Assistance in organizing an Internet provider business. Provider company business plan

The Internet has reached our homes as widely as it can. However, there are still apartments where the World Wide Web has not penetrated. In addition, if we take into account the current pace of urban development, we can conclude that enormous work remains to be done to connect new buildings. Therefore, the Internet providing business is relevant now and will remain so for a long time.

To begin with, it is worth defining an Internet provider. This is an organization that provides access to the World Wide Web and other related services to the market. From a legal point of view, an Internet provider is a telecom operator that has a license for one of these types of services:

• Communication service for providing communication channels.
• Communication service in an information transmission network, except for voice data transmission.
• Communication service for voice data transmission in an information transmission network.

Anyone who wants to start their own business in this area sooner or later asks themselves a logical question - how to become an Internet provider? A huge number of people, including experienced businessmen, believe that organizing the work of an Internet provider is incredibly difficult from a technical point of view. This explains the not too large number of entrepreneurs who entered the telecommunications market. However, not everything is as difficult as it might seem at first glance. In very simple words, the business of an Internet provider is to wholesale the Internet and sell it to end users at retail.

According to Forbes magazine, in 2013, the Internet access market in Russia grew by 28% over six months, and the position of the largest operator is still occupied by Comstar - UTS.

8% of the market is occupied by VimpelCom-Beeline, and Er-Telecom closes the top three with 7.1%.

Other Internet providers are far behind in the ranking, with the three closest pursuers slightly reducing their market share. VolgaTelecom serves only 6.5% of users, North-West Telecom - 6.1%, and Uralsvyazinform - 5.2%.

The TOP 10 largest Russian providers are completed by Akado, Sibirtelecom, Southern Telecom with market shares ranging from 4-3%, the rest received 38.4% of the market.

What types of Internet providers are there?

Internet providers can be at the federal level, which distribute the Internet at the level of an entire city, or at the local level. In an average regional center, there may be dozens and sometimes hundreds of local providers. In accordance with the services provided to subscribers, Internet providers can be divided into the following types:

• hosting providers;
• access providers;
• backbone Internet providers;
• channel providers;
• last mile providers;
• mobile commerce service providers;
• others.

Access providers can be primary (backbone), which own backbone communication channels, and secondary (city), which rent communication channels from primary providers. The primary ones sell traffic exclusively in large volumes and provide their services to other providers, although it is not necessary once at a time, and there are exceptions.

How to become an Internet service provider

Before starting an activity, you need to register a legal entity and obtain a license to provide communication channels for use by contacting one of the legal companies for help. After this, you need to take care of the equipment: protective cabinets in which all equipment is stored, switches, servers, several types of cable (fiber and copper) and much more. Only after installing, configuring and thoroughly testing the equipment, you can become a full-fledged Internet provider and move on to attracting customers.

In addition to sales, you need to take care of user technical support. Ideally, it is 24/7 and multi-channel. Long waits for operator response and ineffective technical support are often the decisive factors in a client’s decision to change their provider.

Activities of the Internet provider

The list of services provided by the provider includes:

1. broadband access to the World Wide Web;
2. dial-up Internet access;
3. wireless Internet access;
4. hosting (allocation of a certain disk space to ensure the operation of sites), support for the operation of a virtual mail server and mailboxes;
5. colocation (location of client equipment on the provider’s premises);
6. rental of virtual and dedicated servers (VPS and VDS).

Internet provider for legal entities

For manufacturing enterprises, financial institutions, offices, telecom operators and other legal entities, the Internet provider provides the following services:

• ensuring uninterrupted high-speed Internet access;
• rental of high-performance communication channels for any client purposes;
• a range of multimedia services: video conferencing, video surveillance systems, television broadcasting, radio, etc.;
• services of e-mail, hosting and location of data blocks on the Internet;
• creation, support and configuration of information security systems.

Internet provider business plan

The Internet providing market has one feature - there is no government support at all, and this area has developed thanks to private organizations. Therefore, high-quality services are provided in places where the solvent population accumulates, which in most cases are certain areas of large cities. In this regard, the regional Internet services market, without full access to the network, is open to new names. Let's consider all possible options for implementing the provider's business plan.

