Fjeld Consulting was tasked to tender and negotiate a best in class internet provision service for a new development of 380 PRS units. The problem was the developer was searching for an option to recoup the infrastructure capital without including additional fees in the rents.
We created a tender document that required the providers to price on three options:
- A non-exclusive marketing agreement that allowed for several providers (maximum resident choice) with a marketing referral fee / revenue share paid to the owner
- An exclusive marketing agreement advertising a single provider with a marketing referral fee / revenue share paid to the owner
- A full-inclusive bulk internet service at 100MB billed to residents as a technology fee with a resident option to upgrade to a 300MB or 1000MB service
Fjeld Consulting successfully persuaded several providers to competitively price these options and negotiated value-added extra services to help reduce operating expenses.
Fjeld Consulting executed a new non-exclusive internet marketing agreement that provided a 42% revenue share to the owner over a full fibre to the unit infrastructure, allowing the property to advertise 1000MB. The internet provider will bill customers £25 a month for a 100MB service with options for the residents to upgrade to a 300B or 1000MB service. Free Wi-Fi in all common areas, and free internet to the office is provided. The new marketing agreement created over £50,000 per year in additional income.