Broadband internet service providers
Starting a business in the field of internet providers is a difficult task. The biggest hurdle in becoming an ISP is the large amount of capital that is required for the equipment as well as for building the entire setup. Resources like network bandwidth, cooling, and power all need to be planned meticulously. The following article details the know hows of starting a business of internet providers; read on to understand more about its world.
What do you mean by the phrase broadband connection?
The term broadband usually refers to high-speed access to the Internet which is always on and faster when compared to the traditional dial-up access. Broadband consists of several high-speed transmission technologies such as:
- Digital Subscriber Line (DSL)
- Cable Modem
- Broadband over Powerlines (BPL)
The broadband technology you choose will depend on various factors like your location, packages offered, and its availability.
What are the types of Internet Service Providers?
- Online Services: The first well-known Internet Service Providers were not even full ISPs but rather they were referred to as online services due to their members-only offerings and somewhat limited access to the full Internet. These were America Online (AOL) and CompuServe.
- National ISPs: National ISP which includes companies such as MindSpring and EarthLink is another type of ISP. These companies are likelier to provide high-speed connections and long-term stability as compared to local broadband internet service businesses i.e. ISP providers. Most of them also provide a wide range of services like long-distance telephone services, website hosting, and secure electronic transactions.
- Small ISPs: There are many small and independent ISPs operating in local or regional markets. They vary widely in size, stability, and in the quality of service they provide.
What are the steps involved in opening your own business of ISP?
- Market Research: Once you have identified the market needs, it is time to carry out detailed market research and ensure that you will be able to not only meet the demand but earn a profit from the venture..
- Legal Considerations: You must ensure that you have an appropriate license to operate in the country you choose. A regulatory specialist can help you be aware of the nuances of the broadband internet service business.
- IP addresses and ASN: The next step is to get resources, like IP addresses and an Autonomous System Number (ASN) from the RIR office.
- Deciding on your transits and peering: Transits are responsible for connecting the ISP to the larger Internet. Many ISPs purchase transit from multiple providers, with various different prices and service level agreements in place. Peering at Internet Exchanges (IXs) to decrease costs while improving the performance is also an important consideration.
- Finding a carrier-neutral facility: By using a carrier-neutral data center, it is possible to switch providers or connect to multiple providers, without having to physically move or deploy more infrastructures to the other location.
- Engineering skills: Most of the smaller ISPs employ outsourced network management services, which help in reducing risks and decreasing costs from the start, as opposed to employing high-end skilled people on a day-to-day basis.
- Acquiring infrastructure: The next step is to invest in your own infrastructure which includes routers and switches. The choice of equipment will be determined by the design and topology of your network.
- Final setup: Once the above is in place only the final setup remains. That means running interconnects to your transits and peers and configuring the routers and switches.
How many internet service provider businesses are there In the United States?
Currently, there are 2580 Internet service providers in the United States:
- 894 providers of DSL “Digital Subscriber Line”
- 212 providers of Business T1/T3 connections, etc.
- 448 cable companies
- 1160 fiber internet providers
- 1456 fixed wireless broadband providers
- 54 mobile broadband and LTE providers
What are the risks involved in broadband internet service business?
- Declining markets and increasing competition.
- The competition between bundled services by mobile telecom and cable/satellite operators has nearly brought about the demise of the standalone ISP.
- There is pressure from content owners to help prevent piracy.