orders can be secured in a city assuming some (conservative) low penetration rate (for example, 2 percent in year 1 growing to 5 percent in year 5)? How many customers and/or orders can be secured in a building? (Typically, this number is 3 to 5, not 20, 40, or 67 as some ELECs have assumed.) The last two factors will determine the scope, kind, and architecture of the needed platform; they will also determine the price point to keep in mind. Hence, look for the output of this stage of analysis to yield at least the fol- lowing information: Kinds of services Orders per city per quarter per service type Target price points per service Total revenue per quarter This information will drive the technical design. 10.2 Technical Design Parameters Implicit in this step is also a rollout plan SO that the right network is deployed at the right time to support the demand. (The "build it and they will come" model of network construction has been solidly refuted in past years.) In the following lists, we lay out a scenario to illustrate some of the variables essential for a sound business plan. The numbers shown are gen- eralized and do not represent specific vendors or products. Chapter 10 The following list provides the key sets of inputs that comprise the mod- eling, such as the basic equipment costs, capital expenditures (capex), CO and in-building equipment costs, sales, general, and administrative (SGA), operations expenditures (opex), and so on. The major parameters to consider include the following: Capex assumptions CO and building costs Facility and SGA employee expenses Operating assumptions Financing activities Revenue per employee City-level models (how many cities and when) Service revenues The next list presents the kind of worksheets that will be derived in sup- port of the analysis. The bottom of the list is the most discrete information; the top of the list is the most summarized information. The kind of output data sought by the modeling includes the following: Key financial information Balance sheet Cash f