And if they think they can do it in a year, bet that it will take them at
least 3 years.
--
bp
part15sbs{at}gmail{dot}com
On Tue, Mar 5, 2019 at 3:50 PM Lewis Bergman <[email protected]>
wrote:
> And even worse trying run then one they are substantially complete.
>
> On Tue, Mar 5, 2019, 5:39 PM <[email protected]> wrote:
>
>> Muni fiber has a lousy track record of actually completing functional
>> networks.
>>
>> *From:* Christopher Gray
>> *Sent:* Tuesday, March 5, 2019 4:26 PM
>> *To:* 'AnimalFarm Microwave Users Group'
>> *Subject:* Re: [AFMUG] Examples of Proposals to Sell WISP Network?
>>
>>
>> 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 <[email protected]> *On Behalf Of *Ken Hohhof
>> *Sent:* Tuesday, March 5, 2019 5:39 PM
>> *To:* 'AnimalFarm Microwave Users Group' <[email protected]>
>> *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 <[email protected]> *On Behalf Of *Lewis Bergman
>> *Sent:* Tuesday, March 5, 2019 4:20 PM
>> *To:* AnimalFarm Microwave Users Group <[email protected]>
>> *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 <
>> [email protected]> 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, <[email protected]> <[email protected]> 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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