O2 designs, engineers, deploy and maintain wireless Internet products that are offered to its primary customers. The Company's principal products and services include Wi-Fi Services, Mobile Services and Consulting Services. The company plans on expanding it's services into providing rural broadband and the development of wireless tower facilities.
Plan For Profit:
Start providing a cell phone service in the Dominican Republic. Currently citizens in the Dominican Republic typically pay $80 per month flat rate, that does not include long distance calls to other places in the Dominican Republic let alone other nations. O2 is planning to offer a $45 a month plan by utilizing the cables that they have signed exclusive rights to access. Eventually O2 could take over a sizeable portion of the 8.6 Million cell phone users in the Dominican Republic.
With an 84% cell phone penetration in the Dominican Republic O2 has over 100,000 potential customers in Higuey alone, O2 has tons more leases in the works to set up several more towers all across the Dominican Republic. Here’s a quick calculation of the annual revenue stream potential these guys will have:
100,000 users per city x 5 cities
=500,000 x $45 per month
=$22,500,000 in revenue per month x 12 months
= $270,000,000 in potential annual revenue by 2013 from the DR alone
Keep in mind that this is calculating that they only capture about 5% of the entire DR cell phone market. As they become more popular, these numbers should only increase.
Funding or profits from MasterCard sales will catapult the above to fruition. And there are likely further developments that have taken place since, and I am sure Val will illuminate us on this when the time is right.
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