Dennis Burgess - LinkTechs.net wrote: > Simple as this... > > Even if you can supply this bandwidth.. > > 1. Avg Customer usage goes up. > 2. Over subscription rate goes down. > 3. Network costs go up to meet increased demand > 4. Per Sub costs go up due to the higher usage > 5. Profit per sub goes down. > > Increase back-end costs but no increase in profit = Bankrupt Company > > Or you can.. > > 1. Avg Customer Usage goes up > 2. Network costs go up > 3. Avg cost per sub goes up > 4. Pass cost onto customer > > Regardless, its business 101. If your costs put you into a position > that your existing pricing don't make enough money, you have to, reduce > costs, or increase income. The idea is how to do this without loosing > customers (some you will anyways). But as Sam said, loose the high end > customers that use your network and keep on trucking. Comcast I think > did this a while back, dumping around 2000 subscribers, due to their > usage! Why do you think also sat connections have that FAP, cause they > can't just "upgrade" their backhauls etc Its a major expense. > > One argument that I have had people tell me, is that the ISP should know > this is coming and should have planned for it. Cost of doing business. > I don't think that is true, a small increase in usage yes, but we are > talking tripling otherwise low usage connections, if not more. > > ------------------------------ > * Dennis Burgess, CCNA, A+, Mikrotik Certified Trainer > WISPA Board Member - wispa.org <http://www.wispa.org/> > Link Technologies, Inc -- Mikrotik & WISP Support Services* > *Office*: 314-735-0270 *Website*: http://www.linktechs.net > <http://www.linktechs.net/> > > */ Link Technologies, Inc is offering LIVE Mikrotik On-Line Training > <http://www.linktechs.net/onlinetraining.asp>/*
I think the idea that we will charge more for the internet in the future is not likely. Although it is true that we will have to add capacity at a cost to us, it's also true that most wisps are continuously building out anyways. We add towers, ap's new backhauls routers and servers continously. It's also true that any wisp who has been around longer than a few years knows there is additional costs that start ups may not typically think about, replacing existing equipment. If you look back 5 years ago and was looking for a high capacity PtP link, it was a lot more money for less bits. Our bandwidth costs were much higher, and some of our labor expenses were higher. Ie; how much did a good programer cost 10 years ago?, how about 5? today. most likely less. I've watched my cost fall dramatically over the past 10 years, it's one of the bright spots of this industry. What I do with my new found savings is reinvest in my network. So the cost to meet the future needs of our subscribers is real, it's not as hard to swallow as one might think. If they preplan and have a good investment stratery it should be business as usuall. George -------------------------------------------------------------------------------- WISPA Wants You! Join today! http://signup.wispa.org/ -------------------------------------------------------------------------------- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
