Ok ask yourselves how much we miss the Elkster. Great post on the other thread. I know some of you read it but its worth a post on sillyclown.
By: Elk
Reply To: NoneSaturday, 3 Oct 1998, 4:03 PM EDT
Post # of 2865
The Real Deal on Bosnia:
Enough of the biased unsubstaniated crap on SillyClowns about our network in Bosnia, here is what is really happening!
From the PR:
The stations and equipment were installed in Bosnia to facilitate calls exclusively for NATO troops
stationed there from a number of countries, including France, Great Britain, Germany, Italy and the United
States. The network now produces revenue in excess of $100,000 per month, according to E. Rocque
Kramer, CEO and President of Megaburst, who worked with Harris Corporation in establishing the
service.
According to Kramer, "Having been involved with this project from its inception, I am pleased to be able
to work with Franklin in taking this network to the next level. With peace returning to the region, the area is
primed for explosive economic growth. The time is right to introduce this enabling technology not only to
the budding enterprises of this former Olympic region but also to the world-wide agencies located there.
While we will maintain our NATO customer base our expansion plans will soon make our services
available to include commercial traffic, like the banking and European industries in general. This will also
allow agencies of the E.U. to obtain reliable and less costly telecommunications with their out-of-country
headquarters. Because of this extension of our services, we anticipate a rapid rise in revenues."
OK so troops start leaving because of peace, gee what a shame that we have a state of the art communications Sat uplink system in a peaceful nation waiting to emerge into one of the high growth areas of Europe when the trouble is finally over and the troops are sent home. The PR shows that from the beginning, we are focused on the future of that area, with the comments above, banking, business, and gov't comm. is all targeted. Well do you think a system that was secure enough for NATO to use, is secure enough for those institutions? Do you think if the infrastructure existed for these communications in Bosnia that this system would have been built? So when the need is there, FNet will be able to provide it cheaper and more securely then any other system in place? Seems so to me, but I am willing to consider any facts to the contrary, as this is a DD lesson for me, as they all are. So if troops stay we see a the current growth percentage, if they leave due to the stability of the region, I like that even better! Either way, the following calcs look like a minimum growth level to me, and lasting stability should increase them even more.
From the 10 filing we have this:
"During June 1998, FNet entered into a joint venture agreement with Megaburst, Inc. to operate an 11-site satellite telephone network in Bosnia used by NATO troops. The joint venture will operate a network that was purchased by Megaburst, Inc. from a third party for $150,000. FNet advanced funds to Megaburst, Inc. for the purchase of the assets. Megaburst, Inc. will subsequently transfer the assets to FNet."
So we bought it for 150K? Well that seems like one HECK of a purchase, kudos to Macgruder and Kevin, who brought the deal to the table.
Now keep reading, from the CEO's message page:
"Eleven of the 15 earth stations are operational and averaged over 2,000 minutes per day in August.
The September run rate shows a 30% growth rate over August. Additional sites for Turkey and
Canada are under negotiation. "
And then finally for those worried about the US troops leaving, read the following:
" Also, the Bosnia operation is growing. We are now delivering phone calls to Afghanistan, Algeria,
Argentina, Austria, Belgium, Bosnia, Bosnia Herze, Colombia, Croatia, Denmark, Djibouti, Egypt,
Fr Antilles, France, Gabon, Germany, Guadeloupe, Guyana, Italy, Kuwait, Luxembourg,
Macedonia, Mongolia, Morocco, Nicaragua, Norway, Pakistan, Peru, Reunion Isle, Russia, Spain,
Sweden, Switzerland, Tunisia, Turkey, Unit Kingdom, Yugoslavia, USA, Canada. The lions share
are going to Spain, France, Germany and Turkey."
We are terminating calls in the biggest European countries, Africa, Central america, Asia Minor, nice footprint, if you ask me.
HHHHHHHHHHHHHHHHMMMMMMMMMMMMMMMMMMMMMM, Lets see, and someone help me if I am wrong. We have experienced 30% growth, in our 11 sat links, meaning that from our August rate of 2K minutes per day, we are up to 2.6K per day. We also know that there will be 4 new links coming on line, growing our network 36%. So that shows me we will be over 3.5K per day. Thats growth of roughly 60% from the time of acquistion. Now at the time of acquistion, it was prodcuing a 100Krev/month, so it looks to me like we could see that at 160Krev/month. Or close to 2 Million a year for our network in Bosnia, with no further growth factored in.
Guatemala and Bosnia moving 3.5-4 Million in rev's between now and next Sept, yeah sure no news, no numbers, no growth, no future. I wonder what happens when we light up our UK servers for full commercial billing shortly, according to the CEO's message? GGGGGGGGGGGG
Did I leave out The Sky is Falling!
Thanks Elk |
