Hodbo (HCN) Building a high-speed optic channel from Russia to Europe and China.
Cellular operators are obviously having a shortage of backbone resources, as they have cancelled the tariffs with unlimited Internet traffic. As a rule they claim that these tariffs are not in demand, but they do not mention the inflated prices (from 1200 to 2500 rubles a month) for the unlimited traffic service. Any poll of cellular subscribers will show that a subscriber will switch to an unlimited tariff if its price is 200-250 rubles (as it was at the start of the company Yota). The success of Yota is fully based on unlimited Internet at a reasonable price!
How it works?
We build high-speed optic channel 12700 km through Russia which will connect Europe and China. It will create extraordinary cheap and unlimited Internet speed for Europe, Russia and China.
Exchange token on on money profit, access to high-speed channel or prepaid SIM card with unlimited internet.
For internet providers
Telecom providers can exchange token TELE2 on access to cheap high speed channel.
Private persons can exchange TELE2 token on prepaid SIM-card with high-speed unlimited Internet traffic.
● to improve the quality of service and reduce the price for regional Internet providers, and
hence for end users.
● to establish REGION-IX for the inclusion of Moscow operators in the all-Russia market and
ensuring the quality of feedback in the regions of Russia.
● to create co-brands together with mobile operators, offering unlimited Internet tariffs at
reasonable prices, and to provide them with high-capacity lines.
Hodbo Project Summary
• "Minimum" option: 200 million rubles. (The "Moscow-Krasnodar" direction with the capacity of
800Gbit/s - 1600Gbit/s).
• "Medium" option: 820 million rubles. (The Moscow-Yekaterinburg-Novosibirsk direction with
the capacity of 500 Gbit/s).
• "Maximum" option: 2.16 billion rubles. (The
with the capacity of 2000 Gbit/s).
• "Mega" option: 3 billion rubles. (The
with the capacity of 4,000 Gbit / s).
Return on Investment:
• to reach the break-even point within 12-16 months from the beginning of financing.
The timing of the launch:
• "Minimum" option - 3 months.
• "Medium" option - 6 months.
• "Maximum" option - 11 months.
• Option "Mega" - 24 months
Equipment planned for acquisition:
• the USA.
Legislative norms of fundamental importance:
The Order of the Ministry of Communications and Mass Media of the Russian Federation of August 26, 2014 No. 258 (http://68.rkn.gov.ru/directions/p18724/).
• 30-200 million rubles. At the end of 2017.
• Satellite Internet, 5G technology: optical fibre connections are faster.
• Decentralization of data centres in Moscow:
Data centres in the regions already exist, but no one is going there, because the main corporate
consumer is in Moscow (the management of all large companies, both corporations and media, is in
Moscow, and wants to have the server side by side). And the expensive infrastructure of data centres
for tens of thousands of racks has already been established in Moscow, and is actively developing.
• Option "Minimum": 170-300 million rubles of Investment for the direction "Moscow-Krasnodar" (2/3
of the budget for fibre + 1/3 leased equipment / we are ready to give 40-45% of the share of SPV for
• Option "Medium": 800/1000 million rubles of investment (east, south, backbone inside - Russian
traffic / the proportion of costs and the share of the investor are the same).
• Option "Maximum": 2/3 billion rubles investment (east, south, backbone international traffic (from
Stockholm to China) / 1/3 fibre + 2/3 leased equipment / the share of the investor 45-55%).
• Option "Mega": 4/6 billion rubles of investment (all the same, with only two parallel routes /
increase the capacity by 2-4 / - 1/3 of the budget for fibre + 2/3 leased equipment / the share of the
Business model, the idea of the founders
The creation of a virtual operator of cellular communications RUSTELEPORT, by exchanging the resources of the backbone for leased capacity of the cellular network infrastructure in the form of issuing branded SIM cards.
1) Actual and not expensive unlimited INTERNET at a price of 200-300 rubles per month for the subscriber is the main advantage of the new cellular operator.
