NuRAN Gathers Momentum on Deployments and Revenue

Rhea-AI Summary

NuRAN Wireless has successfully deployed 41 sites in Cameroon and 12 sites in the DRC. As of January 31, 2022, these sites cover approximately 197,254 people in Cameroon, achieving a 49.4% penetration rate, significantly above the initial 24% target. Revenue generated from the sites averages approximately $2,144 CAD per site, surpassing the guaranteed fee of $1,225 CAD. The company aims to secure 10,000 sites by 2026 and estimates potential monthly revenue at around $5.3 million CAD once fully operational.

Positive

• 41 sites deployed in Cameroon covering 197,254 inhabitants.
• Achieved an average penetration rate of 49.4%, exceeding initial expectations.
• Current revenue per site averages $2,144 CAD, above the minimum guaranteed amount.
• 98.8% site availability for Quality of Service, surpassing the 90% requirement.
• Plans to deploy 10,000 sites by 2026 with estimated monthly revenue of $5.3 million CAD.

Negative

• None.

QUEBEC, QC / ACCESSWIRE / February 14, 2022 / NuRAN Wireless Inc. ("NuRAN" or the "Company") (CSE:NUR)(OTC PINK:NRRWF)(FSE:1RNA), a leading rural telecommunications company, is pleased to provide the following update on the deployment of the first 41 sites in Cameroon and 11 sites in the Democratic Republic of the Congo ("DRC") as of January 31st:

CAMEROON HIGHLIGHTS INCLUDE:

• Total sites deployed - 41.
• Total population covered, approximately 197,254 inhabitants.
• An average 49.4% penetration rate including on average 88,000 users have connected to the NuRAN network (NuRAN's initial budgeted projections were based on a 24% penetration rate).
• Over 40% of the sites are already generating more revenue than the previously announced minimum guaranteed monthly fee paid by Orange which is on average $1,225 CAD or approximately $962 USD per site.
• Based on the average revenue currently generated from these sites, NuRAN reports that the revenues are now approximately $2,144 CAD or approximately $1,681 USD. As the commercial activities have yet to commence on the sites, the Company expects higher usage in the future.
• The average site availability reports 98.8% Quality of Service (QoS) far exceeding the minimum requirement of 90%.
• NuRAN has now issued its second invoice to Orange Cameroon for sites deployed through January 2022.

Figure 1

* Note : Figure 1 shows the progression of the site deployment plan and material reception status. References to site contracts in progress are to lease agreements with local land owners.

Figure 2

* Note: Figure 2 highlights the progress of the sites strong performance following a initial few weeks of instability due to improper provisioning of power system and satellite modems. All sites have been performing exceptionaly well in terms of Quality of Service (QoS), usage and penetration rates as well as showing increasing connection of IMSI (IMSI being the Identification of a mobile phone).

DEMOCRATIC REPUBLIC OF THE CONGO HIGHLIGHTS INCLUDE:

• Total sites deployed - 12.
• Total population covered, approximately 61, 673 inhabitants.
• The rest of the data points are not available at this early stage. NuRAN will provide further information as it becomes available.

Figure 3

Note: Figure 3 illustrates the progress on securing material needed for the balance of the initial 118 sites to be deployed.

NuRAN currently has 2,492 Network as a Service ("NaaS") sites under contract with Orange Cameroon, Orange Democratic Republic of the Congo (DRC) and MTN South Sudan. Based on a minimum guaranteed revenue stipulated within the contracts, NuRAN estimates that it would generate approximately $3,000,000 CAD per month once all sites are deployed. The current trend outlined above suggests revenue could reach approximately $5,300,000 CAD per month assuming above mentioned run rate. NuRAN is currently targeting a minimum of 10,000 sites under contract by 2026. NuRAN will continue to provide updates as sites go live and as more usage data becomes available. There is no assurance the Company will reach the target of 10,000 sites as planned or at all and the estimates above are subject to the risk factors and assumptions set out below under "forward looking statements".

About NuRAN Wireless:

NuRAN Wireless is a leading rural telecommunications company that meets the growing demand for wireless network coverage in remote and rural regions around the globe. With its affordable and innovative scalable solutions of 2G, 3G, and 4G technologies, NuRAN Wireless offers a new possibility for more than one billion people to communicate effectively over long distances efficiently and affordably. "Bridging the Digital Divide, One Connection at a Time."

