What am I buying when I buy a wireless internet provider?
You are buying a bundle of agreements, equipment and relationships: tower and rooftop site leases, radios and customer equipment, upstream backhaul, the subscriber list, billing and support systems, the people who install and fix it, and any licence holdings. Each piece needs its own check, and some may need consent to transfer. Ask your lawyer.
A wireless internet provider looks like a signal in the air, but the business is a set of separate things that each have an owner, a contract or a condition. Knowing the list helps you ask for the right documents. Some items you take outright, and others pass only if a landlord, supplier or regulator agrees. Go through them one at a time.
Sites and equipment
The physical network is towers, rooftop mounts and the radios on them, plus the equipment installed at customers’ homes. Ask for a site list with the lease or licence of occupation for each one, its term and who must consent to a transfer. Ask who owns the customer equipment and what shape it is in. Visit a sample of sites with someone who knows radio gear.
Backhaul and upstream contracts
Backhaul is how the network reaches the wider internet. Read the contracts for term, renewal and what happens on a change of ownership. A single upstream supplier can be a weak point, so ask whether there is a second route.
Subscribers, systems and people
- The subscriber list, plan mix and a history of how many leave.
- Billing, support and monitoring systems, and who holds the logins.
- Staff and installers, with their roles and any contracts.
- Customer terms and any promises about service.
Expect the list to be incomplete at first. Subscriber records are only as good as the billing system behind them, so ask to see how they are produced. Read what happens when staff leave after a trades acquisition for why the installers matter.
Licence holdings
If the provider holds spectrum or radio licences, treat those as facts to confirm with your lawyer, who can tell you whether and how they transfer. The regulator’s own pages are the place to read the details.
Related reading
10 pages on the same subject, grouped by topic.
Buying
- Expert answerDo I face reasonable notice exposure when I buy shares of a company?
- Expert answerWhat if the technicians leave after you buy an HVAC company?
- Expert answerHow does a solar installation company make money?
- Expert answerHow does a fuel delivery company make its money?
- Expert answerWhat should I check before buying an irrigation company?
- Expert answerWhat should I check before buying a drone mapping or inspection business?
Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
- 02Business Development Bank of CanadaGovernmentWhat are financial statements?
- 03Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
Deavo is an advertising and listings platform, not a brokerage, law firm or valuation firm. This page is general information, not legal, tax, accounting or valuation advice, and rules differ by province. Confirm anything you rely on with a qualified professional before you act on it.