Laserfiche WebLink
Model C shows a combination of Phase 1 and 2 scenarios, demonstrating that the City <br />could be profitable if it were to own and operate both phases as one network. In this <br />scenario, there are some economies of scale that can be recognized including having <br />one network team and management vs two separate models. <br />We also model each Phase as if a standalone network with Lit San Leandro following <br />Magellan Advisors business model recommendations in Phase 1, and with the City <br />managing Phase 2, also using Magellan Advisors recommended business assumptions. <br />Modeling for each phase demonstrates that both can become financially viable. <br />Model A assumes revenue and cost projects for Phase 1, using Magellan's <br />recommended business model. <br />Model B assumes the City builds and maintains Phase 2 of the network and sells <br />wholesale services to ISP's. <br />Figui,e 70, Medal B Fina viol Snapshot <br />75 Five hundred feet was chosen as an average distance that is within the generally accepted cost to have an <br />acceptable return -on -investment. At distances further than 500, the cost to construct the "drop" from the core to <br />the business increases and makes it more difficult to get a return -on -investment (ROI). However, the City should <br />take each request on a case-by-case basis as each drop cost may differ slightly depending on how many potential <br />subscribers are being connected <br />116 <br />