Sunday, 23 May 2010


We would need a lot of supplies such as fiber cable, optic splitter, converter, antenna and routers
The london underground is 250 miles and worked out it would cost around £ 10,000 per mile, plus extra just in case
£500,000 flat rate

Maintenence cost would include:
System problems
Wifi signal failure
Maintaining the cable, routers, etc
200,000 per year

N-POWER will be our electricity supplier:
£500,000 per year
We are negotiating with both Virgin and BT to provide an internet connection throughout our Wifi network.
£1,000,000 per year (estimate)

Being such a large scale business plan, we need to advertise through our website, press announcements and TV adverts
£500,000 (first year)

I worked out the cost of wages for a year for the nine members of the team plus the four engineering team that would maintain the wifi network
£720,000 per year
Office space in Waterloo
(Price inc, cleaner and car parking)
£20,000 per year

Marketing Costs:

ITV: £17,000 (30 seond slot, drama/movie)
Oxford Circus:£126,500 (4 weeks)
London Busses-
Double Decker Vinyl- £15,549 (12 weeks)
The Sun:£50,975 (Mon-Sat) per week (Colour full page)
Metro:£25,109 (Mon-Sat) per week (Colour full page) (London only)
The Guardian:£34,000 (Mon-Sat) per week (Colour full page)
Possible Revenue:

Scenario (Best):
100 million people use it I the year each paying 50p a day for 200 days we would make 1 Billion for that year
Scenario (Average):
50% of Oyster card users (5 million) tried it for one day (50p) £250,000,000
Scenario (Worse):
Only 10% of Oyster card users tried it out for one day we would still make £500,000. This would cover the installation costs.

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