Corrections to prior post (sorry, I'm new at this)
Keeping your assumption of 400K users, ARPU, and therefor revenue,
my napkin business plan looks like this:
Expenses
Commission 24,000,000 (I say 10%, you say 20%)
Marketing 80,000,000 (I use 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 8K lines to support 400K
users
MOUs 50,400,000 (minutes based on an extraordinarily 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. |
