I was just asking you to examine what the true costs are of delivering
service.
You correct about the unused BW - and for most BW is a fixed monthly
cost, same as rent, tower, payroll.
All that needs to be considered when tackling pricing.
Back in the T1 days, the over-subscription was usually 7 to1. The first
3 were expensive costs; the last 4 not so much.
I also wanted to remind you to find ways to upsell :)
- Peter @ RAD-INFO, Inc.
George Rogato wrote:
Well your probably right, but a couple of things.
Everyone pays up front an install and activation fee and the numbers I
posted are approx.
2nd thing, how much is bandwidth cost?
Most people look at their high bandwidth usage and say that is how
much they are paying and that is how much it cost.
But is that accurate?
If you buy bandwidth, say 10 megs at 150.00 per meg.
And you have a peak say at 10 megs during that 1 or 4 hours of peak
time, how much did the bandwidth cost you at the off peak times thats
not being used?
maybe your bandwidth is actually costing you even more than is
calculated because you have to consider your peak is only 5 or 10% of
the time and the rest of the time when you are at say 5 megs it's
actually costing you 300.00 per meg....
So on off peak time, you have ooogles of bandwidth that you are paying
for, but not using, how much are you loosing for unused bandwidth?
is it wiser to get something for unused over-priced bandwidth or is it
better to say NO, I would rather let the bandwidth go unused and not
collect any revenue?
Now consider from a marketing point of view.
Lets do the small town market where everyone is telling everyone their
expert opinion and word spreads like wildfire. Word of mouth.
And the advertising rates cost you just the same as a big city.
Do you want your subs telling your other subs or potential subs that
you are charging them more because they downloaded a movie and went
over a bit cap of a couple gigs and then have to spend lots and lots
of money to advertise to convince people to use your service, or would
it be wiser to spend the advertising money with your subs by giving
them some beni's like plenty of speed and good service without the
extra charges?
I think it's kinda complicated, but to me the common denominator in
all this is to make the customer happy, and use them for woma.
Not saying your wrong, but rather it's how you look at it.
I look at it this way.
George
--
WISPA Wireless List: wireless@wispa.org
Subscribe/Unsubscribe:
http://lists.wispa.org/mailman/listinfo/wireless
Archives: http://lists.wispa.org/pipermail/wireless/
