06 December 2022

Many rural areas in sub-Saharan Africa have no telecom infrastructure or power grid, leaving millions of people without mobile coverage. However, a network-as-a-service (NaaS) business model can provide a cost-effective solution for the millions of unconnected people living in these remote regions. Such a solution offers an efficient, affordable way for Africa’s tier-1 mobile operators to expand their rural coverage.

Serving the underserved

In remote parts of the world that are currently underserved by internet, mobile connectivity can change lives. An entrepreneur can sell goods and services to online buyers; a farmer can find up-to-date information about market prices; a midwife can call for help for a mother in labour; a worker can send money to family in another village without paying high fees for a courier.

For mobile operators, however, connecting these rural communities is not always feasible. As of 2021, 140 million of the 1.16 billion people living in sub-Saharan Africa had no access to a mobile network. Of the 1.02 billion with coverage, 60 million have 2G coverage, while 290 million have 3G coverage, and 670 million have 4G coverage.

Many of these regions have no power grid and no existing backhaul infrastructure. As a result, mobile operators typically direct their limited capital to more densely populated areas where they can serve more subscribers.

Delivering mobile connectivity to Sub-Saharan Africa

Africa Mobile Networks (AMN) owns and operates network infrastructure that delivers services for mobile operators in Africa. Its NaaS model allows operators to expand their coverage deep into rural areas with no capital investments. A founding member of the Telecom Infra Project (TIP), AMN is part of the TIP NaaS Working Group, an industry coalition that works with partners to help scale NaaS models globally using its expertise in business models, site planning, and network design.

Looking at so many unconnected people, AMN designed a turn-key solution to bring 2G, 3G, and 4G voice and data connectivity to remote villages in sub-Saharan Africa, connecting communities that had never before had access to a mobile network.

AMN’s sites are optimized for rural environments, delivering services to smaller, more remote communities than ever possible before. A unique site design integrates power, backhaul connectivity, and the local access network into a single structure that can be deployed within a matter of hours. Operating via on solar power, these sites are self-sustaining and environmentally friendly.

Small cells deliver a signal strong enough to cover a village, and each site can be upgraded to add more capacity to meet demand. Sites are connected via a two-way satellite link optimized to minimize latency and jitter, even during harsh rainy seasons.

However, bringing mobile services into the hands of the people takes more than a network. That’s why AMN worked with manufacturers to develop ultra-low-cost smartphones. Local villagers receive training so they can serve as mobile ambassadors, helping others in their community learn how to use their phones and connect to the network.

AMN’s mission was threefold: to build sites where there is no existing service; to provide growth opportunities to tier-1 network operators; and to deliver profits to shareholders. So far, AMN has achieved all three. The network has brought with it a bounty of new economic and personal opportunities. Some villagers have found work selling airtime or teaching digital skills to others. With access to financial services like mobile money accounts, people can save and transfer money reliably. Instead of sending letters, families can stay connected through voice and data services. Meanwhile, for policymakers, AMN’s network provides a way to channel billions of dollars in capital meant for infrastructure development in emerging markets to where it’s needed.

The key to AMN’s success is its NaaS business model, which allows AMN to specialize in rural connectivity without typical operator legacy systems and overhead. In this model, AMN owns and operates the access network and local backhaul, building sites to reach new service areas. AMN connects these sites to the existing core networks of operators who access the network through wholesale agreements. The operator routes all network traffic and gains new incremental revenue from the sale of airtime. Without the need for capital investments, operators can easily expand their services into rural communities. As we all know, more operators result in more competition, which translates into lower costs for subscribers.

Benefits of the NaaS solution include:

• Access to digital economy, mobile financial services, and telemedicine
• Subscriber growth and service expansion for tier-1 network operators
• Large, economically sustainable market opportunity for NaaS providers

There are several commercial models for operators to choose from, depending on their business goals. In a revenue share model, AMN claims a share of the revenue generated by a site, but also accepts all operational risk. In an OpEx model, AMN builds sites wherever the operator chooses in return for a fixed fee per site, per month. Operators can also choose a hybrid model, which balances the risk and reward between the operator and AMN.

A connected future

Today, AMN operates nearly 2,450 sites in 12 countries with more than 2 million subscribers. That number is set to grow to 3,500 sites by the end of 2022. Ultimately, AMN aims to connect nearly 40 million subscribers with more than 10,000 new sites.