Thursday 11 June 2009
Investors want a business opportunity that can provide a significant return, has a team that is passionate about their product and an idea that can scale. This plan has all that.
Executive Business Summary for iNet2
Wonders of Fiber and Wireless Together
Consumer wants are simple, convenience, value and WOW! Especially with their entertainment. They pay hundreds of dollars a year on TV channels and features, High Definition, Video On Demand and faster Internet speeds. These services they want and already pay for, but access is limited to their premises. There is technology available offering more services and anytime convenience that makes consumers say "WOW, I must have that!"
This future demands the wonders that Wireless Broadband and Fiber-To-The-Premises provide. However, wireless broadband is slow and extremely expensive. Customers have been unable to use fiber because the cable and telcos have not incorporated it all the way to the premises. Even the exception, Verizon, does not offer new services that would capture consumers’ imaginations with any “must have” service that makes them say “WOW.”
iNet2 offers more. Services such as the channels customers have already paid for on their laptops and smartphones, Network DVR, convergence, user generated content and locally originated programming. By integrating wireless with fiber, iNet2 delivers faster and lower cost mobile data service, Mobile TV, Radio On Demand & location determining and tracking.
iNet2 provides all of this plus more dependable mobile phone service & the solid reliability and safety of fiber. Over one network designed for the rapid development and deployment of more innovative communications services. All these services from one source that will have consumers saying WOW!
iNet2’s initial market is the northern Atlanta suburbs, Cobb thru North Fulton to Gwinnett counties, targeting 580,000 Consumers and 116,000 Small to Medium-sized Businesses with our twenty-five year build out plan. We will pass 7,500 total per year initially (growing to 30,000 annually), connecting 20%. This represents a $300 million per year total sales forecast, for roughly one third of the Atlanta area.
Though others may benefit, our prime targets are the Future Shapers, Future Makers and Today’s Consumers, corresponding to ten, twenty and forty percent of households. We expect to enroll half of the Shapers and Makers and one eighth of the Today’s Consumers. The Shapers will be fascinated by our speed and technology. Many of the Makers will be thrilled by our new services and Today’s Consumers will appreciate the reliability and safety of our fiber connections. iNet2 will WOW customers with new services that excite, attract and keep them, providing it all for less than they are currently spending.
Marketing strategies that will stimulate interest will be implemented as outside plant is laid. Avenues taken will include direct mail, neighborhood signage, door-to-door sales, local radio ads, billboards, word of mouth, web advertizing, a web presence, and a mall storefront where the superior services and value delivered can be demonstrated. The battle for customers will be fought premises to premises.
Once the concept is proven, we will expand nationally, then internationally. We want to be like Sherwin-Williams and cover the earth
Our Competitive Advantage
iNet2 uses technology that is comparable to AT&T’s U-verse over Verizon’s FiOS interwoven with a Municipal Wi-Fi canopy that mimics T-Mobile’s HotSpot@Home service while driving down mobile data costs. It will fully converge Cable TV, Cellular Telephone and the Internet so that everything is available on and between the 50”, the 15” and the 2” screen devices.
The system is simplicity itself. Build one high-capacity fixed and mobile network platform capable of handling the bandwidth hog Video, and then offer all other services over it. We use Internet Protocol for convergence, fiber for capability and Municipal Wireless for mobility. iNet2 disconnects from the cellular network with its expensive licenses and ugly cell towers, using our Patented (US7623858) technology. Think of it as a data pipeline supplying a Wi-Fi soaker hose that runs along side.
iNet2 is confident it can connect advertisers and programming providers to highly valued consumers. We will build a great company based on Innovation, Value and Respect for the Customer. The only losers will be incumbents who have failed to offer services that excite customers’ imaginations, who have not WOWed consumers.
There are three barriers to a competitor delivering the services we will offer. iNet2’s technical lead has developed the method we will use to apply the wireless data canopy which reduces complexity and our costs. The incumbents have a considerable investment in cellular technology they are unlikely to forgo. A new competitor would be forced to spend substantial capital to duplicate our infrastructure.
Like our cable and telco competitors, ours is a direct sale, recurring subscription based service. iNet2’s network will deliver a bundle of services for $179 that cost it about $69, yielding a $110 per customer per month differential to build out and operate its highly reliable network. Even at $179, these services will be priced about the same as our competitors’ monthly bundles with wireless, and should even be less for mobile TV or data users, but with greatly expanded functionality. iNet2 will drastically lower the cost of wireless broadband data for a family or small business group, bringing to the millennial generation and younger, the mobile services they yearn for at an affordable price point.
Jeffrey Davis, General Manager – Mr. Davis expects that iNet2 will be made into a profitable business before the seventh year. Managing the finances of a start-up that will be building a new type of communication infrastructure may seem like a dauntingly huge and complex task, but with over a decade of experience in financial and engineering industries he has every reason to feel confident. The financial plans and budgets Jeffrey managed at CheckFree Corporation were as complex and detailed as anything he will be called on at iNet2.
Ernie Johnston, Chief Envisioneer - Inventor of the system on which iNet2 is based, connecting the fiber optic network to the Wi-Fi canopy. Ernie has spent his thirty-five year career in communications or in computing at a communications company. For the last ten years he has studied how to improve capability and flexibility while converging services and lowering costs to make the concept economically feasible. Mr. Johnston is unique in having the comprehensive vision and insight to lead this effort.
In 7 years we will have a business with 30,000 customers, an annual income of $58 million with growth of $13 million and EBIT of $6+ million after having spent $26+ million on new fiber and equipment that year and each year since 2013.
iNet2 will need $7.5, $6, and $9 million for the first three years of operation, $15 million for the fourth year (2013) and $11 million for the fifth (total is $49.25 million) as we double and redouble our construction rate. Almost 40% of construction costs are for laying the fiber optics, so even though we must plan to spend this money, we will share this cost with incumbents and local governments whenever possible.
We are seeking $750,000 in angel capital to build the prototype. Will you help us?