Johny made a great point.

In wireless you are going to need the margin to cover truck rolls, and support, equipment failure, and all that stuff. What you will find is that wirelesss has less customer awareness and is harder to sell, and you are going to need mnore margin to pay you back for that effort. Selling at a lower price just labels you as a commodity provider, and takes away the benefit that most that would chose wireless would want. A choice of a local provider that offers better support. An item with a price tag of $20 is worth $20 in the consumers mind. A product with a price tag of $45 is worth $45 in the consumers mind. Not all will afford the $45 product, but you want the ones that can. They are also probably the ones not always looking for something for free, and willing to pay for add-on field service work, etc.



Tom DeReggi
RapidDSL & Wireless, Inc
IntAirNet- Fixed Wireless Broadband


----- Original Message ----- From: "JohnnyO" <[EMAIL PROTECTED]>
To: "'WISPA General List'" <wireless@wispa.org>
Sent: Friday, April 07, 2006 8:34 AM
Subject: RE: [WISPA] Re: CPE Cost Ideas Needed


I'm shooting at offering 1.5 Mbps service at around $24.95 and
offering VOIP for another $24.95 if they so choose.  So the
competition hasn't a chance against me if I can get around that $350
CPE cost.


IMNSHO - If you are trying to "compete" you will fall on your face in a
heartbeat. We charge more then the competition and we do so for a
reason. Our installs start at $250 for a 'basic' install. Our monthly
rates are atleast $10-$15/more then the DSL or Cable offerings in our
area. We avoid the bottom feeders this way. We could double or triple
our subscriber count within 12mos if we would drop down $15/mo for our
service but I refuse to do that. "Volume" of low end subscribers becomes
a very costly support decision.

I refuse to compete on pricing - we are local - we hire local people -
we donate and support the local sports teams / associations. We shake
our subscribers hands in the stores / at gas pumps / baseball games. We
pump $$ into the local business's for our supplies, materials.

$24.95/mo - If I were you - I would SERIOUSLY rethink your business
model. Oh - we also don't have contracts - We do have a TOS, but have
found there is really no reason to get subscribers to committ. If we do
our job - they will stay - if we fail to support them as we've promised
- they will bail. Kinda helps keep us on our toes :)

JohnnyO

-----Original Message-----
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On
Behalf Of Pete Davis
Sent: Friday, April 07, 2006 6:50 AM
To: WISPA General List
Subject: Re: [WISPA] Re: CPE Cost Ideas Needed


Joshua M. Andrews wrote:
Cliff:

Thank you for the information.  The areas of DSL are very spotty and
cable is very inexpensive and unreliable.  Many people are upset at
both situations.  DSL is offered for about $30 per month with purchase

of a DSL "modem" at around $50 or so and a 1 year contract is
required.  Cable service rents you the modem for $10 per month and
charges $40 per month for service on top of that ($50 per month total
for those of you out there in other posts that think half-duplex is as

good a full-duplex).

I'm shooting at offering 1.5 Mbps service at around $24.95 and
offering VOIP for another $24.95 if they so choose.  So the
competition hasn't a chance against me if I can get around that $350
CPE cost.

----------

Pete:

Thank you for the detailed response.  I appreciate you taking the time
to comment.  I don't want to be rude but I took a look at your website

and it needs some work. :(
In any case, I think you have a point.  Could you elaborate more on
what you meant by going with a 802.11b AP/CPE.  Do you mean you are
shooting a signal out to an area using WaveRider and then distributing

it via another 802.11b AP from there?  I think your right about
contracts and install fees and it sounds like your saying that I'm
just going to have to eat the cost and extend my ROI per user.  Thanks

again.

900Mhz client to 802.11b AP to 802.11b client is one scenario, but I
would also put 802.11b APs on the main tower. If you put up a $300 AP
and 5 $150 CPE, you will be doing better ($220 average customer
equipment cost) than a purely Waverider network. You should be able to
do better than 5 clients per AP.

Yes my website needs work, but we always have more installs that we
possibly have time to get to. When we get caught up on installs, we will

revamp the website to bring more in.

I wouldn't count on giving 1.5M to every customer on your network over
Waverider. I have played with every GOS setting I can come up with, and
cannot MAINTAIN over 1Mbps connectivity to multiple clients.

I would also consider the thought that you don't have to be the cheapest

ISP in town to be the busiest or the best.. Its gonna take a LOT more
$25/mo clients to get traction than at $40 or $50/mo. I wouldn't install

any customer who will take 12 months to get CFP (cash flow positive,
paying for CPE and installation costs). Not starting out, anyway, unless

I was DESPERATE to get market share. Desperation is almost never a good
position to be in.
I get $39/mo for residential service and $59/$99 for business service.
DSL is cheaper, and in one area, Cablemodem is cheaper. We still stay
busy with new customers, and we don't put in a new tower until the last
tower is CFP. More money coming in the door than going out is a big part

(only part?) for successful business. ISP business is no exception. When

you run out of money, you are out of business.
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