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Becoming an Internet Service Provider

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Providing fast and high-quality access to the Internet is a popular service, while the demand for it is constantly growing. This makes Internet provider a very promising business. Today it is available not only to large, but also to medium and even small companies. There are many empty niches on the market that can be filled by active and ambitious newcomers. How to become an internet provider? Tips and tricks are in this article!

Who is an internet provider?

An Internet service provider provides wireless services to organizations and individuals. He acts as an intermediary, purchasing traffic and retailing it to end consumers.

Find out how to open your online store from scratch and draw up a competent business plan with calculations, in this article.

Despite the increasing number of providers, the demand for high-quality, fast and inexpensive Internet connection is still not satisfied. Active construction, development of remote areas, a growing private sector increase the number of potential customers.

Today is the best time to occupy your own niche in a promising market.

Pros and Cons of Internet Service Providers

The business of providing Internet connection is considered quite profitable. Among its advantages:

  • a large number of potential customers
  • promising markets not covered by competitors (private sector),
  • the ability to adjust tariffs, insuring yourself against losses,
  • the possibility of stable earnings and high profitability of the business,
  • customer loyalty subject to quality service.

When planning your activities as an Internet provider, it is worth considering the complexity of this business. These include:

  • large investments at the initial stage,
  • complex and lengthy certification system,
  • Dependence on laws restricting providers.

The main advantages and disadvantages of Internet provider.

Necessary equipment

We present you the minimum list of the equipment that you will need to organize the provider:

  • Web server
  • Mail servers (can be combined with web servers on small systems),
  • FTP servers (usually combined with web servers)
  • Authentication and terminal server,
  • Master server
  • Secondary servers
  • News servers (option),
  • Servers for development and control,
  • Registration server (for online registration, option),
  • Settlement server (option),
  • Typical server (on large systems),
  • Router
  • Protection against unauthorized hacking of the system,
  • Network switches,
  • Equipment racks,
  • Cables, tools and control equipment,
  • Remote access server
  • Admin panel and printer,
  • Uninterruptible power supplies (at least 1 hour supply),
  • Cabinets, racks, etc.,
  • Spare parts.

All the main expenses you will have are associated with the equipment. It will take from 2-3 million rubles to purchase it at the lowest prices and quantity (for a small Internet provider). It will be very important for you to seek the advice of specialists, as they will help you to avoid incorrect and unnecessary purchases.

Types of Internet Service Providers

Internet providers can be either federal or local, serving a specific region, city or even district. Depending on the services provided, the operators are divided into:

  • access providers that have their own communication channels or rent them from other operators,
  • mobile service providers who develop and offer mobile content and consulting services.
  • hosting providers offering rental space on their own technical resources.

Most small private companies rely on access providers as the most profitable and promising.

How to become an Internet Service Provider: step-by-step instructions

  • The first step of the future provider is the registration of the enterprise. Optimal shape - limited liability companyallowing you to choose simplified form of tax payment.
  • The next item is obtaining a license. If you intend to sell cable television or IP telephony services, additional licenses will be required. Getting them is a long-term process, in some cases it can take several months. Licenses are issued by the Russian Supervisory Committee.
  • Buy or rent a room. It can be either a separate building, or cellars or attics of apartment buildings.
  • Get equipment. It can be bought or leased. It is advisable to opt for a supplier that guarantees fast service and repair. It is worth considering the opportunities for the development and expansion of the business. The initial set includes:
  1. servers: web, mail, terminal and qualification,
  2. several power supplies
  3. router
  4. cables, tools,
  5. administrative panels, switches,
  6. printers
  7. racks and racks for equipment placement.
  • Hire staff. At first, you only need a few employees. The presence of a manager and operators is required, and an experienced webmaster will be required. An accountant can work on outsourcing. One person is enough to solve repair issues.

What responsibility of the chief accountant is provided for in accordance with the legislation of the Russian Federation and what changes occurred in 2016, you can read here.

How to make money on internet provider?

  • Consider a company promotion plan. You can engage a professional marketer in the process. It is important to consider the number of competitors, the quality of the services they provide, the Internet availability of the territory in which you plan to work. Develop tariffs, discount opportunities, packet connection plans and other bonuses.
  • Engage in advertising. In the Internet field, advertisements, leaflets and flyers that can be pasted on street boards and poles, handed out to potential consumers or laid out by mailboxes are best recommended.

Spend on advertising on television or in the press is not worth it, the end consumer simply will not notice it.

How to become an Internet provider in the village and the private sector?

Most operators prefer to work with apartment buildings. This approach allows you to save on the installation of equipment.

However, working with multi-apartment buildings has disadvantages.Among them:

  1. High competition, the result of which is tariff dumping and a constant decline in profits.
  2. Low customer loyalty. They will easily transfer to another provider that offers more favorable conditions.
  3. Poor connection quality due to the large number of connections. The result - the transition of consumers to another provider.

Marketers recommend paying attention to the unpopular, but very promising private sector. This category includes:

  • towns and villages with a predominance of houses for 1-2 owners,
  • private urban areas
  • barracks for several apartments,
  • city ​​cottages,
  • suburban and urban villages of townhouses.

How to open your franchise online store and what you need for this, you can find here.

To get around this obstacle, you can:

  1. To offer consumers an increased tariff, which will include the connection cost divided by months,
  2. Offer to pay by installments
  3. Enable radio access to replace fiber optic communications. The method is suitable for villages and small towns.
How to become an Internet provider in the village and the private sector?

