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GETTING INTO THE ISP BUSINESS
KulaRaha
#11 Posted : Monday, December 14, 2009 5:01:12 AM
Rank: Elder

Joined: 7/26/2007
Posts: 6,514
Let me get that report and see.
Business opportunities are like buses,there's always another one coming
mnandii
#12 Posted : Monday, December 14, 2009 7:18:10 AM
Rank: Elder

Joined: 10/11/2006
Posts: 2,304
tho I cant specifically give u clues on how to start an ISP, I think ua idea is great. We need competition to drive internet prices down and let the benefits trickle down to wananchi.
Conventional thinkers waste time building shelters when they are unnecessary and then have no shelters when they need them the most. Socionomists do the opposite.
cooks
#13 Posted : Monday, December 14, 2009 8:21:24 AM
Rank: New-farer

Joined: 11/30/2009
Posts: 10
But Kula if you want to start a biz to sell at cheaper prices, when will you make money (profit)?

Isn't the idea of starting the biz to make money?smile
KulaRaha
#14 Posted : Monday, December 14, 2009 8:26:30 AM
Rank: Elder

Joined: 7/26/2007
Posts: 6,514
cooks, if I can make 30% return instead of 60% return and keep increasing my connections rather than be in flatline like access etc, then I will make more money than them...my penetration will be greater although my amrgins will be smaller. Kinda like Safcom vs Zain.
Business opportunities are like buses,there's always another one coming
Fundaah
#15 Posted : Monday, December 14, 2009 8:28:29 AM
Rank: Elder

Joined: 11/19/2008
Posts: 1,267

Cooks kularaha said
I'm thinking of starting up a small ISP which will focus on three things:

1 Realistic pricing


not cheap
Isaiah 65:17-Look! I am creating new heavens and a new earth, and no one will even think about the old ones anymore
cooks
#16 Posted : Monday, December 14, 2009 8:51:59 AM
Rank: New-farer

Joined: 11/30/2009
Posts: 10
Pund... and Kula...

realistic pricing from previous posts =cheaper!

this assumes that current pricing is crazy.

bandwidth costs is just one aspect look into the following:

1. last mile cost
2. network operation centre hardware and software costs
3. redundancy cost
4. operational cost (labour is expensive esp for network admins etc)
5. marketing cost



KulaRaha
#17 Posted : Monday, December 14, 2009 9:47:35 AM
Rank: Elder

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

lets get thru this hogwash youve swallowed from the ISPs:

1. last mile cost: oh pls, give me a break!!!! A wimax transmitter on a building is expensive?????
2. Ops centre: Go see one and see the second hand equipment they have there
3. Redundancy: Oh pls, with lines down more often than up, what redundancy?
4. Ops cost: Network admins, available dime a dozen due to recent global crisis, how many do you want?
5. Marketing cost: this I agree....

Curent pricing is crazy....how can one ISP be at 1000/= while other at 3000/= and another at 6000/= for same line speed????

With margins of upto 45% EBITDA....you think they are cheap?
Business opportunities are like buses,there's always another one coming
anasazi
#18 Posted : Monday, December 14, 2009 10:36:55 AM
Rank: Veteran

Joined: 6/8/2007
Posts: 675
Sorry Kularaha, not yet got the details for you! Last mile issues on some projects I'm working on driving me nuts! Will sort you hopefully at some point this week...
Form is temporary, class is permanent
cooks
#19 Posted : Monday, December 14, 2009 12:20:45 PM
Rank: New-farer

Joined: 11/30/2009
Posts: 10
kula- i like the dreamworld you live in.

the main reason that prices are different is that the line speed IS NOT THE SAME. There are sharing ratios as well as last mile constraints.

a zuku 512 does not = a AK 512 doe not equal a AK home 512 does not equal a UUNET 512!

the sharing is what happened to popote who had a 10 MB link and sold 512 for 5K. the first guys had fun and good speeds because it was not congested. At that time a 10 MB link was about a million a month. When they reached breakeven point at 200 customers they had sold 100MB. Assuming only 30 % were using at any one time they had 30MB traffic on a 10 MB link. The result is what you see today.

if you have real questions please ask...
KulaRaha
#20 Posted : Monday, December 14, 2009 12:29:15 PM
Rank: Elder

Joined: 7/26/2007
Posts: 6,514
Cooks, how much is a 10MB line now? How many links does AK load onto a 10MB line?
Business opportunities are like buses,there's always another one coming
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