The local network

The easiest and cheapest way to start your business is by providing Internet access to the residents of your apartment building. Launching this project does not require a large technical base and large financial investments. Necessary:

1. productive personal computer ($600−1000);
2. network card ($25−30);
3. network cable ($0.2 per 1 meter);
4. switch ($15−20).

To connect a client, you only need a network card. This cannot be a problem, since modern motherboards have an integrated network card. If you take into account the use of a UNIX system for the server, there will be no software costs. Taking into account all costs, including the purchase of an external unlimited channel with unlimited access ($140-180), the required starting capital does not exceed $1500. The only disadvantage of a local network is that the speed of Internet access is divided equally among all participants, so the number of subscribers is strictly limited. If such a business is not for you, then you should read about.

Analog access to PBX

Close cooperation with companies providing telephone services provides greater scope for action. However, if in the previous case it was possible to work “in the shadows,” then in this case you will have to be completely legal and you won’t be able to get by with just one computer. 2-3 powerful machines are needed to host a server-router. They must have high-capacity hard drives (from 2 TB). Equipment you will need:

1. server computers (from $4000);
2. PC for office tasks (from $450);
3. modem stand (from $1300);
4. adapter board with many ports (from $900);
5. switch (from $300);
6. cable equipment (from $300);
7. uninterruptible power supplies (from $150).

To implement such a project, an Internet provider will need at least $8,500. The next step is to obtain telephone channels, one for each available modem. Practice shows that it is sometimes very problematic to negotiate with the local telephone service, since a frequent response to a request is the refusal “There is no free capacity.” The best option would be to contact a private telephone company, where a similar issue can be resolved for $2000. An external digital channel will cost $400, and the monthly fee will be about $1500.

Digital access to PBX

The main disadvantage of the previous scheme is the limitation in access speed and audience coverage. In order to increase the performance, you need to install special equipment that operates on the basis of digital access to the network. This will allow the access lines to be combined into one digital signal that is transmitted to the provider.

A server designed for the required minimum of 30 telephone channels costs about $6,000, and a router that allows you to connect subscribers via a dedicated line costs $2,200. Thus, the cost of all equipment for a provider that works on digital technology is at least $12,000. the monthly fee for an external channel is about $2,500, and the rental of 30 telephone channels is $1,000 per month.

A business plan for an Internet provider is a complex document from an economic and technical point of view, because there are a considerable number of small expenses, the satisfaction of which is simply a necessity, but at the same time a very difficult point from the point of view of miscalculation. However, careful attention to small details will definitely pay off in profitability.

Another important point is the level of user service, because it is unlikely that anyone will be satisfied with the “hanging” and “crashing” Internet. such a business starts at 60%, but when providing subscribers with additional services, such as interactive television, free hosting under certain conditions, it increases proportionally.

Internet provider license

Providers operate on the basis of an agreement concluded with a telecommunications operator and a copy of the license of this operator, in accordance with the Law “On Communications”. A certified copy of the license is a document that confirms the right of the Internet provider to carry out its activities in providing telecommunications services.

Equipment for Internet provider

A more general list of the minimum necessary equipment that is required to organize Internet providing:

• web servers;
• ftp servers (often combined with web servers);
• mail servers (combined on small systems with web servers);
• terminal and identification servers;
• secondary servers;
• servers for development, control, and news servers;
• registration and settlement servers;
• network switches;
• control equipment, tools, cables;
• administrative panel, printer;
• uninterruptible power supplies;

The main costs are associated with equipment, so the best option is to seek help from special consultants who will help you avoid unnecessary and incorrect purchases.

Useful articles

Useful articles:

Attention! Due to recent changes in legislation, the legal information in this article may be out of date! Our lawyer can advise you free of charge - write your question in the form below:

Providing fast and high-quality Internet access is a popular service, and the demand for it is constantly growing. This makes Internet providing a very promising business. Today it is available not only to large, but also to medium and even small companies. There are many empty niches in the market that can be filled by active and ambitious newcomers. How to become an Internet provider? Tips and tricks are contained in this article!

