Metropolitan Broadband Internet Provider in Canada; a Business Plan

By Donald Alexander Moskaluk

Submitted to department of Fachbereich Staats – und Wirtschaftswissenschaften

In Partial Fulfillment of the Requirements for the Doctorate in Economics & Government

 

February 2003

Copyright 2003 - Ukrainian Free University - Ukrainische Freie Universität - All Rights Reserved.



Table of Contents

Table of Contents. 3

Abstract.. 9

About the Author.. 10

Acknowledgements. 11

Introduction.. 12

Market Past, and Present History of the Internet structure in North America: 19

ARPANET to a competitive network. 19

1960 - 1980: a single network. 19

1980 - 1991: several backbones. 22

1991 - 1995: interconnected backbones. 22

Since 1996 to 2000: a aggressively consolidating market place. 23

Market Overview... 25

Perspective on the Market. 25

Product Definition.. 26

Broadband Infrastructure. 26

Viability Analysis. 31

Canadian Statistic on Internet Penetration. 32

Market Viability. 38

Marketing Strategy.. 43

What the Customers Wants. 44

Distinctive Competence. 47

Marketing and Sales Management Structure. 47

Expected Market Reaction.. 48

Launch Strategies. 50

Marketing Logo – WIP Brand Strategy.. 52

Marketing WIP Communications. 53

Supporting WIP Web-sites. 53

Advertisement. 53

Public Relations. 53

Tradeshows. 53

Building Demand.. 53

Proof of Concept. 54

Obtain first clients. 54

Obtain first Thousand clients. 54

Communication Strategies. 56

Customer Focus. 56

Target consumer demographics. 56

Customer Acquisition Strategy.. 59

Subscribers. 59

Other Customer Sets. 60

On Line Service. 63

Product Strategy.. 64

The Network Product. 64

Network Operations. 68

Benefits of FSO and WTTH Network. 71

Product / Service descriptions. 74

Fundamental Networking and Internetworking: 75

IP version 6 number assignment: 75

Directory Services: 75

Outgoing packet routing and connectivity: 76

Incoming packet routing and connectivity: 76

Access: 76

Flexibility. 77

Rapid Deployment 77

Mobility. 78

Cost Effectiveness. 78

Interoperability. 79

Infrastructure and Redundancy. 80

The Importance of the Wireless Backbone. 80

Site Surveys and Signal Strength. 81

Antenna Technology. 81

Dual Radio Technology. 82

Voice over IP.. 83

PAN/LAN/WAN.. 83

PAN relationship to LAN.. 84

PAN relationship to WAN”. 84

Security. 85

Routers and Switches. 85

IP Tunneling vs. Mobile IP.. 86

Quality of Service (QoS) and Network Management: 87

What is QoS?. 88

Bandwidth. 89

Link Quality. 89

Delay. 90

Jitter. 90

Existing QoS Specifications and Efforts. 91

Economic Drivers. 94

Positioning.. 96

Internet Service Provider.. 96

Private Network Services. 97

Wireless Communications for the Multi Dwelling Units (MDU) Market. 97

Site Survey. 98

Wireless Transmissions Coverage Analysis. 98

Wireless Network Design. 98

Staging Services. 98

Implementation. 99

A Total Wireless Solution that Delivers Measurable Results. 99

Strategic Collaborations. 99

OPERATIONS. 101

The Network Service Delivery System... 101

Customer Relations. 102

Application Services: 103

Competition.. 104

The competitive landscape. 104

Existing Competitive entities. 104

Utilities Companies. 105

Competitive Technologies / Delivery Systems. 106

Digital Subscriber Loop. 106

Satellite. 107

Fixed Wireless. 108

Cable Modems. 110

Competition Summary. 112

Financial Plan.. 114

Pricing.. 114

Data Pricing. 114

Broadband pricing comparison. 115

