|
to Telecomnet
Re: Initial investment for setting up ISP$10 million dollars....
Make the check out to "Jim Bouse".
.... Seriously .... How are we supposed to help you with your question if you don't give us any idea of the area you are trying to cover, the equipment, the speeds, your geography, etc....
I started my WISP on about $5000 (but I have a full-time job to pay the bills as the WISP grows). I am slowly (6 Months) getting to the point where the WISP is paying my personal account back. |
|
|
teleadmin
Anon
2012-Jul-22 12:31 pm
Thanks a lot for your reply. I am doing a consultancy project and I am about to finish market feasibility study and other analysis required to setup ISP for 1,000 customer. I have even calculated some of the costs required to setup ISP. But I am bit confused with couple of costs and thought someone who is already working in the area will be able to help me. I just want to know which type and how many routers, switches, firewall is required. Also, the internet backbone cost and if there is any other things if you think I need to consider will be much appreciated. Thanks |
|
|
WHT join:2010-03-26 Rosston, TX |
WHT
Member
2012-Jul-22 12:56 pm
Is your cost estimate up to $80,000 yet? |
|
1 edit |
to teleadmin
said by teleadmin :Thanks a lot for your reply. I am doing a consultancy project and I am about to finish market feasibility study and other analysis required to setup ISP for 1,000 customer. I have even calculated some of the costs required to setup ISP. But I am bit confused with couple of costs and thought someone who is already working in the area will be able to help me. I just want to know which type and how many routers, switches, firewall is required. Also, the internet backbone cost and if there is any other things if you think I need to consider will be much appreciated. Thanks If you were more serious about this you would realize you can't just jump right into this and shoot for 1000 people. You need to first find a target market without cable, adsl or a competent wisp (All of my competitors are morons that's why I started where I did), plan and budget your link's and ensure you have clear line of sight + Fresnel zone clearance to get from where there is fiber optics located at a low cost to your target rural market. You should have this planed before your even considered hardware vendors ore equipment. The internet is a much more utilized place then it use to be, You use to go by one subscriber per megabit but HD youtube and netflix changed that its now wildly unpredictable depending on how many netflix users you have. Heck for routers/access concentrators you could go mikrotik, cisco, quagga on a linux distro, juniper, nortel, HP,Alcatel-Lucent, Avaya, Nokia the list just goes on. It all depends on what you understand and how much you want to spend. (and how well you want things to work especially between different vendors). edit: To service 1000 people properly without traffic shaping the shit out of everything its going to cost you a minimum of $100,000 on parts and internet transit alone in the time it takes to build it to that point. |
|
TomS_Git-r-done MVM join:2002-07-19 London, UK |
to teleadmin
said by teleadmin :Thanks a lot for your reply. I am doing a consultancy project and I am about to finish market feasibility study and other analysis required to setup ISP for 1,000 customer. I have even calculated some of the costs required to setup ISP. But I am bit confused with couple of costs and thought someone who is already working in the area will be able to help me. Im sure plenty of people can help. And maybe I am a bit of a cynical prick here, but if this is a consultancy project, youre probably being paid to put this report together, yet youre trying to get some of it (the network aspects) without paying anyone else for the consultancy they are giving to you? How is this fair? :-P Perhaps as a consultant, you can pay some of this money you are earning to a consultant who is more familiar with the topic you are trying to cover here, and that can come up with a couple of network designs using different vendors equipment to cover various budget scenarios, different topologies with different levels of redundancy, produce a BOM for each, etc? I just want to know which type and how many routers, switches, firewall is required. Cisco, Juniper, Brocade, MikroTik, and tonnes more. Take your pick. What features do you need? How much is the budget? How many and what type isnt exactly a recipe you can just cook to, its somewhat specific to each and every network, and influenced heavily by the topology of the network. It all depends on the capabilities you want your network to have, what features you want to offer to customers, the type of technical expertise you or your customer has or can acquire to run and maintain it Plenty of people around here have built their networks on MikroTik routers and are doing fine. I used to work for a company that built its network using Cisco equipment. Those are about the most opposite ends of the scale as you can get price wise, but both probably have some/most/all of the features that you're likely to need. As I said above, trying to write a specification for something you understand little about is probably something