How does the business of an Internet provider work? Becoming an Internet provider What you need to become an Internet provider.

Creating your own company to provide such services is a profitable investment of capital, due to the fact that the number of users is constantly growing and the market is expanding. This is especially true for cities where the construction of new neighborhoods is proceeding at a tremendous pace. Every apartment, building, house must be connected to the Internet, which requires constant and painstaking work.

Firms are at the federal and local levels. Their number in each locality reaches several dozen, which is related to the number of residents. Based on their areas of activity, these companies are divided into several types:

Hosting providers. For a rental fee, they provide technical resources or space. They have quite powerful equipment that supports high traffic speeds 24 hours a day.

Access companies, allowing you to access the network. They are divided into those that have their own Internet channels (primary) or rent from others (secondary).

Mobile commerce providers. They work to enable customers to buy software and install it on their mobile devices. Another function is the production and sale of content, consulting users.

Backbone providers. They support their work on equipment that allows for fast data transfer through channels. To do this, they create their own lines or rent them from others.

Channel providers.

Last mile providers, which is the communication channel connecting the network node and user equipment.

Room

The area required to accommodate the equipment is rented or purchased if funds allow. Most often it is located in the basement or attic. Sometimes those who order Internet connection services allocate space for the provider. Technical equipment and other communications equipment are usually located there.

If the premises are owned by a company, then before opening it is necessary to obtain permits from the fire and sanitary-epidemiological services. Security must be installed both inside and outside. This is done through the installation of surveillance cameras and security systems. When leasing, the owner must give written permission to place communication equipment with all wires grounded.

Equipment

The provider's activities are determined by what network mechanisms need to be purchased. They must meet the following requirements:

functionality and the possibility of its expansion;
high productivity and its constant increase;
service support;
Operator speed.

Based on this, you need to buy cabinets, racks to place equipment for service, cables, various types of servers (mail, web, terminal, control, development, network). Special attention should be paid to the purchase of switches, printers, tools, uninterruptible power supplies, and an administrative panel.

All these names must be included in the business plan, where their cost should also be indicated. Purchasing equipment is one of the most expensive expenses, so you should definitely consult with specialists.

Staff

Must have the necessary staff, on whose work the functioning of the company and customer service depend.

You definitely need to hire a manager, capable of solving a whole range of operational issues. In his activities, he must rely on an administrator, an accountant, an assistant, a web service specialist, and a marketer. It is also necessary to create a support service and a repair department.

Documents and license

The existence of the company will depend on legal nuances that will allow it to occupy a niche in the Internet market. To do this, you need to go through the registration process, after which the owner is issued a stamp and given the right to open his own financial account. The bank will need constituent documents, papers and statements of state registration and payment of taxes.

Next, you will need a communications license to provide the appropriate services. In particular, you must obtain the right to transmit data, except for voice information, and a license for telematics services. Sometimes permission is required for other services if you intend to provide them (data backup, cable television, etc.).

After receiving licenses, you must complete the registration process. This happens through the company's registration with the Ministry of Communications. The owner submits an application and request to the committees so that their employees check the services and nodes. Based on this, the inspector must issue an operating permit.

For many people, even those involved in business, the work of an Internet provider and the organization of its activities seem too confusing and technically complex. This circumstance significantly limits the number of people wishing to enter the telecommunications market. Meanwhile, everything is much simpler than it seems at first glance.

If we consider the process of organizing an Internet provider as a business, and not a complex technical system, then everything can be simplified to three main steps.

Step 1. I am an entrepreneur!

An Internet provider, like any other entrepreneur, is a legal entity. Therefore, the first thing you need to do at the start to become an Internet provider is to register an LLC (IP) and receive constituent documents. Registration of an LLC (IP) takes from 5 to 30 calendar days. The deadline for registering a legal entity is fixed by law and is 5 working days. After receiving the registration documents, it is necessary to obtain a stamp, notifications from funds (FSS, Pension Fund) and open a bank account. The time it takes to open an account depends on the bank you choose, and can vary from 2 days to several weeks. Please note that to maintain a bank account you will need copies of constituent documents, tax registration and state registration certificates.

