Wholesale Broadband
Moscow, Pullman, Coeur d'Alene, Post Falls,
 Hayden, Sandpoint

Using numbers given to us by Verizon sometime back, it is reasonable that 24 computers can share a Bronze Plus connection with good service provided no one engages in practices that degrade the service (such as streaming video) or provides services to the Internet (such as web, ftp, or Napster).

Apartment Buildings

One way to attract more tenants and increase revenue at the same time is to provide DSL service to each apartment at a fraction of the cost of individual DSL service or cable modem service.

What it costs to wire each apartment building or campus with Ethernet cabling varies with the amount of labor required, but it is reasonably inexpensive if you shop around.  You need at least one Ethernet outlet per apartment (and we recommend one in each bedroom) with the wire running to a secure central location.  At that location, we install a hub or hubs and connect it to a DSL modem.  This room will require one phone line for the DSL.  You can get a low cost metered phone line without long distance service since no calls will ever be placed over this phone line.

The monthly charges are as follows:

• $37.50 per month to Verizon for the 768K/128K line, or $45.50 for 1500K/384K.
• $15.00 per month to Cactus to pay for transport from Verizon to us.
• $8.00 per computer connected to the DSL to pay for bandwidth and support.  Cactus will provide telephone or in-shop support to all of your tenants who are using the service.

What we suggest you charge is:

• $15-20.00 per computer.  This provides DSL at a cost comparable to simple dial-up service.  If only four tenants sign up, you should be able to cover the monthly costs.  At ten tenants, you should be able to recover your wiring costs in a few months and make a noticeable profit after that.
• It is our experience that 25-75% of the tenants will sign up, so you will most likely need 10 and no more than 50 tenants in your complex to make this work.  If you have more than 50 tenants then additional DSL lines can be added as needed.
• In some areas where there is a lot of competition for tenants, you might consider giving away the DSL service or charging a lower price than our suggestion.  If offering the service allows you to rent just one additional unit, you may be money ahead.

How it works.

• You need to have your tenants sign an agreement to follow rules that help prevent the service from degrading and to insure that you receive payment from each tenant using the service.  We can help you draw up such an agreement.  A copy of each signed agreement is faxed to us so that we know we are supposed to provide service to the tenant.  Then we bill you based on the number of signed tenants.  If a tenant leaves, simply inform us; we will delete their account and adjust your bill.

CACTUS INTERNATIONAL, INC. RESERVES THE RIGHT TO DISCONNECT ANY TENANT WITH OR WITHOUT NOTICE AND WITH OR WITHOUT CAUSE.

That said, it is not in our interest to exercise that right unless we believe the tenant is engaging in activities in violation of our use policies.  But for our protection and yours, you should include a similar statement in your own agreement with your tenants.

If you have questions or would like to start a dialog, please contact Tony at 883-5500 in Moscow and Pullman or at 1-800-310-5554 if you live in Verizon's North Idaho LATA.

Copyright © 2004 Cactus International, Inc.
cactus@turbonet.com
1-208-883-5500