Selling Bundled Connectivity Services To Your New Home Buyers

First Mile Technologies (FMT) is a provider of services to the "First Mile." We go into a development and install all the underground infrastructure and outside plant to deliver local phone, long-distance phone, cable television programming, hi-speed internet access, a community intranet and security monitoring.

We are the first technology service provider intentionally moving beyond the substitution of existing cable, telephone and high speed data services, by positioning our technology and business focus to capture a significant portion of consumer purchases and monthly spending in new "Greenfield" home communities. Future offerings will include video on demand, distance learning capability, home-based health care, home property management services, as well as resold gas, electric, and water utilities.

Actually, our goal is to capture the "total spend" coming out of the home in the new home residential market.

All of these services will be bundled into convenient packages and the consumer will receive one invoice for those services ordered. While today the average target consumer spends approximately $140.00 per month on these services, the Company projects that in 10 years new homebuyers in the our target markets will spend over $400.00 per month per house. The estimated size of this addressable new home market is over $12 billion annually.

The bundling of these services will truly enhance the lives of the homeowners that receive them. It will make their life much simpler (one provider/one invoice), they will receive higher quality product and better service, all at a better value than is possible today with "normal" ala carte' options. The high bandwidth they can receive will also make Sogo's a very efficient option and make things like distance education and home health care a reality.

FMT's first project, Centennial (by the Estridge Group), is a 900 home development in Indianapolis. As of June 30, 2000 over 100 families were living in Centennial and were enjoying "bundled" broadband, telecommunication access, connectivity, entertainment and security monitoring not currently available anywhere else in the country.

At Centennial, Estridge has installed Commscope Ultrahome wire (two coax, two cat 5, and a fiber... all in a jacket) in the home. Estridge also installed an OnQ Technologies box that includes a phone punch down panel, a cable TV amplifier and an 8 port 10 base-t hub. So, all the data ports in the home have hi-speed data access.

We are negotiating with developer/builders in other markets and plan to rollout operations in Houston, Denver and Tampa during the first half of next year. We then plan to expand into six additional markets before the end of 2001. Within 5 years we will be in the largest 36 markets in the United States.

We provide this infrastructure at no cost to the developer and the developer participates in a revenue share program with First Mile on the revenue we receive from the homeowners for the services we provide.

To encourage "Greenfield" home community developers to work with FMT, the Company is offering a revenue share program based on the number of subscribed services, coupled with the number of homes connected. FMT offers several different packages to developers that address their needs (revenue share and incentives) and requirements (easement language ranging from nothing different than what they are currently doing to special land use language FMT can assist with).

We install the underground infrastructure in the development at no cost to the developer and maintain the infrastructure. The customers of First Mile's services receive an ethernet Internet appliance free. This device will have the community Intranet on the screen all the time as the default screen. Customers have one phone number to call to fix any problem that may arise with their phone, cable TV or Internet service.

FMT is not "tied" to any specific technology. The company will migrate to the technology that is most efficient and effective at that time. We currently have a strong relationship with Nortel Networks. We are also now in discussions with potential strategic partners and venture capital firms to tie-up a second round of funding. This should be completed before the end of September.

For more information, contact:
Mark Flagg
Vice President
Director of Special Projects
First Mile Technologies
1041 W. Main St.
Carmel, IN 46032
Phone: 317-815-2514

Also See:

Flagg Discussion