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Nuran Wireless Inc (2)
Symbol NUR
Shares Issued 29,129,370
Close 2022-04-13 C$ 1.00
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Nuran Wireless firms up contract for Namibian 4G sites

2022-04-14 09:39 ET - News Release

Mr. Francis Letourneau reports

NURAN SIGNS 60M USD 4G LTE CONTRACT WITH MTN NAMIBIA

Nuran Wireless Inc. has signed a definitive 10-year network-as-a-service (NaaS) contract with MTN Namibia Ltd. for the deployment of rural and suburban 4G LTE (long-term evolution) sites in Namibia.

Following the memorandum of understanding (MOU) announcement on Feb. 22, 2022, this definitive agreement with MTN is intended to continue to build on Nuran's NaaS expansion in Africa with its first 4G project. Nuran now has 2,692 sites under contract in pursuit of its objective of 10,000 sites under contract.

"We are extremely pleased to have added Namibia to our growing portfolio of African countries. We are even more pleased to have announced our first 4G contract with MTN Namibia. We continue to drive forward towards our goal of 10,000 sites under contract, and adding these important revenues to our projections will further enhance of growing fundamental value and help to solidify Nuran as a leading provider of mobile connectivity to rural and remote regions throughout Africa and ultimately the world," stated Francis Letourneau, chief executive officer of Nuran Wireless.

The 10-year agreement is estimated to represent approximately $60-million (U.S.) in revenues over the course of the contract assuming that the 150 sites are completed. The estimated revenues are subject to associated project expenses, including expenses associated with satellite bandwidth, site lease, network operation centre operational expenses, curative and preventative maintenance fees, project management and monitoring fees, and insurance. Fees for the NaaS services provided by Nuran under the agreement are paid on a revenue-sharing model basis with a minimum guaranteed revenue per site.

Pursuant to the terms of the contract, the parties intend to install a minimum of 150 rural and suburban networking sites in Namibia within the next 24 months. The number of sites may be increased and will fluctuate as the project is under way subject to factors such as penetration rate, ARPU (average revenue per user) and network charges to be further refined, provided that the project will be subject to a minimum number of 150 sites over the term of the agreement. The NaaS services to be offered under the agreement are to be provided on the basis of 4G. The agreement is subject to customary terms and conditions for contracts of this nature, including certain termination provisions, force majeure and provisions relating to service failures.

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 is able to set up 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 finance 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.

About Nuran Wireless Inc.

Nuran Wireless is a leading rural telecommunications company that meets the growing demand for wireless network coverage in remote and rural regions around the globe. 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 affordably. "Bridging the digital divide, one connection at a time."

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