connecting the next billion - nuran wireless

Commercial In Confidence 1

CONNECTING THE NEXT BILLION

PARTNERSHIP ON RURAL MOBILE COVERAGE DELIVERING MNO’S BUSINESS IMPERATIVES

NURAN WIRELESS

2

OUR COMPANY is a leading supplier of mobile and broadband wireless infrastructure solutions. Its innovative radio access network (RAN), core network, and backhaul products dramatically drop the total cost of ownership, thereby creating new opportunities for established, as well as emerging mobile network operators. Indoor coverage, isolated rural communities, offshore platforms and ships, NuRAN Wireless helps its customers reach everyone, everywhere.

Canadian company, headquartered in Quebec. Publicly traded (CSE:NUR; FSE:1RN; OTC:NRRWF). Over 35 years experience in the telecoms industry. Successful deployments across the globe. Future-proof product and solution roadmaps. Highly-skilled and experienced team

OUR MISSION is to deliver a low-cost rural network in the target area to serve two main objectives: a) incorporate as many inhabitants as possible into the digital world; and b) build a network the mobile operator can run profitably well beyond the current project and for the foreseeable future.


CHALLENGES OF THE RURAL BUSINESS MODEL

THE RURAL BUSINESS MODEL BEARS LITTLE RESEMBLANCE TO THE TRADITIONAL MOBILE OPERATOR BUSINESS MODEL, WHERE SUBSCRIBER MASS AIMS TO OFFSET NETWORK COSTS. RURAL COMMUNITIES LACK POPULATION DENSITY AND ARE GENERALLY A LOW INCOME DEMOGRAPHIC. OTHER IMPORTANT CHALLENGES ARE:

  OPERATING ENVIRONMENT: MULTIPLE FACTORS INCREASE THE COMPLEXITY AND OPERATIONAL COST OF RURAL

SITES, SUCH AS DISTANCE (I.E. RESPONSE TIME), INFRASTRUCTURE AVAILABILITY (I.E. ELECTRICITY, BACKHAUL, ROADS), CLIMATE (I.E. SITE SUSCEPTIBILITY) AND SECURITY (I.E. THEFT, VANDALISM).

  LESS SOPHISTICATED USERS: TECHNOLOGY LITERACY IS MUCH LOWER IN RURAL AREAS, SO SERVICE ADOPTION IS HINDERED BOTH IN TERMS OF SUBSCRIBER ENROLLMENT AND NETWORK USAGE.

  SUBSCRIBER PROFILE: RURAL USERS COMMUNICATION AND SERVICE NEEDS DIFFER, SO THE MARKET OPPORTUNITY MUST BE APPROACHED DIFFERENTLY.

  LACK OF RELEVANT CONTENT: NETWORK USAGE IS TIED TO SUBSCRIBERS’ INTERESTS AND NEEDS, WHICH IN TURN IS PROMPTED BY ACCESS AND AVAILABILITY TO RELEVANT INFORMATION AND SERVICES.


THE BENEFITS OF CONNECTING RURAL GOVERNMENT INSTITUTIONS:

INCREASE PRODUCTIVITY AND COMPETITIVENESS, ECHOED IN GDP AND TFP. IMPROVE ECONOMIC CLIMATE THAT INCITES BUSINESS AND INVESTMENTS. OFFER IMPROVED AND MORE ACCESSIBLE PUBLIC AND PRIVATE SERVICES. GENERATE EMPLOYMENT AND GROWTH OPPORTUNITIES FOR THE COMMUNITY.

COMMUNICATION SERVICE PROVIDER:

INCREASE SUBSCRIBER BASE BY TAPPING INTO A CAPTIVE AUDIENCE. ADDITIONAL POCKETS OF GROWTH AND REVENUE SOURCES PREVIOUSLY NOT CONTEMPLATED. CHANGE THE COMMUNITY’S COMMUNICATION CULTURE, INCREASING INCOME. EXTEND THE COVERAGE FOOTPRINT AND FACILITATE MORE SERVICES. OWNER OF THE LAST MILE, A UNIQUE AND VALUABLE PIECE OF THE NETWORK. FULFIL CONCESSION OBLIGATIONS THAT WERE AGREED TO.

