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PRIME COMPANIES INC. LMDS CASE STUDY FOR PENNSYLVANIA

PRIME COMPANIES INC. LMDS CASE STUDY FOR PENNSYLVANIA. BROADBAND WIRELESS WORLD FORUM FEB 19-21, 2001 SAN FRANCISCO, CA. PRESENTED BY:. NORBERT J. LIMA PRESIDENT AND CEO PRIME COMPANIES INCORPORATED. History. Prime Companies participated in the 1999 LMDS Auction.

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PRIME COMPANIES INC. LMDS CASE STUDY FOR PENNSYLVANIA

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  1. PRIME COMPANIES INC.LMDS CASE STUDY FOR PENNSYLVANIA BROADBAND WIRELESS WORLD FORUM FEB 19-21, 2001 SAN FRANCISCO, CA

  2. PRESENTED BY: NORBERT J. LIMA PRESIDENT AND CEO PRIME COMPANIES INCORPORATED

  3. History • Prime Companies participated in the 1999 LMDS Auction. • Prime Companies was successful in acquiring 8 LMDS “A” licenses. • Geographically speaking, these licenses range from Western Pennsylvania going in a northerly direction all the way into New York state.

  4. Goal • Strategic and cost effective deployment of LMDS services in the secondary markets in Pennsylvania and subsequently New York. • Serve the underserved markets!

  5. The Challenges of Getting Started IMPLEMENTATION STRATEGY: • Think in Diminutive Mode- buildings were small- Max 6 stories. • UNDERSTAND THE MARKETS –MARKETING STUDIES • Which market to deploy first? • Which markets have tallest buildings? • Which markets have broadband/DSL?

  6. Challenges of Getting Started • Due Diligence • What’s customers’ perceived needs? • Understand customer’s level of internet and e-commerce knowledge. • What manufacturer is able to deliver? • What technology – TDM or FDM • Dynamic Bandwidth Allocation. • Is equipment available now- or is it vaporware? • Evaluate hardware Pricing! (Both base station and CPE)

  7. Challenges Continued… • Site Lease Negotiations (This is not N.Y.C.!) • Base station locations • Building-top CPE locations • Ordering Services • Bandwidth from Local Providers-not much competition! • Is DS3 available or only T1’s?

  8. Customer Base • Not 70+ story building, not 20+ story buildings- Best Case, 6 Stories- Not a large number of customers in any one building! • Unlike Metropolitan Areas , education is a must- in secondary markets a 56K modem is “A Screaming Speed” • Educate what speed means • What bandwidth means

  9. Customer Base Continued • How can people benefit? • What is e-commerce and the impact on their business? • EDUCATE, EDUCATE, EDUCATE! • Your customers are business only. In the secondary markets we need to capture all business and residences in the future.

  10. Equipment Prices and the Economic Impact • Need more competition! • Need more buyers! • All this will drive the price down… • Why price needs to be cheaper-More Price Effective! • Most business buildings have one to four tenants, and CPE costs are too high!

  11. Equipment Prices Continued • In 1 to 2 tenant buildings we don’t need min. 2-10BT LAN connections and two T1’s- • Maximum from one ODU/CPE 16-10BT-Much too much! • Less capacity with better price- more business customers and capture residential market equals= rapid deployment! • Maximize Repeater design • Optimum penetration with least amount of infrastructure

  12. Equipment PricesContinued • Must develop standards particularly in the CPE equipment as to invite competition! • Standards allow competition and creates competitive pricing structures- highly needed –particularly in the secondary markets. Manufacturers, this is an $11B equipment market!

  13. Strategies for Success • Create Alliances i.e. Chambers of Commerce • Regional Economic Development Centers • Apartment House Associations

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