1. The Concept: A Dedicated ACP “Umbrella” Provider

Goal

• To create a single entity (e.g., a public benefit corporation or LLC) that handles all ACP administration, network installation, device distribution, and billing for multiple PHAs simultaneously.

Why It Works

1. PHAs Lack Technical Expertise: Most PHAs aren’t set up to run an ISP or manage ACP enrollment. They already juggle property maintenance, lease compliance, tenant disputes, etc.
2. Streamlined Admin: Rather than each PHA reinventing the wheel (applying to become an ACP provider, dealing with paperwork, compliance), they can outsource all broadband tasks to your “umbrella” provider.
3. Economies of Scale: Because you’d serve multiple PHAs, you can negotiate better bulk broadband/backhaul rates, buy equipment in bulk, and spread overhead across more households.

2. Business/Service Model

A. Core Offering

1. Bulk Wireless Mesh Installation

   • You install (or subcontract the installation of) wireless mesh equipment on each property.
   • Equipment cost per unit might be $100–$200—you can keep it “non-predatory” by charging a fair markup, e.g., $200 total when your actual cost is $100–$150.

2. Turnkey ACP Administration

   • You become the ACP provider. Households sign up through your platform.
   • You handle eligibility verification, ongoing compliance, billing claims to USAC, etc.

3. Monthly Fee Structure

   • For example, you charge $40/month for internet (just an example).
     • $30 is paid via ACP.
     • $10 is tenant’s out-of-pocket.
   • If you want to get it as close to $0 for the tenant, you could structure it differently—but $10 is still much less than typical $60–$100 retail rates.

4. Device Distribution (Optional Add-On)

   • Offer low-cost laptops/tablets under the ACP device discount (up to $100 off).
   • You handle sourcing, logistics, and co-pay collection (which must be at least $10).

B. Recurring Revenue & Sustainability

• ACP Reimbursement: You receive $30/month directly from the government for each eligible household, plus the $10 from the tenant.
• Installation/Hardware Markup: Over time, your fair markup on each new installation helps you recover initial setup costs.
• Low-Risk for PHAs: PHAs don’t outlay big capital, nor do they manage the monthly headaches of billing or tech support. They simply sponsor/endorse the service.

3. Regulatory & Compliance Considerations

A. Becoming an ACP Provider

1. FCC Registration & Compliance

   • You must apply to the FCC to be authorized as a broadband provider participating in ACP.
   • Maintain systems to verify subscriber eligibility (though many Section 8 residents automatically qualify) and handle monthly reimbursement requests.

2. Reporting & Recordkeeping

   • You’ll be responsible for monthly or periodic claims through USAC’s systems.
   • Keep documentation on each subscriber’s eligibility, service usage, etc.

3. Consumer Protection & Transparency

   • Your marketing must be clear about pricing, speed, and data caps (if any).
   • Adhere to ACP rules about not upselling higher-cost packages unless the tenant clearly opts in.

B. Local/State Requirements

• In some jurisdictions, there may be licensing or permit issues if you’re wiring buildings or mounting equipment.
• Confirm whether your state treats building-wide Wi-Fi or internet reselling as a “telecom service” requiring additional registration.

4. Partnership Structure with PHAs

1. Memorandum of Understanding (MOU)

   • You and the PHA sign an MOU or service agreement stating you’ll deliver broadband services, handle ACP enrollment, and ensure minimal PHA administrative burden.
   • PHA “sponsors” the concept but does not become the ISP or ACP provider—they just facilitate access to residents (e.g., informing them about sign-up).

2. Bulk Access vs. Individual Billing

   • Option A: The PHA pays you one bulk rate, and you handle all tenant sign-ups. This is more “all-in” for the PHA—less likely if they don’t have extra budget.
   • Option B: Each tenant individually signs up through your ACP portal (the more typical approach). The PHA’s main role is marketing and education—pointing residents to your sign-up.