THE COMMUNITY

ACCESS TO VITAL PUBLIC AND PRIVATE SERVICES (E.G. HEALTH, SECURITY, EDUCATION, BANKING) ENABLE IMPORTANT SOCIAL INCLUSION AND ECONOMIC CHANGE IN THE COMMUNITY. GENERATE MICRO AND MACRO BUSINESS CLIMATES WITHIN THE COMMUNITY. IMPROVE THE COMMUNITY’S QUALITY OF LIFE AND INCREASE OPPORTUNITIES.

AN OPPORTUNITY FOR MNOS,

GOVERNMENTS AND COMMUNITIES.


CONNECTING RURAL A VALUABLE BUSINESS PROPOSITION

MOBILE OPERATORS HAVE AND CONTINUE TO FOCUS THEIR INVESTMENTS ON HIGHLY POPULATED AREAS, WHERE THEY ARE ASSURED HEALTHY REVENUES AND GOOD RETURNS. IT IS A BUSINESS AFTER ALL!

DUE TO SIGNIFICANT CAPITAL AND RECURRING OPERATIONAL EXPENSES, MOBILE OPERATORS NEED CRITICAL SUBSCRIBER MASS TO ENSURE A HEALTHY BUSINESS MODEL. HENCE, RURAL AREAS DO NOT FIGURE IN THE GROWTH STRATEGY AND INVESTMENT PLANS OF A MOBILE OPERATOR.

SIGNIFICANTLY REDUCING CAPITAL AND MORE CRUCIALLY OPERATIONAL EXPENSES, WOULD ALLOW MOBILE OPERATORS TO VIEW RURAL AS A VALUABLE BUSINESS PROPOSITION. NO NEED FOR A LARGE SUBSCRIBER BASE TO OFFSET NETWORK COSTS.

UNLIKE TRADITIONAL NETWORK VENDORS, NURAN WIRELESS HAS FOCUSED ON REDUCING THE TOTAL COST OF OWNERSHIP OF THE RADIO ACCESS NETWORK TO ALLOW MOBILE SERVICES TO BECOME UBIQUITOUS.

MOBILE SERVICES CAN THUS BE EXTENDED TO RURAL AREAS IN A VIABLE

AND SUSTAINABLE WAY, GENERATING A VALUABLE INCOME STREAM FOR MOBILE OPERATORS AMIDST SHRINKING REVENUES.

INCREASED COMPETITION LARGE TAX OBLIGATIONS HEFTY REGULATORY FEES


STRENGTHENING THE RURAL COMMUNITY

MOBILE SERVICES AFFORDS FINANCIAL INCLUSION, WHICH UNLOCKS CONSIDERABLE ECONOMIC POTENTIAL OF RURAL AREAS AND BENEFITS LOW INCOME USERS. PEOPLE GAIN ACCESS TO OTHER SOURCES OF INCOME AND CAN BENEFIT FROM FINANCIAL SERVICES SUCH AS INSURANCE, SAVINGS AND CREDITS, MAKING THEM LESS SUSCEPTIBLE AND VULNERABLE TO UNEXPECTED CHANGES IN THEIR LIVES.

MOBILE MONEY SERVICES HAVE SIGNIFICANTLY IMPROVED THE LIVES AND LIVELIHOODS OF THE UNBANKED AND UNDERSERVED. STORING AND TRANSACTING MONEY IN DIGITAL FORM IS MORE PRODUCTIVE, SAFER AND OFFERS INCREASED SOCIO-ECONOMIC OPPORTUNITIES. THIS TRANSLATES INTO INCREASED NETWORK USE AND GROWING REVENUES FOR THE MOBILE OPERATOR.

STRONG GROWTH OF MOBILE MONEY SERVICES


EXTENDING THE COVERAGE BOUNDARY HIGH TRANSMISSION COSTS TO CONNECT RURAL SITES DISCOURAGES MOBILE OPERATORS FROM COVERING REMOTE AREAS, PARTICULARLY MOBILE BROADBAND TECHNOLOGIES.

ORGANISATIONS SUCH AS FACEBOOK, TWITTER AND GOOGLE WORK TO EXTEND THE TERRITORIAL BOUNDARY OF THEIR SERVICES BY REDUCING BANDWIDTH REQUIREMENTS OF POPULAR APPLICATIONS AND WEB PAGES AND OPTIMISING THEIR USE OVER SLOW CONNECTIONS. SOCIAL INCLUSION IS NOW FEASIBLE OVER 2G NETWORKS.

