[asterisk-biz] The Value of VoIP subscribers

[CC Asterisk]

Well basically we have a small service company with about 3200 subs. We are
exploring the possibility of selling it to an ITSP. My main question was
beyond the formulas - is there some kind of accepted valuation in the VoIP
industry.
Our churn in the last 2 years has been about  0.8% a month. We work in a
specific niche and have been growing nicely there.

Does that help?
Mark

On 2/19/06, trixter aka Bret McDanel <trixter at 0xdecafbad.com> wrote:
>
> On Sun, 2006-02-19 at 10:48 +0200, CC Asterisk wrote:
> > Hi,
> > Any suggestions how to figure out the value of a subscriber? Say you
> > have  X amount of subscribers on monthly contracts on  your VoIP
> > service and they produce Y cashflow  with Z gross profit every month -
> > what would be their value.
> > Thanks
>
> Well lets see
>
> total customers X
> total cashflow  Y
> gross profit    Z
> customer value  priceless
>
> ok, so everyone doesnt get the mastercard commercials ...
>
> If you want to know the value of an individual customer you cant
> aggregate all customers together, however it seems that you want to have
> an average.  Now that leads me to another issue, there are factors that
> you may not be considering.  'churn rate' is the rate that you have new
> customers sign up and old ones leave.  If you have a lot of this
> happening, you may have a constant, or perhaps even growing subscriber
> base but  there is generally a cost associated to setting up and tearing
> down accounts.  Would it not make sense to include how long the customer
> has been with you to determine their value?
>
> Value by itself means nothing, it needs a context behind it.  Are you
> looking simply for just the net worth of the customer from the ITSP
> perspective, on an aggregating basis?
> X/Z should do that, however that is an overly simplistic way to approach
> it.
>
> Are you looking for the value of a single customer vs this average?
> It may be something like
> customer_cost/customer_revenue : X/Z
>
>
> This is a hard problem to answer given the vagueness that you have
> started out.  Value is highly subjective, and I am unclear exactly what
> context it is to be used it.
>
>
> --
> Trixter http://www.0xdecafbad.com     Bret McDanel
> UK +44 870 340 4605   Germany +49 801 777 555 3402
> US +1 360 207 0479 or +1 516 687 5200
> FreeWorldDialup: 635378
> http://www.sacaug.org/ Sacramento Asterisk Users Group
>
>
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