I recently subscribed to HughesNet. It's shit. Really offensive shit. 700 ms ping, 300 kbps (1.5mbps advertised), harsh 350MB/day bandwidth cap, flaky signal even on clear days - at $80/mo.
It's bullshit, and I have four weeks to cancel prior to facing $400+ in cancellation fees. DSL stops servicing about a mile West of me. I've contacted upper-management for the nearest DSL provider in my state, and he (in a relatively non-weasely manner) stated they have no interest in expanding service to my area, and I'll admit he came off as genuine in his desire to service my house. He stated they'll have a... guess...(!) satellite option coming soon to keep potential customers until they expand in well after a year. Fuck that. I live in the present, not 20 years in the future.
The solution? Canopy satellite connections. I've talked to someone knowledgeable in the field, and this seems like the best option. We can go up to 40 miles out without LoS -- so it penetrates trees like I penetrate my wife's dresses while repairing hems. The connection should be a reliable 2-4mbps with minimal flakiness. Latency addition is a mere 15ms. So... ~150ms + 15ms = 165ms -- that's a lot better than 700ms for satellite. HughesNet advertises users can access their email in "seconds." I don't have 10 seconds to wait for each freakin' email to load. I don't have 10 seconds for each image to load. I can't wait 10 seconds each time I change a formula in one of my Google spreadsheets. I can't. I won't. A solution is required, and it sure ain't satellite.
I propose a Canopy satellite be placed ~10 miles away from the nearest Frontier (DSL provider) CO. These are spendy -- ~$3k without installation. IOU.CANOPY (formally, IOU Canopy Connections) will lease land at a high elevation roughly that distance away from the CO in exchange for a free internet connection for that land-owner. The DSL connection should be around 10-15mbps at that distance from CO. The signal's beamed to a primary receiver, and then rebroadcast to omnis as necessary. The cost of omnis is passed onto consumers as an installation fee. We're up-front. No bullshit -- no "we know best." Consumers will know their options. They can spend $200 for a better signal, or try to manage with 2 wifi bars. At any time, they can "upgrade." It's cool. It's fine. Do what you want, but know your options -- I don't guarantee a shit connection will do something unreasonably fantastic, but you can try if you want. No sign-up fees. No late fees. No "Fair Use" terms buried in page 7 of your ToS agreement. No lifetime service contract. Fuck that. I'm tired of shit businesses. Users get one chart and a one-page contract. Fuck the rest. Users should understand what they're doing, not trust assholes to have customers' best interest at heart.
I envision offering a 2mbps max "burst" connection, and a 500kbps reliable connection. Thus, we will be able to service between 20 and 40 customers. I intend to charge $19.95/mo for service. Wait -- hold on, now. That looks bad if you have access to DSL, cable, or even FiOS, perhaps -- but keep this in mind - there are only two other ISP alternatives out here: dial-up, or satellite. Let's compare (excl. promo rates):
Dial-Up:Cost - $40/mo ($10 for ISP, $30 for antiquated landline service)
Advertised Throughput - 56kbps
Real Throughput - 30kbps
Latency - ~150-350ms
Bandwidth cap - Usually none, though sometimes there are "minute limits."
Satellite (Hughesnet as example):Cost - $70-180/mo
Advertised Throughput - 1500kbps
Real Throughput - 300kbps
Latency - 600-1000ms
Bandwidth cap - 250-600mbps per day
IOU Canopy Connection:Cost - $19.95/mo
Advertised Throughput - 500kbps (2mbps burst)
Real Throughput - ?? (keep in mind, we will not oversell where customers should be able to notice)
Latency - 150-200ms
Bandwidth cap - None
Making sense, now? Startup costs, I estimate will be between $5k and $15k. This range will narrow as I proceed with planning. Assuming I can snag 30 customers at $19.95/mo, that's $598.50/mo. The DSL line should cost less than $200/mo I do not believe there will be any problem finding 30 households interested in this opportunity, and I will be gathering pledges prior to collecting money for this venture. I think it's fairly conservative to expect $400/mo profit on $5k-15k upfront. Regulatory bullshit could cause unforeseen expenses, keep in mind. I've already contacted my state's manager of the nearby DSL company over whether or not this will violate ToS, and maybe he'd be kind enough to tell me about other rules I might be violating.