An Internet service provider provides wireless communications services to organizations and individuals. He acts as an intermediary, purchasing traffic and selling it at retail to end consumers.

Providers can be cellular companies, telephone operators, and companies involved in the promotion of cable television. Initially, the market was divided between large operators, and later small firms entered it. Small operators are taking their place with lower tariffs and an individual approach to the client.

Find out how to open your online store from scratch and draw up a competent business plan with calculations

Despite the increasing number of providers, the demand for high-quality, fast and inexpensive Internet communications is still not satisfied. Active construction, development of remote areas, and the growing private sector are increasing the number of potential clients.

Today is the most opportune moment to carve out your own niche in a promising market.

Pros and cons of Internet providers

Business providing Internet communications is considered quite profitable. Among its advantages:

• a large number of potential clients;
• promising markets not covered by competitors (private sector);
• the ability to regulate tariffs, insuring yourself against losses;
• the possibility of stable income and high business profitability;
• customer loyalty provided that quality services are provided.

When planning activities as an Internet provider, it is worth considering the complexities of this business. These include:

• large investments at the initial stage;
• complex and lengthy certification system;
• dependence on laws restricting the activities of providers.

How to make money on Internet provisioning?

• Think over a plan for promoting the company. You can involve a professional marketer in the process. It is important to take into account the number of competitors, the quality of the services they provide, and the Internet availability of the territory in which you plan to work. Develop tariffs, discount opportunities, package connection plans and other bonuses.
• Do advertising. In the Internet sphere, advertisements, leaflets and flyers that have proven themselves to be the best are those that can be posted on street boards and poles, distributed to potential consumers, or placed in mailboxes.

Most operators prefer to work with apartment buildings. This approach allows you to save on equipment installation.

However, there are also disadvantages to working with apartment buildings. Among them:

1. High competition, the result of which is tariff dumping and a constant decrease in profits.
2. Low consumer loyalty. They will easily switch to another provider who offers more favorable conditions.
3. Poor connection quality due to a large number of connections. The result is the transition of consumers to another provider.

• towns and villages with a predominance of houses for 1-2 owners;
• urban areas of private development;
• barracks for several apartments;
• city ​​cottages;
• suburban and urban townhouse communities.

These categories have not yet reached the mass coverage of large operators. The main reason is the cost of creating a node. High-quality and fast Internet requires fiber-optic communication; providing it for every household is too expensive.

To get around this obstacle, you can:

1. Offer consumers an increased tariff, which will include the cost of connection divided into months;
2. Offer to pay for the connection in installments;
3. Enable radio access to replace fiber optic communications. The method is suitable for villages and small towns.

The big advantage of clients from villages, towns and the private urban sector is high loyalty. Having paid for the connection, the client will not switch from one operator to another, guaranteeing you a stable income.

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Reviews (3)

By presenting , we satisfy the demand for projects related to the virtual world, which is becoming increasingly in demand. According to experts, 90% of middle-aged people would like to have Internet access at home. They are ready to pay money to someone who will provide them with this access - quickly and without unnecessary hassle. This is why good Internet providers are thriving today.

We have a ready-made document that you can use immediately after studying. It will help those who are taking their “first steps” in this industry and would like to know exactly the stages of implementation of this business. You can start by providing Internet access to a small number of clients. When things get going and experience is gained, it will be possible to think about expansion.

In any case, a document on organizing Internet services is simply necessary. Especially one like ours – up-to-date, calculated by specialists. From it you can easily learn about the financial and marketing plan, what the return on investment of the project is, and what risks a novice entrepreneur who has decided to start providing provider services can expect. In any case, this document is worth studying in order to properly manage your capital and desire to provide Internet services.

