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Service Contracts with End Users

Although we anticipate long term contracts with our customers, we expect that our customers (i.e., CLEC, ISP, Cable Modem Operator), as service providers to end users, will require relatively shorter commitments from their customers. Given the cost to equip and install PLC broadband access services within a Service Area, Gridline anticipates that its customers will require an end-user commitment that will ensure recovery of the fixed cost of initiating service (i.e., approximately a 2-year service contract at competitive rates).

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