This discussion always fascinates me, as almost my entire market is rural
and residential.   I have just 3% business customers right now.

The entire rest is residential.   I have never formally surveyed my
customers, less than 10% spend $100 or on internet / phone / data services,
but I would say that unless I was selling cellular, I could not get to $100
per customer.   They just won't spend that much.   Now, if we throw in TV to
the mix, I could get there...   But so far, that's not really been an option
to us small operators.   However, satellite TV is well established here, and
if you're cheap, there's plenty of over the air broadcasting, including
community owned translator system.

Instead, what I'm seeing, is that my customers are dropping landlines, and
going with VOIP voice services, and cellular.    This means that most of
them are getting voice, long distance, and broadband for the same or less
than it used to cost for dialup.   In fact, my best advertising has been a
multilevel marketing group selling VOIP in my area, and they suggest my
wireless system for internet instead of cable or standalone dsl.

If the FCC had not thrown the 911 monkeywrench into it, I'd have found a way
to roll my own VOIP service and we'd have been selling it at only a slight
markup, just to be an added value to my broadband.

I learned long ago, that sustainable businesses are built upon offering
people 3 things:

1.  what they need.
2.  Getting thier money's worth.
3.  Priced reasonably.

And I like to add #4...  A decent relationship with your customer - listen,
talk, be a friend and loyal to them.




North East Oregon Fastnet, LLC 509-593-4061
personal correspondence to:  mark at neofast dot net
sales inquiries to:  purchasing at neofast dot net
Fast Internet, NO WIRES!
----------------------------------------------------------------------------
-
----- Original Message ----- 
From: "Patrick Leary" <[EMAIL PROTECTED]>
To: "'WISPA General List'" <wireless@wispa.org>
Sent: Tuesday, May 30, 2006 3:14 PM
Subject: RE: [WISPA] This is HUGE!


> 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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