ISP Resources - Info to become an ISP

What experience is needed to become an Internet Service Provider?

Almost anyone with sufficient resources can become an ISP.
Assuming you have already decided to become an ISP then there are several areas that should be looked at in some detail. Some of these are listed below, there will be others that are specific to your particular ideas of what your ISP business will be and what your goals and objectives are.

Once you start to investigate these areas then you could change you mind about becoming an ISP business or on the other hand they could just make you that more confident. It is important not to let any individual concern totally block your enthusiasm. Most ISPs, when they started, were not fully aware of all the aspects of running a business, lots of mistakes were made, opportunities were lost and dollars were wasted.
That is part of life's experience.
The good news is that very few ISPs in New Zealand have actually folded up and went out of business. Those very few that have can identify specific reasons usually not directly related to their ISP business.

Get some general background information about running your own business

Setting up an an ISP is really no different to setting up any other type of business and the same basic knowledge is needed.

If you have no experience of starting up a company then it is probably a good idea to set about finding out what is involved. In New Zealand there is certainly no shortage of help and assistance available for those starting a new business.

  • Personal contacts. Just about everyone knows someone who is either self employed or works in a small company that has recently just started in business. These people may have been there and done it all before you and can often be a mine of information. Most are often very pleased to talk about themselves or their business and can point out areas that they found most difficult to deal with.

  • Your local library may be a good place to start. They should have or be aware of contacts that specialise in helping and advising new businesses. They will also have books and magazines that cover just about every aspect of starting up and running a business. The problem may be that there is just so much information that it is difficult to know where to start. Ask the librarian about starting a new business and if there is any general literature available.

  • Banks produce support information (leaflets, booklets, magazines etc.) for startup businesses as well as info on the general conditions for getting bank loans, getting a commercial bank account, and ongoing financal services.

  • Inland Revenue have all sorts of info on tax, GST, employing people, being self employed and how you can clain tax allowances on capital expenditure. GST will become a fact of life for an ISP so find out as much as you can and what you are expected to do, GST returns and audits etc.

  • Employment Services are really keen to see people into employment and if you are unemployed then talk to them. They also have various employment support schemes where you can get financial assistance when employing staff.

  • Talking to an accountant may also be worthwhile. These people tend to have a more general view about finances and may be able to abvise you about dealing with banks, Inland Revenue and other finanacial institutions and government departments. Few accountants seem to be internet connected although many will have dial up accounts with an ISP.

  • Contact your local council as they may have some support schemes or other advise for starting a new business. They will also be able to point you towards and local goverment regulations or byelaws that may need to be considered. Most councils are already Internet connected and it may be possible to find staff who are prepared to talk to you about their Internet services.

  • Find out where your nearest Business Round Table is. These people may be able to provide some basic advise and may even have facilities to help you get started or can point you towards useful contacts. They may also run meetings, seminars and produce documentation that could be just what you are looking for. Other business people can provide invaluable advise and often will put you in contact with reliable sources for professional services you new business will need.
    These people may also be a good future contact for marketing your ISP services as it is one area that many businesses are seriously considering becoming involved with. It is now becoming almost essential for a business to have access to email and many more are aware of the Internet and World Wide Web and the need for a web presence.

  • Your local colleges and polytechnic can also be very useful. Many run courses for businesses and may have introductory information on starting your own business. If you are not really sure what the Internet is about or need to know more about computing and communications in general then there will often be short courses available covering these topics.
    If what you want is not covered in the prospectus then ask the college staff about such courses as they may be aware that they available from another college or polytech.
    The good news is that Internet related courses are becoming more popular and courses in computing are available just about everywhere.

    Find out all you can about the ISP business.

  • Contact Telecom New Zealand (phone 125) and get them to send you the pricing information for their Digital Data Services including ISDN. A data link to the Internet (ie to another ISP or connectivity provider) could be your largest monthly bill) so get this information as early as possible. If you know where you are planning to base your ISP business then ask Telecom about the availability of phone cables to that building. When you start to expand and cables are not available then you could face some serious costs to get extra cabling laid. Rather than deal with the Telecom Business Centre ask who the account manager is that covers your area. Insist on getting a name and number then try to deal with that person. You are more likely to get things done that way

  • Find out what ISPs already exist in your local area or the area where you will be expectig to get your customers from. Also try to ascertain what businesses, schools, colleges and polytechs are already IP connected. If you are near a University then they will be already connected to the Internet. This information could be useful when trying to obtain your Internet connection or marketing your service to local businesses (and schools, colleges, local government etc.)

  • Users of existing ISPs (maybe you included). Talk to them and see what they like and dislike about their existing ISP. Nearly all will want lower prices but try to discover what aspects of an ISP they like ie what keeps them with that ISP and what is most likely to make them change to a different ISP. This could give you a few ideas about your proposed internet services and how you go about marketing them.

  • Collect information and pricing information from existing ISPs. This will give you a good idea of what other ISPs see as their main services and the different pricing schemes they offer to attract users. If they make technical information available about their setup then get that info as well (note very few will do this but others are proud of their business and enjoy a good brag)

  • Contacting existing ISPs may or may not be a good idea. Unless you are considering a connection to an ISP (for your internet link) and you know that that ISP provides such a service then direct contact with an ISP and asking questions about becoming an ISP should be considered carefully.
    Several ideas worth keeping in mind:
    If you are in the same area of that ISP then they may be fairly negative as you could be seen as potential competition.
    It is doubtful they will provide you with any meaningful data concerning financial income and outgoings. Most ISPs will exaggerate their resources and user numbers or else try to convince you that there is no room for another ISP, you will never make it pay and anyway they have the local market pretty well sewn up.
    If they are from another area then they may be more open to some general questions. If you have a real good idea for some specialist ISP service then don't be too quick to give that info or idea away to another ISP. Competition in the ISP business is pretty sharp.
    Most ISPs will have web pages about their service. Connect to them and get as much information as possible. Some questions that ISPs will not answer when directly contacted are often publically available in their web pages.
    Other ISPs will find out about you soon enough so maybe being open about your ISP business proposals may not matter.

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    Last modified: 6 November 1996.