3. Technical Access to Properties

   • You’ll need permission to run cables, mount antennas, etc.
   • PHA or property owner should coordinate property rules, access hours, liability coverage, etc.

5. Benefits for PHAs & Tenants

A. PHA Perspective

1. Minimal Workload: The PHA can remain focused on core housing tasks.
2. Solves “Digital Divide”: They can proudly say all their properties have reliable, affordable (effectively $10 or less) internet access.
3. Increased Tenant Satisfaction: Internet is an essential service—fewer complaints about cost or credit-check rejections from big ISPs.

B. Tenant Perspective

1. No Credit Check / Deposit: Your model bypasses typical ISP credit requirements because you hold the master contract (if you choose that approach) or simply don’t check credit.
2. Low Monthly Cost: $10 out of pocket is far more doable than $60–$100 standard broadband bills.
3. Simple Sign-Up: They don’t have to navigate confusing ISP websites or storefronts. You handle all ACP-related documentation.

6. Funding the Upfront Installation

1. Modest Capital Needs

   • If equipment is $100–$200 per unit, 100 units is $10,000–$20,000.
   • You can self-finance if you have the liquidity, or seek a small business loan or Community Development Financial Institution (CDFI) loan.
   • Some philanthropic grants or local digital inclusion funds could offset these costs.

2. Digital Equity & Other Grants

   • Keep an eye on Digital Equity Act subgrants, local philanthropic funding, or city ARPA allocations that might support the capital cost.
   • This would let you further reduce your installation mark-up or even offer free installation in some cases.

7. Implementation Steps

1. Set Up Your “Umbrella” Entity

   • Form a public benefit corporation (PBC) or similar.
   • Develop a clear mission statement around digital equity.

2. Obtain ACP Approval

   • File with the FCC to become an ACP provider.
   • Prepare your billing, enrollment, and verification systems.

3. Pilot with One PHA

   • Start small to refine processes (installation, sign-up flows, support).
   • Collect success metrics—tenant satisfaction, uptake rates, reliability—to show other PHAs.

4. Scale to Additional PHAs

   • Present your proven model to more housing authorities.
   • Emphasize minimal risk for them and affordable/no-hassle service for tenants.

5. Coordinate Device Programs (Optional)

   • Partner with refurbishers or nonprofits to distribute discounted laptops/tablets.
   • Combine with ACP’s device subsidy to keep tenant costs under $50 for a decent device.

6. Build Ongoing Support

   • Set up a basic help desk or ticket system for tenants.
   • Ensure quick equipment swaps/repairs when an access point fails.

8. Potential Challenges & How to Mitigate

1. Administrative Complexity

   • ACP requires monthly/periodic filings.
   • Mitigation: Automate as much as possible; partner with a software provider specializing in ACP compliance.

2. Tenant Adoption

   • Even $10 might be too high for some extreme low-income households.
   • Mitigation: Seek philanthropic or local government funds to cover the $10 portion, making it truly $0.

3. State or Local Regulatory Hurdles

   • Check local rules about wireless installations on multi-dwelling units (MDUs).
   • Mitigation: Work with local building/permitting departments early in the process.

4. ISP Backbone Reliability

   • Make sure your upstream connection is robust. If your service quality falters, PHAs might face tenant complaints.
   • Mitigation: Have redundancy or partner with a reputable wholesaler.

Closing Thoughts

Your approach—centralizing ACP administration and offering turnkey wireless solutions—directly addresses the pain points PHAs face when trying to tackle broadband. By presenting:

1. A single point of contact for all broadband/ACP questions.
2. Simple, predictable fees (with ACP offsetting the bulk of costs).
3. Fair, transparent pricing on equipment/installations

**Thought about funding the broadband model** for 6 seconds

Below is a high-level budgeting approach for a scenario in which you (as a bulk internet distributor) purchase bandwidth from a major carrier (e.g., AT&T, Verizon) at a wholesale rate and then resell or distribute it via a local wireless or wired network to low-income tenants. The goal is to minimize the upstream (wholesale) cost, amortize installation over a year (or another timeframe), and keep the tenant’s effective monthly fee as low as possible—potentially offset by the Affordable Connectivity Program (ACP).