A great advantage of customers from villages, towns and the private urban sector is their high loyalty. Having paid for the connection, the client will not switch from one operator to another, guaranteeing you a stable income.

The only thing that is required from the provider is to provide a reasonably fast Internet without interruptions.

Making money on the Internet without cheating and investing at home: is it real? The answer is contained in the publication by reference.

Provider business plan: expenses, revenues and payback periods

Business on the Internet provider is quite financially intensive. At first, the entrepreneur will have to make considerable investments:

  • equipment, furniture and office equipment - from 3,000,000 rubles,
  • company registration, obtaining licenses - from 180 000 rubles,
  • room repair - from 30,000 rubles.

Monthly costs include:

Monthly maintenance income for one apartment building will be 75,000-90,000 rubles.

How to become an Internet provider and get a stable high income? Watch the following video with professional advice:

4 main advantages of a home-based business:

  1. minimum investment at the start - no need to spend money on rental premises and no need to spend time and money on the road
  2. home business is much simpler - a minimum of approvals, permits, communication with the owners of shopping centers
  3. a minimum of extra eyes, the absence of unexpected guests from the tax and other authorities
  4. at first, many do not even register IPs and do not conduct their bookkeeping - they simply try to earn the first money

As an option, they often also consider organizing a business on their own site, as well as in a garage, except for this, if you are not afraid of a computer, pay attention to the ideas of an online business for which you only need a computer or laptop.

For some, this small home business is still convenient in that it makes it possible to combine household chores with making money. For moms, maternity leave is often the best option.

A huge number of business ideas are born almost from the air, for example, someone knows how to knit, sew or even cook deliciously, someone likes to make crafts from beads and wood, while others repair cars, etc.

But whatever you say, a home-based business is the same business and you need to take it very seriously in order to get big profits and the possibility of expansion. Most importantly, so that you do not sell at home, you will need certain costs to purchase all the equipment.

Naturally, without advertising their goods or services nowhere. From the calculation of all your expenses and income, you can determine how much home-based business, will be cost-effective and how to increase its effectiveness.

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Decor

Internet provider - as well as any other type of entrepreneurial activity, should only be headed by a legal entity. Therefore, the first step is to register a "Limited Liability Company" and get all the necessary documents for an Internet provider. The registration process of “Limited Liability Company” can take from five to thirty calendar days, and the time for registration of a legal entity is about five calendar days. Upon receipt of all registration documents for the Internet provider, it is mandatory to obtain a seal and open your account at a bank institution. The time taken to open an account depends primarily on the bank that you have chosen, and varies from two days, up to several weeks. Do not forget - for operations on servicing a bank account, you will need copies of constituent documents, copies of documents on state registration, and a certificate of tax registration.

The approximate cost is about 15 800 rubles. This amount includes:

  • State duty for registration of a Limited Liability Company - 4000 rubles,
  • The minimum amount of authorized capital is 10,000 rubles,
  • A notarized copy of the certificate - 100 rubles,
  • A notarized copy of the charter of the Internet provider - 500 rubles,
  • A notarized copy of the memorandum of association - 1,200 rubles.

Licensing

At the end of all the work of the first stage, you should begin to more “fine-tune” your business. To legalize the activities of our Internet provider, mandatory communication licenses are required, since he is a communications operator.

  1. Telematic Services License,
  2. License for data transfer, excluding data transfer for voice information purposes.

Additional licenses may be needed for the Internet service provider, but this is only when you intend to provide services not only for clients accessing the Internet, but also others, such as IP-telephony, hosting, data backup, cable TV and others. You can do the licensing for the Internet provider yourself, but if you have insufficient experience in this area, you should contact a consulting company for help - this will give you the opportunity to save unnecessary costs and valuable time. The time that will be spent at this stage can vary from ten to forty-five days. From two to three days, the verification will take, and the submission of all necessary papers to Roskomnadzor, and for up to forty-five days, according to the law, your application will be considered.

The approximate cost will leave about 28,000 rubles. This bag includes:

  • State duty for obtaining two licenses - 12 000 rubles,
  • The provision of services by a consulting company - from 16,000 to 20,000 rubles,

After receiving all the necessary licenses and documents, the Internet provider should begin to begin providing communication services, this is our final point.

Final part

After the time for reviewing the licenses, and having received a positive response, we proceed to the final stage. To finally consolidate the status of an Internet provider, you need to create a project for a communications center and submit it to Roskomnadzor for examination. For a project to successfully pass an examination, it must meet a large number of criteria. These criteria apply both to the project itself and the designers, as well as to the technical equipment of the unit. The software from the Internet provider must be exclusively licensed, and have all the certificates of conformity in the Communication Certification System, special attention is paid to TM and PD servers, Billing and channel-forming equipment. After successfully passing the expert assessment at the Federal State Unitary Enterprise MIR IT., Commissioning is carried out. The stage of technical preparation of the equipment is the longest. Depending on the amount of work, the design of the site can take from two weeks to three months, and the expert assessment of the project in MIR IT., From a month to a year.

Stages of the adoption of the communication center in operation:

  • Notification of Roskomnadzor about the beginning of the construction of a communication
  • The collection of all necessary documents, according to 113 orders,
  • Notification of Rossvyaznadzor about completion of construction, with a petition to appoint a representative of RSN to the selection committee
  • Examination of documents by the RSN inspector, and verification of PD and TM nodes,
  • Obtaining permission to operate.

The approximate cost of 70,000 rubles. This amount includes:

  • Node design - 35,000 rubles,
  • Expert assessment at FGBU Center MIR IT. - from 30% of the design cost.
  • Commissioning - 30 000 rubles.

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