you are best leaving to a professional who understands it like the back of his hand. Also, the internet backbone cost and if there is any other things if you think I need to consider will be much appreciated. Thanks What is available in the area that your customer is going to service? Rural areas can be extremely bandwidth scarce, and access to any decent amount of bandwidth can alone be enough to make a project unfeasible. Your physical interface options might be limited, as in there might not be a simple ethernet jack to plug your MikroTik router into. You might have to buy a more expensive modular router that can take a T3 or maybe an OC-3. You will have to determine the providers that are available to you in the area you are trying to service, and contact them and find out what they can offer you to work that one out. The company I used to work for invested hundreds of thousands, if not millions of dollars building high capacity backhaul through our service areas, as bandwidth from any of the available providers in the area was simply too expensive to buy - too expensive as in more than the hundreds of thousands to millions that *we* spent *building* backhaul... So maybe you need to do the same and build your own backhaul network over considerable distance to get access to cheaper bandwidth, which will likely be located closer to more major towns and cities. There is so much that we cant tell you because as I said, this is not cookie cutter type stuff. Though as we have done, we can give you hints. You'll have to do the leg work and fill in the blanks. |
|
|
If you are building a business plan that has investors, unless you get to 1000 users paying you $40 per month, don't do it. Anything below that is a one-man hobby so to speak. That being said, the smallest business plan that I would approach investors with will require $300-$400K. That is private angel investors. In fact, I wrote an article on this dealing with single and multi-round investment models and issues. » www.triadwireless.net/in ··· emid=272Growing organically with a small operation is fine but be honest with yourself. Maybe your potential market is X but lack of investment funding to grow quickly and your competitors looking for new areas which might end up being yours, means you may not have 5 years to grow slowly as capital becomes available. If you want to work with institutional investors, you better have some really good friends and a $200M business plan that needs $10M to start. And you better have something different than "I'm going to throw up a bunch of radios on a few towers" mentality. Justin (WHT) and I have spent months analyzing a business plan with a potential of 3000+ users to try and reduce the Capex. The best we have done is about $250K to cover 500 square miles. |
|
WHT join:2010-03-26 Rosston, TX |
WHT
Member
2012-Jul-22 7:49 pm
said by rconaway8:Justin (WHT) and I have spent months analyzing a business plan with a potential of 3000+ users to try and reduce the Capex. The best we have done is about $250K to cover 500 square miles. And that's not counting 1,000 hours spent in examining housing density per square mile (with 100 foot resolution granularity) for best placement of tower sites. That effort alone reduced the CAPEX by $100,000 to get to the $250,000 figure. We haven't even gotten to a shopping list of equipment yet. As I have always said...an equipment list is pretty much at the bottom of your list of things to do. |
|
DaDawgs Premium Member join:2010-08-02 Deltaville, VA 1 edit |
DaDawgs
Premium Member
2012-Jul-23 12:00 am
said by WHT:said by rconaway8:Justin (WHT) and I have spent months analyzing a business plan with a potential of 3000+ users to try and reduce the Capex. The best we have done is about $250K to cover 500 square miles. And that's not counting 1,000 hours spent in examining housing density per square mile (with 100 foot resolution granularity) for best placement of tower sites. That effort alone reduced the CAPEX by $100,000 to get to the $250,000 figure. We haven't even gotten to a shopping list of equipment yet. As I have always said...an equipment list is pretty much at the bottom of your list of things to do. I don't know. I'm thinking that you are making it sound a lot more expensive than it has to be. |
|
DaDawgs |
to rconaway8
said by rconaway8:Justin (WHT) and I have spent months analyzing a business plan with a potential of 3000+ users to try and reduce the Capex. The best we have done is about $250K to cover 500 square miles. That is absolute horse hockey... A 200M business plan? Jebus.. I can cover 500 square miles for far less than $250,000.00 investment but *A START UP DOES NOT NEED TO COVER 500 SQ. MI.* |
|
|
|
teleadmin to OHSrob
Anon
2012-Jul-23 6:41 pm
to OHSrob
thanks once again OHSrob,
I have done market study and calculated the potential customers. I don't have to bother about the wireless network as the investors are planning to lease the Radio Access Network. I just have to calculate the ISP cost minus infrastructure cost. I guess if the investors can lease wireless network then they just have to think about the CPE cost, the ISP cost and bandwidth cost. Please help me if I am wrong.Also I will be thankful if you can help me with cost analysis for ISP.
