SLR Koffee Klatch 06/07/2010 Internet Addendum
This Koffee Klatch Addendum contains a written recap of the presentation presented at Koffee Klatch on Monday 06/07/2010 covering the Wireless Internet situation in Saddlebag.
The following contains a recap of the main issues. At the end of this document is a link to a recording that was made of this presentation. It should only be accessed by people with high speed internet and will not be viewable on dialup. The session lasts a little oven an hour.
1. Lake Wales Wireless announced last week that they have gone out of business as of 1:30pm on Saturday May 30, 2010.
2. Why ? There was a storm near Saddlebag that struck the tower at the corner of Florida Rte 60 and Sam Kean Road. Over $20,000 damage was done to equipment in that tower equipment room and Lake Wales Wireless management did not feel they could afford to repair/replace this equipment. Thus they were out of business with no warning.
3. Many people who had paid them in advance have asked me if they get a refund.
a. I have no relationship with Lake Wales Wireless except that I was a customer just like you and I cannot give any refund.
b. My best guess is that the odds of a refund are not high. BUT I would suggest that you send them a letter at P.O. Box 701, Lake Wales, Fl 33853 and request a refund of the amount you had paid in advance. My understanding is that if you paid in advance, you are a creditor and three creditors can put a company into involuntary bankruptcy. The reward will probably not be worth the cost, but the choice is yours.
4. Many of us are not surprised that LWW failed. Their customer relations and general business practices offered a lot to be desired. But, that is in the past and it is time to move on.
We have tried to prepare a rapid plan that achieves the following goals
1. Get the old WiFi distribution system inside the Resort back up and running with a new internet feed.
2. Get started on a permanent solution that will provide top quality services at a minimum cost.
An analysis of the alternatives and their costs shows that the best long term solution is to wire the entire resort with fiber and provide a high speed ethernet connection to every stump in the Resort. On this system we can provide internet, telephone and digital television services. But the timing is not immediate. Thus it does not provide relief from the immediate problem.
If all went perfectly an fiber distribution system could be operational this fall. But a more realistic timetable is the Fall of 2011, assuming that this upgrade will require shareholder voting.
I have talked about the best possible pricing senario to make sure our residents know what the choices really are.
it is possible to achieve the following price plateaus.
1. $10.00/mo wired internet connection
2. $15.00/mo additional charge for 1 digital telephone line (for a total of $25.00/mo)
3. $25.00/mo additional charge for approximately 120 channels of digital TV (for a total of $50.00 per month.
I AM NOT SAYING THIS IS WHAT IS GOING TO HAPPEN.
For example. We are talking to Bright House Networks about wiring the Resort. They have already told us it will cost the $1,200.000 to wire the project. I believe this is a highly inflated number, but id we assume right now that they agree to absorb the entire cost. Their standard price for the above set of services is about $100/mo. This $100/mo is not a new cost, you will save any internet cost you are now spending, you will save any telephone cost you are now spending and you will save any satellite TV cost you are now spending. Current costs are typically $10 to $62 for internet, $30 to $40 for telephone and $60 to 90 fort TV. This your total is some were between $100 and $192 / mo for the same services.
Obviously we would all prefer to get these services for $50.00/mo not $100.00/mo. How do we do that? Answer get our own system. We have obtained verbal installation quotations of $400,000 , $800,000 and $1,200,00 from three parties. To be clear I HAVE NEVER PROPOSED THAT SLOA PAY THIS FROM OUR BANK ACCOUNT. We have another currency to offer up to 790 users and a multi-year contract. Both the $800,000 and $400,000 estimate came from companies who indicated they were prepared to fund the installation in exchange for a multi-year contract. No more meaningful detail is available at this time except to say that all I am doing is attempting to negotiate a reasonable set of alternatives so our Board and/or shareholders can make a decision. Or maybe we would prefer to continue paying $150+ and not have any internet. In the meantime am trying to get the old system back "on the air" so we can buy the time we need to do it right.
One last subject. Some people have purchased Verizon Air Cards in an attempt to get back on the internet. My experience has been that the Verizon speed has dropped in half in the last week. I called them to find out how soon they can increase the capacity of our cellphone tower. Answer: Don't expect better performance before March 2011. If you have an Air Card on a 30 day trial you might want to think about returning it while you can. I don't forecast a pretty pictures when everybody comes back and their additional Air Cards are connected to our tower. Watch the video for more detail. If you buy an Air card now the speed and connection will seem pretty good most of the time, but as the load grows it willsteadily get worse. To call the present Air Card speed "BAD" you have to have seen it two weeks ago. Two weeks ago download speeds of 2500 to 2900 kb were common and upload speeds of 1200kb were common. Now you are lucky to get 1200kb down and 400 kb up ... and, it will only get worse.
Bob Staib (Jr)
The following link will stream a copy of the Monday 6/7/2010 Koffee Klatch to your computer
Koffee Klatch 6/7/2010