Example CLEC Operator Business Case

• New Zealand Operator Highlights

• Revenues: (US$)

  • Voice Revenue per line/ Mo. 18.00
  • Flat Rate Data Access / Mo. 100.00
  • Installation Charge 180.00
  • Long Distance Revenues/ Mo. 11.00

• Costs

  • Local Line Cost / Mo. $8.00
  • Customer Acquisition 54.00
  • Provisioning Expense 54.00
  • Spectrum Costs / Base Station 1800.00
  • Site Prep Expense 5415.00

• Engineering Parameters

  • Base Stations Required 66
  • Total Lines 49,500
  • Cumulative Total Subscribers 211,500

• Total Capital Requirements $485M

  • Spectrum Costs (over 4 yrs) $5M
  • Airspan Infrastructure (total) $136M
  • CPE Costs + Install (4 years) $288M
  • Switch / Backbone $56M

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Cumulative

Cash Flow

Cash Flow

Operating Expense

Revenues

Cumulative

Capital

New Zealand New Operator Business Case

Cash Flow Positive: 4 quarters

Cumulative Cash Flow Positive: 8 quarters

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