John,
While calculating profit only using the number of system subscribers would be impossible, it is feasible to make some basic revenue calculations using industry standard assumptions. For example, BCG receives approximately 6 to 8 cents per minute of usage per subscriber from it's customer carriers. Given that the average subscriber will utilize approximately 75 minutes per month, you can then calculate that BCGI receives around $5.25 per month for each subscriber on the system. That translates into $1,806,000 per month for the companies revenue stream given the announced 344,000 subscriber count. We should be able to validate some of these calculations using the 10Q's going forward.
Additionally, BCGI will charge additional one-time fees for system setup, customer service calls, and detailed billing creation. These fees would be dependant upon the actual usage and services requested.
While I am no financial wizard, I hope this helps explain the importance of the 34,000 additions as it relates to not only immediate revenue but also the future recurring revenue stream these additions will bring to the company.
Regards,
Crash |
