When is a bargain not a bargain?
Bargain Shopping: A Perspective for WISPs
WISPs are constantly under competitive pressure from external forces. Big mobile operators, cable companies, utility providers, other WISPs – all want more subscribers. Even in rural areas, satellite internet access companies are making inroads.
To succeed against these threats, a WISP must differentiate its services by delivering high speed Internet access, always-on reliability, excellent support, and lower prices – all while keeping the business profitable. That’s a significant challenge. Obviously, it makes the most sense to keep network infrastructure costs as low as possible, right?
Or is there a more effective approach? Check out how this WISP compared options.
Infrastructure choices play a crucial role in successful WISP business models because they directly impact capital equipment costs. To keep CAPEX in line, WISPs often buy low-cost wireless backhaul equipment that just meets current subscriber needs. At some point, however, subscriber capacity demands increase, and WISPs then need to expand and upgrade their networks. That means ripping out what’s been already purchased and spending again on better equipment.
What we’ve learned from interactions with many successful WISPs is that it’s smarter to design and build a backhaul network for the future, to – “skate to where the puck will be, not where it is.”
Consider the Whole
While it may be tempting to overweight CAPEX as the primary factor in making equipment choices, WISPs who also consider operating costs (OPEX) in their infrastructure choices will build more profitable businesses. OPEX includes services required for site turn-up, leasing, spectrum and licensing fees, initial and recurring management costs, and ongoing maintenance.After all, if a network is unreliable, has unsatisfactory performance, or won’t scale, it results in unhappy customers, higher maintenance costs, and lower service revenues. While the equipment may be less expensive to buy, it will be more costly to install and maintain, and operating expenses can skyrocket.That’s why many successful WISPs evaluate their infrastructure choices by calculating the investment “whole” – acquisition costs, ownership costs, post-ownership costs, the cost to upgrade and cost for future expansion – to determine their total cost of ownership (TCO).
TCO Evaluation Pays Off
So what is the formula for choosing the right equipment? It starts with identifying a solution with total cost of ownership in mind. While Aviat radios deliver the capacity and performance WISPs need, they also are easy to configure, deploy, upgrade, and maintain, providing a full solution that addresses the key elements of TCO. WISPs who have chosen Aviat tell us that our equipment delivers worry-free networks with the lowest TCO when compared to alternatives available in the market.
Aviat radios are software-upgradable, so a WISP can dial up more capacity without climbing a tower. They deliver higher SLAs with better network scalability – up to 10 Gbps when needed – so capacity is pay-as-you-need. In addition, Aviat Multi-band and multi-channel microwave radios deliver higher capacity with higher reliability in congested wireless environments. Plus they provide deployment flexibility and cost savings that other radios lack.
Consider, for example, how antenna size affects your bottom line. Aviat radios, which deliver the highest system gain on the market, could enable you to use antennas two-feet in diameter instead of four-feet. Those smaller antennas reduce tower weight and wind loading by 75%. They are also 75% cheaper to ship and 65% cheaper to purchase, and cut the tower lease costs in half, saving US$4,800 per link, per year. This one simple choice can result in significant savings across a typical network.
All these factors make Aviat-based infrastructure more scalable, because Aviat radios can be upgraded over-the-air to serve more customers instead of ripped out and replaced.
Aviat’s value extends beyond products to providing exceptional tools, ease of buying, and support. Aviat Design, our online network design tool, saves a WISP significant time and money when planning a network. Aviat experts are available to share a quick demo of the tool, or can help you to design your link at no charge. Aviat stores the design is stored as a template that the customer can reuse or modify for future, similar needs.
Aviat Store, our self-service ecommerce site, enables WISPs to buy Aviat systems direct for faster shipping, great prices, and up-to-date information on what’s in stock. WISPs can pay easily with a credit card, bank transfer, or purchase order, and then with a few clicks track orders and ship dates, review previous orders, and re-order equipment.
All in all, Aviat offers innovative wireless backhaul systems, makes it easier to do business, and saves WISPs money every step of the way. So, whether you’re planning a network upgrade or building a new network, the smart move is to build using a TCO model. Build with Aviat – and leave bargain shopping to the competitors.
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