Re: [ossig] Jaring Wireless Broadband $$

[Tze-Meng Tan <tmtan@xxxxxxxxxxx>]

On Jul 9, 2004, at 14:53, Raja Iskandar Shah wrote:

> rm 50 per month ?

Thats too low for them to survive

>
> if they can get to 100,000 subscribers, then that would make it rm 5
> million per month. over a 2 year period that will come up to 120 
> million
> in revenue.

yes, but unlike TMnet, Jaring is not a telco
TMnet owns the submarine cables from here to US and turning em on is a 
minimal additional cost to them plus local connect and IX charges in 
the US.
All big ISPs like SingNet, Korean, Japanese ISPs etc also have telco 
mothers to turn on expensive sub cables as needed

Jaring will have to pay both TM (malaysia 1/2 circuit and a US telco 
provider for us 1/2 circuit and US ISP port charges for the connect - 
will cost in the region of RM 50-80 million per annum per STM1 (155 
Mbps)
With 100,000 subs - each demanding at least 512Kbps (in order to the 
get the QoS you pay for) = 512,000 Mbps = 4 STM1 = at least RM 200 
million per Annum
- ok this is a bit over simplified since not everyone will be using 
their connect at the same time, but being always on I'm sure the 
overlap will be significant

My numbers may not be exact but the order of magnitude should be 
correct ... its been a few years since I did this stuff - not sure what 
the 2004 going rate for an STM1 is :)

they will be bleeding money like there is no tomorrow

>
> not sure whether that is sufficient to cover operating costs ? the 
> thing
> with wireless networks is that it costs a lot to operate. esp if it 
> uses
> leased lines as the backbone.

yeah, this is the additional cost - maybe another 10 million per annum

>
> perhaps if they can partner with one of the mobile operators, like
> digi's edge technology - the technology will be more affordable.
> something like a router for gprs / gsm network ?
>

yes but they need a partner with big pipes to the US and willing to 
turn em on for Internet use.



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