Odessa Community Wireless Internet Project

1. Odessa Office Equipment4 S. DivisionP.O. Box 489Odessa Wa. 99159(509) 982-2181 Community Wireless Internet Project By, Marlon K. Schafer Owner, Odessa Office Equipment (509) 982-2181 (509 988-0260 cell

2. Mission Statement • To provide services and equipment above and beyond the customer’s expectations. • To develop a loyal customer base, based on superior service. • Utilize the latest practical technologies.

3. Market Summary • We are an internet provider covering most of Lincoln and some of Grant counties. • We see a wide open market in BBW (Broadband Wireless) internet services in the area. • There are now thousands of companies using wireless technologies to deliver BBW internet access around the world but none providing it to the general public in the Community area.

4. Opportunities • As an Internet Service Provider we have a commanding market share in our coverage areas. • We offer superior service levels. • We can charge more because we can give more. • In the Lincoln, Creston, Wilbur, Almira, Coulee City, and Hartline area we were not the first provider in, but we already (in less than 1 year) have X+ customers. • In Odessa we have at least that many even though we charge 20 to 30% more than the competition. This is due mostly to our service levels. • As of today (September 3, 2002) we service X internet customers (plus virtual domains from various states) at a minimum of $25.00 per month per subscriber. • We will do even better by upgrading our infrastructure to a wireless system. • This will allow us to offer 1000% faster service for only $5.00 to $10.00 per month more for most customers. • We will also lower our costs per customer by eliminating the incoming phone lines.

5. Business Concept • Wireless internet takes advantage of the unlicensed ISM and UNII radio freqencies. • It will allow us to offer 1,500k/sec service within the area of any cell site we erect. • We will start in the downtown area and build more repeater sites in the area’s that have the most demand. • We will determine demand based on word of mouth and advertising results. • It will cost ~$50,000 to install this system into the downtown area of Community. • I believe that within 12 to 18 months we will have about 1000 customers on this new system. At $40 per month per customer that will yield a minimum of $40,000 per month just in the town of Community. • We will need another $1,000 data feed for every 100 to 150 customers ($10,000 in t-1 costs). Yielding a gross profit of about $30,000 per month.

6. Competition • The only short term competition for high speed (sometimes called “Broadband”) internet access would be from the Phone company. • They, however, have been talking about offering internet access in these small towns for a couple of years now and have not done it. • I can’t imagine any large companies coming into an area this size to only make a couple thousand per month. They can not function at those levels. • Long term competition would most likely come from other small ISP’s. • I don’t think that this is much of a threat either. Others could have also done this and have not. Once this is in it will be very hard to take those customers. • The first one in will be the big winner here! • In Community customers are currently being charged much higher prices. • It currently costs $250.00 per month for 1/24th of the speed that we will offer for $40.00.

7. Goals & Objectives • 5-Year Goals • Service 1000+ internet customers in a two or three county area. • Have the largest, most extensive wireless internet system in the area. • Sell out for a 7 figure amount to one of the national outfits during the next buyout frenzy.

8. Financial Plan • We will do $150,000.00+ next year in internet business. • That’s $12,500.00 per month in income. • With about $3,000.00 per month coming out in phone lines. • $2000,00 per month in data circuit costs. • And about $500 per month in service contracts and software. • That leaves around $7000.00 per month in profit without any increased revenue from new customers or the wireless system!

9. Resource Requirements • Technology Requirements • Two computers for local DNS servers ($3500). • One Cisco 2610 router ($3000 used). • One data circuit (T-1) $1000 install and about $1000 per month. • Wireless repeater site every 3 to 5 miles around city center $2000 to $5000 depending on customer density and tower requirements. • Personnel Requirements • 1 part time (full time I hope) system installer ($50 to $100 per install). • 1 tech support (also the installer if I can find the right person) $2500 to $3000 per month when we are at full speed only part time till then. • 1 sales person. Paid per sale. • Resource Requirements • $50,000 will be needed immediately. • $50,000 to $200,000 in operating capital over the next 12 to 24 months. This may be needed for additional towers and/or personell. • This amount may, or may not be needed depending on the rate of growth. The worst thing I could do is build a demand and then not have the capitol to fill the orders. • External Requirements • See the attached pages for a list of cost per customer as well as income per customer.

10. Risks & Rewards • Risks • Waiting for someone else to do this will effectively lock us out of the market. • Addressing Risk • We’re going to do this now. • Rewards • Increased profitability with lower long term costs. • Greater long term stability due to industry leading technological infrastructure. • No fear of increased operating costs due to changes in the tariffs that would otherwise only benefit the phone companies.

11. Key Issues • Near Term • Funding for the wireless infrastructure and CPE (customer premises equipment). • Long Term • Phone companies around the country are putting in low cost internet access. • Wireless access will allow us to compete against any possible competitors in the foreseeable future.