1. Core Budget Elements

1. Wholesale Bandwidth Cost (Monthly)

   • The cost you pay to the carrier (AT&T, Verizon, etc.) for the upstream pipe.
   • Typically a fixed monthly fee for a certain bandwidth tier (e.g., 500 Mbps, 1 Gbps, etc.).

2. Installation/Equipment Costs (One-Time)

   • Routers, antennas, mesh access points, cables, switches, etc.
   • Could be $100–$200 per unit in hardware (plus some shared backhaul equipment).

3. Installation Labor

   • If you’re installing gear yourself or hiring contractors, budget for labor.
   • This might be a one-time cost or you could embed it in a lease agreement with the property owner.

4. Ongoing Support & Maintenance

   • Tech support, equipment replacement, site visits.
   • You can approximate this per month or per year.

5. Margin / Markup

   • You need some profit or cushion to handle unexpected costs and administrative overhead.

2. Hypothetical Budget Breakdown

Let’s assume:

• 100 units to be served.
• $150 average equipment cost per unit (wireless AP or router, plus wiring).
• $50 average labor/incidentals per unit (cables, mounting brackets, etc.).
• $1,200/month for a wholesale 500 Mbps circuit from the carrier.
• 12-month amortization for the installation cost.

Below is a rough example:

Item	Cost	Explanation
One-Time Hardware & Install
Per Unit Hardware & Misc.	$150 x 100 = $15,000	Access points, routers, small antennas, cables, etc.
Per Unit Labor & Incidentals	$50 x 100 = $5,000	Install labor, mounting hardware, testing, etc.
Subtotal One-Time Equipment	$20,000 total
Monthly Wholesale Bandwidth
Carrier Circuit	$1,200/month	500 Mbps symmetrical (example rate; depends on location/negotiation)
Annual Wholesale Cost	$1,200 x 12 = $14,400
Tech Support & Maintenance
Estimated Yearly Budget (labor/spares)	$6,000/year	For on-call support, occasional equipment swaps, truck rolls, etc.
Total Year 1 Costs
Installation + Wholesale + Support	$20,000 + $14,400 + $6,000 = $40,400	Year 1 total

In this Year 1 example, your total outlay is $40,400.

3. Spreading Costs Over 12 Months

If you’re amortizing the $20,000 installation over 12 months, you can treat it like a monthly cost of $1,667 ($20,000 / 12). Then add:

• $1,200/month for the wholesale circuit
• $500/month for ongoing support (assuming $6,000/year)

So your monthly “all-in” overhead for Year 1 might look like:

$1,667 (install amort) + $1,200 (bandwidth) + $500 (support) = $3,367 total per month

4. Per-Unit Cost to Break Even

With 100 units, you need to recoup $3,367 per month. Dividing by 100:

$3,367÷100=$33.67 per unit per month\$3,367 \div 100 = \$33.67 \text{ per unit per month}$3,367÷100=$33.67 per unit per month

You can see that just to break even on monthly costs (in Year 1) is roughly $34 per unit. After Year 1, once the installation is fully paid, your ongoing monthly overhead might drop to $1,700 or so (bandwidth + support).

5. Negotiating a Cheaper Wholesale Rate

To get the cost below $34 per unit (especially if you want to offer $30 or $40 total to tenants—where $30 might be covered by ACP):

1. Secure Bulk Discounts

   • Talk to multiple ISPs/carriers; show them you’re bringing a guaranteed block of 100 (or more) subscribers.
   • Evaluate whether a lower-tier bandwidth plan (e.g., 300 Mbps) might meet your usage needs if your peak usage per user is moderate.

2. Multi-Year Contracts

   • Carriers often reduce monthly rates if you commit to 24 or 36 months.
   • But weigh that against the risk of needing more bandwidth in the future.

3. Local / Regional Providers

   • Smaller ISPs may be willing to undercut AT&T/Verizon to gain new customers. They might also be more flexible on terms, credit checks, and deposits.

6. Handling the Tenant Pricing & ACP

A. If You Want to Keep Tenant Cost at $10–$15

• If your break-even is $34 (Year 1), you could set the retail rate at $40.
  • $30 from ACP reimbursement, plus $10 out-of-pocket from each tenant.
  • This yields $40 x 100 = $4,000/month.
  • That covers $3,367 in monthly overhead, leaving some margin ($633/month) for buffer or reinvestment.
• After Year 1 (when your $20k install is paid off), your overhead might drop to $1,700–$2,000/month, so your margin grows even more—or you pass savings on to tenants by lowering their monthly charge.

B. If You Want $0 for Tenants

• You could set the service at $30 exactly (fully covered by ACP).
• Then your monthly revenue with 100 ACP-subscribed units is $3,000—slightly below the Year 1 break-even of $3,367.
• You’d be running a $367 deficit per month (about $4,400/year).
• In that case, you might need a small grant or subsidy to bridge the gap during Year 1, or you can spread your installation costs over 24 months to reduce monthly amortization. Alternatively, you can charge a small additional out-of-pocket fee (like $5–$10) to reach break-even.

7. Strategies to Drive Down the Upstream Cost

1. Shop Around or Use Aggregators

   • Sometimes a bandwidth aggregator can resell multiple carriers’ circuits at wholesale and help you find the cheapest local option.

2. Municipal or Nonprofit ISP Partnerships

   • Some cities have a local or nonprofit ISP that can offer significantly lower rates than the national carriers.

3. Shared Infrastructure

   • If you have multiple properties or can partner with another developer, you can scale up to 200+ units under one circuit.
   • That might justify a bigger pipe (e.g., 1 Gbps) but could reduce the cost per unit even further.

4. Longer Amortization

   • Instead of 12 months, consider 24 or 36 months to pay off the initial $20k. This lowers your monthly overhead but does lock you into a longer payoff period.

8. Conclusion: Balancing Costs vs. Speeds vs. Tenant Fees

• Year 1 is the Crunch: Paying off the installation cost in 12 months leads to a higher break-even.
• ACP is Key: Getting as many tenants enrolled as possible ensures you can rely on that $30/subsidy each month.
• Wholesale Negotiation is critical: Even a $200–$300 monthly reduction in your upstream cost can significantly reduce your per-unit price, helping you reach a sustainable $30–$40 plan.

In Short:

1. Minimize wholesale bandwidth cost via negotiation or smaller carriers.
2. Amortize equipment costs carefully (1 year vs. 2+ years).
3. Combine ACP reimbursements with a small tenant fee (if necessary) to cover your margin—unless you secure additional grants that allow you to make tenant internet effectively free.

By doing these, you can keep your overall monthly overhead manageable while giving tenants an affordable rate (or even $0) that stays in line with the ACP benefits. This is the essence of a viable budget for a bulk internet/reseller model.

 

Example 100 

**Thought about pricing model and profit** for 33 seconds

Below is a simple example illustrating how the finances might work if:

1. You set the monthly internet fee at $50 per unit.
2. You receive $30 from the Affordable Connectivity Program (ACP) for each qualifying subscriber, and presumably the tenant pays the remaining $20 out-of-pocket.
3. You pay the Housing Authority $5 per subscriber, per month, as a sort of “referral fee” or partnership fee.

We’ll walk through Year 1 (while you’re still paying off the installation) and Year 2 (after the initial install is fully amortized), using a 100-unit example. The same math can scale up if a Housing Authority has thousands (or even tens of thousands) of subscribers.

