Wireless Service Providers → What price to pay to take over 13 user WISP?

I have the opportunity to take over a WISP in range of my current small WISP. There are 13 residential users, currently paying between $30 and $50/month for internet access (sharing T-1 I believe). All customers are using a Cisco PCI card with external antenna fed by LMR400 to rooftop, going back to 2 sectors with Cisco AP. I have a WISP with 20 customers fed from my T-1, and could shoot backhaul LOS to the tower of the other WISP about 1-2 miles away.

What is a fair price to pay for the 13 clients and the Cisco APs, 2 sectors, etc. The antennas are mounted on a 14th house that would continue to get free access in exchange for the tower. Comcast cable is available in both mine and the other area. Comcast has reliable 1700/256 service for $42.95-55.95 per month depending on cable tv and modem rental. DSL is not an option here. I am not out to make this grow too large, and have no plans of quitting my real job.

I would possibly need to obtain more bandwidth to service the new clients as well as the 20 I have now.

I assume you all would recommend 5GHz for backhaul? what is best solution for 5GHz backhual now? (price??)

Bill in Dallas

Trango backhaul 10

$1800.00 plus antenna's

Im thinking around $400.00 per client. Then add the gear on the tower. I would give you a price on a trango backhaul but the way their prices change you never know. That $1800.00 could be $3600.00 tomorrow LOL.

$300-$500 per client. Are they under contract?

If you don't plan to grow too much, or quit your day job, why buy the other WISP? Maybe you would be better off to sell?

What will you be gaining (besides the obvious increased revenue and expenses) that you don't have now? Will it be fair to your current and gained clients?

How long will it take to recover the capital outlay and return to profitability? If there is barely enough to cover the cost of the T1 now, you might end up worse off than you started.

The big question, Why is the other WISP willing to sell? Have they inquired about purchasing your operation?

I'm not saying don't do it, just look real carefully before stepping forward.

Uggg...I hate this question because I have been offered to sell my business and the best I could come up with an estimate is to take our yearly profits after bandwidth, electricity and salaries and then multiply that by "5". The thinking here is that a 5-year turnaround to "in the black" would be acceptable for a buy out. I am NOT selling. They thought the price too high, but I thought it was a fair price. Our members buy and own their own CPE so I don't include that in the estimate.
*ducking the flames*

Thanks for the comments so far. I guess the comment about not wanting to grow is not entirely correct. I don't want to grow to the point that I need to quit my day job to run this WISP. I don't see enough potential income to replace what I make now.

As for the situation. The 13 customers are not under contract, and again Comcast is here with free install and prices in the $42.95-$55.95 range. This WISP was put in when our area had no options, it was one of many POPs started by a company that was then acquired by a larger ISP. The larger ISP doesn't want a POP with 13 clients as they are more the large tower rural type. If I didn't need more bandwidth, I could see an ROI of 6-9 months, with a $500/month profit after that.

What concerns me is the likelihood that I would need more bandwidth, and another T1 is the same price as the monthly revenue from the 13 customers. I would have to grow that area for it to be worth it. 30+ customers on a single T1 is hard to compete with Comcast offering 1700/256 and they say they will offer 3000/256 by years end in most markets for the same $$. I could offer less bandwidth for less $$ and probably make out great. So far I have been successful due to the neighborly service, and the desire to give money to anyone but Comcast, but I don't know these 13 people and how they feel.

I am on the fence.

Bill

You did not mention what speed these people are paying for.
That being said a t1 can handle 30 people no problem. As you know from your own wISP experiance that most people do not use the bandwidth the pay for.. and can be oversold.
Now with the comcast coming in, its $42 a month PLUS CABLE so it ends up being at least $75 a month for these people. You could always offer a lower price for lower speed.. Ie $35 for 768k/512k or something like that. Some people only care about Speed, some only care about price, and some only care about brand. When selling your service to customers I would bring up the fact that your a Local company, with Local support and that your not the "Evil" cable company (and yes they ARE Evil)
[text was edited by author 2003-09-26 13:07:49]

do you know what you are using bandwidth wise right now, i mean how sure are you that your are close to maxing out?

I don't use too much of my bandwidth now, on average, but, the sheer speed of Cable modem, with hints of doubling speed for d/l by years end is frightening to be competing against. The only thing I can do is provide faster uploads, and better service. Imagine just 3 people d/l and the average throughput is down to 512k while cable is up at 1700k, with plans for 3000k.

Bill

I know its scary, but look, People HATE the cable company. They really do, that's why so many people have DirecTV (witch can be a pain in the ass to install and f'up if it rains/snows to hard)
So just make sure you charge less money then them and PROMOTE LOCAL OWNER SHIP.So I would do a poster like this:

F the Cable/Phone company! Go Local with Harry balls wireless
NO Phone line or Cable NEEDED! only $35 a month
No commitment. Fast & local support.

Sure you might turn off some right wing corporate loving republican types, but they are on their way out anyways

said by peteo:

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F the Cable/Phone company! Go Local with Harry balls wireless
NO Phone line or Cable NEEDED! only $35 a month
No commitment. Fast & local support.

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OMG that is hilarious, That is a REALLY good idea for the area that I am in. I think I will use that if its ok.

You can use it as long as you put this copy right notice on the sign:

copy right 2003 Anti-corporate networks

haha just joking..

You may also freely uses these:
Screw the Cable/Phone company!
Get rid of the Cable/Phone company Monopoly!
Stop that ASS reaming!
Cable/phone company?, we don't need no stinking cable/phone company
wires?, we don't need no stinking wires

[text was edited by author 2003-09-28 12:10:29]

said by txag93:

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I would possibly need to obtain more bandwidth to service the new clients as well as the 20 I have now.

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More bandwidth? 20 customers? Naahhh! Just get a good bandwidth management system put into place, such as a Dyband, or a Mikrotik, and give people 512kbps. It's plenty fast, and the average person wouldn't notice a difference, but we have 200 people on 2 T1s, and a general rule of thumb is 100 people per T1, as long as you don't give the customers full speed.