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GETTING INTO THE ISP BUSINESS
KulaRaha
#1 Posted : Friday, December 11, 2009 9:41:22 AM
Rank: Elder

Joined: 7/26/2007
Posts: 6,514
After seeing all the clamour for lower prices, better speeds and Access profit numbers, I'm thinking of starting up a small ISP which will focus on three things:

1 Realistic pricing
2 Quality
3 Profits!!

Anyone with any info on how hard it is to get a license? Infrastructure looks easy...
KulaRaha attached the following image(s):
ispimages.jpg (3kb) downloaded 6 time(s).
Business opportunities are like buses,there's always another one coming
Fundaah
#2 Posted : Friday, December 11, 2009 10:21:06 AM
Rank: Elder

Joined: 11/19/2008
Posts: 1,267
KulaRaha
try the cck website
http://www.cck.go.ke/licensing_information/
Isaiah 65:17-Look! I am creating new heavens and a new earth, and no one will even think about the old ones anymore
KulaRaha
#3 Posted : Friday, December 11, 2009 11:46:56 AM
Rank: Elder

Joined: 7/26/2007
Posts: 6,514
That CCK is jargon to me....I wish there was someone with real experience to consult. Unfortunately, wazuri has soo few members that posting here is like talking to yourself!!!
Business opportunities are like buses,there's always another one coming
anasazi
#4 Posted : Friday, December 11, 2009 12:17:15 PM
Rank: Veteran

Joined: 6/8/2007
Posts: 675
I have a few friends who have been in the ISP business. Let me try pick their minds...
Form is temporary, class is permanent
KulaRaha
#5 Posted : Friday, December 11, 2009 12:31:16 PM
Rank: Elder

Joined: 7/26/2007
Posts: 6,514
Anasazi, i would be very grateful for some tips. Its obvious there is so much space here for a new entrant to operate.
Business opportunities are like buses,there's always another one coming
muganda
#6 Posted : Friday, December 11, 2009 12:34:12 PM
Rank: Elder

Joined: 9/15/2006
Posts: 3,907
@KulaRaha as we await this Anasazi's feedback, let me tell you that Access Kenya know how the business works hands down. We complain but they've locked in 42% SME market; and any later entry can only attract niches: KDN [backhaul], Zuku [triplay, SOHO], Safaricom [individual, mobility], TEAMS [fibre] etc. Business though is very profitable with margins of upto 45% EBITDA [measure they use].

Easiest was to begin may be to begin reselling already surplus bandwidth to clients which can be got very easily from KDN, Jamii etc, in order to establish the name. Most guys use unlicensed spectrum [getting congested though] when starting. A license should be quite easy to get judging by the number of ISPs but @Anasazi can give finer details.
KulaRaha
#7 Posted : Friday, December 11, 2009 12:46:57 PM
Rank: Elder

Joined: 7/26/2007
Posts: 6,514
Muganda

I was thinking the same thing. Remember when Safaicom "relauched"? Kencell had a firm grip on the amrket, expensive post paid lines etc. Safcom came in with a betetr price, not really better service, and killed Kencell.

Access is a fat turkey waiting for a fast mover to come in and kill them.
Business opportunities are like buses,there's always another one coming
muganda
#8 Posted : Friday, December 11, 2009 1:24:17 PM
Rank: Elder

Joined: 9/15/2006
Posts: 3,907
@KulaRaha, but Kencell did not have even 1% of the addressable market at the time. Many SMEs now have email addresses and connection to email / internet. The market penetration for these services [for all ISPs combined] is now quite quite high.
KulaRaha
#9 Posted : Friday, December 11, 2009 1:45:26 PM
Rank: Elder

Joined: 7/26/2007
Posts: 6,514
Any idea where I can get some stats? like number of connections, average line size, geographical distribution etc
Business opportunities are like buses,there's always another one coming
muganda
#10 Posted : Friday, December 11, 2009 2:21:36 PM
Rank: Elder

Joined: 9/15/2006
Posts: 3,907
@KulaRaha wonder whether you trade with African Alliance. Saw someone with an analytical report on telecoms in Africa [including Access, Safaricom, KDN] done from their HQ and sent to high net worth clients. Quick scanned but couldn't get my hands on it though.
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