That's a nice developer! By them lots of drinks and steak dinners. If you don't have the $150-$200k handy, beg, borrow or steal it. Preferably not borrow... that hurts your return for the term of the loan. But it's still worth it for an asset that will be performing 100 years from now.

On 5/3/16 3:23 PM, Sean Heskett wrote:
As for ROI the developer wants to give us an exclusive right and not put in copper for phone or TV ;) The take rate should be pretty high because their other option will be our wireless service.

Sean


On Tuesday, May 3, 2016, Chuck McCown <ch...@wbmfg.com <mailto:ch...@wbmfg.com>> 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
    <javascript:_e(%7B%7D,'cvml','eric.kuh...@gmail.com');>
    *Sent:* Tuesday, May 03, 2016 3:10 PM
    *To:* af@afmug.com <javascript:_e(%7B%7D,'cvml','af@afmug.com');>
    *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
    <j...@imaginenetworksllc.com
    <javascript:_e(%7B%7D,'cvml','j...@imaginenetworksllc.com');>> 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
        <eric.kuh...@gmail.com
        <javascript:_e(%7B%7D,'cvml','eric.kuh...@gmail.com');>> 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
            <ch...@wbmfg.com
            <javascript:_e(%7B%7D,'cvml','ch...@wbmfg.com');>> 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
                <javascript:_e(%7B%7D,'cvml','af...@zirkel.us');>
                *Sent:* Tuesday, May 03, 2016 12:38 PM
                *To:* af@afmug.com
                <javascript:_e(%7B%7D,'cvml','af@afmug.com');> ;
                memb...@wispa.org
                <javascript:_e(%7B%7D,'cvml','memb...@wispa.org');>
                *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

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