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Tuesday, January 31, 2012

Fixed & Mobile Data Costs Too Much

Customers are paying too much for Fixed & Mobile Data. In a recent article iYogi reports that almost two thirds of users pay 35% MORE for Communications & Entertainment than utilities. A recent TmoNews web site poll asked “What Kept You from Buying Your First Smartphone?“ Forty-eight percent of the respondents chose “The cost of the data plan.” The prices of Computers and Consumer Electronics have continued their downward spiral while capabilities forever rise, but these trends have not bridged over into the Fixed &Mobile Communications sectors because the providers have not made the investments that would lower consumers’ costs. Recently the big cellular operators have just raised the prices and quantities of the data service they require. Why? "AT&T said at a recent conference that they are seeing customers walk up to the edge of their tier and then use a lot of Wi-Fi to stay below.” Another supplier and approach is needed.

iNet2 is a Communications & Entertainment delivery system that gives Consumers & SMB (Small and Medium-sized Business) Fixed & Mobile services over ONE network, initially using the facilities of a Fiber-To-The-Premises prototype community such as Google's Kansas City (KS & MO) Gigabit Fiber project or Chattanooga, TN's Gig fiber in order to keep costs low while proving the concept.

Customers want INNOVATION, VALUE & RESPECT. With INNOVATION consumers want what David Woodle, former CEO, told a conference hosted by C-Cor he’d really like, “a device that lets him get whatever service he’s paid for wherever he happens to be.  Or as Sandra Welfeld of ECI Telecom states, “Yes, I would like to get my content in my home and work computers, tablet and cell phones, etc.

Fiber networks are very flexible. Just as it is possible to deliver the Internet over Cable TV, telephone wires and cell phones, Video such as Linear TV, On Demand & Over-The-Top can be carried over Fiber Data through Internet Protocol TeleVision. With our wireless overlay, these same services can be presented to your mobile devices as well. Think of sitting at the coffee shop watching not just broadcast TV, but On Demand or User Generated Web Content on your Smartphone, Tablet or Laptop. Amazing! This network can also support voice such as Republic Wireless’ $19 per month Voice, Text & Web plan.

In VALUE consumers want solid a return for their expense. Five GBs of Mobile data is $50 per month, or $10 per gigabyte for only ONE device! Fixed data is still 250 GBs for about $50 per month, twenty cents per gig. This is a ratio of 50 to 1 in cost.

iNet2 anticipates data over Fiber will cost $75 per month, with a usage cap of not 250 GB per month, but 500 GB per DAY, or 15,000 GB per month, at 5% usage. That is only ½ cent per Gigabyte. This is a ratio of 40 to 1 versus Fixed in cost and a 2,000 to 1 ratio for Mobile!

But it gets even BETTER. For only a 50% increase in sales, any or all of this data can be delivered to Mobiles for ¾ cent per Gigabyte, a ratio of 1300 to 1. Not just for one device, but for all on the account! Fixed & Mobile Data for about $100 per month, tremendous!

With RESPECT consumers do not want to be “Nickeled and Dimed”. iNet2 will offer Bring Your Own Devices, possibly including a Google TV Set Top Box, and deliver great service. Customers also want to communicate with a real person when desired. By delivering a high-quality network with Mobile data and Video over it, iNet2 doubled its revenue forecast to have the resources to provide country-based Customer Service Representatives focused on helping the customer. Win-Win.


Like our cable and telco competitors, ours is a direct sale, recurring subscription based service.  iNet2 will drastically lower the cost of wireless broadband data for a family or SMB. Operating over one of the prototype systems, we believe our sales and cost forecast will be:

Financial Projections:





















New Investment














(dollars in thousands)

 We are currently seeking Angel funding to build our test system. Who can you recommend?


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