Cable ISP business

[StoneMedia]

Good evening Friends,
Being a new member this is my first ever communication with you.Based in Mumbai I am into mobile content development. I develop content for some of the leading content aggregators/providers and some operators too. I am intending to venture into cable ISP business targeting small and mid-sized towns. In this regard, I wish to seek some information from you.
Firstly, whether cable ISP still a profitable business in India considering the fact that the penetration of internet in India is still very less and even lesser in small and mid-sized towns. Further, do cable ISPs have a good future in view of the newer technologies like 3G, Wimax etc.
I believe the license fees is around Rs.10 lacs initially and a percentage of turnover/profits annually.
Kindly also provide me with info regarding any hurdles and threats or any other kind of major problems faced by the industry today and other related information you think will be valuable for me
Apologies for any technical ignorance.

Looking forward to here from you.

Thanks

[Users]

Welcome to Techarena stoneMedia .

Now in mumbai there are many ISP like Hathway, IOL, Sifi, Reliance, TATA, Airtel, Mtnl.. etc. In that Hathway, sifi, IOL providing internet service through Cable (not wireless) but like TATA , Reliance providing WiMAX (Wirless Broadband) connection in that they are saving cable and maintenance cost. And provide service in cheap rate. Most customer prefer WiMAX service because not disconnection problem.

Now in India 3G technology is coming after that all mobile service providers will provide wireless broadband interenet service. Like now on TATA plug 2 surf, Reliance USB modem, Vodafone USB modem, and Idea NetSetter USB you will get maximum speed of 156 kbps (in actual less than 100 Kbps). But after launching 3G technology they will provide broadband internet service throgh USb modem.

So i think Cable ISP provider will face many problems in Futures. Because Now mobile service provider is entering in Internet service means again competition.

Just see Reliance WiMAX Broadband internet connection plan : Reliance WiMAX Unlimited tariff plan
compare it with local Cable ISP plan.

I think Cable ISP will not profitable business in feature.

[Broad-Man]

Your concern regarding the penetration and effect of Internet in India is correct. Particularly in small and mid-sized towns, the craze is still less, almost negligible. Large masses are still stuck to their idiot boxes for various kind of information besides entertainment. If you intend to start your ISP business in such an area, I doubt its success.

If in developed towns, you can go further with your business. Because if not so much, there is atleast a fairly good usage of Internet in such towns. If you doubt the ISP success in presence of 3G and Wimax, I feel it is not so worrying factor for ISP's. As these are newly introduced technologies in India and are rarely implemented yet. So I feel the future of ISP will sustain for next 3-4 years. But cant say after that.

[TEcH GuRuJI]

Kindly also provide me with info regarding any hurdles and threats or any other kind of major problems faced by the industry today and other related information you think will be valuable for me

For this kind of information I will suggest you to go through industry reports of already existing ISPs, go through Market research and analysis of these ISPs and a general survey, will help you get precious information about how these ISPs are going on, what is the current situation and what will be the future.

So far, the newer technologies have not rooted well in India. People do rely on ISP's for internet. But in near future, if these never technologies start exploring proving to be more beneficial, ISPs will be shadowed down. In such situation, only the national operators and giants are expected to survive. Also being a small provider, you will not be able to enjoy 'economies of scale' that other giants enjoy.

[birendersinghbudhwar]

Good evening Friends,
Being a new member this is my first ever communication with you.Based in Mumbai I am into mobile content development. I develop content for some of the leading content aggregators/providers and some operators too. I am intending to venture into cable ISP business targeting small and mid-sized towns. In this regard, I wish to seek some information from you.
Firstly, whether cable ISP still a profitable business in India considering the fact that the penetration of internet in India is still very less and even lesser in small and mid-sized towns. Further, do cable ISPs have a good future in view of the newer technologies like 3G, Wimax etc.
I believe the license fees is around Rs.10 lacs initially and a percentage of turnover/profits annually.
Kindly also provide me with info regarding any hurdles and threats or any other kind of major problems faced by the industry today and other related information you think will be valuable for me
Apologies for any technical ignorance.

Looking forward to here from you.

Thanks

You can start wireless business, now days in market there are many equipments are avable which are less costly and runs in unlicensed band like 2.4 GHz, this frequency don't need any special license. you can cover a distance upto 2 to 5 miles with a omini directional anteena atatched with a access point with minium 1 watt output power. this can give you a very great coverage. as Wimax is based on LOS and the techonology which i describe you is NLOS so your cistomer can easly get access to your service. without any special equipment. and for bandwidth you can purchase from TATA Comunication they are resalling the bandwidth to small ISP's. and for license its INDIA. so dont worry about that start your service not one will ask you any thing.

with regards,

Birender Singh

[shafikhan2006]

Hi There,

As told in the above comment it will e good to go with WIFI or WLAN technologies but still u need ISP license for those and i doubt about the fact that u can reach 2-3 kilometer with a omini directional antenna at least not in suburbs or urban areas as u told u are working in rural areas i would suggest u go for Patch or Sectoral antenna. As of now i am providing internet service via combination of wifi and wlan services but what i recommend u to do a complete study on how to deploy it before starting it.
It is surely a cost efficient and effective way starting an isp.

All THE BEST.....