Its also easier getting roof rights, when the request comes from a large
tenant, who is likely the prospect for > $1000 rates.
I find larger ARPU models are more predicatable, allthough more work is
involved in finding the prospect base.
Tom DeReggi
RapidDSL & Wireless, Inc
IntAirNet- Fixed Wireless Broadband
----- Original Message -----
From: "Matt Liotta" <[EMAIL PROTECTED]>
To: "WISPA General List" <[email protected]>
Sent: Tuesday, May 30, 2006 9:03 PM
Subject: Re: [WISPA] This is HUGE!
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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