If you only have 10 - 30 customers or you have a very large network with
little saturation, then yes that is right in the ball park but every
customer you add spreads those cost out again. I have found that it is
easier to just take each customers cost to install and figure out an ROI
per customer then other costs you put in a general expense format.
Trying to figure out what each customer cost changes "hopefully"
everyday. Another way to look at it is by tower or POP location so that
you can work to make each POP profitable before deploying another.
Saturation of resources is key in this industry.
Anthony
Broadband Solutions
Mark Nash wrote:
My partner has done some quick analysis at COST PER CUSTOMER. This does not
include CPE hardware or one-time purchases...just monthly expenses that must
be covered by revenue from our customers. Items like fuel, insurance, tower
leases, bandwidth, billing & administration, support costs, cell phones,
etc. He came up with about $37 COST per subscriber.
I'm not really interested in how much we charge at this point...just coming
up with a valid calculation of COST.
Does $37 per subscriber seem right? I think it's high (I've only given it
about 15 minutes worth of thought).
This is something, of course, that everyone should be looking at, so I think
some discussion would be helpful.
Mark Nash
Network Engineer
UnwiredOnline.Net
350 Holly Street
Junction City, OR 97448
http://www.uwol.net
541-998-5555
541-998-5599 fax
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