration rate yielded by the number of mobile customers. This is then multiplied by the average revenue per customer per month (ARPU) to get the total revenue. MTN’s direct costs associated with this income are deducted and the resulting amount is shared by both parties. Revenue sharing only applies to revenues in excess of a guaranteed amount, which is the minimum paid to NuRAN. A penetration rate reduction factor has been used to mitigate the risk. The basic data used to calculate the total potential revenue from this deal was provided by MTN based on average population, penetration rate and ARPU. The Company’s management believes that the estimates have been prepared on a reasonable basis, reflecting best estimates and judgments, and based on a number of assumptions that management believes to be reasonable, as well as information provided to the Company. by MTN. However, because this information is highly subjective and subject to numerous risks, including the risks discussed above, it should not be relied upon as necessarily indicative of future results. Should one or more of these risks or uncertainties materialize, or should the assumptions underlying the estimates prove incorrect, actual results may vary materially from those described herein as anticipated, planned, anticipated, believed, estimated or expected. .
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