Finance Q&A

Your own Business Marketing Local Phone Service ?

Edwards Finance > Phones

Q. I have a business opportunity for you. I respect your time, so I am going to present the opportunity in a direct and straightforward manner.

A. This opportunity involves starting your own business to market alternative local phone service. Due to Federal Deregulation, the customers in your area now have a choice of local phone service providers. They are no longer bound by location to a provider. The company that I represent is EXCEL-VarTec and they are now providing alternative local phone service to people in your area, with extremely attractive service packages. I joined this business because of the residual income potential. I plan to retire soon and when I do, I will continue to be paid a commission on each of my customers phone bills, every month, without any additional effort on my part. However, that is just one way to generate income with this business. Let's pretend you have a typical WISP (wireless ISP) system with 100 users. Rule of thumb is that such a system can support: 100 light email and web surfing users 10 business customers 1 file sharing user Yep, 1 user can saturate your system with their file sharing habits. So, you need some form of bandwidth control or bandwidth management. So, back to the typical system. Broadband loading is currently at about 10:1 or you can oversubscribe your bandwidth consumption 10 times assuming light users. You can look at this in many ways: 1. If only 10 users are on at one time, you have enough bandwidth to keep the phone from ringing. 2. If all your 100 users are on at the same time, they will get 1/10th the peak available bandwidth. 3. If each user is expecting DSL performance, you need: 10 * 1.5Mbits/sec = 15Mbits/sec backhaul performance. 4. If everyone gets online at the same time, 10% of them will ring your phone with complaints.

 


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