No its not an unrealistic goal, if the business model is low margin high volume type subs. There can be much less maintenance with building a business model on a smaller number of business subs, making it not necessary to get that much per sub. For example, We'll sell 10Mhz of spectrum for $1000/month, to a single customer. Where that will only yield us $2000 per sectors, its also only 2 customer and locations to support.
I will also say that in competitive served markets, its getting harder and harder to get 100 users on a AP, if in a market thats asking for 5mbps speeds, or > 1mbps uploads. Sure, I've gotten 75 users on a 3mb 900 sectors, in an unserved market, but that is different that a market competing with Cable and Fios, for example, where users actually expect to be able to upload with bit torrent, and watch their NetFlix movies. In my earlier years, I was sold on the fact that low ARPU subs was the better market, because if selling 1mbps services, the oversubscription ratios on 10mb sectors could be much much higher. However, I am learning that the High ARPU higher capacity business, with little over subscriptions, is proving more profitable. Its also changes a bit, if wholesale markets are required. Sure if you are the only one in town, onme can stand firm on maximizing the return per sector, at $5K per sector. But a reseller won't pay you $5k per sector, they'll building over you instead. Sometimes its worth getting much less per sector, using the reseller, instead of competiing with their interference otherwise. Tom DeReggi RapidDSL & Wireless, Inc IntAirNet- Fixed Wireless Broadband ----- Original Message ----- From: "Gino Villarini" <[email protected]> To: "WISPA General List" <[email protected]> Sent: Saturday, April 11, 2009 9:41 AM Subject: Re: [WISPA] High Throughput Licensed vs. Unlicensed - change oftopic -- customers / AP > Travis > > It has been great to see how you have turned into seasoned Canopy > provider .... > > SO i must assume your opinion of the product has changed recently... > > > Gino A. Villarini > [email protected] > Aeronet Wireless Broadband Corp. > tel 787.273.4143 fax 787.273.4145 > > > > ________________________________ > > From: [email protected] [mailto:[email protected]] On > Behalf Of Travis Johnson > Sent: Saturday, April 11, 2009 12:11 AM > To: WISPA General List > Subject: Re: [WISPA] High Throughput Licensed vs. Unlicensed - change of > topic -- customers / AP > > > Hi, > > I think that's maybe a little high... we have a Canopy AP right now with > 100 users on it... about 10% business and 90% residential.... and it's > probably bringing in about $3,500 / month. We will probably load it up > to about 120 users total, at which point it will be around $4,000 / > month. > > Travis > Microserv > > Charles Wu wrote: > > Which begs an interesting point -- how much revenue / AP? > > I would think $5k / month for a 20 MHz chunk of 5.8 spectrum, > while a bit on the higher side, isn't an unreasonable goal > > Using Canopy...you have 14 Mb aggregate > > Selling for $50 / month residential -- that's 100 customers > sharing 14 Mb > Splitting between $100 / month business and $50 / month > residential (for better traffic shaping) -- that's now > > 20 business customers during the day time (8-5) > 60 residential customers in the afternoon / evening (4-12) > > Now obviously, there will always be places where you're shooting > into a hole, or there aren't that many homes / business being covered, > blah blah blah blah -- but I don't think $5k / month / AP is an > unreasonable goal > > Thoughts? Comments? > > -Charles > > -----Original Message----- > From: [email protected] > [mailto:[email protected]] On Behalf Of Scott Carullo > Sent: Friday, April 10, 2009 5:56 PM > To: WISPA General List > Subject: Re: [WISPA] High Throughput Licensed vs. Unlicensed > > > This has been an outstanding thread I have enjoyed reading - and > learned a > bit in the process... thanks. > > I'll just add that while we are trying to keep the numbers > trained to a > common wisp - either you guys have a lucky horse shoe or > achieving a > $5000/mo revenue on one ap is a bit outside the avg... At least > for > discussion sake. But - even at 1/5th of that your argument > still holds > true for the most part. Its just that you add in 900mhz (not as > common) > and all the lower power 