Hayai Broadband is currently seeking investment for projects in India, including increasing availability of services in existing coverage areas as well as expansion to new areas and entry in to new markets.
Hayai is interested in establishing joint ventures with people looking to get in to the business as well as existing franchisees for the benefit of the network. Typically you should have a good relationship with the local community and authorities as well as a few other important things: desire, passion and access to enough financing to keep you covered until the investments pay off.
Hayai and the JV partner will form an entity, each investing an amount to be determined on a case-by-case basis:
- For JVs where there is no existing customer base/territory/infrastructure, we will need to calculate the cost of starting up in the area which will be split 50/50 between Hayai and the prospective partner.
- For JVs where there is already existing infrastructure, the investment value will be based on the value of the JV partner as determined by independent auditing of financial records, territory, subscriber count (including non-Hayai subscribers) & ARPU (including non-Hayai subscribers) and the JV partner will transfer 100% of it's assets (network, equipment, subscribers, staff etc) in to the new entity for continued joint operations of the network for all subscribers, including those with services from other ISPs. No liabilities will be transferred to the new company and must be settled by the JV partner on the date of asset transfer.
*Value of assets transferred may be subtracted from any cash investment.
Financial shares in the new entity will be 50/50, but Hayai's standard voting share structure for Joint Ventures are as follows:
- 49% to Hayai
- 49% to the Partner
- 2% to the partner's customer base
No additional voting shares may be issued, all shares are valued equally and no single share or entity has veto power.
Through this arrangement:
- Your network continues running as it currently does, and your company's assets, staff and subscribers (including those on other providers) will come under the Hayai Broadband umbrella.
- Hayai will outfit your staff with the skills and equipment they need to support Hayai's customers efficiently and professionally.
- Hayai will be allowed unlimited and unmitigated access to the infrastructure with the freedom to add & replace equipment as it is deemed necessary so as to support it's own customers, with all infrastructure (new and existing) is open for other ISPs to use and deliver their services.
- Infrastructure is offered to competitive providers at a standard market rate or percentage of plan revenue.
- Profits and liabilities are distributed according to the percentage of holdings (eg 49% each) multiplied by the total revenue for all subscribers on all providers, with the remainder (2%) contributing to society costs, security, electricity and rental.
Why is this beneficial?
- Hayai will invest in the JV company, meaning a cash infusion for network improvements and upgrades.
- No franchise or other fees on a monthly/annual basis.
- Potential to use leverage to aggregate/increase total coverage area by buying or joining with neighbouring operators/networks.
- Reduced costs through standardization of equipment (reducing support and maintenance costs)
- Increased quality of the network allows us to offer higher speeds, better value and more stability (resulting in increased revenue per user)
- First, contact us to tell us more about your company and coverage area
- Reply to the automated email with your business & marketing plan attached
- Our wholesale team will contact you to discuss further eligibility criteria
See also Last Mile Access Network.