What equipment is required for a new provider?

Determination of the competitive environment

The current market realities are such that it can be difficult for new and small providers. In large populated areas, federal, Beeline, MTS and others) continue to suppress and absorb small regional enterprises. However, there are still relevant niches in the market:

• suburban private sector, towns and villages;
• complex urban development projects.

Often in such areas there is a high level of demand for Internet services, but none of the providers is able to fully provide such a service, with the exception of mobile operators. This opens up wide opportunities for the development of new market participants. But despite all the prerequisites, organizing a business to provide Internet access to the population is quite a complex task, which requires taking into account many legal aspects and sometimes investing considerable funds.

Competition

The business plan for Internet services considers several main companies that provide access to the network, and which have a certain circle of users and will constitute the main competition. Below are the prices for the accounts they represent.

Table 1. Competitors

This table contains representatives of all price categories. Considering that these companies have been on the market for quite a long time, consumers have already formed a strong opinion about them. Since our company will focus on consumers with average incomes, companies like Demos will not compete with us, since we will initially be able to reach the level of providing services. We will observe the main competition from small provider companies providing access through an unlimited access system. At the moment, a fairly small number of companies actually operate on the market using such a system. Of these, 2-3 have been on the market for more than a year, the rest were created quite recently and we will be in the same conditions with them. New companies do not yet have an established circle of users, as well as a common opinion among users about the quality of the services provided.

The business plan takes into account that firms advertise their services mainly in specialized publications, which is due to the fact that the Internet has not yet received full use in Russia. But advertisements are placed in the computer press quite regularly, which indicates a regular demand for accounts in Moscow. In the world of communications, there are currently technologies that can increase the speed of data transfer over telephone lines. To attract users, some companies are starting to introduce these technologies on their modem pools (the telephone number on which the modems are installed), but in some cases this does not justify itself, since to obtain a high connection speed of 57600 bps, (average connection speed 28800-33600 bps) you need to have high quality cables and a digital PBX. Most users have neither one nor the other, and the presence or absence of this equipment from the company does not in any way affect their interests.

The next aspect in choosing a company lies in the area of ​​payment for services, which is also discussed in the business plan. For the convenience of users, some companies provide their clients with the opportunity to pay for their services through a bank or using a credit card. This significantly simplifies the relationship with the client and allows you to remove additional workload from the office.

How much does it cost to become an Internet Service Provider?

If the idea of ​​becoming an Internet provider requires implementation, you need to start somewhere. It’s worth drawing up a business plan, albeit a simple one. It will allow you to take into account costs and risks, methods of raising funds and other nuances that can affect the result. A business plan requires taking into account complex technical and economic indicators. If calculations confirm the economic feasibility of its implementation within a reasonable time frame, this can be done. To implement a business plan, you need to clearly understand who will pay for the services and how.

As experts have calculated, the average amount that an enterprise needs to become a full-fledged Internet provider reaches about 5 million rubles . This amount includes the following approximate costs:

• purchase of equipment – ​​3 million rubles;
• office equipment and furniture – 300 thousand rubles;
• preparation of premises - 120 thousand rubles;
• registration of a legal entity, obtaining a license - up to 300 thousand rubles;
• advertising and other costs – up to 500 thousand rubles.

This list does not take into account the costs of renting premises and salaries of specialists. This is about another 500 thousand rubles monthly. Now you can predict profitability. If you attract about 5 thousand clients (for a microdistrict of a large city this is not so much), revenue can reach 4-5 million rubles monthly. With such indicators, you can easily achieve high profitability of your future business and payback of the project.

Financial plan and financing strategy

The following table provides data on expenses and income for the first year of operation, during which it is expected to recoup the funds invested in the business.

Table 7. Estimated income and expenses

To calculate the annual income from the sale of services in the compiled business plan, the average price for services ($50) was taken excluding VAT, because the tax rate changes very often, so all calculations are given without VAT.

