I have a dissenting opinion...

>It all comes down to a simple economics in the end.  Who can most cost 
>effectively provide broadband.  

A cellular network is built for coverage

Additionally, large companies, from a scale and operations perspective, will 
tend to put the same equipment everywhere

What that means is in order to offer the nationwide network, that the tower in 
the rural area that's required to cover that stretch of highway where there's 
only a town of 1,000 people will have the same equipment and capacity as the 
tower in downtown Chicago that has 1,000 simultaneous users

So in rural areas, where the costs of the tower, backhaul and base station have 
already been amortized and paid for to fulfill their coverage requirements, but 
many of these towers are sitting at 5-10% capacity

In their mind, to add another 100 or so fixed wireless users off an AP and 
putting them in a lower QoS bucket (so the primary mobile customers aren't 
affected when fixed customers start slamming Netflix) is "found money" -- self 
installs are quite nice when putting out +60 dBi EIRP at the tower with 700 MHz 
on licensed spectrum with zero noise floor

-Charles

-----Original Message-----
From: [email protected] [mailto:[email protected]] On Behalf 
Of Sam Tetherow
Sent: Wednesday, October 26, 2011 12:06 PM
To: WISPA General List
Subject: Re: [WISPA] Verizon wants a piece of our pie

At the end of the day when a WISP puts 
up a 'cell' site it is probably costing them 1/100th of what it costs 
the cellco to do so.  The equipment used is most likely 1/100th the cost 
at the 'AP' and 1/10th at the CPE and the spectrum that the cellco uses 
is not free.

Even when you take into account that the cellco operates on a much 
longer ROI and they can get some economy of scale on certain things I 
don't see how they can overcome the price difference to be able to 
effectively compete against a WISP, especially given their lack of 
spectrum.  Sure you get a much better noise floor, but they have fewer 
channels to deal with.  And from a cost perspective it is a lot harder 
to justify putting up micropops as a cellco.  I know plenty of WISPs 
that can afford to put a micro-pop up for 3 customers.  I do see how a 
cellco could afford to do that for eveny 20 times that number.

Deep pockets only last so long when you are losing money.

On 10/26/11 11:07 AM, Fred Goldstein wrote:
> At 10/26/2011 11:42 AM, Chuck Hogg wrote:
>> The "LIVE" network here does 26Mb x 22Mb with<70ms latency.
> The VZW network isn't such bad competition for a WISP for two reasons.
>
> One -- those numbers you see are on the brand-new, unloaded
> network.  The've just started selling LTE gear this year, so the
> cells are nowhere near full capacity.  As they get busier, average
> capacity per subscriber will go down, especially during busy
> hours.  At some point they will add cells, but I'm suspecting it's at
> a much lower performance point than you're seeing now.
>
> Two -- their per-cell costs are much higher, and thus they have to
> charge more for bulk usage.  They have caps on their plans, and
> additional usage is very costly.  So while LTE is okay for the
> vacation traveler looking to check email and read a few favorite web
> sites, or the light home user, it's not going to appeal to even
> moderate users.  Even Sprint is starting to cap its plans, after
> running a huge "unlimited" (uh, for the rest of the month?)
> advertising campaign.
>
>
>    --
>    Fred Goldstein    k1io   fgoldstein "at" ionary.com
>    ionary Consulting              http://www.ionary.com/
>    +1 617 795 2701
>
>
>
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