Orange Cameroon and NuRAN extend NAAS agreement
NuRAN Wireless Inc. (“NuRAN” or the “Company”) is pleased to announce that further to its previously disclosed Network as a Service (“NAAS”) contract with Orange Cameroon SA, Orange has exercised its option under the agreement to add an additional 120 networking sites in Cameroon.
The original contract for 122 sites entered into by NuRAN and Orange is a Network as a Service contract with expected gross revenues of up to $20M CAD over the term of the agreement. Following execution of the option by Orange, the overall total sites to be built over the term of the agreement has increased to 242.
The additional 120 sites are expected to be deployed in 2021-22 of the contract with similar economics to the previous 122 sites. Each site consists of towers and related equipment to be installed by NuRAN with a particular focus on rural communities in Cameroon. The towers fall into one of four categories depending on population density and coverage requirements. NuRAN’s technology uses a carrier-grade GSM base station powered by solar as part of a small-footprint (3 meters x 3 meters x 15 meters tall) remote tower.
The Company continues to take steps to deliver on its project with Orange Cameroon SA including the following:
- The first batch of 48 sites is being executed now. The subcontractor has been engaged and the Purchase Order sent. The site acquisition process also begins now. During the first year of the contract (Phase 1), the Company expects to deploy the first 122 sites in rural locations previously lacking mobile coverage.
- NuRAN signed an agreement with Sagemcom Energy and Telecom SAS in February, 2021 for the site acquisition and installation of mobile towers and related equipment. The Company also is in the process of engaging additional suppliers for the networking equipment required for the site installation in Cameroon and is expected to finalize the agreements in the coming weeks.
- The Company has incorporated a new wholly owned subsidiary in Cameroon for the purpose of managing operations on the project with Orange.
- Project financing for the majority of the estimated capital expenditures is being finalized with a major pan-African bank. The Company has received a term sheet for the financing and is expected to finalize a definitive commitment from the bank in the coming weeks.
“We are extremely pleased with our expanding relationship with Orange Cameroon SA. This is yet another example of the growing interest of Tier 1 mobile network operators in NuRAN’s NAAS business model which we expect to resonate and expand on other continents. We are extremely pleased that Orange has moved so quickly to expand our project in Cameroon especially in advance of the initial deployments” stated Francis Letourneau, CEO of NuRAN.