Patrick,

As a general business rule, why would someone spend millions of dollars for a license, etc. with the plan to stay in it for the long-term? You are telling me Rexburg, Idaho (population 20,000) is their big target market? Come on. Even this whole valley only has 250,000 people and that's going almost 100 miles north to south (which would mean at least 10 key tower locations).

Let's say they spent $10 million to buy Teton Wireless... right now 10% interest can be had very easily... which equals $1,000,000 per year income. They will never make that much money in Net Profit each year (especially if you compound the interest each year). They are treating this as a start-up to get customers, build it up, and then sell it, short-term (probably to ClearWire). It's the _only_ way this makes business sense. And maybe your long-term is different than mine... long-term to me is 10+ years. I imagine they have planned 3 years as their target sale date.

Travis
Microserv

Patrick Leary wrote:
Travis, Teton does not equal DBC. DBC bought Teton and it is but one of
DBC's properties. I've known the CEO of DBC (Kelley Dunne) since 2001. I
know him very well, better even than I know other long time customers
and if you know how well I know people around here and in this business,
then you know that is saying a lot. He is one of the classiest, stand-up
guys I have met in this business. He ran a service business years ago in
VA. That was bought by Verizon and became Verizon Avenue, a small
Verizon subsidiary that focused on bringing broadband using various
technologies to niche holes in the Verizon footprint, like military
communities, MDUs, rural markets. Kelley, Bill Wallace and another gent
left Verizon Avenue two years ago after Verizon rolled up the subsidiary
and tried to get them to move to New Jersey. They launched DBC last year
and he is in this 120% and not for the short term.

Patrick Leary AVP, Market Development Alvarion, Inc. o: 650.314.2628 c: 760.580.0080 [EMAIL PROTECTED] Visit Alvarion at WiMAX World Chicago, September 25-27 Booth #409
________________________________

From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On
Behalf Of Travis Johnson
Sent: Tuesday, September 18, 2007 2:06 PM
To: WISPA General List
Subject: Re: [WISPA] OT: video of news segment in Idaho about a new
localWiMAXservice

Patrick,

DBC purchased an existing company (Teton Wireless) that was using their
2.5ghz license for Television and internet service. They started 10
years ago with just TV and added internet about 3-4 years ago. So,
technically they are not a "start-up" as they purchased an existing
business and license.

They also didn't raise money, but rather sold another business (cellular
I believe) and used that money to buy this business. They are in the
game for the short-haul, trying to get as many customers as possible
with the full intent to sell it off.

And I'm not sure I really need a lecture on the "I can" model... having
started a WISP in 1997 from scratch (no outside investors, no outside
money) and now with over 4,000 subs in the air, over 500 DSL customers,
fiber customers, dedicated p2p customers, etc. I think I understand how
it works. We started building our own DOS based routers with WaveLan
900mhz ISA cards back in 1997, when there was NOTHING on the market that
was cost effective to make this business model work. The dot-bomb crash
had ZERO affect on our business and we continue to grow every year.

My point to the original email was you can't just stick an AP in the air
and think you are going to do "truckless" installs with roaming clients
like the video clip pictured. With millions of dollars, yes it can be
done... but not otherwise.

Travis
Microserv

Patrick Leary wrote:
DBC uses 2.5 GHz. They did not exist as an operator one year ago. They
are a start-up that raised money. Nothing prevents WISPs from doing this
sort of thing too Travis and I know a few WISPs who are in fact doing
this very thing.
Travis, anyone can provide tons of reasons why something can't be done,
but someone always comes along who says "I can" and they do. It is that
group of people who dare who become the next set of millionaires.
As for the model, the DBC guys are pros who have been around the block.
They deployed several thousand unlicensed CPEs a few years back in
another company. It is not like they are just winging it. And in any
event, chances are a guy like this gets bought out a few years from now
for a good-sized multiple of the original investment.
Also, WISPs need to understand that the financial world considers
licensed band leases as assets, not expenses. Why do you think a company
like Clearwire that is losing money hand over fist has a $3.5B
valuation? It is because of the value of their licensed holdings
primarily.
Patrick Leary
AVP, Market Development
Alvarion, Inc.
o: 650.314.2628
c: 760.580.0080
[EMAIL PROTECTED]
Visit Alvarion at WiMAX World
Chicago, September 25-27
Booth #409
-----Original Message-----
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On
Behalf Of Travis Johnson
Sent: Tuesday, September 18, 2007 1:29 PM
To: WISPA General List
Subject: Re: [WISPA] OT: video of news segment in Idaho about a new
localWiMAX service
Everyone should realize this is a licensed frequency (2.3ghz?) and that the base stations are very expensive. So, if you have a few million dollars (I think they actually paid $7 million for the license in our area about 10 years ago, with a population of 150,000 people) and want to spend a few more million for AP's and CPE's, you should be able to breakeven in about 1,000 years. ;) Travis
Microserv
Patrick Leary wrote:
        http://youtube.com/watch?v=6fag7cy2Nr4
Our customer, Digital Bridge Communications (DBC), sent this
video to
me
        today after it recently appeared on the local news. Nice piece,
        especially since it was unsolicited. It is from an ABC news
affiliate
in
        Idaho. DBC calls the service BridgeMAXX.
Patrick
        Alvarion
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