- Africa has over 694 million rural inhabitants as of 2015, accounting for around 40% of the total population, presenting a major opportunity for growth in telecom penetration. - Rural connectivity can provide significant social and economic benefits by bridging the digital divide, enabling communication, mobile money, e-health, e-education, and more. - There is potential for rural subscriber numbers in Africa to reach over 400 million by 2025, representing annual revenue of $9.7 billion, assuming a penetration rate of 50%. Low-cost site models indicate connectivity can be profitable even at remote village levels.

1. The Business Case for 2G in
Rural Africa

2. Sim Penetration
Ericsson Interim Mobility Report 2016
Highlights:
• Africa – 965 million Subscribers
• Equating to over 80% Penetration

3. Unique Subscriber
Penetration
GSMA – Mobile Economy Africa 2016

4. Rural Population
(Geohive.com)
Region
Urban
population
2015
Rural
population
2015
%
Urban
2015
Urban
population
2025
Rural
population
2025
%
Urban
2025
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%
East Africa 101,034,466 293,719,352 25.6% 154,745,070 356,483,116 30.3%
Middle Africa 63,060,945 80,231,666 44.0% 90,975,784 94,605,223 49.0%
North Africa 112,068,513 104,995,632 51.6% 136,283,788 114,697,334 54.3%
Southern
Africa
37,813,255 23,532,453 61.6% 43,318,068 22,191,215 66.1%
West Africa 157,625,136 192,157,888 45.1% 233,490,987 221,181,942 51.4%

5. The Gap
Breakdown of mobile internet, voice and text, and non
mobile subscribers at the end of 2015 (Some highlights)
• Kenya – 48% of Subscribers use data – 8% Voice and
Text only and 44% non-mobile
• Ethiopia – 15% of Subscribers use data – 16% Voice and
Text only and 69% non-mobile

6. Devices
If by 2020 only 57% of Africans will have
smartphones, where will that be?
Urban Africa or Rural Africa

7. Social benefits and economy
• Rural connectivity is an opportunity for MNO’s, Governments and the rural
population.
• Rural connectivity enables basic day to day requirements:
• Bridge / closure of digital divide
• Easier / faster Communication and trade
• Mobile money and means of electronic payments
• Rural connectivity in a more structured and developed form also bring:
• Health, education and prevention – E-Health
• School, Knowledge and education – E-School
• Government services, Post Services, …
• Entertainment with Kiosks and content distribution
• Rural connectivity is an opportunity to develop revenues and services, structure
society and develop micro services

8. Growth Opportunity
• Rural connectivity offers MNO’s and investors new pockets of growth,
• First movers will take a considerable advantage (incl. government contracts &
services)
• Rural connectivity roll our can be cost effective:
• Use satellite services to interconnect the last mile remotes
• Use NuBSC for optimized bandwidth use and efficiency
• Potentially share the infrastructures between multiple MNO’s
• Whoever own the last mile infrastructure owns a unique and valuable piece of
network.
• Last mile remotes depend on Solar energy (environment friendly + low
maintenance)
• Rural connectivity will enhance trade and communication - generate GDP growth

9. What does this all mean?
2015 2025
Total African Population (Geohive.com) 1 166 239 306 1 467 972 527
Unique Subscriber Penetration
(Assumption of Growth from GSMA
Numbers to 2025)
46% 60%
Current Subscribers (Based on Above
Penetration)
536 470 081 880 783 516
We all agree these penetration rates are not realistic for Rural Africa but still shows massive scope for growth
Rural Population 694,636,991 809,158,830
Stretch Target for Rural Penetration with assistance from Universal Service Funds = 50%
Rural Subscriber Target 347 318 496 404 579 415
Potential Rural Annual Revenue
$8 335 643 892 $9 709 905 960
This at $2 in ARPU we expect $3-4 in most areas

10. Low Cost Site Economics
Currency USD Medium size village
Average population 5000
Anticipated penetration rate 50%
Nb of subscribers 2500
ARPU Level $3
Revenue/site/year $90,000
OPEX ($360 Maintenance + $300 VSAT) $660 (Annual $7,920)
Site overall CAPEX (Including : RAN, tower,
power, civil work, commissioning, Satellite
modem and dish, etc..)
$50,000
ROI 8 months
Projected annual revenue (50 sites) : $4,500,000

11. Business Model Innovation
• MNO’s are changing the model by transferring all Capex into Opex.
• In other words MNO’s want to transfer the cost of acquisition of the last mile remotes into a
monthly operational cost.
• MNO are separating the traffic management from the network
• MNO’s are specializing & focusing on the core business
• Owning & Rolling out last mile remote infrastructures is Capex hungry but creates
a wonderful business opportunity for :
• Tower Operators
• Equipment vendors (Nuran Wireless)
• Site Builders
• New Operators
• MVNOs
• WISP providers
• Financial investors or institutions.

12. LiteRAN Rural 2G Solution
LiteRAN 2G is a complete GSM base station
subsystem (BSS), developed specifically for
deployment in remote areas where there is limited
to no telecommunications.

13. NuRAN 2G Global Solution
•Carrier Grade
•BSC/BSS
•Nexus MSC
• IOT with major
OEMs
•Low Power
•Low Cost
•2x10W TRXs
•Up to 20Km
•S2 to S222 mode
•As low as 3 kbps per
call with all
optimization features
enabled

14. Let’s Connect Rural Africa
• As is noted in this presentation there is a huge untapped opportunity
• There are multiple business models that can work to connect low
ARPU areas
• NuRAN is ready to take the next steps to help unlock these potential
revenue sources

15. THANK YOU
Bradley Shaw, Regional Manager - MEA
+27 79 292 1132
bradley.shaw@nuranwireless.com