It all depends on the business model. If you look at it as having to pay back the capital through a loan, then yes the payback looks like a long time. If however you already have the money and don't need to borrow it, then the money made is just like interest or dividends on money you already have. The goal may be to make more than you would in basic investing in the market or banks. Totally changes the required profit margins in those situations. The other aspect of looking at the business model, not just as an internet provider. Having access to all of that data about internet use, possibly worldwide, will have its own value and/or profit center when it comes to the Artificial Intelligence world. Factor in other things like ad revenue opportunities, the possibility of being a Voice carrier, etc. you can see the potential for revenue in more than just internet access service. Most WISPs don't get too excited about all of that because as a whole, their internet user base isn't large enough to be a critical mass that really makes that data valuable (meaning having large enough sample sizes). Controlling that last mile access to the consumer is important for a lot of content providers. The fear of that last mile control by so few was one of the catalysts of the net neutrality act. The fear that too much control over last mile access was going to stifle innovation. His network becoming another option can be a big difference for some other content providers and they may pay good money to have that access. Let's also not discount revenue opportunities from the likes of the CIA to get access to countries for the masses where there may be an oppressive regime and the USA wants to practice some of their nation building skills. DOD contracts are likely in part of the plan as well. There are always interesting cases for a customer base when you have an almost seamless worldwide network you can sell services from.
As an old investment banker said to me as a teenager, the first million is the hardest to make...... Thank you, Brian Webster www.wirelessmapping.com -----Original Message----- From: AF [mailto:[email protected]] On Behalf Of Matt Hoppes Sent: Saturday, February 1, 2020 2:18 PM To: AnimalFarm Microwave Users Group Subject: Re: [AFMUG] MUSK and CAF/USDA So for the same reason the small ISPs don’t go after the funds also he doesn’t. Interesting when you think of it that way. It’s also interesting when you stop to think of those costs. What’s the return on that? 100 years? I’m curious to see where this will end considering continual launches will need to take place to continue to maintain the network. > On Feb 1, 2020, at 2:03 PM, Bill Prince <[email protected]> wrote: > > I think the CAF thing is more overhead than they (he?) is willing to put up > with. > > Think about what he's spent already. Estimate $30 million per launch (that is > just spitting into the wind, but anyway). Four launches already is $120 > million. The cost to develop and build a few thousand satellites? Maybe > another $100 million (so far). The cost to develop and build millions of end > user terminals? > > There has to be the better part of a billion dollars invested so far. A few > paltry million plus the strings attached would just seem silly. > > > bp > <part15sbs{at}gmail{dot}com> > >> On 2/1/2020 9:44 AM, Matt Hoppes wrote: >> I had a random thought this afternoon. >> >> If Musk is so certain about StarLink and the fact that it will cover >> everywhere - why hasn’t he applied for USDA funding? Literally millions >> available. >> >> Maybe he doesn’t need it? >> Maybe it won’t work as well as it’s being hyped? >> Maybe he has an alternative motive? > > -- > AF mailing list > [email protected] > http://af.afmug.com/mailman/listinfo/af_af.afmug.com -- AF mailing list [email protected] http://af.afmug.com/mailman/listinfo/af_af.afmug.com -- AF mailing list [email protected] http://af.afmug.com/mailman/listinfo/af_af.afmug.com