Approximate cost: 15,800 rubles

This amount includes:

The minimum amount of authorized capital is 10,000 rubles;
State LLC registration fee - 4,000 rubles;
Notarized copy of the charter and constituent agreement - 500 rubles;
Notarized copy of the certificate - 100 rubles;
Notarized copy of the constituent agreement (if any) - 1,200 rubles.

Step 2. I am a telecom operator!

After all the “preparatory” work is completed, you can begin to “fine-tune” your business. The ISP is a telecom operator, so you need to obtain telecom licenses. For the provider, this is a License for data transmission, with the exception of data transmission for the purposes of voice information, and a License for telematic services. If you intend to become a multi-service operator and provide not only Internet access services, but also IP telephony, hosting, cable television or other communication services, you will need additional licenses. You can clarify the list of licenses you need by contacting our specialist.

You can apply for communication licenses, as well as register an LLC, on your own, but if you do not have enough experience, it is better to use the services of consulting companies - this will save you both time and money.

Time costs at this stage will range from 10 to 45 days. Of these, 2-3 days are spent preparing, checking and submitting documents to the RKN, and up to 45 days, by law, for consideration of the application by the RKN. You can see more details about the license obtaining scheme

approximate cost 35,000 rubles.

This amount includes:

State fee for obtaining 2 licenses - 15,000 rubles;
Services of a consulting company from 20,000 14,000 (Or you can try to obtain licenses yourself);

After the license is received, the provider is obliged to begin providing communication services. To do this, you will need one last decisive step.

Step 3. I am an Internet provider!

Having received a positive decision on licenses, it’s time to proceed to the final stage. In order to finally secure the status of an Internet operator, it is necessary to hand over the communication center itself to Roskomnadzor.

If ports with a design speed of 10 Gbit/s and higher are used in the data transmission network, a communication center project will need to be prepared to commission the node. You can find out more about the design. For successful commissioning, the communication center must meet many requirements. These requirements apply not only to the project and designers, but also to the technical equipment of the site. Hardware and software must have CCC certificates of compliance - special attention is paid to PD and TM service servers, ACP (Billing), and channel-forming equipment. More information about commissioning can be found in the “Rules for commissioning of communication facilities.” The technical preparation stage is the longest. Designing a communication center takes from 2 weeks to several months, depending on the scope of work. After this, you need to go through the commissioning procedure, which takes about 4-8 weeks.

Every year the Internet provider market grows by 47-65%. This fact emphasizes its relevance and prospects. Of course, it is unlikely that entrepreneurs with a small authorized capital will be able to become the largest representatives in this area. But it is quite possible to take a leading position in the field of communications in the outback, on the periphery.

Types of Internet Providers

Providers are at the federal or local level. The former sell network access at the regional, district or city level. The second ones are in separate small settlements. Sometimes, in some areas there are from several dozen to hundreds of Internet providers.

There are different types of Internet providers based on the types of services they provide to subscribers:

hosting providers;
access providers: backbone provider - the owner of large backbones of communication channels, selling traffic wholesale and providing services to other providers; city provider - a small agent renting traffic from a larger one;
backbone Internet providers;
channel providers;
last mile providers;
mobile commerce service providers.

Activities and services

Depending on their specialization, Internet providers can provide several types of services:

access to the Internet (broadband, dial-up, wired);
colocation work (installation of client equipment at the provider’s site);
renting out virtual servers;
storage of subscriber information (reservation).

Technical equipment

When opening a business such as Internet providing, the initial financial investments will be directed specifically at the purchase, installation and connection of equipment. On average, starting an average provider costs about 2.5-3 million rubles.

