We have observed the following:

It is easier to explain wireless after the fact then to sell wireless itself. In other words, we sell a service that provides X amount of internet access and Y phone lines that we just happen to deliver wirelessly. Once a customer is "sold" on the value of the service it is easy to explain the benefits of fixed wireless over copper.

Our "T1" price is lower than the rest of the market, but it is easier and more profitable to sell 3Mbps at the market price of a T1 then to sell our lower priced "T1" service.

Generally speaking, we have found the cost/time to sell a customer is the same no matter how large the service delivered is. In other words, it takes just as long to sell a "DS3" as it does a "T1" even though the "DS3" is significantly more profitable.

All of the above means that while we are a seemingly large WISP, we don't have that many customers; our ARPU is just very high.

-Matt

Charles Wu wrote:

Generally, we end up debating all day and all night on the lists of "what's
the best radio" or "who's got those cool blue lights" -- however, FWIW, I've
noticed that there seldom is any debate on "useful" topics like sales &
marketing (especially of the product positioning of license-exempt wireless)

Do we call it wDSL? Wireless? More than Wifi? WiMAX? -- who knows? But fuel
the fire with a few observations

-----------------------------------------
<rant>
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ARPU is an acronym for the Average Revenue per User.  This is the average
revenue factored across all customers as if each were charged the same price
-- with some customers charged less and others more.  Customer type usually
determines price.  In addition, a Network Operator's valuation is a direct
multiple of its ARPU.
The Marginal Recurring Cost (MRC) as compared to its Service Level /
Marginal Recurring Revenue (MRR) of delivering the following license-exempt
broadband wireless "WiMAX" connections have been calculated as follows: Broadband "Lite" Residential Service (512 / 512 Kb Burstable) MRR: $24.95 MRC: $20

Best Effort Residential Service (5 Mb / 512 Kb Burstable) MRR: $39.95 MRC: $20

Best Effort Business Class Service (5 Mb / 1 Mb Burstable) MRR: $149.95 MRC: $25

Dedicated Business Class Service (5 Mb / 3 Mb Burstable) (1 Mb / 1 Mb Dedicated) MRR: $249.95 MRC: $30

Dedicated Business SLA Service (5 Mb / 3 Mb Burstable) (3 Mb / 3 Mb Dedicated) MRR: $449.95 MRC: $40

Looking at the numbers, it's obvious that a higher ARPU increases the
overall health of the bottom line.
Interestingly enough, all the following service plans are achieved using the
EXACT SAME license-exempt broadband wireless access technology.  So why is
the differentiating factor that allows some WISPs to sell that
Canopy/Trango/Alvarion/whatever last mile connection for $300+ month ARPU
while other can barely get $30 / month ARPU?

IT'S OBVIOUSLY MORE THAN "JUST" TECHNOLOGY...
-----------------------------------------
<rant>
-----------------------------------------

-Charles

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