NuRAN Wireless, Future Sat Africa 2016

TheBusinessCasefor2GinRuralAfrica

SimPenetration

EricssonInterimMobilityReport2016

Highlights:• Africa– 965millionSubscribers

• Equatingtoover80%Penetration

UniqueSubscriberPenetration

GSMA– MobileEconomyAfrica2016

RuralPopulation(Geohive.com)

Region

Urbanpopulation2015

Ruralpopulation2015

%Urban2015

Urbanpopulation2025

Ruralpopulation2025

%Urban2025

World 3,957,285,013 3,367,497,212 54.0% 4,705,773,576 3,377,639,183 58.2%

Africa 471,602,315 694,636,991 40.4% 658,813,697 809,158,830 44.9%

EastAfrica 101,034,466 293,719,352 25.6% 154,745,070 356,483,116 30.3%

MiddleAfrica 63,060,945 80,231,666 44.0% 90,975,784 94,605,223 49.0%

NorthAfrica 112,068,513 104,995,632 51.6% 136,283,788 114,697,334 54.3%

SouthernAfrica

37,813,255 23,532,453 61.6% 43,318,068 22,191,215 66.1%

WestAfrica 157,625,136 192,157,888 45.1% 233,490,987 221,181,942 51.4%

TheGap

Breakdownofmobileinternet,voiceandtext,andnonmobilesubscribersattheendof2015(Somehighlights)• Kenya– 48%ofSubscribersusedata– 8%Voiceand

Textonlyand44%non-mobile• Ethiopia– 15%ofSubscribersusedata– 16%Voiceand

Textonlyand69%non-mobile

Devices

Ifby2020only57%ofAfricanswillhavesmartphones,wherewillthatbe?

UrbanAfricaorRuralAfrica

Socialbenefitsandeconomy

• RuralconnectivityisanopportunityforMNO’s,Governmentsandtheruralpopulation.• Ruralconnectivityenablesbasicdaytodayrequirements:

• Bridge/closureofdigitaldivide• Easier/fasterCommunicationandtrade• Mobilemoneyandmeansofelectronicpayments

• Ruralconnectivityinamorestructuredanddevelopedformalsobring:• Health,educationandprevention– E-Health• School,Knowledgeandeducation– E-School• Governmentservices,PostServices,…• EntertainmentwithKiosksandcontentdistribution

• Ruralconnectivityisanopportunitytodeveloprevenuesandservices,structuresocietyanddevelopmicroservices

GrowthOpportunity

• RuralconnectivityoffersMNO’sandinvestorsnewpocketsofgrowth,• Firstmoverswilltakeaconsiderableadvantage(incl.governmentcontracts&services)• Ruralconnectivityrollourcanbecosteffective:

• Usesatelliteservicestointerconnectthelastmileremotes• UseNuBSC foroptimizedbandwidthuseandefficiency• PotentiallysharetheinfrastructuresbetweenmultipleMNO’s

• Whoeverownthelastmileinfrastructureownsauniqueandvaluablepieceofnetwork.• LastmileremotesdependonSolarenergy(environmentfriendly+lowmaintenance)• Ruralconnectivitywillenhancetradeandcommunication- generateGDPgrowth

Whatdoesthisallmean?

2015 2025

TotalAfrican Population(Geohive.com) 1 166 239 306 1 467 972 527

UniqueSubscriber Penetration(AssumptionofGrowthfromGSMANumbersto2025)

46% 60%

CurrentSubscribers(Based onAbovePenetration)

536 470 081 880 783 516

We allagreethesepenetrationratesarenotrealisticforRuralAfricabutstillshowsmassivescopeforgrowth

RuralPopulation 694,636,991 809,158,830

Stretch TargetforRuralPenetrationwithassistancefromUniversalServiceFunds=50%

RuralSubscriber Target 347 318 496 404 579 415

PotentialRuralAnnual Revenue $8 335 643 892 $9 709 905 960Thisat$2inARPUweexpect$3-4inmostareas

LowCostSiteEconomics

CurrencyUSD Medium sizevillageAveragepopulation 5000Anticipated penetrationrate 50%Nb ofsubscribers 2500ARPULevel $3Revenue/site/year $90,000OPEX($360 Maintenance+$300VSAT) $660(Annual $7,920)SiteoverallCAPEX(Including:RAN,tower,power, civilwork,commissioning,Satellitemodemanddish,etc..)

$50,000

ROI 8months

Projectedannualrevenue(50sites):$4,500,000

BusinessModelInnovation

• MNO’sarechangingthemodelbytransferringallCapexintoOpex.• InotherwordsMNO’swanttotransferthecostofacquisitionofthelastmileremotesintoamonthlyoperationalcost.

• MNOareseparatingthetrafficmanagementfromthenetwork• MNO’sarespecializing&focusingonthecorebusiness

• Owning&RollingoutlastmileremoteinfrastructuresisCapexhungrybutcreatesawonderfulbusinessopportunityfor:• TowerOperators• Equipmentvendors(Nuran Wireless)• SiteBuilders• NewOperators• MVNOs• WISPproviders• Financialinvestorsorinstitutions.

LiteRAN Rural2GSolution

LiteRAN 2GisacompleteGSMbasestationsubsystem(BSS),developedspecificallyfordeploymentinremoteareaswherethereislimitedtonotelecommunications.

NuRAN 2GGlobalSolution

•CarrierGrade•BSC/BSS•NexusMSC• IOTwithmajorOEMs

•LowPower•LowCost•2x10WTRXs•Upto20Km•S2toS222mode

•Aslowas3kbpspercallwithalloptimizationfeaturesenabled

Let’sConnectRuralAfrica

• Asisnotedinthispresentationthereisahugeuntappedopportunity

• TherearemultiplebusinessmodelsthatcanworktoconnectlowARPUareas

• NuRAN isreadytotakethenextstepstohelpunlockthesepotentialrevenuesources

THANKYOU

BradleyShaw,RegionalManager- [email protected]

Technology

NuRAN Wireless, Future Sat Africa 2016