Thread: Regarding Cable ISP business

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

The only problem is that these biggies like airtel, reliance and a few other when they go to a new area they make sure that any sify or local cable operators cables are brought down from the electricity poles as that gives them a lot of instant business and getting a local cable broadband provider to shut shop is a peice of cake for these companies and I have seen that happen more often then not. Getting permissions from the government authorities is not an option either as it swells costs many folds due to this chronic under the table tradition we have in India.

Yes wimax is catching up and in my opinion it does give them an edge over all other technologies as far as costs go and in the long run that gives them a lot of margin to play around with in case of a price war which is yet to start.

The cost of broadband is still one of the highest in India... they sell a 24mbps unlimited broadband connection in UK for Rs1400 something per month with no installation charges and no contract either. The prices isps are charging right now are not sustainable and is out of reach of the masses and are bound to come down soon.

Yes isps are minting but this wont last too long may be another 5 years and they will start biting each other in the backside and like mobile calls broadband charges will have a free fall and the reason is that India is an extremely price sensitive market.

It is always better to hire some consulting firm before spending big money in my opinion.

Just my 2 cents

Will the penetration of the internet in India continue to expand in the near future or has it reached a growth plateau?

Does it is effect our economy .........?

The only problem is that these biggies like airtel, reliance and a few other when they go to a new area they make sure that any sify or local cable operators cables are brought down from the electricity poles as that gives them a lot of instant business and getting a local cable broadband provider to shut shop is a peice of cake for these companies and I have seen that happen more often then not. Getting permissions from the government authorities is not an option either as it swells costs many folds due to this chronic under the table tradition we have in India.

Instead of killing the business of small cable operators, they are leveraging their network to distribute bandwidth. This way, the ISP's costs are cut down as they do not have to lay down the connectivity cables nor do they have to maintain it. All the ISP has to do is channel their bandwith upto the cable operators node, then its the cable guy's responsibility.

If they don't leverage the cable operator's network, no one can survive - neither the big ISP nor the small cable operator and the customer won't get any broadband. For eg: I have atleast 3 ISP in my area supplying bandwidth over a cable operators network: In2Cable, Sify, Pacenet and may be some more. There are another one IOL Netcom(Exatt) distributing through another guy's network. Additionally, there is MTNL dialup and triband. Thus, there are atleast 5 players in a small area. Expect MTNL, I don't think it will be profitable for any to put its own resources.

sorry dear friend...but i find no reason of you giving life to these old threads...

i think a new thread can be posted ..

sorry dear friend...but i find no reason of you giving life to these old threads...

i think a new thread can be posted ..

is this post closed??