Trying to price service like that in my market would result in an ARPU
of $0. Been there, done that with the licensed LMDS players that bought
my first ISP. They laughed at our 802.11 radios as "baby monitors".
The LMDS equipment is long gone, and unlicensed wireless broadband is
now the dominant form of broadband in my market. Chalk up another loss
for the too-smart east-coasters that thought they would come into
sticksville and take the market over.
All of the "easy pickings" T1 customers are long gone, other than a few
banks and others that can't switch or don't want to switch to anything else.
Matt Larsen
[EMAIL PROTECTED]
Matt Liotta wrote:
Our APRU is currently at $669 and we have been raising that each
quarter. The difference between us and CBeyond is that we don't pay
any ILEC to delivery our service. Oh, and we don't have 17,000
customers... yet!
BTW, our sales team has found it easier to sell >$1000 services than
<$400.
-Matt
Patrick Leary wrote:
I stand corrected, fair enough Matt, but wow. That's pretty rich monthly
rates and an especially rich ARPU.
Patrick
-----Original Message-----
From: Matt Liotta [mailto:[EMAIL PROTECTED] Sent: Tuesday, May 30,
2006 3:56 PM
To: WISPA General List
Subject: Re: [WISPA] This is HUGE!
Again, pointing to CBeyonds numbers it is clear that their average
customer is not buying big TDM pipes or fiber-based services. Their
starting package is $495 per month, which is just a single T1, while
their next package up --which is priced higher than their ARPU-- is
$895, which is just two T1s. That's 17,000 high ARPU customers
delivering services that technologically are easy for WISPs. There
are operators on this list that will sell a customer 3 megs or more
of service for less than $495 per month.
I'm not saying there isn't a market for low ARPU customers, but the
scale required to make any real money seems like quite a challenge.
-Matt
Patrick Leary wrote:
Any operator with some decent residential mix would be drooling to
have a
$100 ARPU Matt. No matter what technology is being used, that makes
for an
excellent ROI. Those CLECs you mention are also likely providing
fiber and
big TDM pipes as a primary focus.
Patrick Leary
AVP Marketing
Alvarion, Inc.
o: 650.314.2628
c: 760.580.0080
Vonage: 650.641.1243
-----Original Message-----
From: Matt Liotta [mailto:[EMAIL PROTECTED] Sent: Tuesday, May 30,
2006 2:52 PM
To: WISPA General List
Subject: Re: [WISPA] This is HUGE!
Not sure why the number of customers is even important when the
quality of customers can vary so wildly. I run into WISPs regularly
whose ARPU is barely above $100. At 1000 customers an ARPU of $100
is only $1.2M per year. That's a lot of radios and a lot of
customers for very little revenue. Compare this to CBeyond, which is
an Atlanta-based CLEC that in recent time went public. Today they
have about 17,000 customers, but their ARPU is $761. With just 1000
customers, an ARPU of $761 would be worth $9.1M. Or to look at it a
different way, with 17,000 customers an ARPU of $100 would only be
$20.4M compared with the $155.2M they pull in now.
A WISP would be wise to raise their ARPU as opposed to the number of
customers.
-Matt
Charles Wu wrote:
30% of what number Charles?
At the last show, 500+ attended representing about 350ish operators
Of these, about 40% responded
Unfortunately, we have a confidentiality agreement with our survey
respondents, so I cannot list names
How many WISPs said they have over 1,000 CPE. I can only think of
about
20
with that high a number.
A recent Tim Saunders article in BBW World alone that showed about 40+
Wireless Network Operators w/ 1,000+ CPE (and there are a lot more
that
Tim
missed)
Keep in mind, the majority of these operators no longer actively
participate
in these list-servs, most of em are busy out in the field installing
customers / running their businesses =)
Did you know that in Sedona, AZ alone (middle of no-where in
Northern AZ
mountains), w/ a total population of ~15k, there are 2 Operators w/
1,000+
CPE? (and there's also cable and DSL competition in town too)
Even at the end of my equipment distribution days (late 2004), I
had at
least 50 customers whom I'd been working with over the years who had
purchased over 1,000 CPE from me...I know for sure that most of
these guys
are still operating and in business
If you think about it, 1,000 isn't all that much -- take a look at the
numbers
If you've been a WISP since 2001, and you've been steadily buying
CPE /
installing 20 net new customers (minus churn, etc) / month (~ 1
install /
working day / month), in over 5 years time (e.g., today in 2006),
you'd
have
1,200 customers
Nowadays, w/ $150-$200 turn-key WISP CPE pricing (Motorola, Tranzeo,
Trango), it's hard to even buy CPE in anything smaller than a 20-pack
-Charles
P.S. -- now another interesting statistics is the "top-end" of the
license-exempt operator market -- although a lot of people nowadays
have
over 1,000 CPE installed, ALMOST NONE have been able to
successfully scale
beyond the 10,000 CPE level -- still trying to figure that one out...
-------------------------------------------
CWLab
Technology Architects
http://www.cwlab.com
-----Original Message-----
From: [EMAIL PROTECTED]
[mailto:[EMAIL PROTECTED] On
Behalf Of Patrick Leary
Sent: Tuesday, May 30, 2006 3:35 PM
To: 'WISPA General List'
Subject: RE: [WISPA] This is HUGE!
Patrick
-----Original Message-----
From: Charles Wu [mailto:[EMAIL PROTECTED] Sent: Tuesday, May 30, 2006
1:34 PM
To: 'WISPA General List'
Subject: RE: [WISPA] This is HUGE!
Some interesting statistics -- 30% of the WISPs who attended our last
WiNOG
"claimed" on their surveys they had been in the wireless business
for more
than 5 years and had more than 1k wireless CPE deployed in the field
Less than 10% of them claimed to be "pure-play" license-exempt fixed
wireless providers
This is why we call them Wi- "NOGs" instead of "ISPs" nowadays
Don't forget, a lot of rural telcos / CLECs / ILECs (e.g., the
"enemy")
have
gotten into license-exempt fixed wireless...
-Charles
P.S. - I heard a rumor that the current UL market leader, Motorola
Canopy
sold close to $100 million in gear last year alone
-------------------------------------------
CWLab
Technology Architects
http://www.cwlab.com
-----Original Message-----
From: [EMAIL PROTECTED]
[mailto:[EMAIL PROTECTED] On
Behalf Of Jack Unger
Sent: Tuesday, May 30, 2006 1:46 PM
To: WISPA General List
Subject: Re: [WISPA] This is HUGE!
Hopefully, the 8% (6,000,000) figure includes ONLY end-users who
use wireless broadband to get to/from their home and NOT the
end-users who have a copper/fiber-based (cable/telco) broadband
connection to their home and then use a Wi-Fi router/access point
that provides the "final 50-ft" connection wirelessly.
There's so much sloppy and innacurate "journalism" these days that
I need reassurance that the article means what it appears to be
saying.
If there are 6,000,000 end-users and if there are 5000 WISPs then
each WISP would, on average, have 1,200 subscribers. I'm not sure
that this passes the "sniff" test.
jack
John Scrivner wrote:
Check this out from the Pew report. It appears that fixed wireless is
much
bigger than what even I thought. According to this report 8% of all
broadband
connections in the US are delivered via fixed broadband wireless.
That
means you
guys! Woo Hoo!
Scriv
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