2) We are planning to agree on exchange of the channel of 1 000Gbps 8000km long, from Moscow and all over Russia at the main points of traffic distribution: Krasnodar, Samara, Yekaterinburg, Novosibirsk in exchange for 1 million SIM cards (We should have no difficulty since the expenditures of operators connected with building backbones are much higher due to the specific of their ability). In this approach they have no expenditures at all, except for those occurring due to the exploitation of already-present infrastructure and Rusteleport will definitely make good the deficiency of capacity for providing unlimited tariffs Calculation of the cost exchange: Rental cost of a channel for 10Gbit/s 1,500-2,000 km long is 500,000- 800,000 rub a month in the market. Rental cost of a channel for 100Gbit/s for 1,500-2,000 km in the market is 4-6 mln rub a month in the market. And the rental cost of a channel for 1 Tbit/s (1,000 Gbit/s) is 30-40 mln rub a month correspondingly. Taking into account the length of the network of Rusteleport, which is 8,000 km, the wholesale price for 1 Tbit/s for 8,000 km will be 200 million rubles a month, which corresponds to the average income gained from 1 million subscribers per month. In fact, it is possible to form a tariff of the source operator which leaves all the costs of voice and SMS the same but makes the Internet traffic unlimited – just like at the start of sales of YOTA SIM cards. All the voice traffic and SMS is reserved for the source operator, but the income gained from the Internet is distributed using the virtual operator Rusteleport.
3) The sales of Rusteleport SIM cards, offering an inexpensive unlimited tariff, through the network of mobile operators and retailers of electronics stores will not take much time - it will be necessary to think how to build new backbones quickly to get the next million of the SIM cards.
4) Such program of backbone (Terabit) lines exchange for 1 million of SIM cards will allow the
following: first, to set the retail price of selling Internet resources to Rustelport; secondly, to meet the
demand of mobile operators for the backbone channels – it is their long-held dream to create an outsourced operator whose only responsibility would be ensuring their trunk circuits (They have already given the cellular towers to such servicing companies as the “Russian Towers”)
5) The planned revenue from the sales of 1 million of SIM cards is 200 million rubles a months. (The planned revenue of Rusteleport gained from 1 Terabit/s between the cities of Moscow and Krasnodar is 20 million rubles a month, Moscow and Samara - 20 million rubles a month, Moscow and Yekaterinburg - 25 million rubles a month, Moscow and Novosibirsk - 35 million rubles a month. It gives a total revenue of 90 million rubles a month.) This difference of + 110 million rubles a month may be the subject of bargaining to reach parity in negotiations with the cellular operators.
6) The retail market presence will require serious advertising and such image advertising will also promote the channels sales for alternative operators. Let us have a look at some recent publications. The Russian telecommunications market: ICT services based on data transmission networks will be the source of long-term growth. According to preliminary data, the Russian telecommunications market reached the size of 1 635 billion rubles in 2013. The growth rate of the market was 6%, having decreased by 1 pp as compared to 2012, this downdraft will continue in the following years - the average annual growth will be 4% in 2014-2018. As far as the largest segments of the market are saturated, significant changes in the structure of the industry, the growth rates of revenues are not expected. More than a half of the revenue comes from cellular communications. This segment is growing faster than the rest of the market, mainly due to mobile Internet services. As a result, by 2018, cellular communications will account for almost 2/3 of the communications market.
Telecommunications market dynamics in Russia in 2009-2018.
● Almost 80% of the Russian telecommunications market is formed by the "big four" - Rostelecom, MTS, VympelCom and Megafon, which are present in all major segments of the communications industry. Following the results of 2013, the four leaders jointly control (in terms of revenues):
● 89% of the mobile communications market
● 78% of the local telephone market
● 90% of domestic long-distance and international communication market
● 58% of the market for broadband Internet access
● 38% of the pay TV market
Russia: the total volume of communication services in the corporate segment might reach 360 billion rubles by 2016. J'son & Partners Consulting Company presented a summary of the study of the competitive situation in the telecommunications market in the B2B segment. As noted in the company: the development of information and communication technologies is one of the strategic directions of the economy modernization of the Russian Federation. The growth of investment in the development of modern telecommunications infrastructure of enterprises improves their efficiency, accelerates the response to market challenges and increases competitiveness in the long term. The research was based on a quoted quantitative survey of the corporate sector, which combined both telephone and online methods. The spectrum of the analyzed services included local telephone services, wired Internet access, virtual private networks (VPN) and leased line circuits, as well as mobile voice communications.
The total volume of the research services market in 2012 amounted to 240 billion rubles, 54% of which was for fixed communication. Despite a small share in the overall structure of Russian business (7% of companies) large business accounts for almost half (49%) of the revenues from fixed and mobile services. According to J'son & Partners Consulting forecasts, the average annual growth (CAGR) should be about 10%, and the total volume of fixed and mobile communication services in the corporate segment might reach 360 billion rubles by 2016.