Therefore, it is very good if at the initial stage a friend who is well versed in communication equipment comes to your aid. This will save on the purchase of unnecessary or analog equipment. If there is no such friend, it makes sense to hire a specialist.

The list of equipment is extensive and may vary:

web server;
mail servers (can be combined with web servers on small systems);
FTP servers (usually combined with web servers);
identification and terminal servers;
master server;
secondary servers;
news servers (optional);
servers for development and control;
registration server;
settlement server (optional);
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;
administrative panel and office equipment;
uninterruptible power supplies (the battery life of which must be at least 60 minutes);
furniture, etc.;
tools and spare parts for replacement.

Registering a business - step-by-step instructions

In order to properly organize the activities of a communication service provider on the Internet, it is necessary to register with the tax office, obtain a license and obtain permission from Roskomnadzor. Each point must be taken very seriously. In addition, legal registration of a business will be one of the first expense items that should be remembered and taken into account when opening your own business.

Decor

Only a legal entity has the right to engage in Internet provisioning. Based on this, the future seller of Internet services will need to register his company as an LLC. Documents for an LLC are reviewed by the tax office at the applicant’s place of residence. On average, this procedure can take from 5 days to 2 weeks.

Registration of a legal entity itself takes about 5 days. It is also necessary to order and register a seal and open a bank account. Opening an account can take from 2 days to a month, it depends only on the internal rules of the financial institution you choose.

Prepare copies of the constituent documents and all other documents received in advance. They will be necessary for conducting monetary transactions.

Approximate calculation of registration costs:

4000 rubles – state fee for registering an LLC;
10,000 rub. – the minimum allowable amount of initial capital;
100 rub. – a copy of the certificate certified by a notary;
500 rub. – a copy of the charter, certified by a notary;
1200 – a copy of the constituent agreement, certified by a notary.

Licensing

The Law “On Communications” in the Russian Federation provides that an Internet provider can operate only on the basis of an agreement concluded with a telecommunications operator and a license to carry out activities in the field of communication services.

Most likely, you will need to complete the following documents:

license for telematic services;
data transfer license.

If you plan to additionally provide other types of services (cable TV, hosting, IP telephony), you may need a different package of licensing documents. In order to obtain a license, you must submit an application to the Russian Supervision Committee. This is not an easy procedure and it is better to entrust it to a consulting agency.

Approximate cost calculation:

12000 rub. – state duty for obtaining 2 licenses;
16000-20000 rub. – services of a consulting agency.

It will take from 1 to 3 days to receive and verify documents, after which the consideration of the application will begin, which can last up to 45 days. After approval of the application, having received the license in hand, you can proceed to the final stage - creating a communication center project and obtaining permission from Roskomnadzor.

Obtaining permission from Roskomnadzor

This is one of the most critical stages, which cannot be accomplished without financial investments. It consists of creating a communication center project and submitting it for examination to Roskomnadzor.

A positive response from experts depends on the content of the project itself, the work of the designers, as well as the quality of the technical equipment of the site. All equipment and machinery must be licensed and also be tested in the Communications Certification System.

Approximate cost estimate for examination:

35,000 rub. – design work;
30% of the cost of designing the node - expert assessment at the Federal State Budgetary Institution Center MIR IT;
30,000 rub. – commissioning.

In addition to the fact that this stage is the most financially expensive, it is also quite lengthy. Thus, designing a unit can take from 2 weeks to 3 months, and obtaining an expert assessment from 1 month to 1 year.

Step-by-step activation of operation:

notification from Roskomnadzor that the construction of a communication center has begun;
package of documents regulated by order No. 113
notification from Rossvyaznadzor about the completion of construction work, with a request to appoint a RSN representative to the selection committee;
review of documents by the RSN inspector, examination of PD and TM components;
obtaining a document confirming the possibility of commissioning.

