Rural Partnerships

Plus Ten builds rural markets (less than 100,000 population) primarily by partnering with local investors. The local partner pays for the equipment in the system, Plus Ten does the engineering, design and physical construction of the sites and network, and operates and maintains the system at cost. The partner is responsible for local marketing and sales, or one of Plus Ten's affiliates can handle this. Net profits are then split between the local partner and Plus Ten.

A rough breakdown of costs (based on example towns of specific size):

Town

Population

Construction Cost

Subs to Cash flow

Penetration to Cash flow

Subs /mo to Cash flow

Parker

22560

$332,711

175

0.78%

29.23

Sterling

11360

$189,833

162

1.43%

26.99

Rocky Ford

4400

$104,830

92

2.10%

15.39

Bennett

2200

$58,973

59

2.68%

9.81

Elizabeth

1400

$48,668

42

2.99%

6.98

Kiowa

500

$24,206

24

4.82%

4.02

Note: Cash flow is when network operating costs (rent, bandwidth, maintenance, IP services) are covered by monthly revenues

Assumes Local partner pays for local marketing and sales.

Larger cities are quoted on a case-by-case basis

Each city will have high speed service coverage to 80% of the local area following construction, baring extreme terrain


The breakdown of operating costs as percentage of gross customer revenues (these are based on extrapolations of historical operating costs of the Sky-Net system):


Sales:

9%


Marketing

5%


Customer Support

11%


Network Operations

10%


G&A

15%


Maintenance Costs

10%


Net Profit Split

40%