The prospects of this type of business as an Internet provider have long become obvious to many players in this market sector. And any businessman who has managed to adequately assess his capabilities has a chance to start moving in this direction. If you firmly decide that this is exactly what you need, all that remains is to choose which path you will take.

The first way does not require significant initial costs. To get started, an amount of 1-1.5 thousand dollars will be enough for you. The essence of the activity is that you will need to create a local network and organize access to it for a small number of clients. Their number is usually limited to several dozen. The project is the simplest, but there is no prospect for you here.

The second option has more significant financial costs. In order to enter the business this way, you need to have an amount of 13-15 thousand dollars. Using this money, you will be able to offer clients connection to a PBX using analog channels. But the most promising way involves the use of digital communication channels.

To implement a large-scale project you will need at least 20 thousand dollars. This will not only increase the potential capacity of the network, but will also contribute to higher data transfer rates. When planning to open an Internet provider, do not rely on government support; from the very beginning, this business relies only on the efforts of private companies. Therefore, this type of business has received maximum development in large cities, where there is the highest demand for the services of an Internet provider.

Opening a provider in a city with a population of 20,000 people will be very problematic, and not only because of the insufficient number of clients. The biggest problem of small towns is the lack of quality communications. Today, more and more people are entering this business who already own companies operating in related industries - PC manufacturers, IT industries, telecom operators, etc. Such diversification helps to strengthen and develop the core business, and at the same time receive additional profit.

Before deciding on serious expenses, it is advisable to analyze consumer demand using the example of existing Internet providers. This will allow you to understand the expectations of potential clients. By carefully studying all the strengths and weaknesses of your competitors, you can avoid mistakes and offer the highest quality services. You can start with a small project, for example, connecting your housemates to the Network.

If necessary, the business can be gradually expanded, increasing the number of clients and introducing additional types of services. The organizational plan of your Internet provider will allow you to wisely distribute your efforts and financial resources, due to which you will be able to avoid unnecessary costs. Having studied the ready-made business plan of an Internet provider, you can easily identify possible problems and find ways to solve them.

Reviews for Internet provider business plan (3)

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Internet provider business plan

Vyacheslav
I understand that without your business plan I would have had a very difficult time. I was generally afraid that the matter would stop halfway. But gradually the fears went away, the recommendations contained in this document helped me cope with the most difficult tasks. Thank you.


Vyacheslav, we agree with you, when there is no clear understanding of further actions, uncertainty and fear appear that nothing will work out. This is precisely why a business plan exists, to think through all the nuances of a future business in advance and only then begin implementation, then everything will turn out much simpler and problems will arise much less often. We hope everything works out for you, good luck to you.

Internet provider business plan

Alexander
I read your business plan and realized with amazement that before you put it into action, you still need to work hard on it. Of course, having approximate calculations at hand, it was not so difficult to cope, but it was not a lot of regret for the time spent.


Alexander, we agree with you, the financial model needs to be improved taking into account your investments. This can only be taken into account in advance in the order document, but it will also cost more. You have correctly noted that based on existing calculations, you can make your own without any problems, in the end you get a document that is completely suitable for implementation, and the time spent results in good experience, which gives an understanding of the economics of the enterprise, which is no less important when managing it. Good luck to you.

Internet provider business plan

Andrey
Anyone who has never tried to create their own business will never understand how many problems lie in wait for an entrepreneur. I foolishly started working without a business plan, and I made a big mistake! But after I downloaded this document on your website, I immediately noticed that things began to move forward more actively. Now the process is at the completion stage, and I hasten to thank you for the quality work.


Andrey, thank you for your gratitude. Indeed, without a clear plan at hand, you can miss many nuances, which can subsequently result in financial losses. We are glad that we were able to support you and wish you to successfully implement your plans.

In stock Internet provider business plan 5 10

Internet Service Provider(English, internet-provider, ISP) is a company that provides Internet access service and, possibly, other services, such as hosting, e-mail, etc. Most Internet providers provide Internet access via a modem to individuals - dialup. Providers that provide corporate Internet access often offer dedicated high-speed communication lines, including fiber optics, radio access, etc.

