Re: [WISPA] what should ARPU mean?
I hate to hijack this thread but this brings to mind another question: With respect to WISP's, what is the definition of CGS (Cost of Goods Sold)? -RickG On Mon, Jan 5, 2009 at 7:20 PM, Shiraz Moosajee shi...@jabbroadband.com wrote: Matt, You would generally count just the one unique customer. That said, every ARPU calculation I have seen seems to be slightly different which in itself reflects the different definitions of customers and revenue. One example is treatment of MDU (Multiple Dwelling Unit) Apartments which is sometimes dealt with as a single customer (the apartment owner / HOA) and sometimes at the more granular tenant level. It's probably more important to pick a methodology that's justifiable - a good test would be if you send your customer 1 or many invoices / get 1 payment? - and apply it consistently. Shiraz -Original Message- From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org] On Behalf Of Matt Liotta Sent: Monday, January 05, 2009 12:15 PM To: WISPA General List Subject: Re: [WISPA] what should ARPU mean? What if one customer signs two different contracts? at two different locations? Is there ever a point where a single customer should for the purposes of ARPU be considered at a less granular level? -Matt On Jan 5, 2009, at 2:09 PM, Travis Johnson wrote: My assumption has always been adding up all your gross revenues from the customers and dividing by the number of customers. I had never heard of anything different. What are you hearing? Travis Microserv Matt Liotta wrote: We (the WISP industry) like to talk about ARPU a lot, but different organizations define ARPU differently. So, my question is what do you think the definition of ARPU should be? -Matt 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/ 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/ 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/ 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/ 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/
Re: [WISPA] what should ARPU mean?
The cost of tangable items invoiced. For example if you sell the customer the cpe, the cost of that is the radio, dish, connectors, cable, mount, poe injector, cable ties, lags, surge protector, etc. Labor does not fall under cogs Sent from my Windows Mobile® phone. -Original Message- From: RickG rgunder...@gmail.com Sent: Tuesday, January 06, 2009 11:47 AM To: WISPA General List wireless@wispa.org Subject: Re: [WISPA] what should ARPU mean? I hate to hijack this thread but this brings to mind another question: With respect to WISP's, what is the definition of CGS (Cost of Goods Sold)? -RickG On Mon, Jan 5, 2009 at 7:20 PM, Shiraz Moosajee shi...@jabbroadband.com wrote: Matt, You would generally count just the one unique customer. That said, every ARPU calculation I have seen seems to be slightly different which in itself reflects the different definitions of customers and revenue. One example is treatment of MDU (Multiple Dwelling Unit) Apartments which is sometimes dealt with as a single customer (the apartment owner / HOA) and sometimes at the more granular tenant level. It's probably more important to pick a methodology that's justifiable - a good test would be if you send your customer 1 or many invoices / get 1 payment? - and apply it consistently. Shiraz -Original Message- From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org] On Behalf Of Matt Liotta Sent: Monday, January 05, 2009 12:15 PM To: WISPA General List Subject: Re: [WISPA] what should ARPU mean? What if one customer signs two different contracts? at two different locations? Is there ever a point where a single customer should for the purposes of ARPU be considered at a less granular level? -Matt On Jan 5, 2009, at 2:09 PM, Travis Johnson wrote: My assumption has always been adding up all your gross revenues from the customers and dividing by the number of customers. I had never heard of anything different. What are you hearing? Travis Microserv Matt Liotta wrote: We (the WISP industry) like to talk about ARPU a lot, but different organizations define ARPU differently. So, my question is what do you think the definition of ARPU should be? -Matt 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/ 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/ 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/ 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/ 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/ 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/
Re: [WISPA] what should ARPU mean?