Additional Information:

For further information about NuRAN Wireless: www.nuranwireless.com
Francis Létourneau,
Director and CEO
Francis.letourneau@nuranwireless.com
Tel: (418) 264-1337

Frank Candido
Investor relations
Frank.candido@nuranwireless.com
Tel: (514) 969-5530

Cautionary Statement: Neither the Canadian Securities Exchange nor its Market Regulator (as defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Statements

This news release contains forward-looking statements. Forward-looking statements can be identified by the use of words such as, "expects", "is expected", "anticipates", "intends", "believes", or variations of such words and phrases or state that certain actions, events or results "may" or "will" be taken, occur or be achieved. Forward-looking statements in this news release include those relating to securing 10,000 sites by 2026, the Company's revenues and future revenues relating to the Company's NAAS agreement and ongoing site installations, and the potential revenues from ancillary services pursuant to the Company's distribution agreement with Orange DRC and other telecommunication providers. Forward-looking statements are not a guarantee of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from the results projected, expressed or implied by these forward-looking statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements, such as the uncertainties regarding include risks such as the uncertainties regarding the impact of the COVID-19 outbreak, and measures to prevent its spread, risks relating to NuRAN's business and the economy generally; NuRAN's ability to adequately restructure its operations with respect to its new model of NAAS service contracts; the capacity of the Company to deliver in a technical capacity and to import inventory to Africa at a reasonable cost; NuRAN's ability to deal with global supply shortages for telecommunication equipment and its ability to find alternate suppliers; the Company's ability to secure lease agreements with local landowners for site installations, NuRAN's ability to obtain project financing for the proposed site build out under its NAAS agreements with Orange, MTN and other telecommunication providers, the loss of one or more significant suppliers or a reduction in significant volume from such suppliers; NuRAN's ability to meet or exceed customers' demand and expectations; significant current competition and the introduction of new competitors or other disruptive entrants in the Company's industry; NuRAN's ability to retain key employees and protect its intellectual property; compliance with local laws and regulations and ability to obtain all required permits for our operations, access to the credit and capital markets, changes in applicable telecommunications laws or regulations or changes in license and regulatory fees, downturns in customers' business cycles; and insurance prices and insurance coverage availability, the Company's ability to effectively maintain or update information and technology systems; our ability to implement and maintain measures to protect against cyberattacks and comply with applicable privacy and data security requirements; the Company's ability to successfully implement its business strategies or realize expected cost savings and revenue enhancements; business development activities, including acquisitions and integration of acquired businesses; the Company's expansion into markets outside of Canada and the operational, competitive and regulatory risks facing the Company's non-Canadian based operations. Accordingly, readers should not place undue reliance on forward looking information. Other factors which could materially affect such forward-looking information are described in the risk factors in the Company's most recent annual management's discussion and analysis that is available on the Company's profile on SEDAR at www.sedar.com.

To the extent any forward-looking information in this press release constitutes "future-oriented financial information" or "financial outlooks" within the meaning of applicable Canadian securities laws, such information is being provided to demonstrate the anticipated revenues of the Company from the installation of sites under its NAAS agreements and the reader is cautioned that this information may not be appropriate for any other purpose and the reader should not place undue reliance on such future-oriented financial information and financial outlooks. Future-oriented financial information and financial outlooks, as with forward-looking information generally, are, without limitation, based on the assumptions and subject to the risks set out above under the heading " Forward-Looking Information". The estimates included in this news release relating to the calculation of the gross revenue of the Company's NAAS Agreements are based on multiplying an average population per site by the expected penetration rate which yields the number of mobile customers. This is then multiplied by the average revenue per customer per month (ARPU) to derive total revenue. Our NAAS partner's direct costs associated with this revenue are deducted and the resulting amount is shared by both parties. The revenue share only applies to revenue in excess of a guaranteed amount which is the minimum paid to NuRAN. A penetration rate reduction factor has been used to mitigate risk. The base data used to calculate the total potential revenue of this agreement was provided by our NAAS partners based on average population, penetration rate and ARPU. Management of the Company believes that the estimates have been prepared on a reasonable basis, reflecting best estimates and judgments, and based on a number of assumptions management believes are reasonable as well as information provided to the Company by our NAAS partner. However, because this information is highly subjective and subject to numerous risks, including the risks discussed above, it should not be relied on as necessarily indicative of future results. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the estimates prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.

SOURCE: NuRAN Wireless Inc.

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FAQ

What is the current deployment status of NuRAN Wireless in Cameroon?

NuRAN Wireless has deployed 41 sites in Cameroon as of January 31, 2022.

How many inhabitants are covered by the new sites in Cameroon?

The new sites in Cameroon cover approximately 197,254 inhabitants.

What is the average revenue generated per site for NuRAN Wireless?

The average revenue generated per site is approximately $2,144 CAD.

What is the penetration rate achieved by NuRAN Wireless in Cameroon?

The penetration rate achieved is approximately 49.4%.

What future growth targets has NuRAN Wireless set?

NuRAN Wireless aims to secure a total of 10,000 sites by 2026.

What is the estimated potential monthly revenue for NuRAN Wireless?

The estimated potential monthly revenue is around $5.3 million CAD once all sites are deployed.