Of course, this doesn't account for their extreme ineptitude. Maybe some clause that had a minimum based on your growth or churn rate or something.
On Tue, Mar 5, 2019, 6:59 PM Craig House <cr...@totalhighspeed.net> wrote: > That seems to me like a winning plan. If they take a lot longer to build > out than they think, and you know they will, then they are paying you > longer than they planned to and have a need to keep you on retainer to help > with problems for longer. Plus for them it is an instant revenue stream > and customer base and has to seem attractive to them. > > Craig > > > ------------------------------ > *From: *"Ken Hohhof" <af...@kwisp.com> > *To: *"AnimalFarm Microwave Users Group" <af@af.afmug.com> > *Sent: *Tuesday, March 5, 2019 6:51:19 PM > > *Subject: *Re: [AFMUG] Examples of Proposals to Sell WISP Network? > > How about this. Offer to sell them your assets in that area for $1 plus > 50% of all revenue from wireless customers until they are converted to > fiber. One month assistance with taking over the network, after that they > pay $X per hour if they need help. They would take over all costs > including bandwidth. > > > > How much revenue you got would depend on how long they took to convert the > customers over to fiber. Once the fiber build was complete, they could > choose to shut down the wireless network and force the remaining customers > to switch, otherwise they would continue paying your share of the wireless > revenue. > > > > If they build the fiber quick, you wouldn’t get that much money, but you > would never be in the position of costs exceeding revenue, whatever you > receive would be all profit. > > > > This might also have some tax advantages over a one-time cash buyout. > > > > > > *From:* AF <af-boun...@af.afmug.com> *On Behalf Of *Adam Moffett > *Sent:* Tuesday, March 5, 2019 6:21 PM > *To:* af@af.afmug.com > *Subject:* Re: [AFMUG] Examples of Proposals to Sell WISP Network? > > > > Yeah, I was going to point this out too. If your town succeeds at this, > then they are either smarter than an average town government or they're > very lucky. > > Have they actually hung any fiber yet? Does the town own the poles, or > are they owned by the electric and phone company? I bet they had a > consultant or the town IT guy who has done the research and is telling them > that it'll cost $x/mile or $x/pole or some such. Then they'll go apply to > the incumbent utilities and suddenly say "Make-ready? What's make-ready?" > If they're not smart (or don't have strong engineering support) they'll end > up spending all their money upgrading the power company's system. > > I've also found that certain major cable companies are experts at being > obstructive. At least that's true in these parts. > > Or you can make the play AT&T did against Google Fiber: keep tabs on > where they're building and run along ahead of them upgrading your network > and making special offers to your customers. > > -Adam > > On 3/5/2019 6:49 PM, Lewis Bergman wrote: > > And even worse trying run then one they are substantially complete. > > On Tue, Mar 5, 2019, 5:39 PM <ch...@wbmfg.com> 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 <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> *On Behalf Of *Lewis Bergman > *Sent:* Tuesday, March 5, 2019 4:20 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> 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> <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 > AF@af.afmug.com > http://af.afmug.com/mailman/listinfo/af_af.afmug.com > > -- > AF mailing list > AF@af.afmug.com > http://af.afmug.com/mailman/listinfo/af_af.afmug.com > > -- > AF mailing list > AF@af.afmug.com > http://af.afmug.com/mailman/listinfo/af_af.afmug.com > > ------------------------------ > > -- > AF mailing list > AF@af.afmug.com > http://af.afmug.com/mailman/listinfo/af_af.afmug.com > > -- > AF mailing list > AF@af.afmug.com > http://af.afmug.com/mailman/listinfo/af_af.afmug.com > > > > > > -- > AF mailing list > AF@af.afmug.com > http://af.afmug.com/mailman/listinfo/af_af.afmug.com > > -- > AF mailing list > AF@af.afmug.com > http://af.afmug.com/mailman/listinfo/af_af.afmug.com >
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