thanks |
|
teleadmin |
teleadmin to TomS_
Anon
2012-Jul-23 6:58 pm
to TomS_
thanks a lot for your help and all the hints.they are very helpful. By the way, I am not getting any money for this project. I am a management student and this consultancy project is part of my study. |
|
public join:2002-01-19 Santa Clara, CA
1 recommendation |
public
Member
2012-Jul-23 11:20 pm
said by teleadmin :thanks a lot for your help and all the hints.they are very helpful. By the way, I am not getting any money for this project. I am a management student and this consultancy project is part of my study. And the investors are getting what they pay for !!! The wireless infrastructure is what makes a WISP a success or a failure. The management administrative overhead can be leased. |
|
WHT join:2010-03-26 Rosston, TX
1 recommendation |
to teleadmin
said by teleadmin :this consultancy project is part of my study. In other words, all your questions are part of a game, not a real deployment. |
|
|
to teleadmin
You've got to include your infrastructure costs in some way or other. Tower companies I'm familiar with won't just rent out the tower as a percentage of your revenue.
Also, if you're in an area where broadband penetration is very limited, you'll be building your own "RAN" (by the way, that's a cellular term...this ain't cellular). If you could lease it from someone else, they've either got a significant share of the potential market or they're incompetent and you wouldn't want to lease from them anyway.
I apologize if I'm sounding rough here. However, as someone who has built a business plan for a wireless ISP in school (one-year MBA-type program, so yes I know what a SWOT analysis is)...and no, I wouldn't run an ISP off of that business plan at this point because it's out of date (things move fast in the industry when you're sitting still)...it sounds like you have some additional research to do before you ask broad questions that amount to "do my homework for me."
Got one question back at you for starters: what do you think "the ISP cost" encompasses? Put another way, what pieces of the puzzle do you think that you need? Don't be offended if someone links you to Streakwave, DoubleRadius or Baltic Networks...the vast majority of the equipment that you need for a WISP setup can be found "off the shelf" with published prices that aren't just list prices. This isn't traditional telecom where one provider (and only one) serves an area, picks a vendor soup-to-nuts and chats with a dedicated rep every time they need something. |
|
your moderator at work
hidden : Trolling
|
DaDawgs Premium Member join:2010-08-02 Deltaville, VA
1 recommendation |
to WHT
Re: Initial investment for setting up ISPsaid by WHT:said by teleadmin :this consultancy project is part of my study. In other words, all your questions are part of a game, not a real deployment. I am not convinced that his is a classroom only exercise. He never said that. |
|
WHT join:2010-03-26 Rosston, TX |
WHT
Member
2012-Jul-27 7:43 am
said by DaDawgs:I am not convinced that his is a classroom only exercise. He never said that. said by teleadmin :By the way, I am not getting any money for this project. I am a management student and this consultancy project is part of my study. That's why I suggested that. |
|
|
to teleadmin
Hi,
If you stilll need in telecom investment analysis, such as mobile network or WISP contact ektel telecommunication,....it provides wireless network consultancy producing detailed financial analysis and research.. |
|