The German ISP Market - From Opportunism to Professionalism Frank Pauer Chief Sales & Marketing...
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1 The German ISP Market - From Opportunism to Professionalism Frank Pauer Chief Sales & Marketing Officer [email protected]
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The German ISP Market - From Opportunism to Professionalism Frank Pauer Chief Sales & Marketing Officer [email protected]. Sub10 Systems - Wireless 1 Gbps + . Privately held company based in the UK Focus on Ultra-High-Bandwidth Wireless Point-to-Point - PowerPoint PPT Presentation
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The German ISP Market - From Opportunism to Professionalism
Frank PauerChief Sales & Marketing Officer
Sub10 Systems - Wireless 1 Gbps +
Privately held company based in the UK
Focus on Ultra-High-Bandwidth Wireless Point-to-Point
Developing, manufacturing and selling All-Out-Door Wireless Links with a capacity with more than 1000 Mbps Full-Duplex
MMW Frequencies: 60, 70 & 80 GHz
Agenda
2003 - 2007
2007 - 2010
2010 - 2012
2013 - Future
The starting point of the Wireless ISP Market in Germany
Rural Broadband as a Business Case
Rural Broadband meets Politics
OPEX become critical
From Rural to City Centers
Next Generation ISP
The German Rural ISP Market
In 2002 & 2003 the increasing internet usage & bandwidth demand started to expand to rural areas
Most of the rural areas only had less than 1 Mbps data-throughput if any
Connecting these areas by traditional grid-solutions like DSL was in many cases not profitable
Big Telcos/Operators didn’t show high interest in covering these Non-Broadband Areas
Rural Broadband as a Business Case
In 2003 the first regional IT integrators & regional City Carriers start to become Wireless ISPs
Most of these new ISPs start their business with ultra-low-cost wireless infrastructure
Best-Effort broadband service was usually enough to attract rural private households & business customers
High installation fees and monthly fees could be charged
Typical network size was around 100 connected households per ISP divided into various villages
2003 - 2007
Rural Broadband meets Politics
In 2007 / 2008 the rural broadband topic becomes a political topic
The first National and EU Funding starts to support the rural broadband roll-outs
Up to €250.000 funding could be applied per covered village
As a consequence:
- Wireless ISPs with a professional approach start to win funded projects and start to grow very fast
- Less professional ISPs start to disappear from the market or grow only slowly
- Remaining Wireless ISPs suddenly have to compete against grid-based offers from Telco`s and Operators
- The price for a broadband connection decreases heavily while the expectation of data-speed is increasing
2003 - 2007
2007 - 2010
Case Study - Sewikom
The founder of Sewikom was running a regional Telecom-Equipment Shop
In 2008 Sewikom was founded with the goal to bring wireless broadband to the area of Beverungen
First private households and business customers go live in 2009
In 2010 Sewikom wins rural broadband tender for the area of Höxter with €3,8 Million funding
To full-fill the tender requirements, Sewikom starts to complement its wireless network with DSLAM technology
OPEX become critical
By end of 2012 most of the funded projects have been addressed
Over the last two years, the Wireless ISP networks grew to thousands of customers per network
The Revenue-per-Customer is further decreasing while service level expectations are increasing
The Ultra-Low-Cost network infrastructure gets to its limits and Service & Maintenance is driving the OPEX
As a consequence:
- The major wireless ISPs are replacing the network infrastructure by professional wireless solutions
- Only with low OPEX a long-term profitability can be ensured
- Only with high service quality the customer base can be protected against new offerings like LTE
2003 - 2007
2007 - 2010
2010 - 2012
From Rural to City Centres2003 - 2007
2007 - 2010
2010 - 2012
2013 - Future
Coverage of Rural Areas and Private Households is becoming a decreasing business with little margin
At the same time high bandwidth demand is increasing heavily for B-2-B customers in city centres
The fiber networks of operators can only be rolled-out slowly due to construction work restrictions & cost
A new area of opportunity for Wireless ISPs using wireless Ultra-High-Bandwidth infrastructure!
Next Generation ISP
Business case: "Wireless Fiber“Service Offer: 1 Gbps Full-Duplex via the Sub10 wireless Point-to-Point Links
Roll-Out Time: Business customers can get the bandwidth few weeks after contract sign-off
Network Concept: The ISP rents fiber from a fiber operator in the city. Thefiber access gets then distributed via the Sub10 wireless links to B2B and B2G customers.
Customer Advantage: Fiber capacities at much lower cost and much shorter installation time compared to other operators.
Summary
The rural broadband business is getting more challenging
Professional wireless infrastructure helps to stay competitive
Wireless ISPs should use their vast experience in technology to enter new markets
Sub10 Management Team
