Title: Tower contract / Revenue Share / Discounted Services
> Revenue Share...
 
Sometimes revenue share can be the only way to afford to grow. We don't like to do it, but it is us that requests it, when it has to be done.
The problem with revenue share is how to track it. Track it by billing/accounting  systems? Track it by IP lists? Track it by Router provisioning?
 
One of the features of our router OS is that it had a log in method for landlords to check which customers were provisioned on the router. If the client was provisioned on the router, they got paid.
Of course this did not prevent provisioning at a different device, such as upstream router.  The idea was it gave us a way to prove customer base without allowing access to our private accounting systems that would hsow the success of our company as a whole. We don;t generally want management companioes to get that type of data about the size of our company or our profitabilty, it effects our ability to negotiate  optimally.  But the way we did it, also was not adequate because property owners ended up ahving multiple locations, and we ended up provisiong at cell site, not building itself.  Still work in progress. But my point is that there is not a good way today to track the information for revenue sahre, so it creates issues. You really need a trusting relationship with them, and a true benefit to both parties to be honest about the agreement. For example, We have changed exclusively to revenue shares based on referals not easements.  Bewcause of this it is always advantageous for us to be honeest about our commissions to pay out so we get the support of the property owner as new clients come in and go. We need to be the one that the property owner tells their tenants about.
 
its different if its a hotel or something, because they can collect the money or lots of clients in one system taht would be beneficial to be provisioned from a unique seperate system.
Not the case for public access.
 
 
Tom DeReggi
RapidDSL & Wireless, Inc
IntAirNet- Fixed Wireless Broadband
 
 
----- Original Message -----
Sent: Monday, August 14, 2006 3:31 PM
Subject: RE: [WISPA] Tower contract / Revenue Share / Discounted Services

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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