Odessa Office Equipment 4 S. Division P.O. Box 489 Odessa Wa. 99159 (509) 982-2181

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 the wireless internet area. • There are a few using wireless technologies 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. This is due mostly to our service levels. • As of today (Dec. 27th 1999) we service X internet customers (plus virtual domains from various states) at a minimum of $25.00 per month. • 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 recently freed up 2.4 GHz frequency range. • 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 work 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 from about 1000 customers (the ISP I’m working with down there thinks that 6 to 12 months for this is more reasonable) people on this new system. That will yield a minimum of $50,000 per month just in the town of Community. • We will need another $1,000 data feed for every 150 to 200 customers. Yielding a gross profit of about $6,500 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 $35.00 (+$15 per month for equipment rental).

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 $114,000.00+ next year in internet business. • That’s $9,500.00 per month in income. • With about $2,220.00 per month coming out in phone lines. • $1500,00 per month in data circuit costs. • And about $500 per month in service contracts and software. • That leaves around $5000.00 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 ever 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 • $300,000 as operating line. About $50,000 of which will be needed immediately and the rest to be used to fill equipment and infrastructure needs as they arise. • 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 all 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.