On April 14th, 2020, NuRAN announced the signature of a similar agreement which aims at expanding the network of an undisclosed tier-one mobile operator under a network-as-a-service model. The newly signed agreement is with a different entity in a different, though nearby geographical area.
As explained in the preceding announcement, through its MNE model, NuRAN facilitates network expansion for mobile operators by taking in charge the build, operation, and maintenance of cellular sites, along with associated capital expenditures. The sites are then monetized by providing connectivity on an as-a-service basis. Leveraging its carrier-grade mobile network infrastructure solutions as well as its extensive expertise in the build of cost-effective cellular infrastructure, NuRAN is able to setup network operation from the ground up with better return on investment. While deployments under the MNE 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.
“This second agreement in a month further evidences that NuRAN holds a key position in enabling network expansion in rural areas. The structuring of its offering around a fully-managed, as-a-service outsourced network infrastructure model proves highly appealing to mobile operators. While as-a-service operations in these two countries are deemed to form a solid starting base, the Management is working to secure additional business of similar nature and bring operations to larger scale.”, states Maxime Dumas, President and CEO of NuRAN Wireless. “The current COVID-19 pandemic demonstrates that, more than ever, connectivity plays a vital role in our society, and we are proud to contribute to the wellness and safety of people by narrowing the digital gap”, added Mr Dumas.
The signed preliminary agreement confirms the intent of NuRAN and the tier-one mobile operator to engage into a network expansion project and lays out the commercial parameters under which the parties plan to enter into. The agreement allows NuRAN to further its network build strategy while the terms of the definitive contract are being finalized.
No regulatory authority has approved or reviewed the contents of the information contained in this news release.