CONNECTING THE NEXT BILLION - NuRAN Wireless
Transcript of 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
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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.
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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.
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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.
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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
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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
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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.
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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
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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
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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
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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
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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
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NURAN WIRELESS NETWORK SOLUTION
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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
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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
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NURAN IMPACT ON SDG
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OUR WORLDWIDE PRESENCE
OVER 6000 BTS DEPLOYED
NURAN WIRELESS CONTACT
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WWW.NURANWIRELESS.COM FRANCIS LÉTOURNEAU PRESIDENT & CEO
JIM BAILEY CFO
DENIS LAMBERT SALES VP & BUSINESS DEVELOPMENT