TO basic services Internet providers include: broadband Internet access; dial-up Internet access; wireless internet access; allocation of disk space for storing and ensuring the operation of sites (hosting); support for electronic mailboxes or virtual mail server; placement of the client’s equipment at the provider’s site (colocation); rental of dedicated and virtual servers (VPS, VDS); data backup.

In accordance with the services provided, they can be divided into categories: access providers; hosting providers; backbone providers; channel providers; last mile providers.

Among the access providers, we can distinguish primary (backbone) ones, which own backbone communication channels, and secondary ones. Primary providers usually sell traffic only in large volumes and provide services to other providers rather than individual users, although there are exceptions. Secondary (city, house) - rent communication channels from primary ones.

An Internet provider in the Russian market is a telecom operator licensed for one of the following types of services: communication services for the provision of communication channels; communication services in the data network, with the exception of voice information transmission; communication services for the transmission of voice information in data networks; telematic communication services.

The provider has a computer network that has a permanent connection to the Internet and includes access servers through which clients connect.

The possibilities for using network Internet resources listed below form a standard set of provider services, provided to the client. This set can be supplemented with other network services or, conversely, reduced, but, obviously, points 1, 2, 6 must be present in it without fail:

• 1) at its own discretion, establish a connection to the Internet at any time of the day or hours specified in the contract;
• 2) receive and send information over the network, including files (FTP);
• 3) use e-mail services;
• 4) create and host your own web pages on the provider’s server;
• 5) have access to open teleconferences;
• 6) have personal access to statistical data on the use of the provider’s services.

To ensure that the client can access the network, when concluding an agreement, the provider registers a new client on its server, which usually includes the selection of a login name (the name under which the user will log into the network); password (a password known only to the provider and the user, which serves to protect the client from unauthorized use of network services under his login name by third parties) and IP address (static or dynamic). All this data is usually indicated in a special annex to the contract and is also included in its subject matter.

For the use of provider services, the subscriber is obliged to pay the provider a fee specified in the contract (subscription fee). Currently, there are several payment schemes for provider services.

Consider the most common of them:

• 1. Payment for actual connection time. With this scheme, the contract fixes the cost of 1 hour of connection to the network. As a rule, the cost of 1 hour of work at night and weekends is much lower than during the day. The time spent by the subscriber on the network is tracked by the provider's server, and based on this data, the subscriber makes his payments to the provider. This payment scheme for provider services is very common, as it allows the subscriber to use the network in full accordance with their financial capabilities.
• 2. Access with a fixed fee. In this case, the subscriber pays the provider a certain amount of money for a certain period of using the service, and the hours spent by the subscriber on the network are not counted. This scheme is beneficial to those users who actively use the network, spending several hours a day in cyberspace.

It should also be borne in mind that in addition to the permanent subscription fee, the user pays the provider one-time registration services when connecting to the provider’s access server, which can add up:

• from installing the necessary software on the subscriber’s computer;
• assigning a permanent IP address to the subscriber;
• registration on the provider's server login name and password of the subscriber.

The main responsibility of the provider is to provide the subscriber with Internet services in full and of proper quality. The provision of provider services in full means that the subscriber has the opportunity to use all network services.

In the environment of Internet service providers, a strong brand plays a much more significant role compared to any other market - in fact, apart from the brand, the company does not offer anything to the audience, so the most relevant would be to perform the following functions and tasks of the Internet provider's marketing service, given in table 8.2.