If I decide to go through with this, I intend to offer 1.2x as many bonds as there are dollars required for estimated start-up. I will purchase $2k worth of IOU.CANOPY. Additionally, I will receive 25% off the top as my time will be offered to IOU.CANOPY at a free rate (this includes installation, maintenance, acquiring customers, accounting, etc). Assuming $10k estimated start-up costs, then, I will issue $12k worth of bonds, of which I'll buy $2k worth, give $2k worth to my consultant (deslok), leaving $8k for the public. Face value will be $1 in BTC-equiv at time of IPO. Unlike BDK/IOU, IOU.CANOPY will keep books using USD, not BTC. Dividends will be 50% of profits (after my cut), leaving 50% for IOU.CANOPY to expand and improve service. (IOU.CANOPY is a floating bond similar to how BDK is structured -- there is no explicit equity granted, but bond-holders receive profits similar to if they owned equity and receive a fixed amount in case of liquidation, to which I'd be personally liable) Thus, shareholders (incl. myself) will receive 37.5% of profit, IOU.CANOPY will receive 37.5% of profit, and I will receive 25% of profit.
Assume, then, $400/mo profit. Shareholders receive $150/mo, IOU.CANOPY receives $150/mo, and I receive $100/mo. This results in a shareholder annual %RoI (using my initial, very rough, guesstimates) of 15%. Once established, things will go smoother... I'll understand the market better and raise rates to appropriate levels, have usage graphs to look at, and look at expansion if things look good. I'd guesstimate (based on no hard evidence) that by 2018, annual %RoI over face value (dividends, only) will reach 30%. IOU.CANOPY will expand as opportunity presents. Similar to IOU, I am permitted to inject cash into IOU.CANOPY or front cash as a "free" loan, though I'm not allowed to issue bonds to myself for that (but I can buy and sell bonds freely on the open market). I'll go into more technical crap when the "real" thread is up -- buyback conditions, liquidation liabilities, dividend "rollover," yada, yada, yada.
TO DO:
[1]*Finish discussion with FTR employee, make sure I'm not violating ToS. Figure out line lease price. (3-10d)
{Propane, refrigerator, stove, bed arrive -- install. Also install new siding, further sand entrance door. Notarize closing rep. statement for house in Erie. Trees need to be planted.}
[2]*Advertising campaign seeking usage pledges. Flyers will be drawn up, given to everyone who'd be in range. (2-3d after [1])
[2.a]*In free time, write up more formal ToS.
{T.L. will arrive to inspect skylight and give quote on basement windows. Contact State Farm about getting insured after T.L. is satisfied. Find a riding mower, yet?}
[3]*After 20 households pledge, contact GNSWireless about exact configuration options. (2-4d after [2])
{Good time to derp about. You paid BDK.BND dividends, right? What's Pirate up to?}
[4]*Draw up detailed map with satellite position suggestions, keeping in mind where most dense amount of pledges are. Present to Deslok for improvement. (1-3d after [3])
[4.a]*Announce IOU.CANOPY will exist, and guesstimate price/share, give better estimates.
{Smoke cigars, drink hard liquor, talk like a badass.}
[5]*Further consult with all involved parties, give time for IOU.CANOPY to be "digested," lease land from high-elevation land-owner in exchange for free ISP connection (4-8d after [4])
{More cigars. Also, more derping about.}
[6]*Launch IOU.CANOPY, purchase equipment. (0d after [5])
{No time for derping. Go directly to [7]}
[7]*Wait for equipment to arrive (4-8d after [6])
[7.a]*Derp about, wonder what the Hell I've done.
{Already derping. Derp, derp, derp.}
[8]*Install, configure equipment (1-4d after [7]) -- At this time, I can cancel my shit satellite service.
{Fuck satellites. Oh. Wait...}
[9]*Formally sell to customers, install additional equipment (10-45d after [8])
{I hate people, and I want to enter 30 strangers' houses? I guess I moreso hate talking to people without something to offer them. It seems pointless -- I'm already content.}
[10]*PROFIT?
{God, I hope my son doesn't become a philosophy major. Or psychology... Might start theorizing about why I talk to myself in parenthe-brackets. Well, it has a purpose, I just like to soft-sell everything. Fuck - he could have a theory about that, too...}
Total (rosy) guesstimated time from initial planning to "maintenance mode": 27-85 daysIdunno. Sound feasible? Interest? Suggestions? What business do I have running an ISP? None, really. I do think I've underestimated potential, here, but I'm sure I'm making this out as far too simple than it'll be. Everything's always more complicated when you involve others, and this involves a relatively high amount of collaboration. Cheers,
Ben
ETA: After looking at Frontier's site better, it's looking like 7-12mbps down, 768kbps up, which is far lower than I'd like, though they charge ~$100/mo for that. Comcast serves nearby, too, and would be worth considering. I'll contact them, too.
ETA2: Comcast offers far superior options. 12mbpsdown/2mbpsup $60/mo, 22mbpsdown/5mbpsup $100/mo, 50mbpsdown/10mbpsup $190/mo, 100mbpsdown/10mbpsup $370/mo.
With 50 down, we could do 50-100 households, no problem, though obviously, we'd need a lot more hardware... but if customers pay for it... it's "free."
