Consumer expectations for Internet access and entertainment in the home have evolved over the years, and so has last mile access technology to meet those demands. However, in many ways for the service provider very little has changed. While 20 years ago the challenge was to deliver 56kbps, then a 1 to 2 Mbps and today 1 Gbps, the core challenge remains the same for carriers the world over. Given a set amount of monthly revenue from your customer, what is the business case for delivering faster connectivity to the residential community and can it be done profitably?
Wireless technology today and especially mmWave, is offering networks that deliver one or more Gbps connectivity, which competes well with DOCSIS 3.0 and in some case fiber. The costs of these wireless access networks is dropping as silicon is released and the ecosystems as a whole gains volume. But to accurately assess the complete business case the service provider has to also consider additional costs such as:
- Installation cost to mount a customer premise device on the home or apartment building
- Support costs
- OPex costs to run the network, billing, marketing etc.
- For a Multiple Dwelling Unit what is the in building distribution solution?
For a Service Provider who sees the potential revenue opportunity in the Single Family Unit or MDU applications, it is imperative that they can get an estimate of the total cost, their ARPUs, and the ROI possibilities. To assist in this analysis, Siklu has developed and offers a “Cookbook” detailing the considerations that go into the total business plan – costs and revenues, allowing an ISP to get a first analysis on whether or not 5G Gigabit Wireless Access (GWA) can generate a profitable business.
The first version of the Cookbook, chapter one if you will, covers the MDU application. The guide starts by considering the service needs – what capacities do you want to offer, what level of oversubscription can be used and more, down to the choices available for in building distribution. Some network architectures are then proposed, together with the methodologies to design these networks. The document concludes with a sample business analysis with revenue, CAPEx and OPex all reviewed and financial performance metrics as output. In addition to the sample MDU business case, the Cookbook also offers a link on the Siklu website to our Financial Analysis Calculator, the engine which drives the results portrayed in the Cookbook.
ISPs and carriers who are interested in tapping into the vast revenue opportunity in bringing gigabit speeds to the home are encouraged to plug in their own numbers and see how 5G Gigabit Wireless Access (GWA) can help grow your business.