In this post we provide a sample business model to start an ISP / WISP business in India
This article may serve useful to those who want to become an Internet service provider in India and understand the minimum investment required for their own WISP set-up with the help of our ISP consultants. We provide this information based on clients we helped become a WISP in small cities, townships and villages in India.
Introduction: Is it possible to start a WISP business in India with less than ₹ 800,000?
With our ISP consultants’ expertise and experience, we can say Yes!
- To become an ISP few years back in India meant heavy licensing, bandwidth and infrastructure costs. The only possible option to enter the ISP business was to depend on some large player and operate their ISP franchise.
- After you apply for an ISP license you will be registered as an ‘Internet Service Provider’ via DoT, you can do business under your own terms. This means you can buy cheaper bulk bandwidth from multiple vendors, create your own marketing materials and pricing plans, work with hardware/software of your choice and expand to nearby cities/villages in your district. Although, do note that some licensed ISPs also provide franchisees with better where you can do business on your own terms. You can contact us to check options.
- However, costs of starting a WISP business in India have significantly dropped over the last 3 years. Costs associated with applying for an ISP license and wireless hardware/software have significantly dropped over the last 3 years. This makes it an excellent time to invest and start a WISP business in India.
The Model: Start a WISP business in India with less than ₹ 800,000
The following model is built in a way to serve a small city, township towns or villages in India. We have low-cost WISP business models was built over time and in a way that, even with as low as 100 customers per year, the WISP business set up would self-sustainable and marginally profitable.
Lets 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.
Lets proceed by estimating your fixed one-time investment costs to start a WISP business in India:
| 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 |
Lets 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
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. |
| Start your WISP business in India within 3 months. | |||
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.
Contact us if you wish to start your own WISP business. (Click here)