How will your Company benefit from the Flat Rate Plan

Benefit(1)- Economics (The Basics)

Benefit(2)- Economics (Eliminate Major Project Costs)

Benefit(3)- Economics (Cost Comparison)

Benefit(4)- Local Politics and Public Relations

Benefit(5)- Access to Plant Data

The Flat Rate Plan Summary

Flat Rate Plan Product Services Detail

Company Contact Information

What is the Cost of the Flat Rate Plan

Back to NITACOM Home Page

---

Part (1)

The NITACOM Flat Rate Plan for Engineering Expenditures

UNIQUE, EFFICIENT AND COST EFFECTIVE ----- Back To Flat Rate Plan Index

NITACOM has worked to increase productivity, ensure the quality of all services provided and maintain fair and stable service rates. To achieve these objectives we developed automated methods for many of the labor intensive services that are offered. These methods are extremely efficient and have made possible a total and dynamic restructuring of the service rate calculation process. The result of this remarkable efficiency is a new and unique plan we call the "Flat Rate Plan." It is simply the provision of an unlimited quantity of specific engineering services for a group(s) of systems (typically defined by our clients as areas or regions) and to provide these services for a Flat Total Cost. No reoccurring requisitions or Purchase Orders and no limit on quantity, your personnel will make the requests and we will provide the services.

Why name the product "The Flat Rate Plan" ?…… Since by definition a rate is a fixed charge per unit of quantity and our Flat Rate Plan by definition is a fixed charge per UNLIMITED QUANTITY OF UNITS we believe we have chosen an excellent descriptive name for this unique product.

WHY DO WE OFFER THE "FLAT RATE PLAN" ----- Back To Flat Rate Plan Index

Being competitive in our market is certainly a primary motivation…., but why offer this unique plan to maintain an equitable market share ? …………………..

During the 1990’s the Cable Television Industry invested significant capitol for infrastructure bandwidth upgrade and plant expansion. From 1987 to present day we have participated in many of the UPGRADE AND REBUILD projects made possible by the farsighted investments of our clients in the Cable Television industry. It should be said before going further that we are fortunate and grateful to have been selected for vendor services during this period of the industry’s phenomenal growth.

Market analysis during the close of that period indicated that during the following decade there would be a shift from major upgrades to smaller acquisitional upgrades, subdivision new builds and emphasis on content as well as new services made possible by the bandwidth upgrades and plant rebuilds. The market we served was about to change in a dramatic way. It was clear that to remain a viable service provider, the economy of our service rates as well as the scope of services offered had to be modified to better serve our industry. The "Flat Rate Plan" was developed to meet the needs of our clients in this changing market.

It is a unique plan with an unprecedented cost to service ratio. The method, process and capabilities of the plan were developed over a (3) year period incorporating lessons and methods acquired during 26 years in the Cable Television Industry working within the industry and at the vendor service level.

Our first offering of this product is to be made to the clients that have literally made our business possible for many years. As we are certain this product represents a significant savings over traditional service rates, we present this offer to our clients as a gesture of loyalty to them that is valuable, significant and deserved. Thank you for allowing us to serve you through so many years of your growth and success.

---

 

HOW WILL YOUR COMPANY BENEFIT FROM THE "FLAT RATE PLAN" ----- Back To Flat Rate Plan Index

All of the typical engineering company (design house) services and many others are included in the Flat Rate Plan and are detailed in part (2) of this document. For the purpose of discussing the benefits of the Flat Rate Plan however, we will explore a few of the operational benefits in a broader scope. We believe this will be useful to the corporate planning methodology as you consider this product. Please review a few of the primary Benefits as listed below.

Benefit #1 – ECONOMICS (The Basics) ----- Back To Flat Rate Plan Index

The plan offers services with an unlimited quantity of the units of service such as mileage, units, footage, prints (maps), hours, data storage and access etc., therefore as the services are requested and performed the cost of service is diminished. Remember the Flat Rate Plan is a fixed total cost so the services will eventually be free of charge as compared to the typical rate of services currently used by engineering companies (design houses). The daily cost of the plan before the no charge plateau is reached is approximately the cost of leasing an economy class car. Not a bad deal.

 

Benefit #2 – ECONOMICS (Eliminate Major Project Cost) ----- Back To Flat Rate Plan Index

The unlimited unit quantity of the design and mapping services alone should inspire all participating systems to update all schematics and to then keep them updated with any new plant that is built or modified. This process will yield accurate schematics for routine and emergency plant operations as well as to completely eliminate the cost of as-built mapping for future upgrades and rebuilds. This benefit alone is worth more than the entire cost of the Flat Rate Plan when you consider eliminating the cost of a major as-built walkout. In addition, your own personnel will have completed quality assurance checks on all incremental schematic updates completed under the Flat Rate Plan. No more contractor mistakes, cost overruns and other surprises during upgrades and rebuilds.