From this table it is clear that theoretically the first possible profit may appear in the 2nd quarter, but in the 3rd it will still be spent on some additional costs and in total the company will not pay for itself by the 3rd quarter. It is realistic to achieve payback no earlier than the 4th quarter or later. The funds to finance this project belong to the owner. The company's profit is not subject to income tax, since the company is a sole proprietorship without forming a legal entity. The tax will be taken from the income of the company owner as income tax.

How to connect subscribers?

Based on the chosen method of connecting clients and the types of service provided, the equipment for the Internet provider will be determined, as well as the list of necessary permits.

A fiber optic channel can be used to supply the signal to distribution points among subscribers. Despite its high cost, it is popular due to its advantages:

• light weight and excellent throughput;
• complete information security;
• minimal packet loss and delay;
• There are almost no restrictions on length.

The last mile to the client can be provided by several methods:

1. Wi-Fi. No wires are required, but the channel is limited in speed and reliability.
2. Optics. Expensive and reliable. Connection is possible using one of the technologies: xPON or Ethernet.
3. Copper cable. An affordable and popular method, characterized by ease of installation.

In addition to the main service of providing Internet access, you can sell auxiliary services:

• VoIP telephony;
• digital television IPTV;
• server capacity (games, file storage);
• network security (antiviruses).

The presence of such a range of capabilities makes the company attractive in a competitive market.

Marketing plan

The marketing plan for promoting our services is drawn up in a business plan based on market analysis.

Distribution of accounts is expected not only through directly (client company), but also through stores and companies selling computer equipment. By prior agreement with the store (company), the company account will be supplied in conjunction with a modem or together with a computer equipped with a modem. Also, for advertising, it will be possible to distribute accounts in the form of small free packages containing 2-3 hours of Internet work. This type of advertising has recently become increasingly popular; these accounts are distributed through computer magazines or at computer exhibitions. For new users, there will be an opportunity to check the connection, the so-called test login, for 0.5-1 hours of work, before concluding a connection agreement.

The technical support service organized for clients will work around the clock and seven days a week; this is done to promptly resolve problems and so that the client can always receive qualified assistance if problems arise.

Opinions about the quality of communication and the operation of the connection node will be obtained directly from our clients or from special news groups available for public use. In these same groups, you can find new clients yourself, rather than wait for them to come on their own.

One of the main ways to promote services will be, according to the business plan, advertising in the media and distributing leaflets in different areas of Moscow. A few days before the opening of our company’s office, it is necessary to begin disseminating information about the services provided by the company to potential clients. In the first month of work, it is expected that the company will be most widely advertised. The following table shows media advertising costs.

Table 2. Media advertising expenses

4.1. Pricing

The marketing strategy in the area of ​​prices is price competition: the company's policy is based on the principles of setting prices for the sale of some services in the business plan by 10-15% lower or providing them for free (for example, subscriber registration). plans to set the following prices for the provision of its services.

Table 3. Prices for the provision of services

How to properly register a business and obtain a license?

The optimal form of ownership of a legal entity is a limited liability company (authorized fund - from 10 thousand rubles). Documents are processed within 30 days. If you turn to specialized agencies, you can reduce this period to a week and save time.

For Internet providers, the procedure for obtaining a license is mandatory . If only Internet access is provided, you need to obtain two permissions:

• for the transmission of information, with the exception of the transmission of voice data;
• for telematic services.

Roskomnadzor considers the application within 45 days. Self-submission of documents will require about 12 thousand rubles. Additional services may require new licenses.

Organizational and legal issues of creating a business

In order to organize your business and become an Internet provider legally, you must go through the following steps.

Registration of the organization

Like any other business activity, an Internet provider must be headed by a person who is a legal entity. This is what dictates the need, first of all, to register the enterprise as an LLC and receive the entire package of documents to start operating as an Internet provider.

An entrepreneur can choose another legal form of the enterprise, but an LLC is considered the most optimal, due to the minimum requirements for the size of the authorized capital.

The registration process itself may take about a week. After the entrepreneur receives all the necessary registration documents, he will need to open a company current account and purchase a seal. How long it will take to open an account depends only on the bank in which it will be opened; this period can vary from a couple of days to several weeks.

