In this article we provide information on the opportunities and hurdles to start an ISP business in India
So you want to become an ISP or WISP in India? With this article we’re weighing the pros & cons to start an ISP business in India
As ISP competition and public demand for data increases year on year, this is surely and interesting industry to be in!
Despite having 300 million internet connections, India is still struggling with slow internet speeds and has a lot of room for improvement. India did not invest enough in improving infrastructure & information in the internet industry. Increasing user growth and better public awareness about the benefits of using the internet; India’s internet infrastructure sector is pointing towards rise in demand for data.
Let’s look at the major pros & cons to start an ISP business in India
Opportunities: To start an ISP business in India
- The total number of internet connections in India increased 50% between 2014-15.
- India will double its internet user base between 2014-17.
- India is the 2nd largest market for smartphones, with a user base of 220 million.
- Around 80% of internet connections are through mobile internet.
- With mobile internet plans being as expensive as Rs.25
0/Gb, the WiFi internet service providing business is tipped to grow exponentially. (Insert government info and other companies like reliance, etc..stats here of investing and planning to set up x no. of wifi internet zones in india).
- It costs just 2 paisa/MB through WiFi whereas mobile data plans charge a minimum of 25 p/MB.
- Further, only 13 % of internet connections are through broadband. This shows that there is still a huge untapped growth potential in the market for broadband and wifi internet services in India.
- However, with the increasing number of internet users, the number of Internet service providers have not increased proportionately, thus, proving ISPs are in shortage. This might be a prime reason why 80% of India is still offline, apart from lack of government funding & initiatives.
- Recent technological upgrades in the industry have also madeit cost effective to distribute & monetize internet for ISPs
- The Indian Internet Industry, valued at just 13$ billion, is expected to be in triple figures by 2020.
That means an 200% increase in valuation, year on year. Those are jaw-dropping numbers for any industry.
Hurdles: NOT to start an ISP in India
With those kind of numbers, you must be wondering why there isn’t an oversupply of aspiring internet service providers already?
Well, becoming an internet service provider in India and setting up an ISP franchise in India is not that easy.
From numerous government regulations and inefficient licensing processes to unavailability of verified sources & prices to buy bulk bandwidth, there are a few roadblocks to become an ISP.
Let’s look at a few: –
- Technical roadblocks to start an ISP business in India: –
The ISP Industry is highly unorganized, making it difficult for small companies to get the correct information about equipment, costing, marketing strategies, business processes, etc.
- Educational roadblocks to start an ISP business in India: –
Another roadblock to set up an internet franchise in India is lack of ISP consultants in India. Moreover, there are no special courses or educational programs focusing on how to become an ISP in India. The only information available is online on various blogs or websites, but that’s not enough to start a business, is it?
Without the right consultation or education, starting an ISP business is risky.
- Economical roadblocks to start an ISP business in India: –
Becoming an ISP requires quite a bit of capital backing. Numerous one-time cost components are associated with becoming an ISP in India, from licensing to hardware, bandwidth & setup costs. Although ISP License costs are decreasing 0ver the years, it still remains high for SMBs!
- Licensing issues to start an ISP business in India: –
Acquiring an ISP license involves a complicated governmental procedure. The first step involves finding the ISP license applicable to you. For instance, if your internet service area is in a small village – you may need a Class-C license. Similarly, if you wish to provide internet service in any metropolitan city in India – you may need a Class-B license. To know which ISP license you need, click here.
Moreover, the application goes through several levels of approval and stringent rules & regulations, making it a tedious process.
It is advisable to get some professional assistance in getting the ISP license in order to rule out any errors & delays. It will make it easier for you to go through the licensing process.
All in all, the statistics show lucrative opportunity in the Internet industry in India for many years to come, although, Government policies and processes are making it difficult to become an Internet service provider. With easing ISP licenses better processes, this might soon become easier for individual to become an ISP in India.
With the right information and consultancy, one can plan his ISP business and optimize it successfully. Click here for more.
Muft Internet is an ISP consultancy firm dedicated to help aspiring, small and mid-sized Internet service providers in India overcome their technical or legal roadblocks.
Plan your own ISP/WISP business, apply for an ISP license, deploy your network or buy bulk bandwidth – our ISP consultants are here to help you grow or become an Internet service provider.
Request a callback using the form below, call us on +91 80802 40000 or email us on [email protected]; and start/grow your ISP/WISP business!
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