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Forums » Other Connectivity » Fiber Optic » How much does it cost to start your own ISP?
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A description of Fiber Optics »
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AuthorAll Replies


Anonyie

@aol.com
How much does it cost to start your own ISP?

If I were to partner with lets say Switchpoint, how much additional funding would I need to start a regional ISP?


ztmike
1kwikgt
Premium
join:2001-08-02
  this post was already asked b4..but ill say anyways: to much for you.


Anonyie

@aol.com
reply to Anonyie
You don't even know me so how would you know it's too much for me?


sabeard

join:2001-05-19
Tomball, TX

reply to Anonyie
I don't know how much is to much, but here is some of the costs that I can think of.

Since switchpoint is offering 100Mbps capable equipment it only makes sense to provide at least that much to the internet. A full OC-3 to a top tier ISP will run around $50K-$60K per month. You can bring that down a little by using a 2nd tier ISP. There will likely be some local loop charges that will likely add another $1000/month, depending on how the circuit contract is written.

To get the rest of the costs you need to consider how many people you are targeting. You will need 2 or more routers these can run between $75K-$120K each. Next you have the switchpoint gear. I am going to guess that each switch is about $1000 each. I do not know this number for sure. The last major physical piece is the wiring. In a large city you can probably lease fiber to get between your pop and the communities that you are providing services for. I have never priced leased fiber so I can not give an estimate. The other part to the cabling is the CAT5. I would venture to guess that it would require enough wiring to be able to deal directly with the manufacture directly, so again I can not give a good estimate on cost for the wiring.

After you have the equipment it requires permits to be able to install it. Usually that will require becoming listed as a utility company. A cable company is the most likely. There are various permits and costs associated with getting right of way. One way around the right of way issue is to partner up with a new subdivision.

This is just a few considerations off the top of my head.
--
First rule of fiber optics: you do not talk about fiber optics


Qumahlin
Never Enough Time
Premium,MVM
join:2001-10-05
West Chester, PA
reply to Anonyie
we'd know it's too much since your using aol and not a real provider lol


avi8or$
Dell's Rock Other's Drool
Premium
join:2001-12-01
Hasbrouck Heights, NJ

said by qumahlin:
we'd know it's too much since your using aol and not a real provider lol
You need to get help, I don't use AOL but some people who use my PC use it! AOL is a good ISP, some people use it some don't, don't judge someone on what ISP they use!

-TOMZ
--
DSLR Team Starfire------WSA SQUAD


Brendan
Warr Guitar is here

join:2000-07-14
Littleton, CO


edited
reply to Anonyie
My brother in law started a dialup/ISDN ISP five years ago near Raleigh, NC. Ran him around $500k for connectivity (11 T-1's, BellSouth wouldn't sell him a T-3), RAS servers, mail servers, the building, etc. Not cheap.
--
"Know any good jokes? We're working again."- Adrian Belew of King Crimson, during the 1984 tour in Montreal, Canada.

*Pleased In Colorado*

[text was edited by author 2002-02-19 15:50:18]


kba4

join:2001-10-23
Akron, OH
·RoadRunner Cable

reply to avi8or$
i don't know how much but if you look at what most providers are charging for so-called broadband, and then consider the ones who will be around a while, such as RR or yes, AOL (their DSL or cable services), then take 90% of the fee you're charged to use it, you'll see the kind of money they need to keep going. that's how i see it, anyway.

on another note, maybe this guy does have the kind of money and is just looking for another place besides AOL to throw it at. just a thought,


iRoNeTiK

@attbi.com
reply to Anonyie
AOL is slow period and disconnects you all the time


hangtown$

join:2001-01-04
Beaverton, OR
reply to Anonyie
said by Anonyie:
You don't even know me so how would you know it's too much for me?
If you have to ask (ie, you don't have any knowledge of what is involved), you can't afford it.


ztmike
1kwikgt
Premium
join:2001-08-02
·Comcast
·AT&T Midwest

im guessing anywhere from 1million and up to build a isp..and even if you wanted to build a dailup isp thats still gona cost you about the same plus you gota hire tech support people build the buildings which is prolly round 1million there for a building and then you gota have a/c in the buildings to keep the computers cool which running a/c in a building is gona be big $$


