If you own everything it is not a problem.
-----Original Message-----
From: Adam Moffett
Sent: Wednesday, October 7, 2020 7:58 AM
To: af@af.afmug.com
Subject: Re: [AFMUG] OT Royalty deal
On 10/6/2020 3:20 PM, John Osmon wrote:
On Mon, Oct 05, 2020 at 02:20:24PM -0600, ch...@wbmfg.com wrote:
I am getting some traction with developers for my fiber. They want me
to come in, they will put the subscription to my service as part of
the HOA fees. They will not let others in the ditch. All for 10% of
the gross. So I get 100% take rate. I am not unhappy with the deal.
But I am wondering about agreeing to a perpetual royalty. Anyone else
done one of these deals?
I'd be tempted to do it as two companies.
Company the first: FTTH provider. Layer 1/2 aggregator
Company the second: ISP
HOA fees cover an ethernet/PON connection to a head end. The ISP can
connect to any homeowner at the headend.
The fiber company will make money in perpetuity. The ISP can make money
as long as they serve the customers wishes.
The value might be in perception more than anything. If the developer
was wary about being trapped with an ISP they hate later, then something
like that might appease them.
I'm also a big proponent of structural separation. In my world, anyone
that uses the public ROW would be prohibited from being an ISP.
Yeahbut you're not plugging the same fiber into multiple OLT's. This
would be a mandate for a central split architecture. If you built
distributed split and didn't include lots of surplus fibers then you're
still basically stuck with one provider. I'd be annoyed if last mile
network design became accidentally enshrined in law.
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