Internet Service Provider ISP

Internet Service Provider ISP

An Internet service provider is an organization that provides services for accessing, using, or participating in the Internet. Internet service providers may be organized in various forms, such as commercial, community-owned, non-profit, or otherwise privately owned.

ISP Network Architecture This part details the general network architecture for broad plurality of ISP networks. The primary network design is divided into set of essential elements :

• Interior Gateway protocol layout

• Network Layout

• Network addressing methodology

• Customer connectivity

• Transit and peering connections

Internet access technologies
The connection between your Internet enabled device and the global network is executed through a specific digital data transmission technology. It represents the transfer of information packets through an Internet Protocol route.

Dial-up Internet access
This is the oldest method of providing access to the Internet. It uses a telephone line to perform a modem-to-modem connection. For that purpose, the user’s computer is attached to a telephone line enabled modem device, which dials into the node of the ISP and starts transferring data between the servers that store websites the user wants to see and their Internet connected device. The dial-up Internet is today considered outdated in most Internet societies due to the slow connection speed it ensures (about 40-50 kbit/s.). However, the wide availability of telephone access makes this type of Internet access the only alternative for remote areas that remain off the broadband network. It is also the least expensive Internet access service and is preferred by users on a tight budget.

DSL
DSL, short for ‘digital subscriber loop’ or ‘digital subscriber line’, is an advanced version of the dial-up Internet access method. In contrast to dial-up, DSL uses high frequency to execute a connection over the local telephone network. This allows the Internet and the phone connections to be run on one and the same telephone line. The digital subscriber line technology ensures an Asymmetric Digital Subscriber Line (ADSL), where the upload speed is lower than the download speed, and a Symmetric Digital Subscriber Line (SDSL), offering equal upload and download speeds. Of them both, ADSL is much more popular and is even known as just DSL to users.

Cable Internet
The cable Internet is among the most preferred methods for providing residential Internet access. Technically speaking, it represents a broadband Internet access method, using the high-bandwidth cable television network to transmit data between the global network and the households. To use cable Internet you will need a cable modem at home that will be connected with the CMTS (Cable Modem Termination System) of your cable ISP. The cable Internet access can be offered together with a cable television subscription and separately, for customers’ convenience. The second case incurs higher subscription fees due to the extra equipment installation costs.

Wireless Broadband (WiBB)
This is a new-generation broadband Internet access technology, allowing the delivery of high-speed wireless Internet within a large area. Wireless broadband ISPs (WISPs) ensure connection speeds that come close to the wired broadband speeds provided by DSL and cable ISPs. To get wireless broadband you need to place a specific dish on your house roof or apartment balcony and point it to the transmitter of your WISP. This type of Internet access is used as an alternative to the wired broadband connection in remote areas.

Wi-Fi Internet
Wi-Fi (from Wireless Fidelity) has become one of the most widely distributed Internet access methods, with the growing usage of portable computers and Internet enabled mobile devices, such as smart phones, PDAs, game consoles, etc. In this sense, it is the most mobile Internet access method, since you are able to use it everywhere as long as you are located within the scope of coverage, i.e. within the range of an Internet connected wireless network. Due to its ability to serve mobile devices, Wi-Fi is used in public places such as airports, hotels and restaurants to provide Internet access to customers. There are also specialized Wi-Fi hotspots where the service is either free or paid. Some of the largest cities in the world are in the process of building Wi-Fi networks that cover all the public places in the central areas.

ISDN
Another online data transmission method worth considering is ISDN or the Integrated Services Digital Network. ISDN represents a telephone system network, integrating a high-quality digital transmission of voice and data over the ordinary phone line. Ensuring a much better data transmission over the phone line than an analog line could allow, the ISDN offers a fast upstream/downstream Internet connection speed of 128 kbit/s. This speed level can be considered as a broadband speed as opposed to the narrowband speed of standard analog 56k telephone lines.

Ethernet
Another Internet access type worth mentioning is Ethernet – the most widespread wired LAN (local area network) technology, also used in wireless LANs. The Ethernet technology may ensure various speed levels and can thus be divided into several types: regular Ethernet, providing transmission speeds of up to 10 mbits/s, fast Ethernet, offering up to 100 mbits/s, gigabit Ethernet, supporting 1 gbit/s and 10-Gbit Ethernet, coming at up to 10 gbits/s.

1. Your wired / wireless network
A hybrid mix of fiber and/or wireless network has to be created in the area you wish to start your service. This network will help you distribute bulk internet from your Base Station to your home to home customers.

2. Licensed Bandwidth Provider in India
You will require necessary ISP licenses or an ISP franchise agreement with an existing licensed ISP to get bulk internet, which you can redistribute legally to your local area using your Wired/Wireless ISP network.

3. Technical Knowledge
You need to have technical knowledge on how to operate, upgrade and fix your ISP network. This will help you provide remote support to your clients and keep your network functional.

4. Clear Business Plan
You need to create a clear business plan after research of the local Internet market. This will determine: 1. Your marketing strategy, 2. Your Internet Pricing Plans. and 3. Support agreements.