1. Basic Assumptions

1. Number of Subscribers: 100
2. Monthly Charge: $50 per subscriber
   • $30 ACP reimbursement
   • $20 from tenant (out-of-pocket)
3. PHA Fee: $5 per subscriber, per month
4. Installation Cost (one-time): $20,000 total for the 100 units (e.g., $200 per unit)
5. Amortization: You spread that $20k over 12 months in Year 1 (i.e., $1,667/month).
6. Monthly Wholesale Circuit: $1,200 (example)
7. Monthly Maintenance/Support: $500 (example for tech support, repairs, administration)

2. Monthly Revenue

Gross Revenue (before paying PHA):

$50×100  =  $5,000 per month\$50 \times 100 \;=\; \$5{,}000 \text{ per month}$50×100=$5,000 per month

Payment to PHA ($5 per subscriber):

100×$5  =  $500 per month100 \times \$5 \;=\; \$500 \text{ per month}100×$5=$500 per month

Net Revenue (after PHA fee):

$5,000  −  $500  =  $4,500 per month\$5{,}000 \;-\; \$500 \;=\; \$4{,}500 \text{ per month}$5,000−$500=$4,500 per month

3. Year 1: Paying Off the Installation

During Year 1, you have to cover:

1. Installation Amortization: $1,667/month (=$20,000/12)
2. Wholesale Bandwidth: $1,200/month
3. Maintenance/Support: $500/month

Total Overhead=$1,667+$1,200+$500=$3,367 per month\text{Total Overhead} = \$1{,}667 + \$1{,}200 + \$500 = \$3{,}367 \text{ per month}Total Overhead=$1,667+$1,200+$500=$3,367 per month

Year 1 Monthly Profit:

Net Revenue−Overhead=$4,500−$3,367=$1,133 per month\text{Net Revenue} - \text{Overhead} = \$4{,}500 - \$3{,}367 = \$1{,}133 \text{ per month}Net Revenue−Overhead=$4,500−$3,367=$1,133 per month

Year 1 Annual Profit (12 months):

$1,133×12=$13,596 for Year 1\$1{,}133 \times 12 = \$13{,}596 \text{ for Year 1}$1,133×12=$13,596 for Year 1

4. Year 2: After Installation Is Paid Off

Once you’re done with the $20k installation:

• No more $1,667/month amortization.
• Ongoing costs are just $1,200 (bandwidth) + $500 (support) = $1,700 monthly.

Year 2 Monthly Profit:

Net Revenue($4,500)−Overhead($1,700)=$2,800 per month\text{Net Revenue} (\$4,500) - \text{Overhead} (\$1,700) = \$2{,}800 \text{ per month}Net Revenue($4,500)−Overhead($1,700)=$2,800 per month

Year 2 Annual Profit:

$2,800×12=$33,600 for Year 2\$2{,}800 \times 12 = \$33{,}600 \text{ for Year 2}$2,800×12=$33,600 for Year 2

5. Observations & Scaling Up

• Year 1: You’re netting around $1,133/month while paying off the installation.
• Year 2+: Profits jump significantly (to $2,800/month in this example) because the big one-time cost is gone.
• Scaling to More Units:
  • If a Housing Authority has 20,000 subscribers, the raw dollar amounts go way up. Of course, you’d need more bandwidth and possibly more support staff, but the principle is the same: once you’ve paid off installation, your monthly margin can grow substantially.

Key Points

1. $50 Plan: Covers both ACP ($30) + Tenant ($20) = $50 total revenue per subscriber.
2. PHA Fee: $5 out of the $50, leaving you $45 in net revenue before you pay your overhead.
3. Profitable After Installation: Once the initial cost is amortized, monthly overhead is much lower, increasing your net profit.
4. Negotiation & Costs: Your actual bandwidth cost, maintenance, and the PHA fee might vary, so you’ll want to refine each line item.
5. Tenant Adoption: Ensuring most or all of those 100 units sign up (and remain enrolled in ACP) is crucial to hitting these revenue figures.

By setting up a $50 monthly fee, paying the PHA $5 per unit, and leveraging ACP to cover $30 of each subscriber’s bill, you can create a win-win: tenants get affordable service ($20 out-of-pocket), the PHA earns a steady revenue share, and you (the provider) still have a solid profit margin—especially after Year 1.

