I’ve made several inquiries. Originally, I was on the bid list to actually be the ISP on the network, but they went municipal to skip the bidding process (the committee decided it would be easier to do, and I understand their perspective). They are not allowing any other interaction with outside companies, but the committee says after the first contract is up they may make it open… which is 3 years out.
I’ll I hadn’t thought about how long it will take relative to losing customers, thank you for pointing that out. They’re currently estimating almost a year to get the whole town connected. I’m seeing some good ideas to share as part of a proposal. From: AF <af-boun...@af.afmug.com> On Behalf Of Ken Hohhof Sent: Tuesday, March 5, 2019 5:39 PM To: 'AnimalFarm Microwave Users Group' <af@af.afmug.com> Subject: Re: [AFMUG] Examples of Proposals to Sell WISP Network? Would it make more sense to inquire about an arrangement where you could resell the FTTH service to your current customers? Assumption being that you would get a lower wholesale price that you could mark up to the same retail price, also probably some arrangement where you would do part of the installation work and handle first level tech support, let customers keep their email addresses, etc.? I assume they won’t complete the FTTH build overnight, so this would allow for a gradual transition. You could migrate customers to FTTH as it passed their house, and eventually decommission your WISP gear in that area. If you can’t sell and instead decide to just turn off the lights and close the door behind you, but then it takes the FTTH build another 6 months to reach all the customers, there are going to be a bunch of pissed off residents. If they expect you to keep serving fewer and fewer customers as they deploy their fiber, it’s like expecting you to dig your own grave. Yes, some customers may not switch (depending on comparative pricing), and perhaps they would buy you out (I’m skeptical). But you’ve probably done the math. Would you be profitable with half as many customers? A quarter? At some point it just doesn’t make sense to stick around in that area. From: AF <af-boun...@af.afmug.com <mailto:af-boun...@af.afmug.com> > On Behalf Of Lewis Bergman Sent: Tuesday, March 5, 2019 4:20 PM To: AnimalFarm Microwave Users Group <af@af.afmug.com <mailto: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 _____ -- AF mailing list <mailto:AF@af.afmug.com> AF@af.afmug.com <http://af.afmug.com/mailman/listinfo/af_af.afmug.com> http://af.afmug.com/mailman/listinfo/af_af.afmug.com -- AF mailing list AF@af.afmug.com <mailto:AF@af.afmug.com> http://af.afmug.com/mailman/listinfo/af_af.afmug.com -- AF mailing list AF@af.afmug.com <mailto:AF@af.afmug.com> http://af.afmug.com/mailman/listinfo/af_af.afmug.com
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