.. Correction / Point:-
The ISP Model is built on OverSubcription.. the Telco's 'generate'
internet traffic or in otherwords 'peer' so their capacity cost is
dictated by equipment and infrastructure maintenance cost.
The price for anything is arbitrary based on their desired profit level.
@ $100/month the services START becoming profitable, as WISP's & ISP's
may not have much of Add-on Services to keep increasing that number, the
Telco's and Cable Co's have plenty of options to raise the monthly tab.
Yes we do have some features that are very much applicable for a 'niche'
cannot be everything to everyone (e.g. like Cable Co's & TelCo's), and I
think that is going to hold the key to success for WISP's .
the other option is to look and think beyond.. e.g. make some real /
serious money so that you can build or pay for infrastructure that one
can own.. (e.g. wires in the Ground... / CLEC presense @ colo / Fiber
Routes / Cable Plant etc.etc.)
Regards
Happy Holidays & Merry Christmas to all.
Faisal Imtiaz
Snappy Internet& Telecom
On 12/23/2010 11:53 PM, RickG wrote:
Frankly, the converse of this is also true... Maybe our services are
'under-priced' to begin with ? We, because of our cut to the bone
business model of making little to no profit, choose to sell
service at
a price that takes a lot of factors into consideration and we may have
'mis-calculated' on the shifting consumer behavior ?
I've been saying that since 1997 when I was paying $3500 per T1 and I
bought my first Alott box. The problem is people cant pay for what
they use and depend on the over-subscription model.
B. Cost of Communication Services Consumed by folks will go UP.
(I say
Communication Cost, not Internet Cost.. go back into time, 20
years ago
I was spending about $70 on Phone service, $35 on cable Tv...
Today, it
is something like $35 voip/Home Phone + $50 Internet DSL + $70
Cable Tv
Service + $250 Cell Phone + data Plan..... Over time this will
consolidate, and the Telco's and cable Co's are fighting to keep
as big
as a share the can off it... Plus there are other pay for services
HD /
DvR / Special Programing etc etc that can kick in another $100 /
month
from the subscribers...
Can anyone make any money providing all that for $100 or less?
Unfortunately, the WISP's may not have "other addons" to make
money from
.... personally, when ever I do the un-adulterated business math,
I keep
coming up with conclusions that .. when Gross Revenue from a
Subscriber
hits south of $50/month, it is very difficult to turn healthy profit..
when it starts to approach $100/month, things start looking a lot more
reasonable and business like. This is very much true for the
Cable Co's
and the Telco's as well.
We do have one feature - upload bandwidth. I havent marketed it yet
but with Facebook and such being so popular I hear people grumbling
about upload speed on their DSL & cable.
--
-RickG
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