All, As you know I have a large email list that I send out. What is amazing is the number of people that have converted to FNET as their new address. I haven't really kept count, but I'd say at least 25 to 30 in the last few weeks. Many have said that they have converted many friends and coworkers.
I was sitting down just kinda playing around with the calculator and thinking about the three income streams that FNET has. Then something dawned on me. Check this out. I was looking at the potential profit margins and what they would mean to Franklins bottom line. Here's what I came up with.
800# = $30 per month, divided by 2 (connect america), 1/3 profit margin = $5 per month x 21k customers = 105k per month
Local access service 18.88 per month, about 2/3 profit margin, $12 per month x 6000 customers = $72k per month
Then you have all the equipment sales, that I figure is worth about 1.5 mill per month once it is all ramped up in March.
Now here's the kicker that dawned on me. As more and more GRIDNET POP's come on line, many of the 800# could convert or better yet
add local service to their 800 service, this would increase the profit margins considerably. I just wonder how many executives and sales people have told others as they make thier trips around the country.
Think about it, it's like a perpetual sales machine out there. I used to travel (sales) all the time, and I can't tell you how many times I'd be in another execs. office and use his phone to have my secretary fax me, or use my laptop to dial in to the mfg's database for inventories, etc. Today, even more so, there is much more use of the laptop, can you imagine a salesmen calling on a client in Rural America, whippin out his laptop, and hookin up. The client would be asking who he's hookin to, and bingo a sale is created for FNET, a corporate sale.
Now I know it sounds hoakie, but the word of mouth, snowball effect can be mind boggling, look at things like the pet rock, or mood rings,
non of these had advertising and yet the demand outstriped the supply for the better part of a year. What I'm thinking is this, if GTE can continue hooking up lines at the rate of 250 people per line, and run another OC24 cable inside the already placed Conduit pipe, FNET could continue to explode at an unlimited rate, before the rest of the industry could even get a handle on it.
Now, what do you think the Underwriters of an IPO will think when they see the rapid expansion underway. There first thoughts are going to be
going thru their minds is the pricing, 10, 12, 15, 18, 20 per share, think about it, as they look at this, everytime they call in, there's another couple thousand customers online, how do they price it? UP, UP, UP and they have a story of uniqueness to sell.
We have gotten off the IPO story for some time, but I'll bet we see some action come Feb., in the meantime, the Revs are flowing in like the Alaska pipeline.
Look for more news next week, there is just to much business coming to not have news. With all the contracts that are being drawn up, news will be a catalyst in January, especially leading into mid February's 2nd qtr report.
RB |
