I believe the posting states …..1,000 homes in the area, and additional 500 homes with some additional system upgrades.
Translated…1,000 homes passed. The big MSO hope for a 50% customer take rate (500 paying customers). Knowing the area I would guess that their customer base is around 350 or less (35% penetration)
Guessing the average Monthly revenue by customer $29.00
$29.00 X 350 Customers = $10,150
The video offering is weak, no digital channels only 35 analog channels are you ready to go digital? (your competition is Satellite) how are you going to compete? Yes they have low rates but what is the value if the customer can’t enjoy their new HDTV.
Programming costs , Pole Rental Fees, OSP power costs, Headend lease, Headend power, Monthly Maintenance cost? (pole transfers, road moves, plant damages, line equipment failures, etc.), Plant material costs, CPE costs, Salaries, Marketing, etc. etc.
Get their last three months P&L statement this will be a huge help to your financial provider.
Good Luck!
Re: Investers
Member #: 48067
Registered: 8/24/2006
Posted:
3
Name:
Brian
Location:
Denver
Personal:
early 60s
Experience:
~40 years
There is 1 reply to this message
