NuRAN Wireless, a mobile and broadband wireless infrastructure solutions provider, has announced a five-year network-as-a-service (NaaS) agreement with pan-African telecom service provider MTN Group for the deployment of 250 sites in Africa under the NaaS business model, further to its Group Framework Agreement (GFA) announced with the MTN Group in July 2022.
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Details of the Partnership
This agreement is the fifth signed with MTN, totalling 2,150 sites in five different countries and representing up to approximately USD 27 million in revenues over five years, assuming that the 250 sites are completed. NuRAN said the five-year term of the NaaS pursuant to the GFA can be extended or renewed for an additional five years, subject to an extension or renewal agreement.
Revenue and Technology Model
Revenues will be based on a revenue-sharing model, dependent on factors such as average revenue per user and rural penetration rates. The projects are expected to support 2G and 3G technologies and are tailored to various population densities.
NuRAN’s Vision
"We are thrilled to announce this contract with MTN, marking another milestone in NuRAN’s commitment to empower 50 million lives and connect rural communities in this region. Recognizing the untapped potential of the rural market, this 250-site contract signifies our dedication to empowering the rural populations in Africa. We appreciate MTN’s continued trust and support, fostering a strong and mutually beneficial relationship. With the addition of these 250 sites, NuRAN now has a total of 4,892 sites under contract, and we are rapidly progressing towards our goal of reaching 10,000 sites within the next five years," said NuRAN.
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Infrastructure Ownership
NuRAN expects to retain ownership of the infrastructure after the completion of the contract, which increases the overall value of the agreement. The company intends to fund the deployment of the sites through asset-based project financing or similar debt-oriented facilities.
