We're a wireless ISP run by a several top specialists who formerly worked for the larger telecoms. We recently reached our first target of 100 customers.
With our unique "micro-pop" network design, we can reliably deliver up to 100M x 20M residential and 500M x 500M to businesses. We also offer business hosted VoIP service with QOS, and several managed service offerings such as firewall, routing, and content control.
As a former President's Club business account executive for Windstream and Spectrum, I have personally worked in this region for 19 years and have identified 22 target markets where we can easily capture 200 - 400 customers each.
Our service is incredibly robust and our customers have been very pleased with our services which launched in December of 2019. Since launch on December 1, we've had a total of 21 hours of downtime aside from planned maintenance which we perform in a window between 1 am and 3 am after notifying customers. These outages were storm-related due to brief interruption of the incoming fiber circuit. We found that two of the outages could be resolved quickly with a custom router script, and one could be prevented by moving the fiber device to our UPS unit. We have made those changes and have since only lost connectivity once which lasted 4 minutes due to the router script.
The average revenue per residential customer is currently $62 per month. As we have yet to launch in an area with business service needs, we anticipate that number to increase at our next site. Our residential packages are between $49.95 for 30M x 3M and $109.95 for 100M x 20M. This is before any additional ancillary services such as hosted VoIP, managed routers, managed security, and Microsoft 365. For residential services, the average broadcast site of 300 customers would generate roughly $18,600 in monthly recurring revenue based on the current ARPU.
The cost of the base company infrastructure is roughly $1500 per month. This includes our phones, billing, service, network monitoring, inventory management, website, CRM, and other such things as well as regulatory compliance, FCC registration, banking fees, etc. These costs increase roughly 5% for every 150 customers. Monthly site costs run roughly $2000 for 200 customers, $2500 for 300 customers, and $3000 for 400 customers for the bandwidth to our primary Point of Presence in a specific area.
For example, if a new area is launched that brings 200 customers at an average of $62 per month, that is $12,400 per month revenue at that site with costs of approximately $2100 per month. $10,300 EBITDA. At 300 customers, $18,600 per month revenue, $2600 per month costs, $16,000 per month EBITDA. Customer installation costs are roughly $150 for equipment and labor. We charge this at the time of installation so the effective customer installation cost is $0.
Unfortunately, the barrier we've run into is startup and installation costs at the sites. The average site launch cost is roughly $10,000 for the cabinet, UPS, HVAC, tower access, cabinet equipment, equipment on the tower, and a tower climber to install the equipment. This has kept us from growing quickly and prevents many people from having access to broadband. We're seeking $50,000 to launch 5 independent sites which we can then quickly grow to roughly $80,000 per month in EBITDA. At that point we have enough revenue to continue rapid expansion into the remainder of the 22 sites. The expected minimal EBITDA should be roughly $350,000 per month within 12 months.
This calculation does not include staff necessary to manage operations. The installations are contracted and covered with installation fees but the cost of administrative staff will also grow. We are anticipating that there will be 4 executive staff and 8 additional staff with 22 sites averaging 250 customers. Executive staff will cost 3% per person. Additional staff will cost an average of $3400 per month per person. A total of $42,000 per month and $27,200 per month respectively. This leaves a gross profit of approximately $280,000 per month.
An additional 26 sub-sites of 75-150 customers have been identified that we can later move into by utilizing point to point wireless gigabit connections from existing locations. We also plan to open up markets in western Kentucky following the initial 22 site rollout. Our goal is to be at over $1 million per month in EBITDA within 4 years at which point we plan to package our solution as a franchise operation and sell to others who wish to do the same as we have.
Please contact us if you would like additional details, a copy of the prospectus, projections for specific markets, or even a screenshare session where we can walk you through our various systems. A non-disclosure document will be necessary before viewing our systems.
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