“…maybe they want it as a warm boot to their FTTH plans”… This is one of the 
angles I’m going for. They could start getting revenue now and reduce the tax 
burden. 

 

I may survey the customers to get a sense of whether people would stay, but the 
town is doing a good job of marketing their product (and they are making people 
pay for their own drops, and giving them a $3k credit toward their drop to try 
to show value).

 

 

From: AF <af-boun...@af.afmug.com> On Behalf Of Lewis Bergman
Sent: Tuesday, March 5, 2019 5:20 PM
To: AnimalFarm Microwave Users Group <af@af.afmug.com>
Subject: Re: [AFMUG] Examples of Proposals to Sell WISP Network?

 

I'm with Matt. I don't know what your projections are based on but when I did 
research to replace my WISP network with a fiber one in a small town the take 
rate as expressed by existing customers was so low it didn't make sense. Maybe 
5% expressed a desire to switch regardless of price and only about half would 
switch if the price was the same. Speed was a concern for about 25%. Of course 
that is purely anecdotal not to mention old.

 

Anyway, a large percentage are very price sensative. That isn't to say the muni 
won't do it way below cost. That seems to be how most of them think.

 

On the valuation, I don't know anyone that nows what they are doing that pays 
per sub anymore. Again, the muni probably doesn't know what they are doing so 
you might get lucky. All purchases I have seen in the last few tyears are all 
revenue based of some sort. EBIDTA, Gross, Net. Really just however the buyer 
wants to see it. The numbers always seem to work out pretty close. But you 
never know, maybe they want it as a warm boot to their FTTH plans. 

 

 

 

On Tue, Mar 5, 2019 at 2:29 PM Matt Hoppes <mattli...@rivervalleyinternet.net 
<mailto:mattli...@rivervalleyinternet.net> > wrote:

Devils advocate. Why would they buy it if all the customers will just move over?

 

I wouldn’t be so sure they will all leave. If you treat them right and aren’t 
gouging them on price many will probably lot stay. 


On Mar 5, 2019, at 3:19 PM, <ch...@wbmfg.com <mailto:ch...@wbmfg.com> > 
<ch...@wbmfg.com <mailto:ch...@wbmfg.com> > wrote:

So much per customer.  I would say $500-$2000 depending on the number of subs, 
the type of equipment and the part of the country.  $1000/ sub is a low 
starting point.  

 

From: Christopher Gray 

Sent: Tuesday, March 5, 2019 1:11 PM

To: AnimalFarm Microwave Users Group 

Subject: [AFMUG] Examples of Proposals to Sell WISP Network?

 

Does anyone here have an example of a proposal used to sell your network or 
part of your network? You can provide it offline if necessary.

 

[I'm in a position where the local government is actually overbuilding my WISP 
network with a FTTH network. My projections show I'm going to lose the business 
in the particular area entirely, so I want to offer to sell it to the town. I 
will be keeping the rest of my system, and just selling this section.] 

 

Thank you, Chris


  _____  


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