operating cost – Steve Blum's Blog

Policies, partnerships and common goals attract broadband investment to communities

7 June 2010 by Steve Blum
business, capital cost, casf, community networks, operating cost, private capital, public policy, public private partnership, revenue, RUS

Capital expense, operating expense and revenue are the basic parameters of a business plan. With broadband-specific incentives that improve those metrics – even marginally – local governments and economic development agencies can attract private broadband investment into underserved areas.

Public policies can be tailored to significantly reduce construction costs. Uniform, broadband-friendly right of way and permit procedures eliminate a huge source of uncertainty for business planners. The more certain they are of their estimates, the more likely they are to invest.… More

A brief postmortem on the wireless Internet utility

14 November 2008 by Steve Blum
arpu, Barcelona, churn, community networks, municipal wireless, operating cost, subscriber acquisition cost, WiFi, wireless broadband business model, WISP

Nearly all of the city-scale, mainly WiFi-based wireless ISPs of the past three years are dead. Some, like Philadelphia, lumber on as zombie ventures. A few small town systems will continue to operate as long as the social and political consensus supports the subsidy required. And there are a couple of big city projects that haven’t burned through their initial operating capital yet.

But the rest are dead. The disease that killed them was cash flow hemorrhage, brought on by virulent churn.… More