Actually some type of labor can fall into cogs. If we talk about internet
service cogs for an install the labor cost to install this client should be
included. But labor for sales, marketing and support of this customer
shouldn't. 

http://en.wikipedia.org/wiki/Cost_of_goods_sold

"COGS is the costs that go into creating the products that a company sells;
therefore, the only costs included in the measure are those that are
directly tied to the production of the products. For example, the COGS for
an automaker would include the material costs for the parts that go into
making the car along with the labor costs used to put the car together. The
cost of sending the cars to dealerships and the cost of the labor used to
sell the car would be excluded."

In the monthly service cogs I would say to include cost of bandwidth, cost
of software licenses, mail server spam filtering and what not. Possibly even
factor in average support phone call and the labor cost for support. If
support was billed separately or depending how you want to "charge" support
it might not be included in cogs. 
It all comes down to what charge account is responsible for what and what
charge account is directly tied to the monthly service fee your collecting.

/ Eje

-----Original Message-----
From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org] On
Behalf Of Jerry Richardson
Sent: Tuesday, January 06, 2009 1:59 PM
To: WISPA General List
Subject: Re: [WISPA] what should ARPU mean?

The cost of tangable items invoiced. For example if you sell the customer
the cpe, the cost of that is the radio, dish, connectors, cable, mount, poe
injector, cable ties, lags, surge protector, etc.

Labor does not fall under cogs 

Sent from my Windows MobileR phone.

-----Original Message-----
From: RickG <rgunder...@gmail.com>
Sent: Tuesday, January 06, 2009 11:47 AM
To: WISPA General List <wireless@wispa.org>
Subject: Re: [WISPA] what should ARPU mean?

I hate to hijack this thread but this brings to mind another question:
With respect to WISP's, what is the definition of CGS (Cost of Goods
Sold)?
-RickG

On Mon, Jan 5, 2009 at 7:20 PM, Shiraz Moosajee <shi...@jabbroadband.com>
wrote:
> Matt,
> You would generally count just the one "unique" customer.
>
> That said, every ARPU calculation I have seen seems to be slightly
> different which in itself reflects the different definitions of
> customers and revenue.  One example is treatment of MDU (Multiple
> Dwelling Unit) Apartments which is sometimes dealt with as a single
> customer (the apartment owner / HOA) and sometimes at the more granular
> tenant level.
>
> It's probably more important to pick a methodology that's justifiable -
> a good test would be if you send your customer 1 or many invoices / get
> 1 payment? - and apply it consistently.
>
> Shiraz
>
> -----Original Message-----
> From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org] On
> Behalf Of Matt Liotta
> Sent: Monday, January 05, 2009 12:15 PM
> To: WISPA General List
> Subject: Re: [WISPA] what should ARPU mean?
>
> What if one customer signs two different contracts? at two different
> locations?
>
> Is there ever a point where a single customer should for the purposes
> of ARPU be considered at a less granular level?
>
> -Matt
>
> On Jan 5, 2009, at 2:09 PM, Travis Johnson wrote:
>
>> My assumption has always been adding up all your gross revenues from
>> the
>> customers and dividing by the number of customers. I had never heard
>> of
>> anything different. What are you hearing?
>>
>> Travis
>> Microserv
>>
>> Matt Liotta wrote:
>>> We (the WISP industry) like to talk about ARPU a lot, but different
>>> organizations define ARPU differently. So, my question is what do you
>>> think the definition of ARPU should be?
>>>
>>> -Matt
>>>
>>>
>>>
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