Transcript Slide 1

Creating a Wireless Network
www.ockhamcommunications.com
www.miwifi.ca
October 2007
Overview
Intro to Ockham Communications:
• Business Model
• Operational Plan
• Financial Projections
Your Task – Building a Municipal WiFi Network in the Bayridge Area:
• Defining the Coverage Area
• Purchasing the Network Equipment
• Installation and Placement of the Network Equipment
• Setting up the Back-Office
• Generating Revenue
Ockham Communications Inc
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Intro to Ockham Communications
• Overview:
• Ockham Communications Inc is a wireless Internet service provider (WISP) with
operations in Kingston, Ontario, Canada
• Services:
• Through the MiWiFi network, subscribers receive immediate, fast, secure, and
reliable mobile wireless Internet access
• Benefits of the MiWiFi network include:
• Instant Internet access via online account creation
• Up to 3 mbps download and upload speeds (comparable to Bell/Cogeco
High Speed)
• Mobility anywhere within the seven square kilometer downtown Kingston
coverage zone
• 24/7 non-automated customer support
• Voice Over Internet Protocol (VoIP) supportive
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Business Model
• Service Area:
• Location, Location, Location…
• Target Niche:
• University and College towns with populations in the 150,000 – 200,000 range
• Temporary users
• Tourists and business travelers
• High-Lease turnover zones
• “Marketing awareness” expenditures versus costly “customer switching”
expenditures
• Service Offerings:
• Wireless High Speed residential and business Internet access
• Convenience and Mobility
• Pre-paid payment options
• Focused marketing efforts
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Business Model
• Temporary users:
• Hourly $4.95
• Daily $9.95
• Residential users:
• Monthly $29.95
• Business:
• Purchase block subscriptions
• Promote services to staff and customers
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Business Model
Bell
Company
Cogeco
Rogers
Mi WiFi
Portable Internet
Metro Mobile
High Speed
High Speed
Unplugged
Internet Standard
$46.95
$45.00
$42.95
$49.95
$29.95
Download access speed
up to 5 Mbps
up to 512 Kbps
up to 10 Mbps
up to 1.5 Mbps
up to 3 Mbps
Upload access speed
up to 800 Kbps
up to 128 Kbps
up to 640 Kbps
up to 256 Kbps
up to 3 Mbps
Download picture (1 MB)
2 seconds
19 seconds
1 second
7 seconds
4 seconds
Download song (5 MB)
10 seconds
1.5 minutes
5 seconds
35 seconds
15 seconds
Download movie (1.4 GB)
44 minutes
8 hours
22 minutes
3.5 hours
1.5 hours
Upload Picture
16 seconds
3 minutes
16 seconds
2 minutes
3 seconds
2 GB
2 GB
60 GB
30 GB
Unlimited
Service
High Speed
Monthly Charge
(1 MB)
Included Monthly Internet
activity
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Business Model
• Partnerships:
• Strategic Public-Private Partnerships:
• Queen’s University, St. Lawrence College, Royal Military College
• Referral Revenue Sharing:
• Landlords and property managers acting as marketing agents
• Auxiliary Revenue Streams:
• NebuAd: Targeted Advertising Platform
• Generates $3-$5 additional revenue per subscriber per month
• Log-In Screen Advertising
• Targeted community-based advertising
• Referral Sales for Value-Added Service Providers:
• Vonage, Skype, WiFi enabled phones
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Operational Plan
• 2007 Kingston:
• MiWiFi Phase 1
• Est Completion: May 1, 2008
• Coverage: 2 square kilometers
• MiWiFi Phase 2
• Est Completion: Sep, 2008
• Coverage: 5 square kilometers
• 2009 City #2 and City #3:
• Market research conducted
• Fast turnaround process
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Financial Projections
• Average Revenue, Costs, Profit Per User
• ARPU:
• ACPU:
• APPU:
$33.95
$1.50
$32.45
• Projected Profit:
• Monthly Costs
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Network:
$5,000
Operating: $6,000
Total:
$11,000
Monthly Break-Even Users: 340
• Year 1 Profit:
• Year 2 Profit:
• Year 3 Profit:
$101,640
$218,460
$335,280
• Subscriber Projections
• Year 1:
• Year 2:
• Year 3:
600
900
1,200
Ockham Communications Inc
(10% market share)
(15% market share)
(20% market share)
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Your Task
• You have been hired to build a Municipal WiFi network for
the Bayridge Area. In order to build the network, you need
to complete the following tasks:
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Set the boundaries of your coverage area
Purchase the network equipment
Install the network equipment
Set up your back-office
Generate revenue
• Remember – your goal is to build a reliable network that
will generate as much revenue as possible
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Set the Boundaries
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North:
South:
West:
East:
Princess St
Taylor Kidd Blvd
Collins Bay Rd
Bayridge Dr
• Number of Households in area: 20,000
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Purchase the Network Equipment
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You will be using BelAir Network 100s
These devices are referred to as “Access Points”
They are high-powered outdoor wireless routers
These devices are installed throughout the coverage area
“Access Points” communicate with each other and create
a giant wireless “hotspot”
• Cost Per Access Point:
$2,000
• Areas with a greater concentration of subscribers will require more
Access Points
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Install the Network Equipment
• Access Points are installed on street lights
• For effective coverage, Access Points should be installed
approximately 500 meters apart from each other
• Areas with a greater concentration of subscribers will require more
Access Points
• Cost Per Installation:
Ockham Communications Inc
$100
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Setting up the Back-Office
• The Back-Office is the place where your network begins
• Located in your back-office will be a Fiber Optic network
connection and a server
• Cost of Fiber Optic Connection: $500 per month
• Cost of Server: depends on functionality requirements
• Free Service (low speeds): $10,000
• Paid Service (high speeds) $15,000
• Free and Paid Service (low and high speeds): $20,000
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Generate Revenue
• You will need to determine the monthly price that you will
charge to your subscribers
• You can also generate revenue by charging local
businesses to advertise on your log-in screen
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