Despite high competition in the field of Internet access services
, in many localities, a part of the population still experiences difficulties in connecting to the network.
These difficulties are exacerbated by the fact that usually in such areas there are problems with mobile communications, so it is not possible to simply use modems with SIM cards.
In such settlements, a niche for the work of a new Internet provider is clearly visible. This business idea can become very profitable, at least until the hands of large providers reach here, for which it is often simply unprofitable to deal with small areas.
What is needed to implement a business idea?
Therefore, let’s look at how to become an Internet provider and what it takes to implement this business idea.
1) Since this area of business is high-tech, first of all, it is necessary to have qualified personnel.
Although modern equipment greatly simplifies the procedures for setting up and maintaining systems, full-fledged customer service requires the efficiency and competence of staff.
Therefore, a key condition for starting a business in this area is the personnel issue.
2) The second necessary condition for starting work is obtaining the necessary licenses.
To provide customers with Internet access, two licenses are required: for telematic services and for data transmission, with the exception of data transmission for the purposes of voice information. If the ISP intends to provide other services, then additional licenses will need to be obtained.
Obtaining licenses takes a certain time, up to 2 months.
In addition, it will be necessary to pay a state duty, which must be taken into account when planning costs.
How much will the initial investment cost?
The initial costs will also include the cost of purchasing equipment — servers, routers, network switches, uninterruptible power systems, and so on.
Experience shows that for a small company such costs amount to about 3.5 million dollars.
In addition, it is necessary to prepare a room for the placement of equipment, providing for security measures and maintaining temperature conditions.
In order to calculate the payback of the project of opening a computer club, you can follow this link:
Other organizational issues of this business
1) The fundamental issue of any Internet provider is to obtain reliable access to the network.
The easiest and cheapest way is to conclude an agreement for an external channel with unlimited access from a major telecom operator. However, keep in mind that the quality of Internet access will depend on how well the partner works. As for organizing your own external channel, the costs of its creation and support can only pay off for a large provider with a large number of customers.
2) It is also necessary to take into account the organization of the method of connecting clients.
In the event that telephone lines are used for this, it is necessary to conclude an agreement for the connection of a leased line with a local communication service provider. If fiber-optic communication technologies are used to connect customers, then you need to take into account the costs of additional equipment, materials and work. At the same time, it is often necessary to use underground utilities for laying optical fiber, which is associated with obtaining additional permits.
Thus, the cost of setting up an ISP business is highly dependent on the technologies chosen.
Accordingly, the payback period will depend on the amount of income and costs incurred.
The best way to pre-calculate the profitability of a future enterprise is to draw up a detailed business plan.
For more information on how to write a business plan for a new ISP project, read the article: » Internet Service Provider Business Plan «.
On our website you can order a business plan from professionals:
become an Internet Service Provider?
Watch a video about an ISP: