Strategize your Broadband Venture with a Sound Planning

With the growing demand for internet connections, many would be tempted to go for a broadband dealership, especially in these pandemic times. The profits are huge, and this is one career option that can be tried by many who have lost their jobs in the pandemic but still have some capital to start a new business.

Planning is important as it is with every business. For an (ISP) Internet service provider there are some things that you would need to know. You must purchase a hosting center and keep an alternative system as a standby in case there is a power shortage. Your financial planning must have a cumulative action plan.

How to start?

• To become an internet service provider, the first step is to secure a license from the Government of India known as the Unified License System. Those working on low capital can subcontract license from local providers.
• You should be able to arrange for a suitable space for your data hosting center which can easily route cables and offer internet connections with a selection of bandwidth.
• Search for local providers and ensure that you are purchasing bandwidth at wholesale price. Engaging more than one wholesale supplier is advisable to maintain quality service for customers.
• If power cuts are a regular phenomenon in the area, a UPS is a must, and keeping a backup UPS will give you an edge over other providers.
• Cooling equipment is another important requirement.
• Connect your data center with the ISP upstream for a local leased line.
• Fibre optic cable and wireless cables are a standard requirement today.
• Define a proper pricing plan powered by marketing and monetizing techniques to communicate your ISP business to every corner of the locality.
• Having proper customer service is essential, if you can afford to tie up with a call center and incorporate an email ticket system that would be better. Offering customers, a quality experience will be a plus for your business and that will nurture customer loyalty.
• A closer look at the license plan
• The unified license system in India is guided by three codes. By the first category, a provider offers internet service all over the country. The second category permits to trade in 20 regional telecoms circles and 4 metro telecom systems. The third category has limited scope for secondary switching area.
• You must register your company under the Company Act of 1956 in India. This can be done by logging into their website.
• Select the preferred category under the Unifies License System and submit your application.
• A fee is Rs. 15,000 needs to be paid for the first and second and 10,000 for the third category through bank transfer.
• The application should be accompanied by relevant documents. The applicant will be approached in 60 days from the Department of Telecom for a formal approval where you would be required to sign the license agreement and deposit the PGB (Performance Bank Guarantee) to the concerned personnel.
• Those functioning on smaller capital may find it difficult to start an ISP business. Working as a franchise will provide the scope for earning and expanding under a trademark. The reliability of the trademark will garner new connections and increase the strength of the business bit by bit.

What is the investment plan for starting an ISP business?

• The cost varies according to category. Category A demands, 2.4 crores of PGB for the license, Category B demands 20 lakhs of PGB, and Category C demands 3 Lakhs of PGB.

Evaluate your capacity and select the right broadband dealership that you are most comfortable with.