USAC, the Universal Service Administrative Company, administers federal programs to ensure universal access to telecommunications and internet services, especially for underserved communities. Monthly or periodic claims via USAC typically involve requesting reimbursement or funding for services provided under these programs, such as:

1. Lifeline: Discounts for low-income households on phone or internet services.
2. E-Rate: Funding for schools and libraries to afford internet and telecommunications.
3. Rural Health Care (RHC): Support for rural healthcare providers' connectivity needs.
4. High-Cost/Connect America Fund: Expanding broadband in rural areas.

Key Requirements for Claims:

• Thorough Documentation: Service providers must submit detailed records proving:
  • Subscriber eligibility.
  • Services delivered.
  • Compliance with program requirements (e.g., proper certifications).
• Subscriber Eligibility Verification: Using tools like the National Verifier for Lifeline participants.
• Accurate Reporting: Reflecting services, pricing, and beneficiaries.

Claims are filed through the USAC portal, ensuring compliance with federal guidelines for transparency and accountability.

No technical specifications available.

What Is a Public Benefit Corporation?

A public benefit corporation (PBC) is a for-profit entity that (unlike a traditional C-corporation) is legally required to pursue both:

1. Profits for its shareholders/investors, and
2. One or more stated “public benefits” (e.g., environmental, social, or community impacts).

Key features include:

1. Legal Recognition

   • PBCs are recognized in many U.S. states (the exact name and requirements can vary by jurisdiction—some states use terms like “Benefit Corporation” or have separate frameworks for “B-Corps”).
   • Unlike a traditional corporation, a PBC’s charter explicitly states its broader social or public mission (e.g., “to provide affordable internet to underserved communities”).

2. Accountability and Reporting

   • PBCs must measure and report how well they are meeting their stated public benefit goals—often annually or biennially.
   • Shareholders have the legal right to hold the company accountable if it strays from that mission.

3. Profit + Purpose

   • PBCs can (and do) seek investment, generate profits, and return dividends to shareholders, much like regular for-profit corporations.
   • The difference is that decision-making must balance profits and the declared public good.

2. How Does It Apply in This Broadband Discussion?

A. Social Impact Emphasis

In the scenario where a company is:

1. Providing affordable or free internet to Section 8 tenants,
2. Administering the ACP (Affordable Connectivity Program) for low-income households, and
3. Potentially offsetting installation costs with philanthropic or government grants,

mission alignment is key. A PBC structure can reinforce a commitment to serving low-income communities, since the company is legally bound to deliver both financial and social benefits.

B. Credibility for Partners and Funders

• Housing Authorities & Governments: A PBC might be seen as a trusted “social enterprise,” which could make housing authorities or municipal broadband offices more comfortable partnering.
• Philanthropy / CSR: Foundations, philanthropic donors, and corporate social responsibility (CSR) programs might be more inclined to support or collaborate with an organization whose legal framework centers on public benefit.

C. Balancing Profit and Community Needs

• If your model collects a monthly fee (via ACP + tenant contribution) and you’re negotiating rates with major ISPs at a profit, being a PBC can help assure stakeholders that you won’t exploit tenants with predatory pricing or excessive markups—because the business mission explicitly involves community benefit.

3. Is It a Good Idea (Pros & Cons)?

Pros

1. Mission Lock-In

   • Forming a PBC locks in the mission at the corporate level. Future leadership or investors can’t just pivot away from affordable broadband to chase strictly higher margins without addressing the legal duty to provide public benefit.

2. Stakeholder Trust

   • Housing authorities, nonprofits, and government agencies often look favorably on an entity that’s legally bound to do good.
   • This can ease partnership formation and help with grant or foundation support.

3. Investor Appeal

   • Certain impact investors specifically seek out PBCs or B-Corps. You could tap into a niche of capital that wants both financial return and measurable social impact.

