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Re: pacattack81 post# 7995

Thursday, 03/01/2007 8:18:45 AM

Thursday, March 01, 2007 8:18:45 AM

Post# of 17378
pacattack, I think I can answer that question. Here is a simple model (and I sure don't know all the details). Lets say the network buildout costs $3 million/city and to run/upkeep it costs $400,000/year -> so thats 5 million over 5 years in costs or 1 million/year. lets say each costumer pays $30/month or $360/year -> 1 million/360=2778 customers needed for the network to pay off in 5 years. For a city with 50,000 household 3000 doesn't seem very unreasonable. With 4000 customers the network is paid in less than 3 years etc. I don't find a goal to reach 7-10% of the households an unreasonable expectation. Now, the more cities you have the lower the costs (many things can be run together for all cities).


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