Keeping you assumption of 400K users, ARPU, and therefor revenue, my napkin looks like this:
Revenue
Expenses
Commission 24,000,000 (I say 10%, you say 20%)
Advertising 80,000,000 (I say a conservatively low $200/cust
acquisition cost)
SG&A 56,000,000 (we agree more or less)
Telephony (we differ alot here)
Access 1,200,000 (based on needing 800 lines to support 400K
users
MOUs 50,400,000 (minutes based on an extraordinarilary low
3.5 cents per minute x the number of
minutes used.)
DID Charges 14,000,000
NOC 14,000,000 (I wouldn't expense this but if I did, it
would cost at least $2000/port and they
would need to add 7,000 ports)
Total Exp: $228,000,000
-------------
Net: ($28,000,000)
Now, since there is only about 40M in cash, and we will be spending way before generating revenue, we will need to raise another $100M in order to cashflow this plan through break-even. That would mean issuing another 10M or so shares + warrants. So, on a fully diluted basis we would have 46M or so shares outstanding.
When you look at my model, you can see that the only variable not tied to # of subs or revenue is advertising. The problem is that GMGC would have to shock the business world if they could acquire customers for as little as $200/per.
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