 

To start an internet broadband services provider company in India, you need two things:

Start a company and then
Get an ISP License:
Starting a company:

Starting a company means registering your business as a company with the MCA. The brief explanation of the process is as follows:

Decide the name of the company after conducting a proper company name search.
Gather the documents required for company registration.
Get the DSC and DIN for the directors of the company.
Draft Memorandum and Articles of Association
File the application
Submit the application
Wait for the application to be processed and
Get Certificate of Incorporation.
With company registration, you become eligible to apply for ISP registration.

Getting the ISP License:

To get the Unified ISP License, you need to follow the steps given below:

Decide among the three categories of ISP registration: Category A, Category B and Category C.
Set the budget and scope of your ISP because it will determine the cost of acquiring ISP License.
Gather the documents required for ISP registration:
Certificate of Incorporation
Memorandum of association
Articles of Association
Challan Form along with a certified copy of Form-18
File the application for ISP Registration
Receive a letter of intent if your application is correct.
Proceed with the steps stated in the Letter of Intent
Get the ISP registration number.

Quick Summary
Plan your business and network
Research laws and apply for an ISP license
Start evaluating for hardware/software vendors
Get your ISP license approval from DoT
Purchase hardware, software and bulk bandwidth
Set up network infrastructure
Start marketing with brochures, banners and free WiFi advertising
Build customers; give them quality service and support
Become a WISP in India!

Step by Step Guide#
Step 1: Evaluate an Area: Make sure your area is a good candidate for a Wireless Internet network.

Step 2: Find a Fiber Provider: Find a building where you can purchase a fiber connection and use the rooftop to start your wireless network.

Step 3: Find Relay Sites: Extend your network wirelessly toward your customers.

Step 4: Pick a Hardware Platform: Evaluate available options for wireless hardware.

Step 5: Billing and Customer Management: Make sure you’re able to get paid and support your customers.

Step 6: Network Topology: Design your network topology to make your network reliable and scalable. Routers, switches, IP addresses, VLANs, etc.

Step 7: Build your Infrastructure: Install hardware for your fiber connection and your relay sites.

Step 8: Install a Customer: Get your first customer online!

Step 9: Marketing: Let people know about your service so they can experience a better Internet connection!

Step 10: Maintenance: Keep your network running smoothly, even in bad weather.

Let’s start estimating your average revenue per year to start WISP business in India with minimal profitability:

if you have & if each customer pays for your estimated revenue is
100 x ₹500 x 12 = ₹600,000
customers per month months per year

Estimated Revenue for 3 years: ₹ 18,00,000

Cost of bandwidth (a 50-70 mbps line is enough for the first 100-150 customers) is about 25,000/month.
Do note that this is the most conservative calculation. Do not treat this as actual.

Let’s proceed by estimating your fixed one-time investment costs to start a WISP business in India:

1. ISP License associated costs (Optional)
DoT costs       ₹90,000 for a C class license (Inclusive of 60,000/- of Bank Guarantees) payable to DoT
Consultancy fees     ₹60,000-70,000 for ISP application assistance payable to consultant
 Total    ₹150,000

2. Infrastructure and set-up associated costs

Base Station Server      ₹100,000 manages your bulk bandwidth payable to hardware supplier
Cabling, Towers & Access Points       ₹150,000 for end-delivery for up to 125 customers. payable to hardware & networking equipment supplier
Survey, Installation & Training       ₹90,000-120,000 fees paid to engineers for site survey, installation & training. payable to your ISP networking consultant
Total      ₹350,000

Let’s proceed further by estimating your recurring costs to start a WISP business in India.

Buying Bulk Bandwidth ₹225,000 per year Depends on volume and area. payable to ISP operator
(We will help you buy bulk bandwidth from a local supplier)
WiFi Management Software ₹20,000 per year manages your users and lets your create Internet plans payable to software vendor
Electricity *assume costs for 2 computers that need to be always on
Server Room / Office Space  – *space required for 2 computer desktops
Staff  – *1 entry level candidate trained by our ISP consultant for sales/support
Marketing  – *brochures, business cards, banners, free wifi advertising
Total ₹270,000 per year

Conclusion

Total Fixed + Recurring Expenses for 1st year: ₹ 800,000~
Total Fixed + Recurring Expenses over 3 years:  ₹ 13,50,000~
Break Even Time: Recover investment in approx. 15 months
Expected Revenue in 5 years: 35,00,000/-

Investment Stages to start a WISP business in India

Phase A: 30-120 days Applying for an ISP License or finding the right partner agreement for ISP franchise ₹150,000 (class C)
Phase B:  3 days Site Survey & Network Planning ₹100,000
Phase C:  7 days Hardware/Software Purchase & Installation ₹350,000
Phase D:  7-10 days Bandwidth Purchase ₹25,000/month for 45 Mbps approx.

Historic trends suggest that costs of hardware, software and bandwidth will reduce over time. In the next 4 years India will double its Internet population and quadruple its data demands.

We’ve planned this WISP business model in a way that – it would be easy for you to expand your customer capacity to 5000 without any server upgrades or major networking costs.

 

Ref : https://www.researchgate.net/publication/285601168_Build_Nationwide_Internet_Service_Provider

How to become a WISP in India? Starting a Wireless Internet Service Provider business

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