Folks, 

IMHO, It really comes down to a cost benefit analysis.

So an 802.11 or canopy system might run you a lot less CAPEX, but it carries
more OPEX. 

So if in a given tower site you pay 200 / mo per antenna deployed on a
tower, wimax might be cheaper than a lower system that cannot scale to say,
100-250 subscribers effectively. In addition to backhaul costs if you go
carrier class. 

So lets break down the real costs:

Cell radius= 30km
Wimax Sector, carrier class: 7,500 ( 20k ) on a lease of 36 months, 750 per
month
PTP licensed radio: 12,000 on a lease of 36 months, 500 per month.
Cost per subscriber: 299 (150 after install paid by customer )
ARPU per subscriber: 60 ( voice + data package ) 
Lease per tower, 3 sectors+ backhaul and : 1000
Total subscriber count per tower: 500 ( 5 month build out, 100 subs per mo )


Calculate it out and you show 270k in annualized revenue for 1 tower site,
that can easily support this model for a basic internet plus phone service
with no hiccups, and likely still have capacity left up to 750 subs on 3
sectors. Yes the rules of oversubscription apply, you cant sell 750 business
grade circuits. The point is for a TCO, that's one tower site to cover a
20km radius, meaning less leases per month of 1k or more, so isntead of 4
tower sites to cover this area ( and pay 4k per month )

If you are just calculating your break point on your tower costs, you break
even at a 100 subs per month click, at 3 months in. On your subscriber
stations, if you carry the cost, it takes 6 months per subscriber. However
on a 12 month basis you are @ 270k with 170k in cost, or 100k in profit. 

MOT canopy example

Cell radius= 10km
Cascade networks canopy system: 3 per tower, 9 sectors: 2500 x 9 = 20,000 
PTP licensed radio: 48,000 on a lease of 36 months, 3000 per month.
Cost per subscriber: 250 (150 after install paid by customer )
ARPU per subscriber: 30-  data only package 
Lease per tower, 3 sectors+ backhaul and : 1000
Total subscriber count per tower: 150 ( 5 month build out, 100 subs per mo )

Tower sites: 3

Revenue per MO @ 500 subscribers 15,000. ( 150k a year in revenue ) 


So since you cant really effectively provide carrier class voice you sell
only data.

To cover the same area with 1 tower it takes you 3 towers which triples your
OPEX for towers and triples the # of base stations needed, as well as
triples the backhaul costs, while impacting where you are with your revenue.


-

Jeff

-----Original Message-----
From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org] On
Behalf Of Matt Liotta
Sent: Wednesday, April 22, 2009 11:02 AM
To: WISPA General List
Subject: Re: [WISPA] 3650Mhz and Wimax Vendors

Those of us operators who actually have experience in the field with the
gear tend to avoid posting to threads about WiMAX because the threads
quickly devolve. I suggest you read the archives of this mailing list. To
summarize though; operators who use WiMAX like it and think the technology
is actually different and better than what else is out there. The people who
don't use WiMAX think it is overpriced and not particularly interesting.

-Matt

On Apr 22, 2009, at 1:41 PM, Charles Wyble wrote:

> I'm looking for more operational experience and end user experience.
> Certainly good technology contributes to that, but that isn't my 
> primary goal.
>
>
> Michael Baird wrote:
>> It was interesting, but I was hoping for some more first hand 
>> experience reporting. Essentially the only explanation for improved 
>> range was a lower noise floor, which isn't a wimax thing, but a 3.65 
>> thing. I think a lot of the 802.16d/e talk is market speak, I'm 
>> trying to get through that and establish technical reasons why one or 
>> the other is superior.
>>
>> Regards
>> Michael Baird
>>> So the recent thread on Wimax was quite interesting. I need to read 
>>> up on the different technologies involved. I believe that a fixed 
>>> deployment is sufficient for many many many needs and markets 
>>> (wireless local loop if you will). If people want mobility/end user 
>>> wireless they can hang an 802.11 AP off the ethernet port of 
>>> whatever CPE. Wimax directly to the end device doesn't make much 
>>> sense to me, in most markets and use cases. Obviously if you are 
>>> supporting a highly mobile workforce (say public sector type stuff) 
>>> then it makes a lot more sense.
>>>
>>> It got me thinking... if one was a new WISP entering an 
>>> un(der)served market, it seems that it would not make sense to 
>>> deploy standard
>>> 802.11
>>> gear, but rather Wimax gear in 3650Mhz. Is this an accurate 
>>> assessment?
>>>
>>> One particular area that I'm targeting, doesn't have any broadband 
>>> available (other then 3g from Verzion). So they would need to 
>>> purchase CPE anyway, and it wouldn't be anything they could get from 
>>> Best Buy (DSL or Cable modem).
>>>
>>> I'm in the process of negotiating access to the excluded areas (in 
>>> Southern California), but it's been slow going. Once I gain access 
>>> it will open up many areas to some sorely needed competition.
>>>
>>> So who are the vendors in this space worth considering?
>>> What are peoples experiences with the sales process (both pre and 
>>> post sales engineering) etc etc.
>>>
>>>
>>>
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