VALUABLE DATA SERVICES CAN BE PROVIDED TO RURAL COMMUNITIES AT LOW COST AND RISK. A PROGRESSIVE INVESTMENT APPROACH CAN BE ENSUED IN LINE WITH SERVICE ADOPTION. SOME IOT SERVICES WITH VITAL RURAL APPLICATIONS ARE WELL SUITED FOR LOW THROUGHPUT CONNECTIONS.


AVOID LICENCE OBLIGATION PENALTIES

INCREASE EBITDA

START LOW AND GROW

Gain Mobile users

Expand Mobile Coverage

Easy Upgrade on capacity/technology

BEAT THE COMPETITION

Connecting the unconnected

Be First

OFFSET TARIFF REDUCTION

Generate additional income from greenfield Rural

MEET YOUR OBJECTIVES WITH ZERO INVESTMENT!

IMPROVE CORPORATE BRAND

Major Social Impact

FOCUS ON YOUR CORE BUSINESS

Focus while NuRAN drives extended coverage


OUR OBJECTIVE

BRING DISRUPTIVE TECHNOLOGY THAT DRAMATICALLY REDUCES THE TOTAL COST OF OWNERSHIP (TCO)

OUR CAPEX OBJECTIVES ARE:

BUILD LOW COST WIRELESS INFRASTRUCTURE. LOW POWER CONSUMPTION TO REDUCE INVESTMENT IN SOLAR ENERGY AND BATTERIES. SMALL FORM FACTOR TO BRING DOWN SITE BUILD COSTS AND EASE INSTALLATION. SMALL FOOTPRINT DECREASING LAND USAGE.

OUR OPEX OBJECTIVES ARE: OPTIMIZED TRANSMISSION TO MINIMISE BACKHAUL COSTS SUCH AS SATELLITE. ROBUST EQUIPMENT BUILT TO SIMPLIFY UNIT MAINTENANCE AND SUPPORT.

OTHER KEY OBJECTIVES:

INCREASED COVERAGE RANGE FOR MAXIMUM REACH. BUILT FOR SMALL POPULATION DENSITIES IN MIND. ENSURE AVAILABILITY OF CHEAP MOBILE PHONES. LONG LASTING BATTERY CHARGE FOR MOBILE PHONES.

BE AN AGENT OF CHANGE AND CHALLENGE THE STATUS QUO!

NURAN’S STRATEGY IS TO BUILD AND OPERATE RURAL CELLULAR TOWERS, AND MONETIZE THE ASSETS THROUGH ‘NETWORK AS A SERVICE’ (NAAS) REVENUE STREAMS

MOBILE NETWORK OPERATORS (MNOS) EXPAND / UPGRADE THEIR NETWORKS TO MEET COVERAGE OBLIGATIONS AND CAPACITY REQUIREMENTS WITHOUT CAPITAL INVESTMENT

MNOS PAY A SERVICE FEE, EITHER A REVENUE-SHARE OR FIXED-OPEX MODEL WITH GUARANTEED MINIMUMS SET TO COVER IN-COUNTRY OPERATING COSTS

CONTRACTS SPAN UP TO 10 YEARS SECURING MONTHLY RECURRING REVENUES (MRR)

SCALING WITH NETWORK-AS-A-SERVICE

BUILD TRANSFER OPERATE OWN

APPEALING MODEL FOR MNOS

ALL SERVICES AND SLAS THROUGH A SINGLE ENTITY PRESERVES CAPITAL FOR PRIORITY INVESTMENTS (SPECTRUM, OTT/CONTENT, 5G, CONVERGENCE, AI) CIRCUMVENTS EXCLUSIVITY CLAUSES SOME OPERATORS ARE BOUND TO, WHICH WOULD OTHERWISE FORCE THEM TO BUY EQUIPMENT UNFIT FOR THE TASK WITH HIGHER TCO TOWERCO AND ESCO (ENERGY SUPPLY) MODELS HAVE SUCCEEDED IN URBAN, BUT EMERGING / RURAL MARKETS DEMAND IMPROVED ECONOMICS, INCOMPATIBLE WITH MULTI-VENDOR APPROACH

