Travis, I am tiring of this argument and you simply are not informed. Before you try to debate me on the subject using guesses and imaginings, at least make the effort of going to their Web site to read the basics about what their focus is, where they are, where they are going, etc. http://www.digitalbridgecommunications.com/ . They raised $11 million in their first round, which believe it or not is modest and completely attainable for those who choose that route and know how.
In the end, they can, and they are. You elect to believe you can't, so you won't. Fair enough. Patrick -----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Travis Johnson Sent: Tuesday, September 18, 2007 2:38 PM To: WISPA General List Subject: Re: [WISPA] OT: video of news segment in Idaho abouta new localWiMAXservice 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 > > > > > > > > ************************************************************************ > ************ This footnote confirms that this email message has been > scanned by PineApp Mail-SeCure for the presence of malicious code, > vandals & computer viruses(84). > ************************************************************************ > ************ > > > > > > > > > > > > ************************************************************************ > ************ > > > This footnote confirms that this email message has been scanned > by > PineApp Mail-SeCure for the presence of malicious code, vandals > & > > > computer viruses. > > ************************************************************************ > ************ > > > > > > > > ------------------------------------------------------------------------ > -------- > > > ** Join us at the WISPA Reception at 6:30 PM on October the 16th > 2007 > > > at ISPCON ** > > > ** ISPCON Fall 2007 - October 16-18 - San Jose, CA > www.ispcon.com ** > ** THE INTERNET INDUSTRY EVENT ** > ** FREE Exhibits and Events Pass available until August 31 ** > ** Use Customer Code WSEMF7 when you register online at > > > http://www.ispcon.com/register.php ** > > > > > > ------------------------------------------------------------------------ > -------- > > > WISPA Wants You! 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