5Ghz spectrum available now, 2.4Ghz etc > and also > mention you can run MT stuff on 10Mhz channels and you just > effectively > doubled your options based on what type of clients you are > servicing etc... > Then theres radios that have GPS sync for spectrum reuse etc > and the > conversation starts to get a lot more complex :) > > But, in any case this has been an eye-opening discussion... > > Scott Carullo > Brevard Wireless > 321-205-1100 x102 > > -------- Original Message -------- > > > From: "Charles Wu" > > > > <IMCEAEX-_O=CTI_OU=EXCHANGE+20ADMINISTRATIVE+20GROUP+20+28FYDIBOHF23SPDL > T+29 > [email protected]> > > > Sent: Friday, April 10, 2009 2:47 PM > To: "WISPA General List" <[email protected]> > <mailto:[email protected]> > Subject: Re: [WISPA] High Throughput Licensed vs. > Unlicensed > > > > I do see Travis's point about the longer range > shots, however. I've > got a 35, 45 and 65 mile shots with StarOS and > they work just fine but > only put out about 18-25meg at those distances. > That's enough for me, > > > > > > but I can see where you would want more capacity > and I suppose that > within that narrow definition, a PTP600 would be > better than a licensed > > > > > > link. > > > Make no mistake, the PTP600, even though it's almost 5 > years old, is > > > still one (if not the) best UL radio on the market from a pure > technological perspective -- no other radio has it's combination > of 1024FFT > OFDM, Space-Time-Coding, MIMO, etc > > > Makes you wonder what planet Motorola / Orthogon raided > to get the > > > engineers who built that radio =) > > > And I'm sure many on the list can attest to the > wonderful things that a > > > PTP600 does / can do > > > However, the discussion has to come back to the reality > that we don't > > > work for the government (and can't print money or write stimulus > bills on a > whim), and as a result, have to figure out a way to make a buck > so we can > feed the dog, buy gas, pay for those ski trips in Utah... > > > That said, we get back to "bang for buck" or "good > enough" > > True, the PTP600 will generally work for all scenarios, > but it's akin to > > > killing a bug with a nuclear warhead -- it's a lot more cost > effective (and > there's less collateral damage) if you just step on it with your > shoe > > > So, for the 1% of times when you need to shoot 50+ miles > while bouncing > > > off 2 different mountains, the PTP600 will be your best bet > > > But for the other 90% of the time, when you have a 10-20 > mile shot and > > > want something that reliable, carrier-class, and interference / > spectrum > isn't an issue, many are using Mikrotiks / StarOS / Trango Atlas > / name > your own cheap but decent proprietary Atheros-based system out > there > > > Now, I'm personally extremely cheap, but the argument is > over because you > > > can't just look at up-front price because long-term cost is just > as (if not > more) important when talking about WISP networks > > > That said, being a slow day, it's worth exercising one's > mind to analyze > > > possible "what-if" alternative situations -- bear with me here > and follow > my logic here... > > > The MOST VALUABLE ASSET of any WISP is HIGH POWER > MULTIPOINT SPECTRUM > > > (b/c ultimately, it's the only thing that generates revenue, and > like it or > not, the #1 determinant in valuing a WISP, or any business for > the matter, > is EBITDA) > > > In optimal conditions, there's 125 MHz of clean spectrum > (6 channels) > Assuming you can make $5k / month per AP (or channel) -- > as spectrum gets > > > limited, the decision will ultimately boil down to > > > 1. Pay $2k for a cheap Atheros based backhaul to bring > 30 Mb to your > > > tower and lose 1 channel (or $5k / month in revenue) > > > 2. Run that backhaul in turbo mode, get 50 Mb at your > tower, and now lose > > > 2 channels (or $10k / month in revenue) > > > 3. Pay an extra $10k for a LICENSED BACKHAUL that frees > up more spectrum > > > for multipoint, and never have to worry about interference on > your backhaul > ever again -- and make an extra $5-10k / month b/c you can add > more > customers on your tower > > > Some food for thought =) > > -Charles > > > > > > > ------------------------------------------------------------------------ > ---- > ---- > > > WISPA Wants You! 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