To ensure this benefit is realized NITACOM will work with your personnel to continually seek out, perform and document all essential tasks as described above.

 

Benefit #3 – ECONOMICS (Cost Comparison) ----- Back To Flat Rate Plan Index

As indicated, the Flat Rate Plan at the very basic level provides all of the typical engineering company (design house) services. This makes a simple cost to service ratio comparison possible. We believe the result of this comparison alone make the product viable when analyzed by basic economic justification formula.

A sampling of Historical spending records show that many Cable Television systems requisition and spend on average *$15,000.00-$20,000.00 annually on basic engineering and mapping services related to plant extensions and revisions. Obviously this amount does not include major upgrades or rebuilds. Discussions with plant personnel indicate that in most cases these average amounts are spent to accomplish only the most urgent and demanding projects. The cumulative affect of this is that a significant number of plant extensions and revisions that do not meet the urgent or demanding criterion and are thus engineered by hand held calculator or best guess technology, are never placed on system maps and prints. Of course system personnel are very capable of designing and building these extensions, however they typically have no method of updating the system schematics. This can have a very negative affect considering that technicians, supervisors, and plant and corporate management depend on up-to-date and current plant data to make decisions during critical times when timely access to accurate information is essential to sound planning, for both financial and physical plant issues. Also very important to all of us is the potential affect on the Subscribers Quality of Service and the Subscribers perception of our commitment to that Quality of Service.

Based on the average spending the annual cost of services then for a typical number of geographically adjacent plants managed as a group would be approximately $200,000.00. This covers the basic needs but all of the other projects (extensions, revisions, newbuilds, and rebuilds) no matter how large or small will require additional funding to pay the service rates currently charged by engineering companies. In most cases the updates are never performed due to the additional funding requirement. The ramifications of this would be less than accurate schematics and associated data. This will be most evident when the time arrives for a major upgrade or rebuild, and a complete as-built walkout is needed and usually performed (if we are wise). There are other cumulative costs of personnel time and vehicle use as technicians endeavor to locate undocumented plant during outages, services calls and installations.

NOW FOR THE COMPARISON……………. ----- Back To Flat Rate Plan Index

For the approximated cost of what is typically spent on just the basic engineering, and GIS (mapping) tasks, you will get all work performed including revisions, extensions, upgrades and rebuilds with NO QUANTITY LIMITATION. Please remember as well that the resulting up-to-date current status of the plant engineering documentation ELIMINATES THE NEED FOR FUTURE AS-BUILT WALKOUT and all associated cost. As for the many other Flat Rate Plan services providing significant operational and financial benefits, they are ancillary perks when you consider this one major cost savings.

* An average based on compiled historical spending records. Your spending history may differ.

---

 

Benefit #4 – LOCAL POLITICS AND PUBLIC RELATIONS ----- Back To Flat Rate Plan Index

Anyone who has been involved in franchise negotiations or various plant operational issues that can or may be affected by political influence will appreciate any advantage that improves the chances of reaching a beneficial outcome. Although methods of public relations enhancement are many, the stated benefits for the subscriber as a result of the Flat Rate Plan can certainly be one of those methods.

For example: As the plan process begins there is a significant political and public relations value in the announcement of this commitment. The Cable Television industry effort to diversify, professionalize and generally improve its collective image has been very successful indeed and the announcement of additional commitments to our subscribers will be well received by the political community which is important to our franchise and operational health. Such commitments are also appreciated by those that make our business possible, "The Subscriber to our Services"

 

Benefit #5 – ACCESS TO PLANT DATA ----- Back To Flat Rate Plan Index

As indicated, given sufficient time (determined by the initial status of plant documentation) after the "Flat Rate Plan" process is started, the engineering schematics and associated detailed information for each participating system will be at an up-to-date-current status. The information (data and schematics) will be available in a variety of media including real time access via the internet. The information may be accessed and evaluated at any time by your personnel or anyone you authorize (data is stored on secure servers). The value of the accessible data should not be under estimated. We receive many client requests for information such as Plant Fiber Mileage, Plant rf (CBS) mileage, subscriber count information, Bill of Materials for all or specific devices in a plant, project costing for proposed newbuild projects, details of a specific area of a network and many other varied requests. We are asked to cooperate with city entities such as a Department of Transportation, or Telephone / Power providers and real estate developers by sharing digital files and data for projects such as common trench plans, pole transfers and plant relocation plans, subdivision layout plans, Multiple Dwelling (MDU) plans and many other issues. Access to your data can be shared with anyone you choose and therefore has the potential of accelerating the process of cooperation and the successful conclusions to the issues listed above and many others as well. Sometimes you may need something as simple as having a system print sent to the power company, with access to your plant data this is a download away. Using the plant map viewing software provided (at no additional charge) to each system under the "Flat Rate Plan", your system personnel will be totally self-sufficient and will save time, money and certainly speed up the process of cooperation that is often time sensitive to a pending project or one already underway needing fast, well informed and accurate planning and decisions.

