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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
Mark for moderation
Premium
join:2001-08-02
Michigan City, IN

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
united state
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

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
Canton, OH
Reviews:
·Time Warner 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
Mark for moderation
Premium
join:2001-08-02
Michigan City, IN

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


sago5

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


sago5

join:2001-12-19

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.

jcnnghm

join:2001-08-29
Severna Park, MD
reply to Anonyie

Hi,
It won't necessarily cost that much to start an ISP, depending on what your looking at. I am looking at starting a ISP outside of Washington DC, and have done the pricing. I can buy 100mbps of bandwidth from Cogent at $3000 resalable. I then need a local loop. They will allow me to colo an antenna on the rooftop of one of their buildings at no cost. In exchange for a $200/month discount on 2-T1 lines ($2000 intake for both lines before discount) for his WISP, I have access to a tower to receive the bandwidth. I already own the necessary wireless equipment, although it would probably cost around $20k new. I was able to pick it up for $300 at the bankruptcy auction for a local ISP. I plan to sell T1 and T3 lines along with opening a wireless ISP of my own. I currently have pre-sold 7 T1 ($1000/month/line) lines, and a T3 ($15,000/month/line) line. I have arranged for a Wireless Local Loop for 4 of the 7 T1 lines, and the remainder will run me $200-$300 per month to provision through Verizon. The T3 local loop will run me $5,000/month to provision through Verizon. The T3 line alone will cover the cost of operations for the ENTIRE service. I am planning on having a T3 loop dragged out to my home, from which I will offer server collocation, after I get client lines up and running. The projected income is $40,000 to $240,000 for the first three years. After that, it is projected to jump to between $150,000 and $750,000. The total out of pocket expenses will be $3500 for the wireless install. It appears as though I have been able to work out a deal with Verizon so that they will provide an OC3 connection to their backbone, along with the cisco gear to do it with, at no cost, in exchange for me selling lines that connect to their network. We'll see if it works, but everything points to yes.


Ultrakiller

join:2002-02-06
Boca Raton, FL

reply to Anonyie

double post
[text was edited by author 2002-02-23 20:00:42]



hangtown$

join:2001-01-04
Beaverton, OR

said by Ultrakiller:
but unless you have anything constructive to say in this thread then don't post
I will certainly give your advice all the consideration it deserves.


kba4

join:2001-10-23
Canton, OH
Reviews:
·Time Warner Cable
reply to Ultrakiller

i found a better place to ask your question. i don't mean to sound rude, but we're probably not the ones you should ask. just look at our attempts at answers, they're laughable.

here's the link, and sorry about the pathetic responses you've gotten from us: »ISP b2b etc


Ultrakiller

join:2002-02-06
Boca Raton, FL
reply to hangtown$

I know I didnt give advice because i was going to ask the same question
Thank you k4dwi



ztmike
Mark for moderation
Premium
join:2001-08-02
Michigan City, IN

Re: give it up already..

whats wrong with our anwsers? lol why doesnt this guy just give it up already and tell us he was just wanting to know how much it would be i mean kmon hes prolly a lil kid or i seriously doubt he has 32million to go build a isp and since when does rich people have time for the interent and on a forum site..gimme a break i think hes lyin out his teeth


Ultrakiller

join:2002-02-06
Boca Raton, FL

reply to Anonyie

Re: How much does it cost to start your own ISP?

You people assume alot about someone you don't even know just for asking a question
You probably are the people who stereotype others just by looking at them
[text was edited by author 2002-02-23 20:44:46]



Playa4life

join:2002-01-13
Carmichael, CA
reply to Anonyie

said by Anonyie:
If I were to partner with lets say Switchpoint, how much additional funding would I need to start a regional ISP?
I don't know the price on doing a business of this size, the price varies, and it does not only vary from business to business, but the costs will vary for you in different locations, I.E. the cost of bandwidth, cost of the building, cost of electricity. No offence, but if you don't know how much it's going to cost you, then you probably shouldn't be in the business yet (learned that through this forum ). Start small, maybe a little Wireless Network covering a few blocks, then work up. I plan on trying that, it's harder then one would think.
--
Can't beat ATTBI - Lightning Fast! >>> For people that didn't get that, ATTBI is the least of your problems...


racer9876
Defender Of The Universe
Premium
join:2000-07-03
Rosamond, CA
Reviews:
·Antelecom
reply to Anonyie

No they are just making the most logical conclusion. If the said person was really serious about making an effort to find out what it takes to build an ISP from scratch, then that person should starting calling some business consults who know people who could figure this out for the person. Also the domain for AOHell is a dead give away.
--
Sir do you have a child? You do great! Could you put him on the phone? Hi your Dad is having a email problem and..Oh you know the problem and fixed it? Great! Also check the SNMP.



Anonyie

@aol.com
reply to jcnnghm

I use AOL because I'm on a laptop, and I travel lots. I'm not a big fan of satellite connections either. I'm not trying to pose myself as a DSL Guru, I'm a business man and I'm willing to invest in this industry. Currently I'm willing to use 1.5 million dollars to start up (My own personal cash). I asked here becuase I figured someone would have some expierence in this situation or would be able to give me a rough estimate of how much I would need. Indeed I am serious in investing, but companies mislead you when you call them and don't tell you everything. I'm also trying to figure out how to be profitable in this buisness. Jcnnghm, I see that you already have got things started, who would it be best to talk to for my buisness? I'm looking to start a highspeed ISP in New York City, and I haven't quite decided which technology I would like to use. Cable seems to work quite well for Optimum Online, I'm looking to offer similar service citywide.