How to become an Internet service provider in India?
In this article we provide information on how to become an Internet service provider in India
Quick Summary
- Plan your business and network
- Research laws and apply for an ISP license / ISP Franchise
- Start evaluating for hardware/software vendors
- Get your ISP license / franchise approval.
- 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 an Internet Service Provider in India!
OR simply contact us and we shall help you get started! http://muftinternet.com/isp-consultant-india/)
[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:
- Legal Factors – The licenses or agreements required and guidelines to comply to become an Internet service provider in India.
- Business Factors – A section explaining infrastructure and start-up costs, marketing and sales strategy and support channels.
- Technical Factors – The technologies you need become an Internet service provider – Syslog server, data servers, Broadband / WiFi Management Software and user authentication systems.
LEGAL FACTORS
HOW TO BECOME AN INTERNET SERVICE PROVIDER IN INDIA?
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:
BUSINESS FACTORS
HOW TO BECOME AN INTERNET SERVICE PROVIDER IN INDIA?
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.
TECHNICAL FACTORS
HOW TO BECOME AN INTERNET SERVICE PROVIDER IN INDIA?
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.
ALSO, YOU CAN READ OUR NEW UPDATES
When to start an ISP business in India? Opportunities & Hurdles
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.
Need ISP Consultants in India?
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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