Selection of premises and personnel

If you seriously intend to become an Internet service provider, you will have to think about setting up an office and recruiting staff.

To set up a modern office, almost any room (attic, basement, basement) is suitable, the main thing is that it meets the requirements of fire protection, in particular, grounding and a fire alarm. And to protect your property, you will have to resort to the services of a security agency.

If the premises are rented by an Internet service provider, written permission from the landlord will be required regarding the possibility of locating the node.

A serious Internet provider company must take a responsible approach to the selection of personnel. Depending on the scale of development and the amount of work, the company may have: a manager, a system administrator, operators (technical support), a webmaster, an accountant, a repair shop. It is very good if a professional full-time marketer analyzes business development.

Costs and payback periods

Both the costs and the payback period for Internet provision depend on the scale of work organized at the communication center. This business allows you to generate income even at relatively low costs, but productivity growth and business development will be minimal.

There are 3 options that a novice Internet provider can choose:

Option 1. Selling traffic to a limited number of clients (30-50 people). In essence, this is a dead-end option that does not provide for development and growth. Its essence is to unite several dozen clients in one local network. A project becomes profitable if there are 12-15 clients, if their payment for services costs at least $30-40. If the provider has 30 users, the full payback of the project occurs in 15-20 months. The disadvantage of such an Internet provider is the low Internet speed.
Option 2. Connecting users to the PBX via analog channels. Such a provider is able to provide acceptable quality of network access and have more users - 160 people per 16-modem project. With initial one-time costs ranging from $15,000-20,000, monthly business profitability can vary from 10-30%.
Option 3. Digital communication with PBX. Installation of digital access equipment will significantly improve the level of services provided. Access to the network occurs through the passage of a digital stream through the E1 line, which serves up to 30 telephone channels. This is a serious approach to Internet provisioning and involves significant investments. Costs can range from $20,000-25,000 one-time and from $6,000-9,000 for monthly maintenance. Despite the cost, the profitability of the project is also high - 30-35%.

The specifics of this business require a professional approach. The Internet provider must improve the quality of services, expand the number of lines, and purchase new, more productive equipment. Since Internet providing is not a seasonal business, if you run it wisely, you can achieve excellent results and high profitability;
Trying to gain a stable position in the market segment, add and develop new, additional services and services, monitor what services competitors provide;
Fight for every client. Poor quality of services, low speed or freezing Internet is the path to the client’s refusal of your services, and as a result, inevitable bankruptcy. Remember, there will always be a competitor in your segment who can offer better communications;
When opening a business and drawing up a business plan, think through every detail. Only painstaking and serious work will lead to success!

Despite high competition in the field of network access services
Internet, in many localities, part of the population still experiences difficulties connecting to the Internet.

These difficulties are aggravated by the fact that usually in such areas there are problems with mobile communications, so it is not possible to simply use modems with SIM cards.

In such settlements there is clearly a niche for the work of a new Internet provider. This business idea can become very profitable, at least until the hands of large providers reach here, for whom it is often simply unprofitable to deal with small areas.

What is needed to implement a business idea?

So let's take a look, how to become an Internet provider and what is needed to implement this business idea.

1) Since this area of business is high-tech, first of all, it is necessary to have qualified personnel.

Although modern equipment greatly simplifies the procedures for setting up and maintaining systems, full customer service requires the efficiency and competence of staff.

Therefore, the key condition for starting a business in this area is the personnel issue.

2) The second necessary condition for starting work is obtaining the necessary licenses.

To provide clients with Internet access, two licenses are required: for telematic services and for data transmission, with the exception of data transmission for the purposes of voice information. If the Internet provider intends to provide other services, then additional licenses will need to be obtained.

Obtaining licenses takes some time, up to 2 months.

In addition, you will need to pay a state fee, which must be taken into account when planning costs.

How much will the initial investment cost?

The initial costs will also include the cost of purchasing equipment - servers, routers, network switches, uninterruptible power supply systems, and so on.