Brendan
Warr Guitar is here

join:2000-07-14
Littleton, CO

  Cost also depends on how many people you intend to serve, because that dictates how much you need to scale your operations. My bro-in-law serves about 3,000 customers in the Clayton area. He has a main office and three co-locations. The cost I mentioned above is just for his main location. The other co-loc's ran him quite a bit more.
--
"Know any good jokes? We're working again."- Adrian Belew of King Crimson, during the 1984 tour in Montreal, Canada.
*Pleased In Colorado*

Ultrakiller

join:2002-02-06
Boca Raton, FL
reply to hangtown$
hangtown wtf does that have to do?
Do you personally know him to say he cant afford it?
didnt think so

sago

join:2001-12-19
reply to Anonyie
If a person needs to ask in this forum how much additional funding they would need to start and ISP then what is the world coming to.

Why don't you call Switchpoint and ask them?

C'mon man....

get real.

Ultrakiller

join:2002-02-06
Boca Raton, FL
reply to Anonyie
what is the world coming to?
would you listen to yourself how your exagerating and adding drama?

I would too prefer asking here where you can ask in any computer if you dont have time instead of waiting on a phone

sago

join:2001-12-19

edited
reply to Anonyie
understood. Point taken.
[text was edited by author 2002-02-22 18:06:32]


hangtown$

join:2001-01-04
Beaverton, OR

reply to Ultrakiller
said by Ultrakiller:
hangtown wtf does that have to do?
Do you personally know him to say he cant afford it?
didnt think so
Okay, let's be real for a second here. Obviously this person has no idea what is involved with running an ISP. If they did, they would have a starting point for tracking down the costs themselves. What does it cost to build a secure facility that can meet the electrical and environmental conditions needed? What will hardware and software cost? What will they have to pay any system administrators, customer service personell, etc? What does it cost to get the required bandwidth from the phone company? What will modem racks cost? Will they offer DSL? What extra equipment will that require, and how much?

Blah, blah, blah. The list goes on and on. How hard is it for you to understand that this person wouldn't be able to run an ISP even if they had the money, just by virtue of the fact that they don't even know where to start? THAT'S what it has to do with the answer to his question. The answer is, this person almost certainly doesn't have the kind of experience needed, nor access to people with that kind of experience, or he would not be posting here asking what it would cost to start an ISP.

So, even assuming this person did have millions laying around, they still wouldn't have any idea what they are doing, and I don't know about others, but I wouldn't pay money for connectivity to a company that didn't.

An interesting thing happened to a friend of mine recently. He was using a great web host for a site of his, but it got a little expensive as his bandwidth use went up. So he moved his site elsewhere, only to have them suffer a database crash and announce that all their database backups were corrupt. He lost months worth of site member data, forum messages, etc. Turns out they were only doing a daily backup which overwrote all previous backups. Can you imagine if you'd decided to host an ecommerce site with these bozos?

Things like the above are reasons why, when it comes to things like connectivity and hosting, most of us prefer to pay people whose sole familiarity with what it requires to run an ISP or web host isn't having used those services themselves in the past.


hangtown$

join:2001-01-04
Beaverton, OR

reply to Ultrakiller
said by Ultrakiller:
I would too prefer asking here where you can ask in any computer if you dont have time instead of waiting on a phone
Hmm. That was almost in English. Anyway, if you are posting here for information required for starting a business, instead of getting it firsthand from the companies you'd be doing business with, forget it now. You won't be in business in a month from now. Someone who wants to run a business who lacks the initiative to make a few phone calls is going to be laughed out of any bank they take their business proposal to.

Ultrakiller

join:2002-02-06
Boca Raton, FL

reply to Anonyie
the way i see it he probably has many different options to invest his money and just wanted a quick rough price about how much could it be, then if he does considers starting an isp he contacs the companies

and excuse my english hangtown its not my native language
I know its not as good as yours


hangtown$

join:2001-01-04
Beaverton, OR

said by Ultrakiller:
the way i see it he probably has many different options to invest his money and just wanted a quick rough price about how much could it be, then if he does considers starting an isp he contacs the companies

It still proves he has no idea where to start. My point stands.

quote:

and excuse my english hangtown its not my native language
I know its not as good as yours
My point was that I wasn't sure if I was actually addressing what you said, or what I thought you said. I addressed what I thought you said, and hopefully it was indeed what you meant.
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