You have to look at it as building an asset that grows in value and pays a
dividend.  If you could buy a house for 100K that you would make 20% per
year on for 20 years would you?

On Tue, May 3, 2016 at 5:15 PM, Chuck McCown <[email protected]> wrote:

> You will probably get 80% if you are the best value.
> And you don’t the full costs for homes that don’t take the service.  No
> CPE, no enclosure, no drop, no sfp.
>
> Say $2500/customer.
>
> Say you clear $40/month.
>
> 40*12=480
> 480/2500 = 19.2%  return from day one forever.
>
> What kind of mutual fund will give you a return like that?
>
> *From:* Eric Kuhnke <[email protected]>
> *Sent:* Tuesday, May 03, 2016 3:10 PM
> *To:* [email protected]
> *Subject:* Re: [AFMUG] potential FTTH build
>
> That math assumes an immediate 100% takeup rate...
>
> On Tue, May 3, 2016 at 2:04 PM, Josh Luthman <[email protected]>
> wrote:
>
>> 1630/65 = 25
>>
>> Internet isn't going away, it's like water and power.  The next 25 months
>> and the 25 months after that...
>>
>>
>> Josh Luthman
>> Office: 937-552-2340
>> Direct: 937-552-2343
>> 1100 Wayne St
>> Suite 1337
>> Troy, OH 45373
>>
>> On Tue, May 3, 2016 at 5:01 PM, Eric Kuhnke <[email protected]>
>> wrote:
>>
>>> I don't see how the math works (at $150k and 92 homes) if the cost per
>>> unit served is $1630 per house. And your initial penetration rate will be
>>> far, far less than 100% of homes for monthly services. Even after 3-4 years
>>> a significant percentage may never sign up. Where's the ROI?
>>>
>>>
>>> On Tue, May 3, 2016 at 11:49 AM, Chuck McCown <[email protected]> wrote:
>>>
>>>> Figure one handhole per 2 homes.  So 46 handholes.
>>>>
>>>> 1.25” between all handholes.
>>>> .75” duct from each handhole to each dwelling for drops.
>>>> You can run 144 count fiber for spares.
>>>> Drop down to 96 or 48 count as it tapers going down the runs.
>>>>
>>>> You will need a cabinet with a distribution panel, electronics,
>>>> batteries.
>>>> It will need power.
>>>>
>>>> To go cheap, use a large cisco router with SFPs ports and SFP to each
>>>> dwelling with a media converter at the ends.
>>>> Or put in Calix.  You can go GPON or Active.  With something this
>>>> small, I would do Active.
>>>>
>>>> You will have $150 to $200K in before you are done.
>>>>
>>>> *From:* Sean Heskett <[email protected]>
>>>> *Sent:* Tuesday, May 03, 2016 12:38 PM
>>>> *To:* [email protected] ; [email protected]
>>>> *Subject:* [AFMUG] potential FTTH build
>>>>
>>>> Hello,
>>>>
>>>> We are in talks with a developer who is planning a subdivision on a ~50
>>>> acre lot for 92 homes and he wants us to deliver FTTH.  Is there anyone on
>>>> this list who would like to consult with us so that we can get the plan
>>>> done right from the get go?  The developer will be doing all the trenching
>>>> and conduit etc., we will be doing all the electronics and customer service
>>>> etc.
>>>>
>>>> Best regards,
>>>>
>>>> Sean
>>>>
>>>>
>>>
>>>
>>
>>
>
>



-- 

Carl Peterson

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