The bidding strategy for this fall’s “reverse” Rural Digital Opportunity Fund (RDOF) auction is to bid as low as possible while maintaining a financially feasible broadband project. But how do you find that bidding sweet spot? By using JSI’s RDOF Bid Optimizing Tool, which uses your broadband business plan to help you determine the lowest possible bid for your project.
This incremental business case model allows you to analyze conditions for up to 25 census block groups, either individually or as a package. The easy-to-use model walks you through the major inputs, which is especially useful if you are just entering the broadband market. You simply input your CAPEX, subscriber build up, revenues based on APRUs, and expenses and the model shows you, based on your inputs, what bid makes sense and how low you could go in reserve price for the chosen area. In addition, you can change the reserve price, your expected take rates, and planned homes passed to identify how low you can bid for the project to remain financially viable.
The model’s three financial statements and dashboard also help with your broadband business planning by providing details on net present value (NPV) and internal rate of return (IRR), when net income and cash flow turns positive, and how much cash outlay is needed.