Cons

1. Additional Reporting

   • You’ll likely have to produce annual or biennial benefit reports, measuring social impact and possibly using a third-party standard for transparency. This adds some administrative overhead.

2. Perception and Scope

   • Some traditional investors may be less familiar with PBCs or might worry about divided fiduciary obligations (profit vs. mission).
   • Depending on your state’s laws, a PBC can be more complex to set up and maintain than a standard LLC or C-corp.

3. Not Automatically a Nonprofit

   • You’re still a for-profit entity, so you must pay taxes and can’t issue tax-deductible receipts for donations. This may or may not matter, but it’s good to clarify that “benefit corporation” does not equal “nonprofit.”

4. When a PBC Makes Sense

• Long-Term Social Commitment: If you genuinely want to ensure your project never strays from serving low-income communities, a PBC can be a structural safeguard.
• Partner/Investor Confidence: If philanthropic organizations, local government, or major housing authorities want legal reassurance that your broadband initiative remains community-focused, becoming a PBC provides it.
• Brand & Impact: If you plan to market yourself as a social impact entity—applying for “social enterprise” grants, appealing to socially-conscious investors—PBC status can be a selling point.

5. Alternatives

1. Traditional For-Profit Corp + “Doing Good”

   • You can still serve low-income tenants as a normal C-corp, but you’re not legally bound to maintain that mission if things change.
   • Might be simpler for certain investors but lacks formal social mission protections.

2. Nonprofit Model

   • You could form a 501(c)(3) (or partner with one) if the aim is to provide free or near-free broadband with philanthropic or government backing.
   • However, nonprofits have different constraints around generating profit, distributing surplus, paying staff, etc.

3. LLC with Social Purpose

   • Some LLCs adopt operating agreements that specify social missions. But this often lacks the formal recognition and accountability of a PBC.

6. Final Thoughts: Good Idea or Not?

• If you anticipate needing capital from socially conscious investors, or you want to assure partners (like housing authorities) of your genuine, long-term public benefit commitment, a public benefit corporation is likely a good idea.
• If you prefer minimal regulations and see social impact as part of your strategy but not something you need legal constraints for, a standard for-profit might suffice.
• Considering the nature of broadband for low-income tenants—where trust, mission-focus, and stakeholder relationships are crucial—opting for a PBC can strengthen your position, align with funders, and differentiate you in a competitive space.

Bottom Line

A Public Benefit Corporation is a legal structure that merges profit with public good. In the context of delivering affordable broadband to Section 8 or low-income tenants, forming a PBC can enhance credibility, attract impact-focused partners, and lock in a social mission—potentially making it a strong choice for a broadband social enterprise.

 

Below is a sample 3-year projection for a broadband reseller model at three different scales: 100, 1,000, and 10,000 subscribers. All figures are hypothetical and meant to illustrate how revenues and costs might scale. The assumptions here are:

1. Monthly Service Price: $50 total
   • $30 from ACP reimbursement
   • $20 from the tenant
2. PHA Fee: $5 per subscriber, so net to you is $45 per subscriber before overhead.
3. Installation Cost: $200 per unit (one-time), amortized over 12 months in Year 1.
4. Bandwidth/Support: Scaled for each subscriber tier, with a higher monthly cost at larger scales.

Assumptions by Subscriber Tier

Subscriber Tier	Units	Install Cost (One-Time)	Monthly Bandwidth	Monthly Support	Total Monthly Overhead (Year 1) = Bandwidth + Support + Install Amort.	Total Monthly Overhead (Year 2 & 3) = Bandwidth + Support
100 Subscribers	100	$20,000	$1,200	$500	$1,200 + $500 + $1,667 = $3,367	$1,200 + $500 = $1,700
1,000 Subscribers	1,000	$200,000	$8,000	$2,000	$8,000 + $2,000 + $16,667 = $26,667	$8,000 + $2,000 = $10,000
10,000 Subscribers	10,000	$2,000,000	$50,000	$10,000	$50,000 + $10,000 + $166,667 = $226,667	$50,000 + $10,000 = $60,000

• Install Amortization over 12 months:
  • 100 subs: $20,000 / 12 ≈\approx≈ $1,667/month
  • 1,000 subs: $200,000 / 12 ≈\approx≈ $16,667/month
  • 10,000 subs: $2,000,000 / 12 ≈\approx≈ $166,667/month

Monthly Revenue by Subscriber Tier

Each subscriber generates $50 total, but $5 goes to the PHA, leaving $45 net to you before overhead.

