Travis, Just a few notes on the economics of this (and, why I think single play providers are in trouble):
The ARPU for triple play is generally considerably above $100 per month, most figures put this around $160 per month on an industry basis. Typically, churn is considerably lower as well for triple play customers. A triple play customer generating $160 per month returns almost $20,000 in 10 years. But, given that triple play leverages the same network, you have 3-4 times the revenue to subsidize a common network buildout. That is hard to compete with. Yes, you do have churn and significantly less than 100% penetration--people go to other offerings. But, the economic viability is still very solid. -Clint Wed, Apr 23, 2008 at 10:34 AM, Travis Johnson <[EMAIL PROTECTED]> wrote: > > A couple quick things: > > (1) You don't necessarily have them for life. People can change to DISH and > a wireless provider and do VoIP over that. Especially if they can save > $5/month, a lot of people will change. DISH is $35/month for decent > programming. Wireless is another $40/month and VoIP can be had for > $20/month. > > (2) It looks good with those numbers, but realistically you have costs way > above just the install. On a $100/month customer how much gross profit do > you actually make after buying bandwidth, transport, TV channels, VoIP > service, etc. I really have no idea, so I am asking. Do you make $20 gross? > $1,500 / $20 = 75 months breakeven and this doesn't include support costs, > etc. > > Travis > Microserv > > > > Chuck McCown wrote: > FTTH ONT pricing (the unit on the house) keeps falling. They are about $400 > now. > You can put in fiber for $1-2/foot (if you have a clear ROW). > The CO end is about $50K/terminal that is capable of serving thousands. > I don't know what the pro-rata single fiber COT card is, but I think they > are are around $2K/port with each port serving 32 on a PON. > So, if the plowing is good and the ROWs are clear and free, you can probably > get a customer installed (in a fairly dense surburban area) for less than > $1500 each. > Triple play for $100/month. And you have them for life. > Of course this assumes you build it yourself and you already have a NOC and > you already have access to and IPTV stream etc. > But it is doable. There is a business case for building such a system. > Main thing is to do it before the ILEC/RBOC does it. > > ----- Original Message ----- > From: "Marlon K. Schafer" <[EMAIL PROTECTED]> > To: "WISPA General List" <[email protected]> > Sent: Tuesday, April 22, 2008 10:39 PM > Subject: Re: [WISPA] Future > > > > > Well Mike, the way I see it is that the sky has been falling my entire > time > as an ISP (over a decade now). > > WiMax is still a joke in the market place. > > 3G is too slow and too expensive. > > 700 is not deployed in any level that matters and doesn't look like it > will > be any time soon. > > Cable is in trouble because they are dying under the load of the high end > users they they keep getting. They need all of the capacity they can come > up with for HDTV channels but broadband is taking up too much space on the > coax. They also JUST put in their networks. The big companies aren't > structured to reinvest in new hardware every few years. I'd say that they > will continue to grow and continue to piss off their base. I'm not > worried > about cable. > > As for AT&T and Verizon? People already hate the service and prices they > have, so far I can sell against them. > > Fiber is cool, I have FTTH customers. But man is it expensive! There's > just no way to ever make the investment back at today's pricing levels. > marlon > > ----- Original Message ----- > From: "Mike Hammett" <[EMAIL PROTECTED]> > To: "WISPA List" <[email protected]> > Sent: Sunday, April 20, 2008 5:44 PM > Subject: [WISPA] Future > > > > > What do you see as the future of our industry over the next 5 years? > > AT&T is expanding U-Verse (will this be available outside of town?) > Verizon is expanding FiOS (will this be available outside of town?) > Cable will be using DOCSIS 3 > 3G will gain more steam > WiMAX will have larger and larger shares of the market > 700 MHz will be in use possibly for data communications by the big guys > > > My banker asked me, so I figured I'd see what other's opinions are. > > My thought is that the big guys mentioned above will continue to avoid > the > niche that we currently serve and we'll be able to provide better > services > with more spectrum (5.4 GHz, additional 2.5 GHz, 3.6 GHz, possibly TV > white spaces) and WiMAX. > > > ---------- > Mike Hammett > Intelligent Computing Solutions > http://www.ics-il.com > > > > -------------------------------------------------------------------------------- > WISPA Wants You! 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