1.   Executive Summary

Haran Resources is a communications company in partnership with D' avoize Nerwork Solutions and other wireless providers integrate solutions in the Broadband and wireless local loop segment of the telecommunications market, the solutions were developed to provide the ‘last mile’ of telecommunications. The solutions deploy services to homes and businesses utilizing HotZone wireless broadband platform – HotZone solution. HotZone is a 4^th Generation IP Network. IP networks are packet-based making it possible to carry various forms of information -- voice, faxes, e-mail, video, music, data files, in the same format, over the same network at the same time.

With Wireless Network solution, homes and business within this network can easily access faster broadband internet connections, connect affordably to local, long distance and international VOIP calling services and using low cost IP mobile phones for enhanced community mobility and advanced wireless IP Centrex switching functionality.  This HotZone Network provides high speed data, voice and video for users with wireless enabled PCs or other handheld devices. Other benefits of this type of network also include the following:

• Users can roam freely around the HotZone, overcoming the key limitation of Wi-Fi hotspots.

• In combination with IP and WiFi phones, Hotzone networks are very cost competitive with fully mobile data sources such as cellular phones including 3G.

• Combine WiFi with WiMAX and Mobile-Fi developments, the potential of HotZone for heavy duty wireless users becomes even greater

• Provide wireless communication infrastructure to provide broadband Internet access, VOIP and IP Video (“Triple Play”).

• Blank entire areas with high-speed access and services.

• Avoid costly upgrades and of traditional wired networks.

• Speed to market

• No need to dig up roadways and neighborhoods

• Expandable network

• Does not tie up phone lines

• Accessible in areas not passed by cables

• Roaming capability

• Best “Last Mile” alternative

• Excellent ROI

2.   Market Analysis & Opportunity

High phone call rates as much as N17.00 - N36.00 per minute to GSM depending on which network is used and N4.00 - N8.00 to landlines also depending on which networks, and as high as N15.00 - N32.00 when calling landlines outside the state.

Daily or monthly access charges even if calls are not made

Negative billing

• We intend to change all that by providing FREE UNLIMITED CALLING PLANS for a flat monthly fee of not more than N1, 000 / month.

3.   Demand estimation for converged services

The current scenario

Nigeria’s is estimated to have a population of about 153 Million.

·         40% of these households are predominantly urban /suburban.

·         Nigeria has only 270,000 landlines, a Tele-density of about 1 percent.

·          1.5 million fixed wireless / wired lines (including CDMA)

·         Nigeria has 20,000,000 subscribers on the waiting list – subscribers that want telephony services but current telecom operators have not provided lines for them.

·         Mobile phone companies have approximately 15 Million subscribers. Mobile phone companies have seen growth explosion in the last 3 years surpassing all their estimates..

·         Call completion rate hovers around 60% due to network congestion

·         Internet Service Providers have about 1.4 million subscribers, mostly use by cyber cafes.

·         Lagos, the largest city accounts for 70% - 80% of the entire installed base & revenues of the telecom and Internet service providers. The rest of Nigeria remains largely unwired in the information age.

Low penetration of other services that ride on the national telecommunications infrastructure suggests high degree of inefficiency within the entire market.

The Nigeria Telecom regulatory agency NCC has taken steps to correct this by removing the monopoly held by Nitel Nigeria and has awarded licenses to several operators. It is estimated that the Internet demand for telecommunications services in Nigeria to be around 80 million.

4.0           Billing Platform & VoIP Gateway

Our Network Solution providers will design a billing platform and a VOIP Gateway at the central office for Billing of calls and call routing respectively.

 4.1   Billing Platform

The Billing platform will be a Linux Based VOIP Billing/Routing Platform including hardware/software. The 1U rack mount chassis platform will includes;

·                        Managed Services Support 

·                        Unlimited Dialing Plans/Routing Tables

·                        High Call Capacity

·                        Integrated Multi-Lingual IVR Server

·                        Advanced Switching

·                        Multiple Authentication Methods

·                        Billing server

·                        Web/Email server

·                        Embedded Gatekeeper

·                        Comprehensive Reporting

·                        Intuitive, user-friendly GUI

This billing solution is also a softswitch that allows billing for pre/post paid VoIP services, calling card, broadband services, IP-Phone and Wholesale billing

4.2    VOIP Gateway

The VOIP Gateway connects networks platform to the other Telco networks, the VOIP gateway is an intelligent traffic management device that allows dynamic call management in real time. All calls are routed via the available PSTN or VoIP channels based on custom routes.

5.    Phone & internet Services

5.1 Telephone service

·        The Network Solutions telephone service - will have the traditional phone features such as - caller ID, call forwarding and voice mail plus advanced services such as weather forecasts, airport information, and advanced directory services.

·         Customers will have an IP Phone to get connected to the networks.

How it works

1.      Customer picks his/her IP Phone and dials a number connected to the broadband platform.

2.      The billing platform authenticates the caller and verifies subscription permissions.

3.      Based on current service subscriptions, the billing platform authorizes the service and the service is delivered to the customer.

4.      Customer uses service

5.      Upon completing the service, the billing platform creates a detailed record which is available for billing, reporting and monitoring purposes.

5.2 Internet services

·         The Network Internet customers - will be able to surf the web, email, Chat, Share photos, Listen to radio station, Video Clips and Video Chat.

·         Customers will access the internet using laptop or hand head equipment.

6.   Revenue Model

The revenue streams of the Networks will accrue from:-

7.    Subscriber Segmentation

The initial Subscriber markets that the Network Solutions should be looking at are segmented into the following:

·         Homes

·         Small office

·         Corporate Office >30 that require Voice and Email, PBX, call forwarding, roaming, transfer)

·         Calling agent ( Cyber cafe, bureaus, Community phones, Tele-worker Centers)

8.   Billing - Prepaid

·         Billing will be based on a pre-paid

·         The Network Solutions should adopt a billing model based on usage in per seconds for voice services, and a subscription / per request based billing for Data and Value Added Services.

·         Customers will use scratch cards to refill minutes into their accounts. This model is well tested in Nigeria – it is used by the mobile companies as well as the PTOs for billing. It means no collections as everything is prepaid. 

9.    Subscriber Entry Points

·         The purchase of an IP phone (DECT) allows customers to access voice using scratch cards.

10.  Organizational Structure

11.    Operational Partnerships

·         Distributor partners.

·         Scratch card partners.

·         Logistics partners.

·         Technical support partners.

12.    Licensing

The 802.16 operates between the frequencies ranges of 3.3-3.8 GHz, the IP phones operates between 1.88 – 1.93 GHz, the WLAN operates between 4.9 – 6.1 and 2.3 – 2.7 GHz. So for this technology we will be looking at the licensed band between 2GHz and 6GHz. The licensing issue is to be sorted out with NCC