Rift Valley Resources Corp. (
CSE: RVR,
Forum) is a technology innovator on a mission. That mission is to provide wireless broadband networks to “marginalized and underserved” areas. In the case of the United States, this means rural regions of that nation.
Ruralink Wireless is Rift Valley’s wholly-owned subsidiary that is currently deploying this technology solution. Why wireless broadband networks for (primarily) rural markets? Success in technology – for both companies and investors alike – is generally a function of two factors.
- Find an unserved or under-served market for a particular commercial application.
- Deliver superior technology to fill that unserved/under-served niche.
In the United States (according to Company data), there are approximately 55 million people coping with “inadequate internet connectivity”, and in 25 million cases this means
no access to the internet. That’s a significant under-served market.
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The technology innovation that Ruralink Wireless is introducing to capitalize on this market niche centers around “TV White Space” (TVWS) technology. In a nutshell, using proprietary broadband technology, Ruralink can use vacant television signals (TV White Space) to deliver broadband service to rural areas. The TV band frequencies can cover far larger areas in comparison to traditional WiFi technologies.
On
March 18, 2019; Rift Valley announced an important deal that could, by itself, put RVR well on the way to achieving its corporate objective of becoming a significant wireless broadband internet access provider for Rural America. The Company has announced a Letter of Agreement (LOA) with ARK Mediacom Inc.
ARK is a media company that
controls 283 television stations and licenses across the United States. Via these licenses, ARK reaches over 100 million persons, or about 1/3 of the US population. Within the expansive coverage of the ARK network Ruralink estimates that a fully constructed TVWS broadband network could deliver ISP services to well over fifty million people throughout the rural US.
The ARK video off-load capability dramatically reduces the burden on the Ruralink unicast ISP networks, improving performance, customer satisfaction, while also reducing costs to the operator and the consumer. Ruralink will enjoy a competitive advantage in building its rural broadband networks through its collaboration with ARK, and the use of the TVWS frequencies that provide coverage and reliability that far exceeds the traditional WiFi based ISP access networks.
Griffin Jones, President and Chief Executive Officer for Rift Valley, framed the importance of this new deal for investors.
“The size of this opportunity, coupled with the proven track record of our Chairman, Vern Fotheringham, in pioneering wireless broadband makes this an exciting time for the Company.”
Under the terms of the LOA, the two parties agree to conduct a two-phase pilot program to use licensed TV broadcast spectrum in conjunction with unlicensed TVWS radio spectrum to provide hybrid broadcast-broadband wireless services to rural areas in a highly cost-efficient and effective manner. Ardmore, Oklahoma has been selected as the initial trial market. ARK will also provide planning, execution, and coordination assistance to facilitate this trial.
Upon completion of this pilot program, Ruralink intends to build upon its success through expanding its footprint and the regions served. The plan is to build out the TVWS wireless network in Ardmore, Oklahoma, and then apply to Microsoft to participate in their Airband Initiative that provides funding for TVWS wireless ISP deployments.
The
Microsoft Rural Airband Initiative is a funding opportunity available to companies who build wireless networks in rural areas of the globe, with a specific emphasis on networks that use TV White Space, like Ruralink.
Upon qualification, Microsoft will provide up to 100% of all network capital costs under long term debt funding repaid with a revenue royalty for a set time.
The enormous efficiency of this technological innovation and the unique network funding opportunity can allow Ruralink to quickly scale its TVWS broadband wireless services to address new markets throughout the US. Rift Valley estimates the revenue potential here to be in the billions of dollars. At a subscriber cost of US$30 per month, it would take about 3,500,000 subscribers to exceed US$ 1 billion per year in annual revenue.
Find a market opportunity. Fill that niche with technological innovation. That’s the general business model for the tech sector. With its potent and unique wireless broadband solution for rural/under-served regions, Rift Valley Resources provides investors with an easily scalable, high-growth technology opportunity.
riftvalleyresources.ca
FULL DISCLOSURE: This is a paid article of Stockhouse Publishing.