If at anytime our assistance is required or requested for any purpose we will always be immediately accessible and with the "Flat Rate Plan" there will never be a charge, its all taken care of under the "Flat Rate Plan".

Behind the scenes we are always involved because of the continual updating and verifying all client data as well as operational verification of the data servers.

 

 

SUMMARY ----- Back To Flat Rate Plan Index

The many benefits, low fixed cost and functional simplicity make The Flat Rate Plan an extremely beneficial product. To begin the Flat Rate Plan in an expeditious manner will ensure the fastest return of benefits and will certainly and quickly diminish all cost to service ratios.

We have recommendations that will help to insure full and complete plan benefits for your company. Indeed, an integral part of the Flat Rate Plan is to work with your personnel at all levels to achieve maximum participation and take full advantage of the product.

Please give the Flat Rate Plan serious consideration. We welcome the opportunity to discuss this with you and answer any questions you may have.

NITACOM

NITACOM is a woman owned company

2725 WHISTLER LN.

OWENS CROSS ROADS, ALABAMA

256-536-7651 (ext)10

Contact Flat Rate Plan Sales

- Consultation via telephone, email, internet, and fax are provided for any issue relative to system design engineering, GIS mapping, software support, design specification, and equipment. Our staff will work with your personnel to provide answers and assist with plans and solutions to accomplish a most cost effective approach to all projects small or large.

The cost of this service is an hourly rate based on type of consultation.

- Our staff will provide on-site plant walkout, permitting, verification and planning when required. Priority will be given to collection of all essential data required for successful maintenance of all documentation and records.

*The cost of these services are typically a footage/mileage rate based on the type of field engineering service performed.

The Standard GIS service rates are listed for information and are the only services that not covered under the Flat Rate Plan.

*The cost of Field engineering services listed above are subject to change relative to typical market rates at the time of project start.

- Engineering and landbase revisions relative to system new build, system extensions and system upgrades will be performed on-demand. All associated system schematics, maps and technical reference documents will be updated and replacements will be delivered to the client and made available on-line.

The cost of these services are typically a footage/mileage rate if area is greater than 5280' and hourly when less than 5280'

- Cost analysis, material estimates, extension options and sample plant layouts for developers can be performed in a timely manner and provided to the client as a useful tool for system modification planning.

The cost of these services are typically an hourly rate.

- Create, update, make available for access and or deliver digital files, paper documentation (plant schematics, maps, and technical reference manuals).

The cost of these services are typically a cost per sheet or plot. See data archive section (item 8) for digital data archive access service rates.

- Copies of plant documents or emergency replacements of lost or damaged plant schematics, maps and technical reference manuals.

The cost of these services are typically a cost per sheet or plot and at hourly rate for rebuilding and replacing manuals.

- Updated and accurate plant documentation can provide a resource for information used in local and corporate reports. Significant quality data is embedded in the engineering documentation compiled for use in plant technical operations. This information is extractable and can be used to populate reports or verify existing report entries. Additional information can be incorporated into the engineering schematics that can be used to replace the tedious task of pulling required report items from cable billing systems. Outage management tracking, outage duration / notification, service call results, and pay service by node area are only a few of these data types.

The cost of these services are proposed by client requirement. Much of the available basic plant data is accessible from the data archive server and other than the data archive service and access rates the client will incur no additional cost for use of the basic data.

- Digital archives of all relevant engineering data will be maintained on a secure computer server.

There is a minimal charge for the basic data archival storage service which is based on server space required.

- Client access to plant data archives will be provided through a secure internet link to the server where your data is archived. The client will have download capability 24/7. Downloading system engineering schematics, maps, databases and other data requires minimal computer hardware and the required software will be provided by NITACOM as a part of the Flat Rate Plan. Reviewing, printing/plotting and redlining plant schematics can be achieved with a minimal hardware investment at the client site. At many sites, the required hardware is already in place. (i.e. Computer and Printer). Our staff has experience and or certification in the following: CISCO, MICROSOFT, C-COR, SIEMENS, AS400 SERVER, NT, SQL, LAN/WAN Network Design and Implementation and other certifications.

The cost of this service will depend upon access requirements.

- As described in item (9) a viewing software system will be provided as a part of the Flat Rate Plan. Additionally the software will be installed and configured for your site. At the clients request, all plant engineering schematics, maps, databases and other relevant data can be loaded on the system being used for the viewing software for the clients review on-demand. Any new modifications to the plant can be downloaded from the data archive server to replace the previous version on your local computer.

One (1) viewing software license will be provided at no cost for each Plant/System participating in the Flat Rate Plan. Cost for on-site Installation and configuration will be at an hourly rate or negotiated package rate.

Additional viewing software license' available at minimal cost to accommodate access from the clients corporate, regional, area, or other locations as required by the client.

What is the Cost of the Flat Rate Plan ----- Back To Flat Rate Plan Index