Network Expansion Policy

LiveAir Networks' Rural Area Network is expandable to include new geographic areas. We believe that the demand for our services exists in many areas surrounding our existing (and planned) coverage areas. Many individuals call us looking for our services and we just don't have service in the area yet.

This document summarizes LiveAir's Network Expansion and Justification policy. Individuals, businesses, organizations, homeowners associations, etc. may utilize these guidelines in gathering support and demand for our digital microwave services to be made available into a new area.

LiveAir Networks Expansion Policy

LiveAir Networks will consider expansion of the Rural Area Network under the following standard terms:

If an acceptable tower or high structure exists which we may equip with an unrestricted network node; minimum contracted revenue for 24 months must meet or exceed $14,000.
If LiveAir must secure a site and construct a new tower/high structure to reach the new area; minimum contracted revenue for 24 months must meet or exceed $26,000.

These terms are valid when the structure serving the new area lies within 8 line-of-sight miles of existing network backbone services with available capacity. Terrain and geographic indicators are the only way to determine where the ideal location for a new service structure is located and if it can successfully link back into the Rural Area Network. New service nodes are designed and located to provide coverage within an estimated 3-5 mile radius from the service structure.

For areas which require additional construction (multiple structures) to expand far enough to service the area, appropriate minimum contract revenue rates will apply per new node, on a complete construction project basis. For example, if individuals in XY area want new service, and to service the area we have to equip both a new structure and an existing structure, the entire project must meet $40000 ($14,000 existing + $26,000 new) in minimum contract revenue over 24 months.

Under normal circumstances we will NOT build on speculation. We must have committed revenue in order to build to a new area.

Calculating Minimum Contract Revenue

Whoa, you say! "That's a lot of money!" Well, let's see how much money it exactly is following our standard rate schedule:

G3 Residential Clients at $21.95/month - 24M contract is $526.80 each
G3+ Residential Clients at $39.95/month - 24M contract is $958.8 each
Biz3 Business Clients at $69.95/month - 24M contract is $1678.8 each
D-Class Clients count, too, but custom construction requirements apply to these clients so we can't publish standard contract values.

So, by that logic, to meet $14,000 in contract revenue, you would need only 27 G3 residential clients committed inside a new potential service area. If 50% went with G3+, you'd need only 10 clients on each residential service plan!

Our team is happy to provide essential services related to expansion to your area, including engineering and network mapping, providing service flyers for your distribution, as well as to manage presigns and commitment information. We are also also happy to assist in identifying and selling larger D-Class business clients which can serve as anchors to the construction cost and defray the number of residential presigns required.

The bottom line is that if you want our services in an area, and you believe you've got enough clients to make it worth our while, drop us an email or call. We can offer agent and community benefit programs as well.

Monday, March 31, 2008