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8. Outline Business Models and Develop Cost Benefits Analysis <br />From the results of the previous steps, we will provide insights and <br />recommendations on the appropriate business models to address the identified <br />needs. <br />Potential business models may include: <br />• Internal Services Network which supports public safety and other needs <br />• Retail business which includes staff Help Desk and ISP Hosting <br />• Modified Retail which has minimum staff and outsources Help Desk <br />and ISP Hosting <br />• Open Access Network (allows multiple providers to deliver services <br />over the infrastructure) <br />• Hybrid Open Access Network — Selected business "partners" are <br />sought to deliver retail services over the infrastructure <br />• Encourage private providers to offer lower cost service through select <br />infrastructures <br />Included is a review of any opportunities for partnerships with both end users <br />and service providers. Our recommendation of approaches will be based upon a <br />balance of the identified opportunities and risks, economic developed benefits <br />and the likelihood of success. <br />We will prepare a cost/benefit analysis, which will include pricing and market <br />penetration assumptions for broadband Internet, specialty services, and other <br />identified markets. Our cost/benefit analysis will also provide working capital <br />projections. <br />In addition to providing cost/benefit analysis for individual service offerings, the <br />model will include an overall analysis for viable potential services detailed in <br />this proposal and identified in the market research. <br />The financial analysis will leverage the results of the market research <br />and provide: <br />- Sensitivities of key assumptions including, but not limited to: <br />• Market penetration <br />• Pricing <br />• Tiered revenue structures <br />• Operating fees <br />• System construction <br />• Staffing levels <br />Base, best, and worst case analysis. <br />The cost/benefit analysis will follow accounting standards and will not rely on <br />Incross - subsidization or off balance sheet debt to skew results. <br />VirchowKmse <br />&company <br />Your Most Valued Advisor • v irch.wkr a u s e.com <br />