FOR OPERATORS
Africa's biggest multi-national tier-1 MNOs are united in their adoption of AMN's unique Network-as-a-Service (NaaS) model as the most efficient way to expand their rural coverage, and that is because AMN's business model is designed around the needs of the Operator. AMN understands the challenges that all Operators face in a capital-intensive industry in regions with practical limitations on the availability of affordable capital.
Our business model
Africa's biggest multi-national tier-1 MNOs are united in their adoption of AMN's unique Network-as-a-Service (NaaS) model as the most efficient way to expand their rural coverage, and that is because AMN's business model is designed around the needs of the Operator. AMN understands the challenges that all Operators face in a capital-intensive industry in regions with practical limitations on the availability of affordable capital.
AMN offers 2 different commercial models to the Operator, for both of which AMN funds the capex, acquires the site and permits, builds, commissions, operates and maintains the base stations, in return for a fee which can either be fixed or variable:
With the Revenue-Share model, AMN will take all opex risk and a share of the revenue generated by a site, after deduction of the direct costs of the Operator (for termination, regulatory fees, airtime distribution margins etc) which means the site is guaranteed to be not less than zero margin/EBITDA for the Operator. Revenue-share sites are selected according to AMN's criteria which require that sites (a) have sufficient people and (b) have no existing usable network coverage
With the Opex model, AMN will build sites wherever the Operator chooses in return for a fixed fee per site per month, leaving the Operator to enjoy the upside benefits of high-traffic and high-revenue sites.
The AMN service is a turnkey solution in which AMN will deliver traffic, and revenues, directly into the existing 2G/3G/4G core network infrastructure. Equally important to AMN's business model is its use of technology, which is highly optimised for the rural environment, which minimises both capex and opex and thereby minimises the size of the rural populations which can be served economically.
Our proposition
AMN's proposition to licensed mobile network operators in sub-Saharan Africa is that:
- AMN will fund the construction of the mobile base stations in rural communities
- AMN will connect the rural base stations to your existing 2G/3G/4G core network
- AMN will operate the network of rural base stations, delivering voice and data services to your subscribers
- AMN will distribute airtime to your subscribers in the rural communities
The Operator will
- Route all network traffic via its existing network, billing and other infrastructure
- Generate new incremental revenues from sales of airtime to and from new rural subscribers
- Incur only incremental costs for a guaranteed positive EBITDA and operating profit
- Invest no capex
- Have no risk