Or they measure in ARPU to mask profitabilty. A higher ARPU subs is not
always more profitable.
Average ARPU also does not show retention rate.
Having an average ARPU of $700 buck does not do any good if they are only a
customer for 6 months, if they end up being disatisfied after the fact.
Nor is a higher ARPU that much better if the world has to be given away to
get the $700 ARPU.
Getting an ARPU of $700 for a T1 speed line is pretty darn impressive. But
not neessarilly so, if 20mbps links need to be given away to get it, meaning
less growth possibilty. And a reoccurring cost following the ARPU longer.
(Not that I'm saying high ARPU is not good.)
I think their are more important factors like,
Time till ROI?
Profit during that time, and anticipated profit per year after that time
(ROI).
Tom DeReggi
RapidDSL & Wireless, Inc
IntAirNet- Fixed Wireless Broadband
----- Original Message -----
From: "Peter R." <[EMAIL PROTECTED]>
To: "WISPA General List" <[email protected]>
Sent: Tuesday, May 30, 2006 6:12 PM
Subject: Re: [WISPA] This is HUGE!
Because number of subs is the measuring stick.
Revenue is more important; but profit is the most important.
Not many can speak to profit, so they measure in subs.
- Peter
Matt Liotta wrote:
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
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