In this article we provide information on how to become an Internet service provider in India

Quick Summary

  1. Plan your business and network
  2. Research laws and apply for an ISP license / ISP Franchise
  3. Start evaluating for hardware/software vendors
  4. Get your ISP license / franchise approval.
  5. Purchase hardware, software and bulk bandwidth
  6. Set up network infrastructure
  7. Start marketing with brochures, banners and free WiFi advertising
  8. Build customers; give them quality service and support
  9. Become an Internet Service Provider in India!

OR simply contact us and we shall help you get started!

[Note: If you wish to become a Wireless ISP – we also recommend you to read this article: How to become a WISP in India?]

So, you want to become an Internet service provider in India? We’ll guide you with this tutorial. We have broken this guide into 3 sections:

  1. Legal Factors – The licenses or agreements required and guidelines to comply to become an Internet service provider in India.
  2. Business Factors – A section explaining infrastructure and start-up costs, marketing and sales strategy and support channels.
  3. Technical Factors – The technologies you need become an Internet service provider – Syslog server, data servers, Broadband / WiFi Management Software and user authentication systems.



There first thing you’re going to need is an ISP license to become an internet bandwidth providers in India. This is issued by the Department of Telecom. If you are starting off with minimum investment, we’d suggest you to get an ISP Franchise from our existing 30+ Class A/B licensed providers.

About ISP License – There are 3 types of service areas under one Unified ISP license issued by the Department of Telecom in India. These licenses are allocated on the basis of service areas:

  • Service Area – Category A: This ISP license enables you to conduct business across ANY state/city in India.
  • Service Area – Category B: This ISP license enables you to conduct business in any of the twenty Territorial Telecom Circles and the four Metro Telephone Systems of Delhi, Mumbai, Calcutta and Chennai of the DoT.
  • Service Area – Category C: This includes any Secondary Switching Area (SSA) with their geographical boundaries defined by Depart of Telecom. The SSAs of each of the four Metro Telephone Systems of Delhi, Mumbai, Calcutta and Chennai.

You can learn more about how to apply for an ISP License by clicking here:



Where do you plan to provide the Internet service?

Have you considered a plan for monetization of the Internet service?

Have you considered the pricing plans you would like to offer to your end-users?

How many users do you expect to sign up for your Internet service in that area?

Do you have a business plan to become an Internet service provider?

How do you intend to provide support to your end-users?

These are some of the questions we plan to answer in this section of how to become an Internet service provider in India.

A. Plan your business

The first thing you’re going to need is a ISP business plan in India. You need to understand the local competition’s prices, number of customers using a broadband connection and the cost and return to setup your own ISP.

B. Find your suppliers

The second thing you’re you going to need is find suppliers of wholesale bandwidth. Since its a highly unorganized market, be fully confident before entering into agreements with any individual or company. Use the help of experts to understand the right suppliers of hardware, software and bandwidth in your city/state.

C. Estimate your costs

The cost of bandwidth is your one major expense. Once you have negotiated with a Class A / B provider to purchase wholesale bandwidth, you need to start noting all your estimated costs:

  • Cost of Room / Area to keep data servers
  • Cost of Hardware / Software
  • Cost of Bulk Bandwidth
  • Cost of Service
  • Cost of Marketing and Sales

D. Create pricing plan and monetization strategy

Once you have a basic understanding of your estimated costs, you need to start creating a pricing plan for broadband / WISP service. This pricing plan needs to be carefully thought through based on your estimated users and their demand for data, your local competition and in line with the pricing plans of big telcos.

E. Marketing Strategy

How do you plan to reach out to your customers? Many local ISPs in India use sales agents, brochures, bus depot advertisements and digital marketing (or WiFi Advertising) to reach out to their potential customers. Plan a clear marketing strategy.

F. Support Strategy

Think of a multi-channel support strategy – Set up your call center, email ticket system and connect it with your billing management software etc. The key to starting a successful ISP business is having fantastic support. Although, if you are starting off with limited investment, you can avoid spending too much money on setting up call centers, etc. Just ensure there is a central number where your customers can easily get in touch with you or your team.



The last thing and the perhaps the most important thing to consider is the technology that will power your Internet service provision company.

A. Method of Delivery

  • Ethernet – The first thing to consider here is method of delivery. You can choose to have lay your fiber optic cables. This method can be slightly more expensive the latter method. Although, if you want to provide 50 Mbps+ plans in your area, you would need to deploy fiber optic.
  • Wireless – Alternatively, you can also choose to deliver your Internet service by creating a Wireless network. Please note this is different from creating a WiFi network. This method of delivery has lower capacity as compared to fiber optics but wireless is also carried out at less than half the cost of fiber optics.
  • Which method to choose?
    If the general internet plans in your city are above 50mbps per customer, you would require fiber optics. If not, starting off with wireless would be the right way ahead for you.

B. Source of Delivery

Whether your method of delivery is Ethernet or WiFi; you will need to bring your purchased bulk bandwidth to a centralized location before you deliver it. Bulk Bandwidth can be availed by getting in touch with Class A ISPs who can provide bandwidth anywhere in India. For more information on bandwidth, click here.

This location will contain your syslog server, user-data server, and deliveries/management server, your customers ids, etc. All the management is happening through your main router/switch. Don’t stress! You only need a 10×10 sq.ft. room to keep all these equipment.

Note: At Muft Internet, we help people become Internet Service Providers in India. We are an ISP consultancy firm dedicated to help aspiring, small and mid-sized Internet service providers in India overcome their technical or legal roadblocks. We have worked on several low cost ISP setups for people who want to start their own ISP business.

Plan your own ISP/WISP business, apply for an ISP license, deploy your network or buy bulk bandwidth – our expert ISP consultants are here to help you.


Learn how you can become an Internet service provider and start your own WISP/ISP business with less than ₹ 5 lacs and within 120 days.