The report examines the dynamics of income in 2010-2012 and the forecast of its development up to 2016 in the segments of the considered services. The growth of the telecommunications market will be caused by the further development of voice mobile communication services, wired Internet access and the development of virtual communication networks. According to J'son & Partners Consulting, in the context of services, mobile voice communication will show the greatest growth due to the spread of smartphones among employees of regional companies and a decrease in the average price of smartphones.
According to experts, the penetration of cellular communications in Russia has exceeded 166% in the calculation for SIM-cards and 110% - when calculating for active subscribers. The number of broadband Internet access subscribers has exceeded 27 million, the penetration has reached 49%, while in large cities it reaches 60-80% and often exceeds 50% in cities of regional significance with a population of less than 500 thousand people. Furthermore, the pay TV market with penetration of 55% is rapidly slowing down its development dynamics. So, if in 2012 the growth of subscribers was 17%, then in 2013 it was only 9%, and in 2014 a further slowdown is expected - up to 6%.
More information on RBC: http://www.rbc.ru/rbcfreenews/...
7 August 2017
Presale of tokens to first investors with special conditions.
7 September 2017
Start of crowdsale for everyone.
7 Ocotber 2017
End of crowdsale
Tokens can be bought on specialized exchanges.
7 November 2017
Start of building first thread of optic channel.
1700 km 1000 Gbit/s, Annual revenue of thread 3 mln USD.
1800 km 1000 Gbit/s, Annual revenue of thread 3 mln USD, Annual revenue of all system 8 mln USD.
6500 km 3000 Gbit/s, Annual revenue of thread 9 mln USD, Annual revenue of all system 19 mln USD.
Novosibirsk-Heihe (China) thread
4500 km 4000 Gbit/s, Annual revenue of thread 36 mln USD, Annual revenue of all system 98 mln USD.
Connecting TELE2 mobile operator
1000Gbit/s 1 mln SIM-cards, Annual revenue from SIM-cards 30 mln USD.
Start of investment return
Investors who choose return of profit in SIM-cards or access to internet channel can exchane tokens on it.
Hodbo (HCN) ICO
Since the beneficiaries of the project are, in fact, the majority of the world, particularly Russia, Europe and China, it was decided to finance its construction through ICO (Initial Coin Offering) or the sale of tokens as it is very technological, fast and unencumbered by excessive barriers to attract investment from around the world.
• August 12, 2017 - ICO
• October 7, 2017 - completion of the sale
• November 7, 2017 - utilization of investments
Characteristics of the token
Product Name: Hodbo
Exchange ticker: HCN
Issued amount: 100,000,000 units
Additional issue: not provided
Severability: up to 10,000 shares
Block chain: ETH
Function of the token. What the investor receives.
The token bought by the investor after the construction project can be exchanged in three ways:
1. During the repurchase with a coefficient of 2.5 in a calendar year after the completion of the ICO - a
simple return on investment in monetary terms.
2. To exchange a token for a mobile SIM-card with prepaid mobile Internet traffic throughout Russia
for 2 months, at the rate of 1 token = 1 SIM-card - getting a working profitable mobile product by
users/physical persons; Receiving a large number of SIM-cards for further resale at sales points to
3. Exchange for the purchase of 10 Gbit/s Internet traffic by telecom operators and other legal
entities at the rate of 1000 tokens = 10 Gb/s 1500 km for a month using the communication channel -
obtaining a cheap communication channel for companies that provide communication services to the
public and legal entities.
How to get tokens
There are 4 options for obtaining the tokens:
1. During the Pre-ICO with a bonus of 25% - by direct contact with the ICO organizer, or through
the contact form of the project site;
2. During the sale (crowd sale) - by registration of a personal account as an investor and making a
payment for the desired number of tokens.
3. After the completion of ICO - unsold tokens, directly from the ICO organizer.
4. Create a warrant for the purchase on the Waves Platform and others, where the token will
be placed, and purchase at a market price from market participants.
During the ICO, the first investors are planned to be encouraged. They will get extra (“bonus”) tokens,
the number of which depends on the date of purchase:
• 1st day - 25%
• Week 1 - 20%
• Week 2 - 15%
• Week 3 - 10%
• Week 4 - 5%
• Week 5 - 0%
*of the number of purchased tokens.
Choose the way of taking profit
Distribution of proceeds from the sale of tokens
• 80% - investments in the construction and purchase of equipment;
• 10% - operating expenses;
• 10% - remuneration to the project team.