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Exploring the Economics of Fixed Wireless Solutions in Outdoor WiFi Networks

This document delves into the economics of fixed wireless technologies for outdoor WiFi deployment, highlighting various approaches including SkyPilot, mesh networks, and DSL/VoIP solutions. The focus is on cost-effective nationwide buildout strategies, emphasizing operator economics, revenue drivers, and equipment costs. Different technologies such as Metricom, WiMAX, and advanced mesh frameworks are analyzed for their economic viability, coverage radius, and customer premises equipment (CPE) requirements. The insights aim to outline how wireless can be significantly cheaper than traditional models.

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Exploring the Economics of Fixed Wireless Solutions in Outdoor WiFi Networks

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  1. Fixed Wireless Economics Personal Background:SkyPilot – outdoor WiFi meshCovad – DSL / VoIP Genuity – nationwide IP access Hughes – satellite dataATT/Intel – future RBOC network Duncan M. Davidsondd@vpvp.com Selected VPVP Investments:Metricom – Ricochet NetworkDSL.Net – DSL / VoIP Aerie – nationwide IP accessBroadstorm – OFDM FWBCBeyond – VoIP for SME

  2. The Promise: Wireless is *Much* Cheaper Nationwide Buildout Cost (Order of Magnitude)

  3. Operator Economics Five Drivers network new subs sites subs services VoIP Spectrum VoIP is a cheap revenue kicker! Data B/S Mktg Field Rent Cust Care BH CPE Nothing special here T3 Site costs grow by ^2 POP No CPE is the new goal Amortized over lifetime (1/churn rate) Equipment getting cheapSites & spectrum pricey Depreciated over useful life

  4. Metricom 2 Radio Poletop Technology: • 2.4 GHz mesh backhaul • 900 MHz fronthaul • 28.8 kbps  128 kbps • Proprietary CPE Economics: • 7  16 sq mi • $33k /sq mi + CPE ¼ mile radius

  5. Metro WiFi 1 Radio Poletop Technology: • 2.4  5.8 GHz mesh backhaul • 2.4 GHz fronthaul • CPE required for 75% of users • 330 Kbps / user Economics: • Cheaper radio BUT smaller radius • 16  25 /sq mi • $20k  $30K/sq mi + 75% CPE < ¼ mile radius

  6. 3G WiFi Star Grid Technology: • 2.4 GHz mesh backhaul • 2.4 GHz fronthaul • 330 kbps / user • No CPE required Economics: • Multi-radio units with directional antennas • 25  40 /sq mi • $50K  $200K /sq mi Engineer for 85%+ coverage

  7. ¼ Mile: No CPE ½ Mile: Inside CPE* 1 Mile: Mounted CPE WiMAX Cellular Technology: • 5.8 GHz backhaul • 2.5/3.5/5.8 GHz fronthaul • 384 Kbps /user • Mixed CPE model Economics: • Multi-radio B/S with cheap CPE • ½ to 1 B/S / sq mi • $125K /sq mi + 80% CPE * Source: joint Intel / ArrayComm analysis of interference-limited 802.16 networks Source: WiMAX Forum. Note that B/S cost include backhaul, site planning and other network gear, and doubles for SME

  8. WiMAX Mesh(or mutant WIFi MAC) Sectorized Mesh Technology: • 5.8 GHz (WiMAX*) mesh backhaul • 2.4 GHz (WiFi) fronthaul • 1  3 Mbps /user • Timed CPE Model (as mesh builds, CPE goes away) Economics: • Start thin, grow to no CPE • 5  25 /sq mi • $10K + CPE  $20K /sq mi Grows organically to 100% coverage * Or Mutant WiFi MAC

  9. Customer Mesh Sectorized Mesh Technology: • 5.8 GHz (WiMAX*) mesh backhaul • 2.4 GHz (WiFi) fronthaul • 1  3 Mbps /user • Timed CPE Model (as mesh builds, CPE goes away) Economics: • Start thin, grow to no CPE • 5  25 /sq mi • $5K  $2K /sq mi Customers arethe infrastructure * Or Mutant WiFi MAC

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