Here is my opinion based on my very limited experience so far. Banks around here won't loan on anything but collateral. Period. You can have the best business plan in the world, but they want to see the venture already running with your own stake already in the game. And even then they take ALL of your collateral at 50-60 percent of value.
So good luck with that. Take rates doing it how we are doing it are all of those percentages. In other words we usually get over a third pre-sign before we even finish building. Then it's usually at around fifty when we connect everyone. Then it's growing to over 80 percent over a year or so in every neighborhood so far. An interesting thing I've noticed, but would still claim as speculative, is this: In neighborhoods with existing more expensive and somewhat similar/high speeds, we see a conversion of those higher dollars to our service. We sell a $50 plan and a $70 dollar plan. In the neighborhoods with existing Comcast where they are paying $70-80 for top tier bandwidth, they are converting to our similar priced plan. This didn't happen in the other neighborhoods that didn't yet have the high rate Comcast plans. Our ratio of $50 to $70 accounts was very small amount of $70 plans. In these Comcast and high speed CenturyLink neighborhoods its over a third. That is significant. I can't account for it in affluence either, the neighborhoods are the relative same, if not more affluent in the lower ratio ones. So in our very limited, particular case, it's been a very positive experience going into existing higher plan/tiered providers territory. From: Af [mailto:[email protected]] On Behalf Of CBB - Jay Fuller Sent: Tuesday, June 23, 2015 7:58 PM To: [email protected] Subject: [AFMUG] fiber fiber fiber .... yes fiber please Greetings everyone. My mission this week (this month?) is to put together a presentation to talk with local banks with to fund our fiber dreams. Those of you who have built and have statistics available - could you answer these two questions please? What is your take rate? (30%? 50%? 80%?) Are you building in areas other providers are available? (cable, DSL?) Thank you for your time. I look forward to all 100+ responses ;)