Summarize pricing strategies. 116

Example of One Rate type Program.. 117

Other Target Revenue Streams. 117

Branded Bundled Services. 117

Lease of Access. 118

Pro Forma Financial Statement Summaries.. 118

Five Year Forecast. 121

Sales. 122

Cost of Goods. 126

Gross Margin. 128

Operating Expenses. 132

Balance Sheets. 133

Profit 140

Current Funding Profile. 141

The Broadband Wireless Network Company.. 143

Companies Objectives. 143

Management Critical Success Factors. 144

Management. 145

Management Structure. 146

Management Information System... 146

Country Regulations. 147

Ownership of Entry and Exit Strategy.. 149

Entry Strategy.. 149

Exit Strategies. 149

Risk Factors. 151

Startup Company.. 151

Competition and the Competitive Nature of the Industry.. 151

Changes in Demand for Technology.. 152

Failure to Adapt to Technological Changes. 152

Failure to Acquire Vendor Financing on competitive terms. 152

Fiduciary Responsibilities. 153

ECONOMIC ASPECT.. 154

CONCLUSION.. 155

Appendix 1. 156

Example of product and uses using broadband wireless technologies. 156

Pick your speed.. 158

Pick a card. 159

Popular 2.4 Ghz Solutions for Home and Office. 161

Newer 5 Ghz Solutions for Home and Office. 163

XP Plug and Play. 165

Sector Antennas. 167

The Real World. 168

A Long Shot 170

Don't have Cable Modem or DSL service in your area? Share a broadband satellite connection. 171

Satellite Sisters Satellite Backbones. 172

Licensed Community LANs: MMDS. 174

Wireless LANs from the Sky. 176

Want to be a wireless ISP?. 176

Personal Telco Project Shopping List 178

A Community Wireless Architecture?. 180

Wireless Access to DSL & Cable Modems. 182

Security Basics. 182

Service Set Identifier (SSID) 182

Media Access Control (MAC) 182

Wired Equivalent Privacy (WEP) 183

802.1x (WEP) 183

Virtual Private Network (VPN) 183

Pinch Intruders with a Firewall 186

Wired Equivalent Privacy. 193

Cable Modems. 195

The Personal Server. 197

Solarize. 199

Alternative Energy. 200

·  NREL Ham radio repeaters offer these tips in locating a site: 201

Be Your Own Network. 202

Be Your Own Web Server or ISP.. 202

Talk the Talk. 204

Walk the Walk. 205

Wiki Wiki 206

Attack of the Penguins. 207

Build the Database (and they will come) 211

HTML Takes Flight 215

Full Monty. 219

NOW how much would you pay?. 220

The Weakest Link. 220

Wanna Take You Higher. 226

The Ortho MAN.. 228

IPso Facto.. 233

Communications Genome. 235

A Wireless Cable Dream... 236

Nightmare on Elm Street 237

Hand-helds and e-books. 238

E-Mail to PDAs: 240

Cell Phones go WAP.. 241

Tiny Wireless Modems. 243

Wireless Webcams. 247

Jumping to 3G.. 248

The Whole World is Watching. 250

Ricochet Wireless. 263

Wireless Broadband through MMDS and LMDS: 264

How to build a MAN.. 267

Plan "A": Unwiring the Stadium.. 275

Providing Wireless Service in the Ballpark: 280

How it would be financed: 282

How much would it cost?. 283

Other Interactive Sports Developments. 287

Plan "C": A Free Community Network. 290

Plan "D": Wireless RiverNet 295

What is the big deal here?. 296

Plan "E": Bugs On Fire. 306

Accessorize. Act local, think intergalatic. 318

Internet – 3. 327

Possible Commercial Broadband Options. 335

Appendix 2. 343

5 Year Forecast for Wireless and Broadband Network.. 343

Table 1 Market Share. 344

Chart 1 Market Share. 344

Table 2 Market share connection by dwelling.. 345

Table 3 Wireless Connections. 346

Table 4 Total Sales.