Metrobridge in the Spotlight
By: Michael Wolleben June 27th, 2005
Dorian Banks, MetroBridge Chief Operating Officer & Chief Technology Officer, Founder, recently explained how WiMAX will play an important role with future applications, deployments and strategy. Dorian touches on ARPU, WiMAX technology, license exempt issues and other interesting topics related to delivering quality broadband services to business class customers.
The company seems largely focused on business class services so has it seen any erosion of its ARPU over the years and if so, to what does it attribute that?
MetroBridge actually derives all of its revenue from business class services, but we have not seen any significant erosion of our ARPU over the years. I attribute this stability to the fact that our existing customer base consistently upgrades to larger connections and purchases additional services.
How does it maintain ARPU, what pricing techniques bundling work best?
Throughout MetroBridge's history, we have had the opportunity to try many different pricing models. We have discovered the one that works best for us and for our customers is based on usage, not a flat rate. Most of our customers would rather pay for what they actually use, not an unlimited pipe. Essentially our pricing is similar to cellular phone packages. What is the logical monthly plan for most people - the 500-minute or the 44,000-minute package?
Do its bundled failover circuits account for a lot of business? Do these create a differentiator that helps it stand out from the competition?
Our failover circuits become more popular every month as businesses realize how mission critical their WAN connections have become. We certainly stand out from both wireline and wireless competitors by having this advanced system - it even allows same IP failover.
How could a WiMAX based product assist in these efforts?
The primary interest we have in WiMAX is the standardization of equipment. Currently, we stock three (down from six) different CPE types as well as spares for all of our different APs. We look forward to stocking one CPE type that can be used anywhere in our network.
Have the recent issues regarding Proxim (who supplies at least some of its backbone) had any effect or do they expect it to?
The financial troubles and subsequent sale of Proxim did not impact our purchasing decisions. We have been in the broadband wireless industry long enough to be accustomed to its ups and downs. Proxim equipment has performed very well for MetroBridge and we will continue to use it.
Would the company launch residential services if WiMAX products could be obtained cheaply enough?
Our markets are urban centres that are often widely covered by inexpensive ADSL and cable. MetroBridge has built its business case and networks around 24/7 support and 99.999% uptime. The costs associated with these types of builds do not make sense when you're pricing services at less than $50 per month.
Would it look at re-fixturing its network with WiMAX gear?
We already deploy WiLAN Libra gear, which is guaranteed WiMAX compatible. When certified WiMAX gear is ready, we will deploy the equipment in new areas. However, at this time, we do not have plans to retool our existing generation 2 and 3 networks.
It looks like it has been a primarily license-exempt carrier in the past, does the company have any interest is trying to buy spectrum?
Since the 1990s, we have been a license-exempt carrier and we still are today. MetroBridge has come close to switching to licensed spectrum many times, but the dramatic cost differences and deployment times have always outweighed the benefits of any protection offered by licensing.
Does it anticipate the new 3.65 GHz band to be any help?
MetroBridge has reviewed the new band and, while it is not broad in nature, we will consider using it when equipment is readily available.
How does it see WiMAX changing its business model or technical model?
The primary impact WiMAX will have on our business model is better equipment pricing. We are really looking forward to sub-$200 WiMAX equipment.
Dorian Banks is a natural entrepreneur with extensive experience providing technology leadership to businesses around the world. He established AirCelerator Wireless in 2001 and within three years led the company to become the Lower Mainland's largest wireless Internet service provider. He then merged AirCelerator with Universco to form MetroBridge Networks.
Prior to starting AirCelerator, Dorian was founder and CEO of MyCash in Zurich, Switzerland, creating a system that enabled global, cross-currency money transfer via mobile phone. He also worked in Germany as head of information and knowledge management for Voith where he reported directly to the board, leading a global IT overhaul including MS Exchange and Siebel rollout. Before working in Europe, Dorian was head of IT for Fibron Machine and Westcoast Cylinders in Vancouver, acted as general manager of Sessions in Santa Cruz, California and started All Access Corporation in London, Ontario -- a lifestyle clothing manufacturer/distributor and licensee for hundreds of musicians and bands.
Dorian has also acted as an advisor and mentor to other entrepreneurs, including the team that started AirGames Wireless in Vancouver -- the first-ever winner of Telus New Ventures British Columbia. As well, he has lectured at Harvard and Northeastern universities in the pre-MBA and business diploma programs.
Dorian is a graduate of the University of Western Ontario and Harvard University.
