WISP ROI for Wireless Access via 802.11

 
WISP ROI for Wireless Access via 802.11
A strong motivation for the deployment of 802.11 access could come from incumbent ISPs. Most ISPs
have long been dependent on cooperation from incumbent telephone companies to deliver their services
to their subscribers. Most telephone companies offer a competing ISP service. ISPs could free
themselves of that dependency by deploying their own wireless access infrastructure. An ISP moving into
this market space could endear itself with the small business community by offering a dial-a-bandwidth
service in competition with the local telephone company. Bandwidth is usually sold by telephone
companies in denominations of T1 (1.54 Mbps) and the rates range from $300 to $500 depending on the
market and up to $10,000 per month depending on the distance. If an enterprise requires more than 1.54
Mbps, it is forced to buy another full 1.54 Mbps from its service provider at the going rate ($1,000 per
month in many cases). Plans where the business is charged by the megabit or gigabit are also available.
The company will also have to pay a monthly service fee to an ISP to connect to the Internet if that is not
included in its bandwidth cost. Table 8-6 presents a comparison of these costs.
Table 8-6: Cost comparison of services provided by a telephone company versus services available via a
WISP
Component
Regional Bell Operating
Company (RBOC) WISP
Data 1.54 Mbps at $500 a month
(includes Internet access)
1.54 Mbps, less than $100 a
month.
Local phone service $50 per line a month No cost for interoffice calls on the
WLAN to other IP addresses; calls
to PSTN numbers are 3 cents per
minute.
Long distance 3 to 7 cents per minute for all calls Free interoffice calls on the WAN;
other calls are 3 cents per minute.
Offering Vo802.11 telephony services could also serve to distinguish the WISP from its competition and
reduce churn. In addition, system integration services for the installation of WLAN equipment could be
another source of revenue for the WISP.
Viral Growth of 802.11 Networks: Community Networks and the Mom 'n