Creating a Wireless Network

www.ockhamcommunications.comwww.miwifi.ca

October 2007

Ockham Communications Inc2

Overview

Intro to Ockham Communications:• Business Model• Operational Plan• Financial Projections

Your Task – Building a Municipal WiFi Network in the Bayridge Area:

• Defining the Coverage Area• Purchasing the Network Equipment• Installation and Placement of the Network

Equipment• Setting up the Back-Office• Generating Revenue

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Intro to Ockham Communications

• Overview:• Ockham Communications Inc is a wireless Internet service provider

(WISP) with operations in Kingston, Ontario, Canada

• Services:• Through the MiWiFi network, subscribers receive immediate, fast,

secure, and reliable mobile wireless Internet access • Benefits of the MiWiFi network include:

• Instant Internet access via online account creation• Up to 3 mbps download and upload speeds (comparable to

Bell/Cogeco High Speed)• Mobility anywhere within the seven square kilometer downtown

Kingston coverage zone• 24/7 non-automated customer support • Voice Over Internet Protocol (VoIP) supportive

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Business Model

• Service Area:• Location, Location, Location…• Target Niche:

• University and College towns with populations in the 150,000 – 200,000 range

• Temporary users• Tourists and business travelers

• High-Lease turnover zones• “Marketing awareness” expenditures versus costly “customer

switching” expenditures

• Service Offerings:• Wireless High Speed residential and business Internet access

• Convenience and Mobility• Pre-paid payment options• Focused marketing efforts

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• Temporary users:• Hourly $4.95• Daily $9.95

• Residential users:• Monthly $29.95

• Business:• Purchase block subscriptions• Promote services to staff and customers

Business Model

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Business Model

Company Cogeco Rogers Mi WiFi

Service High SpeedHigh Speed

Unplugged

High Speed

I nternet StandardPortable I nternet Metro Mobile

Monthly Charge $46.95 $45.00 $42.95 $49.95 $29.95

Download access speed up to 5 Mbps up to 512 Kbps up to 10 Mbps up to 1.5 Mbps up to 3 Mbps

Upload access speed up to 800 Kbps up to 128 Kbps up to 640 Kbps up to 256 Kbps up to 3 Mbps

Download picture (1 MB) 2 seconds 19 seconds 1 second 7 seconds 4 seconds

Download song (5 MB) 10 seconds 1.5 minutes 5 seconds 35 seconds 15 seconds

Download movie (1.4 GB) 44 minutes 8 hours 22 minutes 3.5 hours 1.5 hours

Upload Picture (1 MB) 16 seconds 3 minutes 16 seconds 2 minutes 3 seconds

I ncluded Monthly I nternet

activity2 GB 2 GB 60 GB 30 GB Unlimited

Bell

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Business Model

• Partnerships:• Strategic Public-Private Partnerships:

• Queen’s University, St. Lawrence College, Royal Military College• Referral Revenue Sharing:

• Landlords and property managers acting as marketing agents

• Auxiliary Revenue Streams:• NebuAd: Targeted Advertising Platform

• Generates $3-$5 additional revenue per subscriber per month• Log-In Screen Advertising

• Targeted community-based advertising• Referral Sales for Value-Added Service Providers:

• Vonage, Skype, WiFi enabled phones

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Operational Plan

• 2007 Kingston:• MiWiFi Phase 1

• Est Completion: May 1, 2008

• Coverage: 2 square kilometers

• MiWiFi Phase 2• Est Completion: Sep, 2008• Coverage: 5 square

kilometers

• 2009 City #2 and City #3:• Market research conducted

• Fast turnaround process

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Financial Projections

• Average Revenue, Costs, Profit Per User• ARPU: $33.95• ACPU: $1.50• APPU: $32.45

• Monthly Costs• Network: $5,000• Operating: $6,000• Total: $11,000• Monthly Break-Even Users: 340

• Subscriber Projections• Year 1: 600 (10% market share) • Year 2: 900 (15% market share)• Year 3: 1,200 (20% market share)

• Projected Profit:• Year 1 Profit: $101,640• Year 2 Profit: $218,460• Year 3 Profit: $335,280

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Your Task

• You have been hired to build a Municipal WiFi network for the Bayridge Area. In order to build the network, you need to complete the following tasks:• Set the boundaries of your coverage area• Purchase the network equipment• Install the network equipment• Set up your back-office• Generate revenue

• Remember – your goal is to build a reliable network that will generate as much revenue as possible

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Set the Boundaries

• North: Princess St• South: Taylor Kidd Blvd• West: Collins Bay Rd• East: Bayridge Dr

• Number of Households in area: 20,000

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Purchase the Network Equipment

• You will be using BelAir Network 100s • These devices are referred to as “Access

Points”• They are high-powered outdoor wireless routers• These devices are installed throughout the

coverage area• “Access Points” communicate with each other

and create a giant wireless “hotspot”

• Cost Per Access Point: $2,000• Areas with a greater concentration of subscribers will require

more Access Points

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Install the Network Equipment

• Access Points are installed on street lights• For effective coverage, Access Points should

be installed approximately 500 meters apart from each other• Areas with a greater concentration of subscribers will

require more Access Points

• Cost Per Installation:$100

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Setting up the Back-Office

• The Back-Office is the place where your network begins

• Located in your back-office will be a Fiber Optic network connection and a server

• Cost of Fiber Optic Connection: $500 per month

• Cost of Server: depends on functionality requirements• Free Service (low speeds): $10,000• Paid Service (high speeds) $15,000• Free and Paid Service (low and high speeds): $20,000

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Generate Revenue

• You will need to determine the monthly price that you will charge to your subscribers

• You can also generate revenue by charging local businesses to advertise on your log-in screen