RMI.NET Acquires Tucson, Ariz.-Based ACES Research A Dedicated Access Internet Service Provider
Friday July 30, 8:00 am Eastern Time
(http://biz.yahoo.com/prnews/990730/co_rmi_net_2.html)
RMII "... announced today it has acquired ACES Research, Inc., a Tucson, Ariz.-based dedicated access Internet service provider (ISP), for approximately $2 million in RMI.NET stock. ACES Research has an annualized revenue run rate of approximately $1 million..."
ALSO "...In a separate transaction, RMI.NET also announced it had acquired the web hosting assets of Net One Communications Corp., a Denver-based company. Terms of the second acquisition were not disclosed..."
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Based on my analysis RMII is buying high end customers at a cost of $450/subscriber. It appears that their plan is to consolidate usage through their fiber backbone network which they continue to build out. They do however, need to look to a partner that has a much more developed fiber network in place (perhaps a CLEC) or a Westell Communications or even a SPRINT.
The long term plan is to provide a basket of data, phone and IP services to their growing customer base. If they can put together a cost effective package of services, the cost of $450/subscriber is a steal (about a one year pay back period).
Currently, AT&T is paying about $4,000 - $5,000 per subscriber that represents a 4 to 5 year pay back period on their investment.
EKS |
