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NuRAN Signs deal with MTN for the Deployment of Sites Across South Sudan

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NuRAN Signs deal with MTN for the Deployment of Sites Across South Sudan

by ITECHNEWS
December 20, 2021
in Africa Tech, Leading Stories
0 0
0
NuRAN Signs deal with MTN for the Deployment of Sites Across South Sudan

NuRAN Wireless has announced that they have signed an agreement with MTN towards deploying minimum 250 rural sites under NAAS model.

NuRAN Wireless Inc., a specialist in rural telecommunications company, announces it has signed an agreement for a minimum of 250 sites with MTN Group Limited for the deployment of rural sites under the network-as-a-service model (“NAAS”) in Republic of South Sudan (“South Sudan”) for the deployment of sites through the build, own, operate, and transfer (“BOOT”) revenue share model.

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The 10-year agreement is estimated to represent approximately CAD $1,800 of revenue per site and per month or CAD $57 Million in revenues over the course of the contract, with the potential for more sites to be added and the ability to leverage terrestrial backhaul networks to deliver inexpensive data capacity that is intended to drive higher ARPU and revenues. The estimated revenues are subject to associated project expenses to generate over 65% gross margin including expenses associated with satellite bandwidth, site lease, network operation center operational expenses, curative and preventative maintenance fees, project management and monitoring fees, and insurance.

“We are extremely pleased to have concluded this Agreement with MTN, a leader in bringing connectivity to the African continent. We signed the initial MOU in July 2021 and having concluded this agreement within a few months is a testament to our growing relationship with MTN. Adding South Sudan to the NuRAN portfolio is another important step towards achieving our goal of 10,000 sites. Bringing connectivity to the unconnected is at the heart of our business strategy and the benefits extend beyond communication including e-commerce, education and healthcare.”

Francis Letourneau, CEO, NuRAN Wireless Inc.

“We are excited to be partnering with NuRAN in this very important project. At MTN we believe that everyone deserves a connected life therefore our strategy is to bring connectivity to these rural parts. We hope that this is the beginning of a growing relationship with NuRAN.”

Diatile Zondo, CFO, MTN South Sudan

Pursuant to the terms of the agreement with MTN, the parties intend to install a minimum of 250 rural networking sites in the Republic of South Sudan within the next 24 months. An initial 50 sites will be launched from existing tower infrastructure owned by MTN and allowing for an extremely accelerated project launch. Site surveys on these existing sites has already begun to evaluate site conditions.

NuRAN will partner with Tandem Solution LTD (“Tandem”), a local partner and already familiar to MTN. Tandem is fully licensed for infrastructure work in the country. Tandem was incorporated originally in Uganda and formed by dynamic professionals with vast engineering experiences totaling over 30 years whose expertise in project, network planning and optimization, contract planning, implementation, management, and administration is combined with expertise in a number of sectors.

The NuRAN NAAS model facilitates network expansion for mobile operators by managing and controlling the build, operation, and maintenance of cellular sites along with associated capital expenditures. The sites are then monetized by providing connectivity on a paid-for-service basis. Leveraging its carrier-grade mobile network infrastructure solutions as well as its extensive expertise in the building of cost-effective cellular infrastructure, NuRAN can setup network operations from the ground up with an exceptional return on investment. While deployments under the NAAS model require the Company to make upfront investments, they generate significant value whereby NuRAN benefits from long-term recurring revenues with compelling
returns. The Company intends to fund such deployments mostly through asset-based project financing or similar debt-oriented facilities. Such financing options and sources are being investigated with a view of carrying out deployments in the most efficient manner.

By TechAfrica News

Tags: MTNNuRANSouth Sudan
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