Sales & Marketing:
Properly Position that "WiMAX" <wink> Wireless
Service in Todays Competitive Marketplace
March 14, 2006: 2:00 PM
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ARPU is an acronym for the Average Revenue per User.
This is the average revenue factored across all
customers as if each were charged the same price -- with
some customers charged less and others more.
Customer type usually determines price. In
addition, a Network Operator's valuation is a direct
multiple of its ARPU.
The Marginal Recurring Cost (MRC)
of delivering the following license-exempt broadband
wireless "WiMAX" connections have been calculated as
follows:
Situation
Monthly ARPU
MRC
Broadband "Lite"
Residential Service
(512 / 512 Kb Burstable)
$24.95
$20
Best Effort
Residential Service
(5 Mb / 512 Kb Burstable)
$39.95
$20
Best Effort
Business Class Service
(5 Mb / 1 Mb Burstable)
$149.95
$25
Dedicated
Business Class Service
(5 Mb / 3 Mb Burstable)
(1 Mb / 1 Mb Dedicated)
$249.95
$30
Dedicated
Business SLA Service
(5 Mb / 3 Mb Burstable)
(3 Mb / 3 Mb Dedicated)
$449.95
$40
Looking at the numbers, it's obvious that a higher ARPU
increases the overall health of the bottom line.
Interestingly enough, all the following service plans
are achieved using the EXACT SAME broadband wireless
access technology. So what about the $300+ month ARPU network operators differentiates them from the $30
month ARPU network operator.
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