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NxGen Communications And ARIF Telecom Complete Partnership

NxGen Communications and ARIF Telecom Complete Partnership

Launch New Internet Service Provider in Ethiopia

January 2, 2018, Toronto, Ontario. NxGEN Communications Corp. (“NxGEN”) iis proud to announce that it has entered into a Letter of Intent (“LOI”) with ARIF Telecom (“ARIF”) to form a revenue sharing partnership to deliver high speed internet services throughout the Country of Ethiopia. ARIF is the owner of one of four Virtual Internet Service Provider (“vISP”) licenses issued by Ethio Telecom (“ETHIO TEL”), to privatize and expand Internet access to the citizens of Ethiopia.

NxGen will be the technology partner for the deployment of a wide range of communication services to be delivered by ARIF under license arrangements with ETHIO TEL and the Ministry of Communications and Information Technology (“MCIT”), Ethiopia’s Telecommunications Regulatory body. The parties have agreed to implement NxGen’s hardware/software service offerings to provide bandwidth optimization solutions, including NxAccelerator™, to both business and residential markets throughout Ethiopia.

Pursuant to the LOI, ARIF will pay a one-time license fee based upon the number of internet customers connected in Ethiopia. The parties have further agreed in principle to a revenue sharing arrangement for the monthly recurring service fees charged to ARIF customers, subject to verification of termination and operating costs, which are scheduled to be completed by January 2018. NxGen and ARIF have agreed to launch services in the first quarter of 2018 from ARIF’s data center co-located in the ETHIO TEL data center in Addis Ababa.

Ethiopia is the second most populous nation on the African continent with approximately 110 million people, of which only an estimated 16% currently have internet access. The Ethiopian Government have, through MCIT and ETHIO TEL, committed to a vision of dramatically changing access to the internet to facilitate GDP growth for the country. They are mandated to assist with transforming Ethiopia’s predominantly subsistence-agriculture economy to an information and knowledge-based economy and society, effectively integrated into the global economy and provide better access for those that are outside metro centers. Currently satellite Internet is available to some large corporations. Individuals are not permitted to have private satellite connections. Service fees are expensive relative to other countries.

ETHIO TEL is facing the challenge of operating in a geographic region which is quite large and does not benefit from widely deployed high quality networks such as fiber-optics. Poor service quality is caused by latency and packet loss which can be significantly mitigated by NxGen’s overlay technology. High quality data transfer capabilities on latent networks is one of the challenges that NxGen will seek to resolve. Optimizing these customer connections to improve data service utilizing a network overlay solution such as NxPath and NxAccelerator at the edge of the network will be further explored across ETHIO TEL’s virtual infrastructure.

 

“ARIF and NxGen have over the last number of months tested NxAccelerator™ from our offices in Addis Ababa and agreed upon customer router options for deployment as we launch services into the small to medium sized businesses in the 1st quarter of 2018”

stated Robel Worku, CEO of ARIF Telecom.

“We have been impressed with both the technology and the strategic market assistance that has been provided by NxGen over the past six months and we look forward to our Internet Service launch and activating the marketing of the NxWave™ products in Ethiopia”

added Mr. Worku.

“Communication services are one of the underlying foundational pillars of changing global economies which begins with basic connectivity. In many countries these access points are virtually all wireless. NxGen is pleased and excited to formalize agreements with ARIF and their management team, who have previously launched and continue to operate eWallet and micro payment solutions in Ethiopia”

stated Dan Pacholik, CEO of NxGen Communications.

 

“Ethiopia is a launch point for NxGen into North and Central Africa, where NxAccelerator™ products can dramatically improve services to not only the metro centers but also rural communication services for schools and educational institutions which serve as a common access point for the community”

added Mr. Pacholik.

 

About NxGEN

NxGen’s passionate team of experts are committed to bringing disruptive technologies to market by providing strategic thinking, value creation, and management skills to the technology visionaries behind them. Transforming through innovation, NxGen is focused on providing secure, efficient, and cost-effective solutions to real world problems that affect devices, business, and human lives. visit www.nxgencom.com or email info@nxgencom.com

 

About ARIF Telecom

ARIF is an Ethiopian based corporation that has received the Country’s first Virtual Internet Service Provider license to deliver enhanced Internet Services to the citizens of Ethiopia. Contact us for more information on ARIF Telecom Call 1-905-920-3370.

 

Forward-Looking Information: This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking information. Generally, forward-looking information may be identified by the use of forward-looking terminology such as “plans”, “ expects” or “does not expect”, “proposed”, “is expected”, “budgets”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. In particular, this news release contains forward-looking information regarding: the LOI, the business of NxGen and the business of ARIF. There can be no assurance that such forward-looking information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such forward-looking information. This forward-looking information reflects NxGen and ARIF’s current beliefs and is based on information currently available to NxGen and ARIF and on assumptions they believe are reasonable. These assumptions include, but are not limited to: the underlying value of NxGen and ARIF; market acceptance of the revenue sharing partnership pursuant to the LOI. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of NxGen and ARIF to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: general business, economic, competitive, political and social uncertainties; general capital market conditions and market prices for securities; delay or failure to receive board or regulatory approvals; the actual results of future operations; competition; changes in legislation, including environmental legislation, affecting NxGen or ARIF; the timing and availability of external financing on acceptable terms; and lack of qualified, skilled labour or loss of key individuals. Although NxGen and ARIF have 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. Readers are cautioned that the foregoing list of factors is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Forward-looking information contained in this news release is expressly qualified by this cautionary statement. The forward-looking information contained in this news release represents the expectations of NxGen and ARIF as of the date of this news release and, accordingly, is subject to change after such date. However, NxGen and ARIF expressly disclaim any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.

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