Experience shows that for a small company such expenses are about 3.5 million rubles.

In addition, it is necessary to prepare a room for placing equipment, providing for safety measures and maintaining temperature conditions.

Other organizational issues of this business

1) The fundamental issue for any Internet provider is to obtain reliable access to the network.

The easiest and cheapest way is to sign a contract for an external channel with unlimited access from a large telecom operator. However, you need to take into account that the quality of Internet access will depend on how well the partner works. As for organizing your own external channel, the costs of its creation and support can only be recouped for a large provider with a large number of clients.

2) It is also necessary to take into account the organization of the method of connecting clients.

If telephone lines are used for this, you must enter into an agreement to connect a dedicated line with your local communications service provider. If fiber optic communication technologies are used to connect clients, then you need to take into account the costs of additional equipment, materials and work. At the same time, it is often necessary to use underground communications to lay optical fiber, which involves obtaining additional permits.

Thus, the cost of creating an Internet provider business strongly depends on the selected technologies.

Accordingly, the payback period will depend on the volume of income and costs incurred.

The best way to preliminary calculate the profitability of a future enterprise is to draw up a detailed business plan.

On our website you can order a business plan from professionals:

become an Internet provider?

Watch the video about the Internet provider:

The capital's provider not only offers high-speed Internet, MGTS is also happy to help you build your server to provide the provider's services. It is he who provides us with the necessary opportunities to surf the Internet, communicate over a long distance with friends and relatives in other countries, organize online games or business video conferences.

An Internet provider is a reliable business that provides a lot of opportunities for network users and the implementation of any type of activity on it. And given the fact that not just one user, but a large number are connected to it, it is therefore necessary to use a fairly powerful and productive complex with high practical characteristics and increased reliability.

Minimum set for a provider

To organize high-quality data transfer and provide additional opportunities for numerous Internet users, you will need to purchase fairly powerful equipment. Therefore, we will consider the minimum set of equipment, which is sufficient to organize high-quality data transmission for a small number of users.

This list is compiled on the basis of the practical experience of professionals who have been directly involved in this type of activity for more than one year. And this kit will include the following components:

Server on a powerful platform. As an example, you can use the Inpro Archer platform Intel SR1530. Given the high modern requirements, the processor must be at least 4-core with a bus frequency of at least 1333 MHz. For fast operation without failures, it is enough to equip the platform with 2 GB of RAM. The server PC must be equipped with at least 4, and preferably 8 GB of RAM; on both platforms it will be necessary to install 1 or 2 hard drives with a capacity of at least 250 GB. A special stand will be required to attach the platforms. This package is the most optimal in terms of price and quality ratio. But if you want to save money, you can buy a cheaper Impro server, but you should understand that its performance and power are lower.
For the provider to operate effectively, billing will be required; from the available offers, it is better to choose Netup UTM 5. This system is highly popular and has a huge number of subscribers. Moreover, there is a CCC certificate.
To organize access for a large number of network users you will need a switch. One of the most optimal in terms of port cost and operational reliability is the Dlink DES 3526S brand device. This is a device that has been tested over the years and under considerable loads, which will provide you with the necessary quality of work and high speeds, regardless of the number of subscribers.
To organize stable operation of server equipment requires the use of a reliable uninterruptible power supply not less than 1000VA. It will ensure the server is operational regardless of external factors, eliminating the possibility of unexpected failure of any system components.
A rack will be required to accommodate all the necessary equipment.. It’s better to buy a 19” cabinet and the same cabinet with a transparent door. It will protect the system from dust, and a reliable lock from unauthorized entry and changing server settings. After installation of the provider’s complex, it must be submitted for inspection to inspectors from RosSvyazKomnadzor. The total cost of all costs for the purchase of equipment of the presented level will be no more than 140 thousand rubles.

If you decide to become a provider, you can find some information on tariffs on the MGTS website