Friday, September 08, 2006
Muni Wireless Problem
Here's a problem that Muni Wireless has: they are training the masses that internet should be free. Telcos have already been training the masses that DSL should be cheap (at least cheaper than cable and about the same price as dial-up). Both groups want more ARPU. Telcos want more money from DSL and Muni providers like CityNet and ELN want to sell premium services. That is hard when you tell people free and cheap. In the mind of the mass market consumer, DSL and wireless is cheap, close to free. Hard to come back and say "Pay me $99 per month for something similar." One way ELN could do it, is to use the PeoplePC brand for the free wireless and keep EarthLink as a premium service. Two brands positioned differently in the consumers mind. Comments welcome.