Table 8.2

Functions and tasks of the Internet provider marketing service

1. Formation of a market strategy	Analysis and forecasting of audience needs Analysis and forecasting of market conditions Analysis and forecasting of factors of competitive advantage Analysis of connections with the external environment Analysis and forecasting of the organizational and technical level of competitors Forecasting the volume of the target audience and its main characteristics Development and economic justification of competitiveness in the long term Final selection of target market segments Preparation of the document “Market strategy for_year”
2. Implementation of the marketing concept	Coordination of the structure and content of the management system Incoming marketing control Development, coordination and approval by management of the “Action Plan for the implementation of the marketing concept in activities for period_year" Establishing a feedback pattern with the target audience

The variety of provider services and their rapid development over the past five years make it possible to identify the main factors influencing the growth of this industry:

• 1) public policy has direct and indirect effects. In the first case, we are talking about government programs and regulation. One of the most striking examples of such programs is the transition to digital broadcasting, financed from the federal budget. Regulation is an important function of the state, allowing it to establish rules for the operation of the industry. Currently, operator activities are licensed and regulated by a number of federal laws: dated July 7, 2003 No. 126-FZ “On Communications”, Law of the Russian Federation dated December 27, 1991 No. 2124-1 “On the Mass Media”, dated Smart 2006 No. 38-FZ “On Advertising”, dated July 27, 2006 No. 152-FZ “On Personal Data”. There are also government initiatives aimed at combating pirated content on the Internet, which should have a positive effect on the legal sale of content. Indirect impacts on the industry include the policies of state-owned companies and general government priorities;
• 2) social change is a generalized name for the processes occurring with modern consumers, as their expectations are constantly growing under the pressure of various factors. Thus, the increase in the range of entertainment is proportional to the decrease in free time - the most important resource for a person at the moment. In a world of product abundance, the consumer is opting for new experiences, which include viewing content anywhere and on any screen, which is most important for marketing television services;
• 3) business trends include three aspects: focusing on technological advances, increasing the value of the service and searching for new business models. The emergence of interactive services is a striking example of the action of this factor: implemented at the intersection of computer and telecommunication technologies, they add value to the main service, for the sale of which non-standard business models are used;
• 4) internationalization suggests a strong foreign influence on the Internet and mobile communications. Basically, Russian companies in their development are guided by Western experience, which they get acquainted with at international conferences and forums. Players are gradually emerging that are capable of creating competitive goods and services in global markets. The processes of mergers and partnerships are also relevant for Russia.

All of the above factors have an impact on each participant in the provider services market. The obvious result of their action is increased competition among major market players, which occurs, on the one hand, due to the standardization of services and the easy transfer of technology from country to country, and on the other, due to the attractiveness of the market due to the interest of the state and interest from consumers. The main task of the company in such conditions is to differentiate its services from those of competitors through the introduction of innovations and the development of a unique marketing offer.

An Internet provider today is understood as an organization that carries out intermediary activities between providers at a higher level and direct users of the Internet. In fact, such a company is a wholesale buyer of traffic, which is subsequently resold at retail to end users.

In Russia, the provision of Internet access today is classified as communication services, which entails difficulties associated with the mandatory obtaining of a license from the Ministry of Communications of the Russian Federation, coordination of projects and certification of the equipment used. The specifics of the activity also presuppose the implementation of such activities only in the status of a legal entity, that is, LLC, CJSC or JSC. Self-registration of a legal entity and obtaining the appropriate license may take a long time, so it is recommended to contact a consulting company, whose specialists will provide support services in the preparation of all necessary documentation.

In general, the range of services provided by Internet providers is quite wide and may include:

1. Providing broadband, dial-up and wireless Internet access;
2. Formation of private corporate networks;
3. Provision of cellular communication services;
4. Digital TV connection;
5. Placing the client’s equipment on its own territory;
6. Providing servers for rent.

Initially, Internet providers in Russia provided many related services, more typical of companies developing websites and online stores. Often, providers also provided hosting for developed sites, but today the main trend is the provision of cellular communication services, digital television and, of course, the provision of wireless network access.

It is worth noting that previously a good option for doing business was to create a local network within an apartment building. However, with the popularization of wireless access, this option has become less interesting for users and, naturally, for companies. A technical problem with home local networks was the speed limit when connecting a large number of users. Also, this business had little opportunity to scale and compete with large companies that offered more profitable Internet connection options.

The risks of this business include strong dependence on the following factors:

• Power outage;
• Channel failure;
• Changes in legislation, in particular regarding the processing of personal data.