Most of us wouldn't pay large amounts of money to buy a house that we knew absolutely nothing about. Why make the investment if we don't know what the return is going to be, right? We use due diligence work, or investigation, to make smart decisions before purchasing. Acquiring networks and upgrading them is no different.
The ultimate objectives are to make sure that the upgrade cost is not more than the acquisition cost and to generate revenue by providing better service to residential and commercial customers.Follow these 5 steps, taken from the e-book Network Due Diligence, to help you be prudent about your decision:
1. Analyze the network cosmetically.
Look at the condition of the various parts like cables and poles. Evaluate the percentage of replaceable parts.
2. Analyze the network technically.
Test to see how the network performs. Spot check bandwidth. Document the electronics that are being used and see if they are hitting intended performance levels.
3. Match real assets with seller-supplied information.
Don’t trust what someone else has told you. Appraise the “real-estate” for yourself.
Check out:
· Number of plant miles and the number of homes and businesses passed
· Downstream and upstream bandwidth
· Electronics used throughout the plant
· Amount of fiber in the plant
4. Document your front-end work for reporting.
Take photos. Create 3,000-foot-view maps. Video record all problem areas for reference.
5. Determine the upgrade options.
Prevent breaking your budget by acquiring predictable upgrade costs. A good company will be able to quote you a price that is 5-10 percent within the actual price.
Due diligence beforehand will allow you to balance investment costs and returns. It will help you provide a network that can drive revenue by offering better service to your residential and commercial customers.
For more info: http://www.ccisystems.com/
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