The solution for rural mobile networks

The solution for

Introduction

Fairwaves provide a turnkey solution for rural mobile networks, with benefits that include:

• Return on investment in as little as 1-2 years

• Affordable subscription rates for low income areas, of typically only $2-3 per month

• Support for low cost subscriber devices

• Managed service with zero operator maintenance • Distributed and highly resilient cloud core network

• No local service interruptions in the event of backhaul failure • VoIP architecture for simplicity and flexibility

• Integration with traditional mobile networks possible via roaming gateways

The mobile penetration rate in Myanmar is as low as 14%*. Almost 45 million people don’t have access to mobile

communications.

Rural residents amount to 66% of the total population**. Many without access to mobile communications live in the relatively unstable Golden Triangle.

Mobile technology gives residents access to vital services and raises the standard of living for people in rural areas.

*Peter Evans. Myanmar (Burma) - Telecoms, Mobile and Internet, 2013. **The World Bank Group

Solution

The Fairwaves solution integrates all the functions of a traditional mobile network in a single self-contained cellular base station. This network-in-a-box can be used as an independent network with its own VoIP core.

The approach taken combines the best features of both 2G and 4G mobile communications:

• Low-cost network equipment

• Low-cost GSM (2G) subscriber devices

• A simple and reliable flat LTE network architecture • … works with low-cost IP backhaul!

Where required, Fairwaves GSM networks can also be integrated with existing mobile networks via roaming gateways.

Fairwaves offer compact base stations for turnkey mobile networks, which can be interconnected and integrated with large-scale networks via VoIP.

Network architecture

Local call routing greatly improves resilience to network failure, while significantly reducing the amount of traffic sent over

expensive backhaul links.

Use of VoIP technology brings flexibility and, being well understood by many, removes the need for highly specialist technical expertise. Integration with traditional networks to enable roaming is also

possible, with billing supported via CAMEL and Diameter protocols.

The Fairwaves

Advantage

Key features of the Fairwaves solution include: • Technical:

– Simple to install and no specialist skills required

– Network failure resilience

– Local routing of calls

– Compatible with any GSM phone

– Compatible with LTE core network

– VoIP cloud core network

– Support for roaming gateways and billing integration via

industry standard CAMEL and Diameter protocols

• Economic:

– Low-cost base station

– Low-cost IP backhaul

– Zero maintenance

– Low power consumption

Typical business model

for a village*

•

•

•

•

•

Year 1 Year 2 Year 3 Year 4 Year 5 Subscriber base _{120 260 300 340 380} Revenue _{$3,600 $7,800 $9,000 $10,200 $11,400} CAPEX _{$8,900 $0 $0 $0 $0} OPEX _{$2,960 $3,280 $3,400 $3,520 $3,640} CF _{-$8,260 $4,520 $5,600 $6,680 $7,760} CF accumulated _{-$8,260 -$3,740 $1,860 $8,540 $16,300} Break even (years) 1 yr

ROI (years) 2 yr

EBITDA $640 $4,520 $5,600 $6,680 $7,760

Profit before TAX -$1,140 $2,740 $3,820 $49,00 $5,980

Example business

profiles

Unlimited calls within villages

• Allow those with low incomes to limit their expenditure • Stimulate revenue growth

• Control external traffic

Franchise model

Requirements

In contrast to traditional GSM networks that have complex

architectures and typically require leased lines for backhaul, the Fairwaves solution has been designed for simplicity and rapid deployment in areas that are served by more basic infrastructure.

However, while there are far lower financial and technical barriers to installing a Fairwaves GSM network, there are still some basic requirements that must be met:

• A license for spectrum in one of the GSM bands: GSM-900, GSM-1800, GSM-850 or GSM-1900.

• Access to a power source (solar PV is often sufficient).

• Access to IP backhaul. This includes VSAT, long-distance Wi-Fi, microwave link, fixed WiMAX or Ethernet.

Contact us

Alexander Chemeris, CEO

[email protected] +1(857) 498-85-14

+7(915) 330-76-26

Andrey Bakhmat, COO/CMO