Monthly Net Revenue=$45×(Number of Subscribers)\text{Monthly Net Revenue} = \$45 \times (\text{Number of Subscribers})Monthly Net Revenue=$45×(Number of Subscribers)

Subscribers	Monthly Net Revenue (to You)
100	100 × $45 = $4,500
1,000	1,000 × $45 = $45,000
10,000	10,000 × $45 = $450,000

Profit Projections: Year 1, Year 2, Year 3

1. 100 Subscribers

• Year 1 Overhead: $3,367/month

• Year 1 Monthly Profit = $4,500 (revenue) – $3,367 (overhead) = $1,133

• Year 1 Annual Profit = $1,133 × 12 = $13,596

• Year 2 & 3 Overhead: $1,700/month (after install is paid off)

• Year 2 & 3 Monthly Profit = $4,500 – $1,700 = $2,800

• Year 2 & 3 Annual Profit = $2,800 × 12 = $33,600

100 Subs	Year 1	Year 2	Year 3
Monthly Revenue	$4,500	$4,500	$4,500
Monthly Overhead	$3,367 (with install)	$1,700 (no install)	$1,700 (no install)
Monthly Profit	$1,133	$2,800	$2,800
Annual Profit	$13,596	$33,600	$33,600

2. 1,000 Subscribers

• Year 1 Overhead: $26,667/month

• Year 1 Monthly Profit = $45,000 – $26,667 = $18,333

• Year 1 Annual Profit ≈\approx≈ $18,333 × 12 = $220,000 (rounded)

• Year 2 & 3 Overhead: $10,000/month

• Year 2 & 3 Monthly Profit = $45,000 – $10,000 = $35,000

• Year 2 & 3 Annual Profit = $35,000 × 12 = $420,000

1,000 Subs	Year 1	Year 2	Year 3
Monthly Revenue	$45,000	$45,000	$45,000
Monthly Overhead	$26,667 (with install)	$10,000 (no install)	$10,000 (no install)
Monthly Profit	$18,333	$35,000	$35,000
Annual Profit	$220,000 (approx.)	$420,000	$420,000

3. 10,000 Subscribers

• Year 1 Overhead: $226,667/month

• Year 1 Monthly Profit = $450,000 – $226,667 = $223,333

• Year 1 Annual Profit ≈\approx≈ $223,333 × 12 = $2,680,000 (rounded)

• Year 2 & 3 Overhead: $60,000/month

• Year 2 & 3 Monthly Profit = $450,000 – $60,000 = $390,000

• Year 2 & 3 Annual Profit = $390,000 × 12 = $4,680,000

10,000 Subs	Year 1	Year 2	Year 3
Monthly Revenue	$450,000	$450,000	$450,000
Monthly Overhead	$226,667 (with install)	$60,000 (no install)	$60,000 (no install)
Monthly Profit	$223,333	$390,000	$390,000
Annual Profit	$2,680,000 (approx.)	$4,680,000	$4,680,000

Key Takeaways

1. Year 1 profits are lower because you’re amortizing installation costs over 12 months.
2. Year 2 and 3 show significant profit gains once the one-time install is fully paid off.
3. As subscriber count increases, bandwidth & support costs also rise, but economies of scale often yield higher overall profits.
4. These figures assume 100% subscriber adoption and that each subscriber is ACP-eligible (so you reliably get $30 of the $50 plan). Real-world adoption rates, varying costs, or partial ACP eligibility will affect actual results.