For this procedure, you will need to provide the bank representative with:

• copies of constituent documents;
• copies of registration documents;
• copies of papers proving the registration of the enterprise with the tax service;

Registration costs may be:

• payment of a fee to the state in the amount of 4 thousand rubles;
• the minimum amount of the organization's authorized capital is 10 thousand rubles;
• service of notarization of the registration certificate – 100 rubles;
• service of notarization of the organization’s charter – 500 rubles;
• service of notarization of the constituent agreement – ​​1.2 thousand rubles;

Total, approximately 15 thousand 800 rubles - the cost of registering an LLC.

Activity licensing process

As soon as the enterprise is registered, the stage of setting up its activities begins. In order to legalize the provision of network services, it is necessary to go through the licensing procedure and obtain a license for communication services, since enterprises of this kind are recognized as telecom operators.

Here are the licenses that an Internet provider must have:

• for the provision of telecommunications services;
• for data exchange, but not in audio format;

In the process of work, additional licenses may be acquired if the entrepreneur decides to expand his business and provide additional services such as:

• IP telephony;
• hosting services;
• data backup;
• providing access to watching cable television channels, etc.;

The time to obtain a license can vary from two to seven weeks:

• verification – 2-3 days;
• submission of papers to Roskomnadzor – 1 day;
• consideration of the submitted application – up to 45 days;

After all licenses have been issued, the entrepreneur can begin his provider activity, if by this time the technical equipment of the enterprise is ready for work.

How much will licensing cost? Obtaining only two basic and necessary licenses costs from 20 to 30 thousand rubles. Well, if an entrepreneur wants to immediately master additional types of activities, then this amount can increase significantly. In addition, the cost of licensing can be increased by the services of a consulting firm if it has been decided to entrust it with the process of obtaining a license.

Creating a communication node project

After the licensing procedure has been completed and the provider receives all licenses, the final stage of organizing the provider business begins.
To consolidate the company’s status as a network provider, it is necessary to develop a communication center project and have it examined by the advisory bodies. In order for the created project to successfully pass this procedure, it must be created in accordance with many criteria that apply to the developer of the documentation, the unit itself and the equipment on which it was created. All software of such an enterprise must be exclusively licensed and have certificates from the Communications Union.

Only after passing the examination, the unit is put into operation. It is this preparatory technical stage of organizing a business that is considered the longest. The process of developing project documentation alone can take from a couple of weeks to a whole quarter, and the examination of the project from several months to a year.

In order for a communication center to be put into operation, it must go through the following stages:

1. Notification of the Supervision Committee about the start of construction of a communications facility.
2. Collection of a complete package of documents for order 113.
3. Notification of the Supervision Committee on completion of the construction process.
4. Submitting a petition to appoint a selection committee.
5. Checking the package of documents by an inspector and inspecting the unit for compliance.
6. Obtaining permission to begin full-scale activities.

The costs of producing this final procedure may be:

• payment for design work - 35 thousand rubles;
• payment for expert review - 30 percent of the cost of design work;
• putting the unit into operation – 30 thousand rubles;

The total cost of this stage of registration can be 70 thousand rubles.

https://www.youtube.com/watch?v=dtHJEsP3exQ

How to find premises, design a network and buy equipment?

Basically, the devices are located in basements and attics of residential buildings. Most often, only the consent of the management company is required. But to accommodate the network and server equipment of the central communication center, a separate room is needed. It should have the following equipment:

• UPS (uninterruptible power supply);
• grounding;
• air conditioning system;
• fire alarm.

It is recommended to provide 24-hour access for rapid response in case of emergencies.

Equipment is selected based on the manufacturer’s response time for recovery in the event of a malfunction, the range of services provided and the expected starting load. It is worth considering the possibility of expanding functionality and increasing productivity.

Most often, the initial set includes the following devices:

• spare parts;
• UPS;
• SORM equipment;
• administrative panel;
• office equipment;
• routers;
• servers for billing, control and development, mail and identification;
• control and passive equipment.