PERFECTLY MATCHING TELCO NEEDS

ALIGNED WITH INDUSTRY-WIDE TRENDS

MNOS ARE DIVESTING THEIR NETWORK INFRASTRUCTURE DECREASED TECHNICAL EXPERTISE WITHIN MNO, INCREASINGLY RELYING ON SERVICE PROVIDERS HAVE NOW EMBRACED THE CONCEPT OF 3RD-PARTIES RUNNING PARTS OF THEIR NETWORK GROWING ADOPTION OF SITE COLOCATION / INFRASTRUCTURE SHARING TO REDUCE COSTS MNOS ARE TAKING SIGNIFICANT STEPS TO BREAK THE ERICSSON / NOKIA / HUAWEI OLIGOPOLY AND ARE MOTIVATED TO DEPLOY CHALLENGER equipment


NURAN WIRELESS PROPOSES A NUMBER OF DIFFERENT BUSINESS MODELS:

EQUIPMENT SUPPLY FROM RAN TO FTK LEASE TO PURCHASE NETWORK AS A SERVICE MOBILE NETWORK ENABLER REVENUE SHARING

ALL BUSINESS MODELS HAVE SEVERAL BENEFITS IN COMMON:

ü  INVESTMENT AND RISK ARE SHIFTED TO THE PARTNER. ü  MNO BUDGET TO EXTEND NETWORK COVERAGE IS REDUCED.

ü  NEGLIGIBLE OPEX SPEND AS PARTNER IS RESPONSIBLE MOST SERVICES. ü  PARTNER ENSURES STRONG FOCUS ON GROWING SERVICE ADOPTION.

ü  MNO IS NOT DISTRACTED FROM ITS CORE BUSINESS AND STRATEGIES. ü  NURAN HAS THE TECHNOLOGY AND EXPERIENCE TO DEPLOY FINANCIALLY VIABLE RURAL NETWORKS. ü  NURAN ASPIRES TO BE A RURAL BUSINESS ENABLER FOR MNOS.

ü  EXTEND COVERAGE, ADD SUBSCRIBERS AND GENERATE NEW REVENUES.

THE BUSINESS MODELS


VALUE PROPOSITION:

FROM RAN ONLY TO FULL TURNKEY PROPOSAL

VARIOUS BUSINESS MODEL TO SUIT YOUR BUSINESS NEEDS

PROVEN SOLUTION PURPOSELY BUILT FOR RURAL: •  LOW COST RAN •  PAY AS YOU GROW

•  LOWEST POWER CONSUMPTION BTS ON THE MARKET REDUCING SOLAR ENERGY INVESTMENT

•  SATELLITE BACKHAULED OPTIMIZED SOFTWARE REDUCING OPEX

•  COMPREHENSIVE, SCALABLE AND RELIABLE NETWORK INFRASTRUCTURE

•  LOW MAINTENANCE

•  FROM 2.75G TO 2G/3G/4G SUPPORTING THE FUTURE

STRONG PARTNERSHIP WITH BEST-OF-CLASS SATELLITE PARTNER, SYSTEM INTEGRATORS,

TOWERS CO.

TECHNOLOGY ADOPTION BY MTN, VODAFONE, AIRTEL, ORANGE

LOWEST TCO SOLUTION ON THE MARKET

WHY NURAN AS YOUR SOLUTION PARTNER


NURAN ONE STEP FURTHER WITH E2E MOBILE CONNECTIVITY

MSC

IPinterface

FULL TURNKEY SOLUTION :