What about the WISP as a whole. Example: What about bandwidth? On Tue, Jan 6, 2009 at 2:59 PM, Jerry Richardson jrichard...@aircloud.com wrote: The cost of tangable items invoiced. For example if you sell the customer the cpe, the cost of that is the radio, dish, connectors, cable, mount, poe injector, cable ties, lags, surge protector, etc. Labor does not fall under cogs Sent from my Windows Mobile(R) phone. -Original Message- From: RickG rgunder...@gmail.com Sent: Tuesday, January 06, 2009 11:47 AM To: WISPA General List wireless@wispa.org Subject: Re: [WISPA] what should ARPU mean? I hate to hijack this thread but this brings to mind another question: With respect to WISP's, what is the definition of CGS (Cost of Goods Sold)? -RickG On Mon, Jan 5, 2009 at 7:20 PM, Shiraz Moosajee shi...@jabbroadband.com wrote: Matt, You would generally count just the one unique customer. That said, every ARPU calculation I have seen seems to be slightly different which in itself reflects the different definitions of customers and revenue. One example is treatment of MDU (Multiple Dwelling Unit) Apartments which is sometimes dealt with as a single customer (the apartment owner / HOA) and sometimes at the more granular tenant level. It's probably more important to pick a methodology that's justifiable - a good test would be if you send your customer 1 or many invoices / get 1 payment? - and apply it consistently. Shiraz -Original Message- From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org] On Behalf Of Matt Liotta Sent: Monday, January 05, 2009 12:15 PM To: WISPA General List Subject: Re: [WISPA] what should ARPU mean? What if one customer signs two different contracts? at two different locations? Is there ever a point where a single customer should for the purposes of ARPU be considered at a less granular level? -Matt On Jan 5, 2009, at 2:09 PM, Travis Johnson wrote: My assumption has always been adding up all your gross revenues from the customers and dividing by the number of customers. I had never heard of anything different. What are you hearing? Travis Microserv Matt Liotta wrote: We (the WISP industry) like to talk about ARPU a lot, but different organizations define ARPU differently. So, my question is what do you think the definition of ARPU should be? -Matt 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/ 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/ 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/ 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/ 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/ 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/ WISPA Wants You! Join today! http://signup.wispa.org
Re: [WISPA] what should ARPU mean?
Good question. I believe it would also fall under cogs. Sent from my Windows Mobile® phone. -Original Message- From: RickG rgunder...@gmail.com Sent: Tuesday, January 06, 2009 12:07 PM To: WISPA General List wireless@wispa.org Subject: Re: [WISPA] what should ARPU mean? What about the WISP as a whole. Example: What about bandwidth? On Tue, Jan 6, 2009 at 2:59 PM, Jerry Richardson jrichard...@aircloud.com wrote: The cost of tangable items invoiced. For example if you sell the customer the cpe, the cost of that is the radio, dish, connectors, cable, mount, poe injector, cable ties, lags, surge protector, etc. Labor does not fall under cogs Sent from my Windows Mobile(R) phone. -Original Message- From: RickG rgunder...@gmail.com Sent: Tuesday, January 06, 2009 11:47 AM To: WISPA General List wireless@wispa.org Subject: Re: [WISPA] what should ARPU mean? I hate to hijack this thread but this brings to mind another question: With respect to WISP's, what is the definition of CGS (Cost of Goods Sold)? -RickG On Mon, Jan 5, 2009 at 7:20 PM, Shiraz Moosajee shi...@jabbroadband.com wrote: Matt, You would generally count just the one unique customer. That said, every ARPU calculation I have seen seems to be slightly different which in itself reflects the different definitions of customers and revenue. One example is treatment of MDU (Multiple Dwelling Unit) Apartments which is sometimes dealt with as a single customer (the apartment owner / HOA) and sometimes at the more granular tenant level. It's probably more important to pick a methodology that's justifiable - a good test would be if you send your customer 1 or many invoices / get 1 payment? - and apply it consistently. Shiraz -Original Message- From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org] On Behalf Of Matt Liotta Sent: Monday, January 05, 2009 12:15 PM To: WISPA General List Subject: Re: [WISPA] what should ARPU mean? What if one customer signs two different contracts? at two different locations? Is there ever a point where a single customer should for the purposes of ARPU be considered at a less granular level? -Matt On Jan 5, 2009, at 2:09 PM, Travis Johnson wrote: My assumption has always been adding up all your gross revenues from the customers and dividing by the number of customers. I had never heard of anything different. What are you hearing? Travis Microserv Matt Liotta wrote: We (the WISP industry) like to talk about ARPU a lot, but different organizations define ARPU differently. So, my question is what do you think the definition of ARPU should be? -Matt 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/ 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/ 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/ 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/ 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/ WISPA Wants You! Join today! http://signup.wispa.org/ WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman
Re: [WISPA] what should ARPU mean?
