FCC Rural WISP Showcase

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• FCC Rural WISP Showcase
• November 4, 2003

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Prairie iNet Mission Statement

• To provide high-speed, broadband, Internet
  service to Rural America.

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Investors

• Allen Company Incorporated, New York
• CoBank, Denver
• FCStone, West Des Moines
• Greenspun Corporation, Las Vegas
• Janco Partners, Denver
• Liberty Satellite Technology, Denver
• Megunticook Fund, Boston
• Principal Financial Group, Des Moines
• Waitt Media, Omaha

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Carrier Class Economics

• 100,000 proposition
• Base station deployment 40,000
• Customer acquisition 800
• Customer Premise Equipment _at_ 400
• Professional Installation _at_ 140
• Variable Sales Marketing _at_ 260
• Breakeven at 75 subscribers
• 70.00 ARPU / 70 residential / 30 business

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The Hobbyist Base Station
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Uniform Base Station Design
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Four Fundamentals

• Backbone
• Expandable services
• Mapping
• Eliminate the guess work
• Point of Demarcation
• Eliminate computer ownership issues
• Financial Discipline
• Focus on profitability

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Have a Spine!

• Leverage your network backbone
• T-1 provides 1.5 Mb vs DS-3 _at_ 45 Mb
• Greater manageability monitoring
• Reduce latency
• Build for the future

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Broadband Services
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Mapping / Story City, Iowa
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Service Point of Demarcation
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Customer Premise Equipment
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Financial Discipline

• Focus on profitability
• Recurring revenue model
• Churn management
• ARPU
• Prairie iNet _at_ 70 based on a 70 - 30 mix
• Individual community financials
• EBITDA positive
• Free operating cash flow

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What Can Washington Do?

• FCC
• Update Part 15 rules
• Increase emitted power limits in license exempt
  frequencies
• RUS
• Get loan to work

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• Neil Mulholland
• 720.570.1220
• nmulholland_at_p-inet.net