2G/3G/4G RAN

2G SUPPORT GPRS/EDGE

VSAT WITH CONNECTIVITY

SOLAR & BATTERIES

TOWER AND FENCES

CIVIL WORKS / INSTALLATION /

COMMISSIONING

24/7 OPERATIONS

BSC/RNC

OC-2G

TECHNOLOGY: 2G

RANGE: UP TO 4 KM

POPULATION: 300 – 2,000

POWER CONSUMPTION: 14 WATTS

LITECELL XG-1

TECHNOLOGY: 2G, 3G, 4G, WI-FI

RANGE: UP TO 22 KM

POPULATION: 4,000 – 40,000

POWER CONSUMPTION: 160 WATTS

VIRTUALIZED MOBILE CORE NETWORK

NURAN’S OWN TECHNOLOGY GSM LITECELL

  TECHNOLOGY: 2G

  RANGE: UP TO 22 KM

  POPULATION: 1,000 – 20,000

  POWER CONSUMPTION: 56 WATTS

STATE OF THE ART, SOFTWARE-DEFINED RADIO ACCESS NETWORK

OPERATES MULTIPLE STANDARDS SIMULTANEOUSLY

MAXIMIZES DEVICE COMPATIBILITY

SEAMLESSLY EVOLVES SERVICE TO MEET SUBSCRIBER DEMAND OVER TIME; NO SITE INTERVENTION REQUIRED

SEAMLESS INTEGRATION TO OPERATORS’S CORE (ERICSSON, HUAWEI, NOKIA)

XG: FUTURE PROOF INFRASTRUCTURE


NURAN WIRELESS NETWORK SOLUTION


MULTIPLE SITE CATEGORIES FOR OPTIMAL COVERAGE

SITE CATEGORIES TO SUIT POPULATION DENSITY AND COVERAGE:

  ULTRA-LITE RURAL SITE 2G   LITE RURAL SITE 2G

  LITE RURAL SITE 2G/3G

  RURAL SITE 2G/3G

  UPGRADABILITY : •  O1, O2, O2/O2, S2, S22, S222

•  2G TO MULTI-STANDARD 2G/3G/4G

ACHIEVING BETTER ECONOMICS THAN TRADITIONAL “TOWERCO” BUSINESS

SITE ECONOMICS

TRADITIONAL TOWERS & TELCO EQUIPMENT ARE DESIGNED FOR URBAN ECONOMICS. THEIR TOTAL COST OF OWNERSHIP IS UNSUITABLE FOR LOWER-DENSITY, LOWER-REVENUE MARKETS.

NURAN’S TYPICAL OFF-GRID CELLULAR SITE GENERATES HALF OF A TRADITIONAL “TOWERCO” MACRO CELLULAR SITE REVENUES, BUT COSTS 5X LESS, YIELDING AN EBITDA/CAPEX RATIO 3X HIGHER.

TRADITIONAL OFF-GRID SITE*

NURAN OFF-GRID SITE

POWER 2–4KW 120W

ENERGYSOURCE DIESEL SOLAR

CAPEX $120,000 $25,000

OPEX(YEARLY) $19,000 $6,400

REVENUE(YEARLY) $40,000 $21,000

EBITDA/CAPEX 0.18 0.58

* TOWER XCHANGE REPORT


RESPONSIBILITY MATRIX – RURAL NETWORK TK SOLUTIONS

DESCRIPTION MNO NURAN

RURAL SITE LOCATION PLANNING

SITE INFRASTRUCTURE

POWER SOLUTION

RADIO SOLUTION

BACKHAUL TRANSMISSION SOLUTION

RADIO NETWORK PLANNING

RADIO SINGLE SITE VERIFICATION

IMPLEMENTATION SERVICE

MANAGED SERVICE

NETWORK OPTIMISATION SERVICE

EMS & OSS SOLUTION

INTEGRATION OF EMS & OSS INTO MNO MAPS SYSTEM (OPTIONAL)

NURAN SUCCEEDED IN ESTABLISHING ITSELF AS A CARRIER-GRADE EQUIPMENT VENDOR

ITS TECHNOLOGY HAS BEEN QUALIFIED AND FIELDED COMMERCIALLY BY MULTIPLE TIER-ONE MOBILE NETWORK OPERATORS (MNOS)

OTHER KEY INDUSTRY PLAYERS HAVE RECOGNIZED NURAN AS A LEADING SOLUTION PROVIDER FOR MOBILE INFRASTRUCTURE IN EMERGING MARKETS

ESTABLISHED TECH PROVIDER


NURAN IMPACT ON SDG


OUR WORLDWIDE PRESENCE

OVER 6000 BTS DEPLOYED

NURAN WIRELESS CONTACT

24

WWW.NURANWIRELESS.COM FRANCIS LÉTOURNEAU PRESIDENT & CEO

JIM BAILEY CFO

DENIS LAMBERT SALES VP & BUSINESS DEVELOPMENT

[email protected]

connecting the next billion - nuran wireless

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