I don't think this can be done well. For example, if the definition is going to cover the United States the same service needs to be available in that area. In some parts of our network we have 5.8 coverage - nearly 30 megs available. These customers can do 2, 4 and 6 meg packages. The other areas have 900 - obviously hard to sell a 4 and 6 meg package there. This is just southwest Ohio, let alone a whole country. On 1/6/09, RickG rgunder...@gmail.com wrote: What about the WISP as a whole. Example: What about bandwidth? On Tue, Jan 6, 2009 at 2:59 PM, Jerry Richardson jrichard...@aircloud.com wrote: The cost of tangable items invoiced. For example if you sell the customer the cpe, the cost of that is the radio, dish, connectors, cable, mount, poe injector, cable ties, lags, surge protector, etc. Labor does not fall under cogs Sent from my Windows Mobile(R) phone. -Original Message- From: RickG rgunder...@gmail.com Sent: Tuesday, January 06, 2009 11:47 AM To: WISPA General List wireless@wispa.org Subject: Re: [WISPA] what should ARPU mean? I hate to hijack this thread but this brings to mind another question: With respect to WISP's, what is the definition of CGS (Cost of Goods Sold)? -RickG On Mon, Jan 5, 2009 at 7:20 PM, Shiraz Moosajee shi...@jabbroadband.com wrote: Matt, You would generally count just the one unique customer. That said, every ARPU calculation I have seen seems to be slightly different which in itself reflects the different definitions of customers and revenue. One example is treatment of MDU (Multiple Dwelling Unit) Apartments which is sometimes dealt with as a single customer (the apartment owner / HOA) and sometimes at the more granular tenant level. It's probably more important to pick a methodology that's justifiable - a good test would be if you send your customer 1 or many invoices / get 1 payment? - and apply it consistently. Shiraz -Original Message- From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org] On Behalf Of Matt Liotta Sent: Monday, January 05, 2009 12:15 PM To: WISPA General List Subject: Re: [WISPA] what should ARPU mean? What if one customer signs two different contracts? at two different locations? Is there ever a point where a single customer should for the purposes of ARPU be considered at a less granular level? -Matt On Jan 5, 2009, at 2:09 PM, Travis Johnson wrote: My assumption has always been adding up all your gross revenues from the customers and dividing by the number of customers. I had never heard of anything different. What are you hearing? Travis Microserv Matt Liotta wrote: We (the WISP industry) like to talk about ARPU a lot, but different organizations define ARPU differently. So, my question is what do you think the definition of ARPU should be? -Matt 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/ 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/ 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/ 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/ 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/ WISPA Wants You! Join today! http://signup.wispa.org
Re: [WISPA] what should ARPU mean?
