Attractive payback time
The AIR system offers very rapid pay-back times of e.g. only 23 months and a peak financing of 2.6 mio. Euro in a sample network.
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The sample calculation assumes
- 10,000 subscribers and an average ARPU of 24 Euro
- a very lean network with one main station and two base stations
- and fully subsidized customer equipment (cable modem, DVB- T set-top-box and reception dish) as well as fully subsidized installation costs
- Ongoing network maintenance is very economic as both the main station and base stations can be managed remotely
The example case assumes a very small network with a main station and two base stations
Rapid break-even can be achieved at low subscriber and ARPU figures for which we have assumed:
10,000 subscribers (50% in single and 50% in multi-flat buildings)
Subscriber split (%) and ARPU (Euro/month):
Subscriber split (%) ARPU (Euro/month): TV only 30 10 TV & IP 40 30 IP only 5 20 IP & VoIP 5 24 Triple Play 20 34 Average:24
Subscriber acquisition costs are included:
- customer premises equipment is fully subsidized for a Triple Play client
- installation costs of app. 50 Euro are also subsidized
- an additional 4 Euro marketing cost per new subscriber is included (i.e. 40,000 Euro marketing budget)
- churn is assumed to be 0% in the initial 2 years
Network operating costs are lean at:
- site rental of 900 Euro/month
- transmission cost at 200 Euro/month
- main station mainenance costs of only 500 Euro/month
- base stations maintenance costs of only 0.5% of cumulated investments due to the possibility to maintain the main and base stations remotely
Other costs are low:
- Cost of TV rights: 1 Euro/user/month
- Peering cost: 0.84 Euro/user/month
Please contact us for an individualized return on investment calculation tailored to your situation and key assumption