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% |
|