I would say these discussions are kind of meaning less because these definitions are different from one accountant to another. But if the question is rephrased how to does you guys define your COGS. Because even if people are WISPs there are so many different approaches to being a WISP on these list that you would never get a agreed COGS or ARPU for the wisp industry. You have guys here that only target businesses then other guys that only do residential. Third guy that is doing it on the side and have a real job. Then you have the company with 5k+ customers. Another company that is doing computer sales/repair and networking work and offers webhosting and online backups etc etc etc. http://en.wikipedia.org/wiki/Cost_of_goods_sold Is the Wikipedia definition of COGS. For hardware we sell we include in COGS shipping costs to get items here and any other import/shipping related costs plus of course the item. For WISP customer I would in COGS include truck roll cost, cost of radio and other hardware, labor for installation. Possibly factor in cost of AP and backhaul costs as well internet usage fees but there it gets tricky so would probably not include that there but charge that to different account. / Eje -Original Message- From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org] On Behalf Of RickG Sent: Tuesday, January 06, 2009 1:44 PM To: WISPA General List Subject: Re: [WISPA] what should ARPU mean? I hate to hijack this thread but this brings to mind another question: With respect to WISP's, what is the definition of CGS (Cost of Goods Sold)? -RickG On Mon, Jan 5, 2009 at 7:20 PM, Shiraz Moosajee shi...@jabbroadband.com wrote: Matt, You would generally count just the one unique customer. That said, every ARPU calculation I have seen seems to be slightly different which in itself reflects the different definitions of customers and revenue. One example is treatment of MDU (Multiple Dwelling Unit) Apartments which is sometimes dealt with as a single customer (the apartment owner / HOA) and sometimes at the more granular tenant level. It's probably more important to pick a methodology that's justifiable - a good test would be if you send your customer 1 or many invoices / get 1 payment? - and apply it consistently. Shiraz -Original Message- From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org] On Behalf Of Matt Liotta Sent: Monday, January 05, 2009 12:15 PM To: WISPA General List Subject: Re: [WISPA] what should ARPU mean? What if one customer signs two different contracts? at two different locations? Is there ever a point where a single customer should for the purposes of ARPU be considered at a less granular level? -Matt On Jan 5, 2009, at 2:09 PM, Travis Johnson wrote: My assumption has always been adding up all your gross revenues from the customers and dividing by the number of customers. I had never heard of anything different. What are you hearing? Travis Microserv Matt Liotta wrote: We (the WISP industry) like to talk about ARPU a lot, but different organizations define ARPU differently. So, my question is what do you think the definition of ARPU should be? -Matt 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/ 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/ 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/ 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/ WISPA Wants You! Join today! http://signup.wispa.org
Re: [WISPA] what should ARPU mean?
What if one customer signs two different contracts? at two different locations? Is there ever a point where a single customer should for the purposes of ARPU be considered at a less granular level? -Matt On Jan 5, 2009, at 2:09 PM, Travis Johnson wrote: My assumption has always been adding up all your gross revenues from the customers and dividing by the number of customers. I had never heard of anything different. What are you hearing? Travis Microserv Matt Liotta wrote: We (the WISP industry) like to talk about ARPU a lot, but different organizations define ARPU differently. So, my question is what do you think the definition of ARPU should be? -Matt 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/ 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/ 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/
Re: [WISPA] what should ARPU mean?
ARPU is also a widely used term and barometer of success within the cable industry. They continue to attempt to drive ARPU by bundling additional products in their service offering. Like voice services! :) But also by marketing premium services -- I just upgraded to Brighthouse's 15 MB 'turbo' service, for example. But that one won't help their ARPU for awhile -- I told them I would buy it if they gave it to me free for 1 year, which they agreed to do. Ron -Original Message- From: Jerry Richardson [mailto:jrichard...@aircloud.com] Sent: Monday, January 05, 2009 2:11 PM To: WISPA General List Subject: Re: [WISPA] what should ARPU mean? ARPU Finance Definition Average revenue per user is calculated by dividing revenues by the subscriber base. Non-service revenues, such as equipment or other sales, are included in the calculation. The definition often is used in the telecom industry. User refers to one customer, such as a cell phone user. More simply, ARPU = Total revenue / # customers. __ Jerry Richardson airCloud Communications -Original Message- From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org] On Behalf Of Matt Liotta Sent: Monday, January 05, 2009 11:03 AM To: WISPA General List Subject: [WISPA] what should ARPU mean? We (the WISP industry) like to talk about ARPU a lot, but different organizations define ARPU differently. So, my question is what do you think the definition of ARPU should be? -Matt 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/ 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/ 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/
Re: [WISPA] what should ARPU mean?
