By Claus Hetting, Wi-Fi NOW CEO & Chairman
A new white paper by Plume reveals that ISPs can boost ARPUs up to US$15 per month by delivering whole-home, fully Cloud-managed Wi-Fi to their subscribers. Plume also says OPEX from truck rolls can be reduced by as much as 67%. Overall Plume – perhaps the current leader in Cloud-managed broadband services including managed whole-home Wi-Fi – presents a credible and comprehensive case for why ISPs should migrate management to the Cloud.
Remember a couple of years ago when Plume launched those attractive pluggable Wi-Fi ‘pods’ to deliver Wi-Fi to every corner of your home? Today, Plume is still one of the whole-home Wi-Fi leaders but the company is also a lot more than what meets the eye. Plume’s new white paper – which can be found here – presents a strong case for why ISPs should essentially dump traditional home broadband management and migrate their entire operation to the Cloud.
And yes indeed, Plume of course provides the Cloud-based platform – for what they call ‘CEM’ or ‘Customer Experience Management’ – allowing ISP to abandon the age-old and clumsy gateway-firmware approach to service delivery altogether. Instead Plume’s Cloud will allow much faster introduction of new services such as Wi-Fi sensing, optimised whole-home Wi-Fi, and much more. The end goal of Plume’s strategy is to become a ‘app store’ for smart home broadband services, said Plume’s CEO & Co-founder Fahri Diner to Wi-Fi NOW last year.
The ultimate test as to what a Cloud-based approach will bring an ISP in terms of benefits is of course what such an approach is worth in dollars. Here Plume’s white paper does a comprehensive job in mapping out costs and benefits. For example: Plume estimates that self-installation (for example of whole-home Wi-Fi using the Plume app) will be successful in more than 95% of cases hence eliminating practically all costs associated with sending technicians on site.
Add to this a boost in ARPU of US$10-$15 per month for customers with a whole-home Wi-Fi service and increase in ‘customer lifetime value’ of 70%, Plume says. Perhaps most importantly of all: Plume says the results presented in the paper are not outputs from a theoretical model, but actual data gathered from a blend of existing Plume Tier 1 and Tier 2 ISP clients during a period of 8 months. Overall Plume estimates 70% higher overall cumulative cash using the CEM platform.
Our take: Plume’s new White Paper is very much worth reading for anyone in the ISP business – even if you’re only curious as to what a transition to full-on Cloud-based service structure may look like. And don’t forget: You can meet – authorities permitting – the Plume team live and in person at the Wi-Fi World Congress in Redwood City on October 5-8, 2020.