I would think that it might also be good to know the total number of
potential customers that the wireless network footprint covers. A system
that covers a potential of 100,000 customers/households would be worth a lot
more than one which might only have a maximum of 5,000 households able to be
reached.



Thank You,
Brian Webster
www.wirelessmapping.com <http://www.wirelessmapping.com>


-----Original Message-----
From: David E. Smith [mailto:[EMAIL PROTECTED]
Sent: Friday, October 26, 2007 11:26 AM
To: WISPA General List
Subject: Re: [WISPA] Wireless System Valuation


Ron Wallace wrote:

> What is the best method for determining the value of a "Wireless Internet
System"???

According to my college microeconomics professor, it's worth exactly
what someone else pays for it. :)

Are you looking at just hardware (which is pretty easily quantified), or
at a "system" including active customers (and the obligation to continue
providing service to them)?

If you're buying a complete business (or at least a bunch of customers)
it's normally valued as some multiple of monthly revenue. Depending on
your local market conditions, I've heard WISPs valued anywhere from 5x
to 12x that number. What, exactly, the number should be depends on those
local conditions, what other competition is in the area, whether those
customers are under any long-term contracts, the business' established
reputation, and about a zillion other things.

Sorry to be so very vague.

David Smith
MVN.net
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