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Radix has created a new source of value and income for apartment owners or managers. The source of this enhanced value and cash flow originates from the growing demand for access to the “information highway.” Once viewed as a niche novelty or luxury, now it is becoming an indispensable part of business and personal life. Multi-family property owners, partnering with Radix, can realize their “Telecommunications Rights” by which they can control, and profit from, all telecommunications access to their apartment complexes. TELECOMMUNICATIONS RIGHTS It is well recognized that the presence of mineral or oil deposits on one’s property can be a source of incremental value. For example, oil and gas deposits in Texas have made many subsistence ranchers wealthy. Coal deposits in West Virginia and Kentucky have transformed areas of poverty into areas of wealth. Radix with an in-depth understanding of telecommunications networking, developed the following hypothesis: since the concept of “mineral rights” is valid under law to the benefit of landowners, then it should follow that telecommunications rights, once they are similarly attached to the deed and title, would provide comparable benefits. After much scrutiny and legal research, the conclusion reached was that these rights are indeed valid under law. As a result, Radix, now offers a way to capture and deliver this source of value and income for apartment owners. |
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The establishment of telecommunications rights on deed and title give landowners control of all telecommunications access to their property. |
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When the landowner controls the access (pipeline), they also can control certain information that flows through the pipeline. |
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The essence of this concept of “Telecommunications Rights” is control. This, in turn, becomes the foundations for creating a Sustainable Competitive Advantage resulting in an additional source of profits, cash flow and future value, above and beyond the traditional income stream from the bricks and mortar. When this new source of cash flow is discounted over time, using the landowner’s cost of capital, a new, measurable source of value has been created. Therefore, the landowner can measure five sources of value specific to a given property as follows: |
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Land value | |||
Improvement value | |||
Income stream from rent | |||
Income stream from telecommunications rights | |||
Value of the rights, themselves | |||
A VALUE-BASED STRATEGIC PARTNERSHIP Radix proposes a partnership in which it will establish the telecommunications rights for the landowner through an easement on title, in return for an exclusive contract to provide competitively priced telecommunications technologies, content and service. The landowner will receive a continuous royalty from Telecommunications revenues provided specifically to each of the landowner’s properties. This royalty is guaranteed into perpetuity through the recorded easement. And since Radix offers competitive services, its apartment owner-partners can offer telecommunications services to tenants less expensively than other properties and, in most cases, offer services not otherwise available. Radix offers those services that are available and in demand today, and its extensible technology allows for future technology and services, as well. Telecommunications rights have many of the characteristics of mineral rights. The landowner may elect to retain these rights when selling a property, thus maintaining a “residual” for the life of the telecommunications easement. If the landowner chooses to include these “rights” upon sale, it will significantly increase the cash proceeds and profits from the sale. To summarize, the benefits to the property owner are: |
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Little or no capital investment required. | |||
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Continuous royalties are paid to property owner for life of the telecommunications easement, even after change of ownership. | ||
Higher caliber tenants are attracted to the property. | |||
Telecommunications rights to not deplete over time. | |||
Competitive marketing advantage of state-of-the-art telecommunications services, over alternative properties. | |||
Property value increases due to new revenue stream created by the easement. |
THE VALUE-BASED PARTNERSHIP PROCESS Once telecommunications rights are established and recorded on title, Radix will immediately begin the process necessary to convert your tenants to our competitive long distance services. While you can legally enforce local phone compliance, your tenants will be motivated to switch since we offer very competitive discount rates over non-promotional rates available in your area. Plus, tenants will receive a Radix calling card to save them money from wherever they make telephone calls. Secondly, Radix will begin to analyze your tenant’s demand for a wide range of other services. These services will be provided through Radix’s high-bandwidth network connecting each apartment unit with high-speed data services, which allows us to provide the following services: high-speed Internet access, cable TV, gas and electric utility services as regulations permit, as well as proprietary World Wide Web content tailored to tenant needs. |
Radix Harry Geil hgeil@radix.tv Phone: 971-235-4689 http://www.radix.tv |