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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here
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To: Rob S. who wrote (11137)4/26/2001 10:22:31 PM
From: Rob S.  Read Replies (1) of 12823
 
What really makes the difference for the OFDM business case is the ability to conform the marketing to a mass merchandising model very similar to PCS cellular.

Besides the cost and immature stage of technological evolution, fixed wireless has suffered from similar impediments to mass marketing as have cable and xDSL; you can't simply put a retail package in a store, have the customer sign up and pay for and have the service requisitioned within a couple of hours as you can with PCS. Instead, the process has been relatively painful and has been expensive. The customer must sign up, usually over the phone or Internet and then wait to be scheduled for an appointment to have the unit installed. If it is anything like xDSL or cable, they often wait only to be told "Sorry, the service is not yet available in your immediate area" - I know 'cause I've been through it with both xDSL and cable. Or they wait for the installation crew that fails to show up on the appointed day or time. That sucks big time - MBA talk for it just doesn't work well as a mass market approach.

NextNet and other OFDM companies say that the MMDS carriers plan to offer their system as a retail store package and sign up similar to the PCS sales model. This fits perfectly: the customer comes into the Radio Shack, Best Buy, Good Guys, or Joe's Stereo and Strip Joint reads the glossy brochure that assures him the first month is free and no questions asked if he returns it in decent shape. He gives the sales clerk his credit card and fills out a form. The clerk phones or sends in the modems ID# and the customer takes the unit home. The unit gets plugged into the network or USB connector on the PC, the software driver & browser interface is installed and he is online. No muss no fuss. If he has any problems with installation he calls the toll free number and is walked through. Because the system costs the carrier less than $500 per customer, the payback occurs in a year or less and sweet profits roll in afterwards. Because the carrier doesn't have to pay off the leaching local phone company or cable company, they get to keep the profits to themselves.

This is going to happen. The only question is which companies get the big three U.S. MMDS business. They are testing out the systems now and have good things to say about the trials. The business case makes sense . . finally.
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