To provide clients with Internet access, it is necessary to obtain it from an uplink provider. It is advisable to have multiple connections in case one of them is ineffective at a certain time. To understand what amounts we are talking about, the cost of 1 Gbit/s can be 200 thousand rubles monthly .
To save money, you can purchase in-depth traffic analysis systems one-time. The payback period for such equipment is about 6 months.

Types of equipment and components

Before starting your business, you will need special Internet equipment for cable television and the Internet . This includes the following:

• racks and cabinets for service equipment. All the components of the system will be located here, without which it is impossible to set up your own network;
• tools and cables. Recently, cables that support fiber optic technology have been increasingly used. A distinctive feature is that it makes it possible to achieve a maximum data transfer speed of 10 gigabits per second. This is the highest figure among all types of cables presented on the domestic market. Suitable not only for providing, but also for creating individual local networks within an enterprise;
• registration and settlement servers;
• terminal, identification and mail servers;
• server equipment for receiving news, creating a development and control environment;
• web servers;
• network switches;
• power supplies for uninterrupted operation of equipment in the absence of a centralized power supply.

Personnel search and preparation for work

An Internet provider needs a qualified team no less than high-quality equipment. Certain services can be outsourced. This will relieve the burden on tasks at least at the initial stage.

However, some services and specialists must be full-time:

• network engineers;
• technical support staff;
• administrators;
• marketers or promotion specialists;
• supervisor.

It is enough to have up to 15 people on staff . It is important that the team maintains the state of the services and provides high-quality Internet access to each subscriber. This will increase the company’s authority in the market, promoting word of mouth.

Methods for promoting provider services on the market

In order to increase business income, it is better to show the greatest activity in a marketing campaign at the initial stage of the project.

You can do this using:

• information in specialized publications and city media;
• advertising on local television and radio;
• announcements near entrances and in public transport;
• banners in large shopping centers;
• production and distribution of the client’s own cards;
• promotions designed for certain categories of users.

In addition, you should create a corporate website for the company and take an active part in thematic exhibitions in the city.

Carbon Billing 5

Certified billing system capable of supporting up to 1.5 million subscribers. Billing is equipped with wide functionality, is easy to learn, does not require technical knowledge from sales managers, and also does not require deep knowledge of technical specialists. This makes it a productive auxiliary tool for attracting customers, as well as increasing the loyalty of existing subscribers.

Carbon Billing 5 supports over 50 router models, which is a technical advantage for ISPs. Suitable for organizations:

• providing satellite Internet;
• providing channels or wireless access;
• operating using GPON technology;
• providing broadband access.

Carbon Billing 5 provides:

• over 150 payment methods;
• reporting flexibility;
• support for subscribers of the automatic payment function;
• individual tariffs;
• accessible API;
• built-in CRM;
• uninterrupted billing operation.

The software supports over 300 unique functions and capabilities, and Carbon Soft has been introducing new solutions every month for the past 9 years.

Carbon Reductor DPI

The Internet provisioning business is quite seriously controlled by the state. In particular, telecom operators are required to restrict access to specific resources according to lists of prohibited sites from Roskomndazor and the Ministry of Justice .

Carbon Reductor DPI traffic filtering allows you to pass any inspections by Roskomnadzor and AS “Inspector” and avoid problems with the law.

Software:

• unloads and blocks sites from the lists of the Ministry of Justice and Roskomnadzor in automatic mode;
• is guaranteed to comply with Federal Law-139; FZ-149; FZ-187; FZ-398; FZ-436;
• supports 8 filtering technologies;
• has increased performance and reliability (safety margin up to 2 billion URLs in the filtering system);
• has a full-fledged web interface for administrator work;
• uses a minimum of provider equipment resources;
• has insurance against receiving fines from Rosknomnadzor;
• supports IPv6;

The Carbon Reductor DPI update is prepared 2 months before the recommendations and amendments come into force. This allows providers to comply with current traffic filtering requirements. You can install and configure the software within 2 hours.

With such solutions, doing business for an Internet provider is greatly simplified, subscriber loyalty improves and profitability increases due to savings on its own resources.