Your gateway to Internet & ISP business in India !
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Services ! Why to become an ISP? Congratulations ! Your decision to become an ISP shows foresight, knowledge and a little insanity! We wish you growth, money and the glamour of it all. As Mr. Rajesh Jain of Ravi Database Consultants Pvt. Ltd. ( The creator of Indiaworld http://www.indiaworld.co.in ) had put it sometime in October 1996 that the Internet business changes very rapidly, and if the government policies can keep pace and offer a fair, deregulated market, then we have a huge business in the offing. companies are structuring and re-engineering key processes around the Net. We in India will be doing the same. The missing link is going to be the ISP. Electronic commerce promises to bring about a revolution in how business is done and money is transacted. To benefit from the future, you need to be a part of it now. Knowledge Being an Internet Service Provider is both a challenging and nerve wracking job. The hours are long, the negotiation and working with vendors is challenging but there is quite a bit of money to be made if you follow a few rules learned over the years by nothing more that trial and error. And with knowledgeable people available to help , it should be much easier. Insanity A little insanity ! Risk taking , plunging in the dark, creating something that never existed before are all part of your qualities. Judge the risk . This report will help you understand the level of darkness. And create something so that in the process the common man & the society is benefited. That’s true Entrepreneurship ! Why not to become an ISP?Many people now starting ISPs are doing so for a fundamental reasons. The market is untapped. Start to provide good access in areas where the existing providers offer poor quality service, or to provide the only access in an area not yet served with a connection. Despite all the publicity that's come up over the Internet, there are many urban and rural areas that still don't have any form of connectivity. So you really need to put in long hours in deciding a overall strategy for having multiple POPs or to find out your nest , an ideal location , and start rightaway if you are small. The most important reason is that competition will sharpen. N number of companies will enter the fray . Well-funded people , Big industrial houses, Existing e-mail service providers and Multinationals have discovered this business, and they've been highly aggressive and successful in the past. The small entreupeneurial company still has a chance to joust with the big boys due to the relatively level playing field. ( Choose a Location , think and grab it without batting the eyelid.) And then, once your dream starts being real, there are always the sleepless nights and the infamous battles with local Telephone lines in rainy season or the timely upgradation with NSPs link or Sendmail and InterNetNews. Finally, if your only reason to start a provider is to make money, you probably shouldn't do it. As the Executive Director of Nasscom , Mr. Dewang Mehta puts it " ISPs around the world never made money" .. But you have a chance in India if the location is right. Related issues at a glance. You should fully read and digest the information in the above report before making any final decision . However to overcome the impatience associated with human nature to want to know a quick answer or to try and find out now, lets attend to some quick questions. Is the ISP business viable ? A resounding YES ! Provided that there is either little or no competition in your area, the competition is weak, or you have specific strategies that you think will make your effort succeed. Are the returns steady & assured ? True but the business is very dynamic. It is not the 'set up & forget' type. This business is changing, every second of every day globally . The rules will be in constant flux. The intervention and changes in Govt policies could be unpredictable. In order to succeed, you must adjust constantly to changing conditions and competitive threats. Do I need a license from the government to be an ISP? Though there is no License fees to be an
ISP for first five years of operation, you have to register yourself with DOT . The DOT is
planning to issue the guidelines for budding ISPs. As of Nov 11, 1997 guidelines , DOT is
planning to take a Bank Guarantee of Rs 10 Lakhs from the ISPs. Keep a tab on the
newspaper for the changes which are expected from time to time. But the government has
made its intentions very clear about the privatisation of ISP business. So it is just a
matter of some more paperwork for you. Check out the legal section of this report for
further details. Please check up the section on latest Policy matters. Does it require a substantial amount of Funds ? You may start with as low as Rs. 20 Lakhs and there is no upper limit. When can I expect a break-even ? Depending on your project and the scale of operation anywhere between 9 months or 18 months for start ups. What kind of Technical competence I should have ? If you do not know Unix, learn it. If you do not have people around with expertise in LAN/WAN , hire them. The Internet distribution field is new and it is a consumer market. You should seek professional guidance form consultants. Should I be an ISP or Web Presence Provider too ? Start with an ISP and graduate to a Web Presence provider as the first expansion phase. Or offer both if the financials are strong. Is it a difficult business ? As difficult as any other entrepreneurial endeavor. It means 18-20 hour days, no time off, cash flow problems, irate customers, and hair raising network outages. When to start ? Rightaway ! When there are NO ISPs serving your local calling area. Or You are probably in an outlying area that will not see a lot of competitive pressures until after you are established or when existing ISPs in your market are offering terrible service because they did not plan for the tremendous growth. Finally , With sufficient capital you can establish an ISP in ANY market and clean up. How can I grow ? As you grow, the potential revenues can be earned from four categories .
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1998 Bnet Services