Title: Tower contract / Revenue Share / Discounted Services

The problem with this in our area is that generally they want more per month for rental that we would generate for subs off a tower. They think we are similar to cell companies and have deep pockets, not realizing that we may only serve 30 customers off of a single tower.

 

Chadd

 


From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Travis Johnson
Sent: Monday, August 14, 2006 3:19 PM
To: WISPA General List
Subject: Re: [WISPA] Tower contract / Revenue Share / Discounted Services

 

Or even better is to just pay a flat monthly rate regardless of customers, etc.

It's really none of their business how many customers you have on a tower, or how much they are generating, etc. We ONLY pay a monthly rental fee.

Travis
Microserv

Brian Webster wrote:

Johnny,

    If you can get away from the revenue share try to. If they want in on the action maybe set up a flat rate per customer added to that site. The reason for this would be that if you need to increase your ARPU you can raise the price and not have an increased expense for doing so, your expense to the tower owner stays the same. In my cellular days the carriers would never do a revenue share with landowners or tower owners. When it was a sticking point in the negotiations it could be overcome most times by finding some point (in this case per customer) to increase the payment on a more fixed rate. If you were to ever try and sell your business this puts you in a much more favorable position than having revenue sharing. Revenue sharing creates a situation where you might have to open your books to this landowner so he can audit to see if he is getting his proper payments, whereas all you need to do for a per customer rate is do a dump from something like your Radius server or the access point itself to have all the accounting information necessary. Just an idea and a useless one if you have already committed to this deal.

 



Thank You,

Brian Webster

-----Original Message-----
From: JohnnyO [mailto:[EMAIL PROTECTED]]
Sent: Monday, August 14, 2006 12:03 PM
To: WISPA General List
Subject: [WISPA] Tower contract / Revenue Share / Discounted Services

Have a company that is paying us to install a tower at their location so we they can receive our internet services. What we negotiated was - they pay for ALL costs including backhaul, 3 2.4ghz sectors, tower costs / installation costs.

We get exclusive rights to the tower. They get 20% revenue share from any customers being served directly off of the tower, and they receive 50% off of their monthly service fees.

Does anyone have a contract that would cover part or all of what was stated ?

Regards,

JohnnyO



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