Matt, You would generally count just the one unique customer. That said, every ARPU calculation I have seen seems to be slightly different which in itself reflects the different definitions of customers and revenue. One example is treatment of MDU (Multiple Dwelling Unit) Apartments which is sometimes dealt with as a single customer (the apartment owner / HOA) and sometimes at the more granular tenant level. It's probably more important to pick a methodology that's justifiable - a good test would be if you send your customer 1 or many invoices / get 1 payment? - and apply it consistently. Shiraz -Original Message- From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org] On Behalf Of Matt Liotta Sent: Monday, January 05, 2009 12:15 PM To: WISPA General List Subject: Re: [WISPA] what should ARPU mean? What if one customer signs two different contracts? at two different locations? Is there ever a point where a single customer should for the purposes of ARPU be considered at a less granular level? -Matt On Jan 5, 2009, at 2:09 PM, Travis Johnson wrote: My assumption has always been adding up all your gross revenues from the customers and dividing by the number of customers. I had never heard of anything different. What are you hearing? Travis Microserv Matt Liotta wrote: We (the WISP industry) like to talk about ARPU a lot, but different organizations define ARPU differently. So, my question is what do you think the definition of ARPU should be? -Matt 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/ 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/ 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/ 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/
Re: [WISPA] what should ARPU mean?
I think it also matters what the purpose is for stating ARPU. For example, if ARPU was considering ALL revenue, it would be meaningless if that revenue was not trasferable to a third party, and discussing ARPU based on selling to a third party. For example, if you are a local computer repair person, that revenue is associated to your customer. But a national company buying you, likely would never consider that revenue as ARPU, since they'd never be able to take over those services, since they require local feet on ground. However, Email account, web sites, etc could very well be transferrable, and relevent revenues to count in the number. I think for ARPU to be meanignful, it also has to reflect the typical costs to provide that service, if a typical cost is associated per customer. For example, if a business plan, calculated teh average cost of an install to be $500, then and the average broadband circuit was $200/mon. And you had one customer with 3 sites. If you said the average ARPU was $600, you'd then also need to state that average cost was $1500. I think it also matters whether you feel its likely that if you loose a customer, that you'd loose all sites of the custoemrs at the same time. That migfht determine whether you'd want to bundle them togeather as one or not. If buying decissions are independent at each site, it might be more appropriate to consider them seperate customers. All though its technically incorrect, we consider each link to a customer a seperate customer. Tom DeReggi RapidDSL Wireless, Inc IntAirNet- Fixed Wireless Broadband - Original Message - From: Shiraz Moosajee shi...@jabbroadband.com To: WISPA General List wireless@wispa.org Sent: Monday, January 05, 2009 7:20 PM Subject: Re: [WISPA] what should ARPU mean? Matt, You would generally count just the one unique customer. That said, every ARPU calculation I have seen seems to be slightly different which in itself reflects the different definitions of customers and revenue. One example is treatment of MDU (Multiple Dwelling Unit) Apartments which is sometimes dealt with as a single customer (the apartment owner / HOA) and sometimes at the more granular tenant level. It's probably more important to pick a methodology that's justifiable - a good test would be if you send your customer 1 or many invoices / get 1 payment? - and apply it consistently. Shiraz -Original Message- From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org] On Behalf Of Matt Liotta Sent: Monday, January 05, 2009 12:15 PM To: WISPA General List Subject: Re: [WISPA] what should ARPU mean? What if one customer signs two different contracts? at two different locations? Is there ever a point where a single customer should for the purposes of ARPU be considered at a less granular level? -Matt On Jan 5, 2009, at 2:09 PM, Travis Johnson wrote: My assumption has always been adding up all your gross revenues from the customers and dividing by the number of customers. I had never heard of anything different. What are you hearing? Travis Microserv Matt Liotta wrote: We (the WISP industry) like to talk about ARPU a lot, but different organizations define ARPU differently. So, my question is what do you think the definition of ARPU should be? -Matt 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/ 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/ 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/ 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/ -- No virus found in this incoming message
