dslreports logo
site
 
    All Forums Hot Topics Gallery
spc

spacer




how-to block ads


Search Topic:
share rss forum feed


WHT

join:2010-03-26
Rosston, TX
kudos:5

1 edit
reply to Woohoo

Re: [Equipment] Wisp

Woohoo...

The problem is that you won't have a product to sell that would have any perceived additional or better value.

OK...So you want to deliver 10 to 20 Mbps compared to the incumbent 12 Mbps. The wireless infrastructure to support those speeds would be so expensive, a subscriber end point of only $30 would never reach a ROI. Let's take that end point price off the table.

So...Now you match the incumbent's $45 per month that has a near zero cost to deploy. The copper plant is already in place, DSLAMs are active...so the only cost to the telephone company is the bulk order $20 or so price of a DSL modem. The self-install eliminates a truck roll and installation labor. Let's say you eat 60% of the installation and make it up in reoccurring monthly revenue.

But you still don't have a product that has any perceived additional or better value value. A DSL 12 Mbps line is adequate for say..oh, 90% of the existing users, and they are likely happy with the service and not likely to change.

So the question is...what method or process will you have to put in place to provide a significantly a superior product above and beyond a simple perception.

You have 5,500 homes. If they don't already have DSL or satellite, then they won't have any need for your service either - figure 10%. Now we're at less the 5,000. Figure on you might get 5% from typical churn from DSL and another 5% from being the new kid on the block. Now we're at 500 users. 500 users....

Opinions vary by project analysts and deployment landscape - the estimates range from that if you don't have 1,000 users by the end of two years or 1,000 users by the end of six months, you're not likely going to grow past that point. If there is a zero chance of any other provider coming in to town, you could use the two year end point. On the other hand, if the need is great enough for *you* to have a go at it, then there *will* be new competitors.

But this is based on a 1,000 user uptake and you may only see half of that. That is going to pretty much limit your project as a full time hobby.

/edited for spelling