tshirt
Premium,MVM
join:2004-07-11
Snohomish, WA
 ·Comcast
| This is pretty low risk......
..... for Broadweave
"Broadweave will purchase the network for $40.6M though a city-financed loan spread over 19 years. As part of the deal, ownership of the network reverts to the city of Provo should Broadweave become unable to make its payments on the loan. The loan is currently backed by a $6M letter of credit from Sorenson Capital but requires no up-front money on Broadweave's part."
Say the break even is $4million a year, with almost 40K homes passed, they can offer dirt cheap rates, for basic service, a bit more for higher tiers.
$40 million for 40k homes passed with a preinstalled fiber network is very cheap. |
