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I Have 1 Million Naira, I Want To Set Up An ISP - Business - Nairaland

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I Have #1.7m To Start A Business. Nl Please Advise Me -DELETED / How To Start An ISP? / Setting Up An ISP In Nigeria (2) (3) (4)

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I Have 1 Million Naira, I Want To Set Up An ISP by gbengaijot(m): 3:24pm On Mar 07, 2006
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Re: I Have 1 Million Naira, I Want To Set Up An ISP by Hunter(m): 9:03pm On Mar 08, 2006
Given the low bandwidth into and out of nigeria, I would suggest setting up your ISP as wireless (nigerian phone lines wouldn't be able to reliably transmit xDSL technologies) to reach many people with less expenditure.
Also a cost saving excercise is to setup transparent proxies so not everything has to leave your connection and use the internet (making it faster for users and more cost effective for you)
Re: I Have 1 Million Naira, I Want To Set Up An ISP by gbengaijot(m): 12:14pm On Mar 10, 2006
Do you know of any Wireless ISP thast i can be a sub of?
Re: I Have 1 Million Naira, I Want To Set Up An ISP by sbucareer(f): 3:42pm On Mar 10, 2006


Gbenga, One Million Naira is not anywhere near enough. Have you done any feasibility study? Do you know how much ISP license cost in Nigeria? Equipments, employees, personnel department and accountant more importantly marketing manager.

The main equipment is Backbone line. Let say you are aiming at 10,000 customers and perhaps you want to start them off with say 128mb which is impossible, but to embark into ISP you have to fight the competition.

SO, let say you can afford 128mb per person, I know all Nairaland members will switch their ISP to yours. 128X 10,000 = 128,000.  128,000/1024, at least you are looking at 125MB, which is 0.12207GB, let say 1GB connection speed.

What you have to do first is find out how much 1GB bandwith will cost you per month in Nigeria.  You need to rent a shop or office, at least for a year.  If you are technical savvy then will might have to do all the equipment setup yourself, don't even think about Windows, license and virus will discourage you. You need Unix and free stable open source software.

A billing software cost about $2778.67. If you want to know how much the hardware will cost you send [email=mwb@pulsewan.com?subject=Requirements of becoming and ISP and equipments price list]email[/email] and introduce Valentine asked you to contact him regarding ISP equipments.

Other equipments you will need are:


In this case, a 30 simultaneous call system is very popular to start.  You
would need:

Qty (1) DX VOIP gateway E1/PRI  $2875.00
Qty (1) Call Server billing software/ base and 30 port license $2970.00
Qty (1) RAS Server 64/128 ports base PRI/EI, .V90 $21987.00


1) You would need a high speed internet connection with at least 512kbps of
bandwidth, Static IP addresses and open UDP/RTP ports.

2) You will need a E1 or PRI from your local telephone company. This should
be rollover lines. They should be able to provide you a 800 numner if you
want that as well.

3) You will need a large internet service provider who can take your traffic
and terminate anywhere in the world. I have suggestions if you do not have.

4) You will need a PC or Server for the Billing Software. This will need to
be a Pentium running Windows 2000/XP.

5) You will need to provide marketing to sell your ISP.

With that in place, you would be up and running with your own ISP service.

Believe me Gbenga, you should be looking at the least £50K with all the NEPA problems and thief and useless government policy that doesn't favor young entrepreneur

If you want to start ISP, you could start news group like Senu and progress to VOIP provider, routing calls through internet, buy a card maker and seal the numbers and sell them. Nice business.  1 Million Naira would do for that. As you become more successful you can buy internet equipments and add then to your current infrastructure and upgrade your backbone line and supply like 50 people with internet access and grow from there.

Even AOL the biggest ISP in the whole world started as a news group provider
Re: I Have 1 Million Naira, I Want To Set Up An ISP by TESS75(f): 4:13pm On Mar 10, 2006
sbucareer,

I am extremely impressed with your reply to the thread. precise, detailed and very constructive. we need more people like you. i will defiantly look u up if i need advice
Re: I Have 1 Million Naira, I Want To Set Up An ISP by Skidoc(m): 4:25pm On Mar 10, 2006
Thumbs up, Sbucareer wink. Gbenga, you should look at investing in other areas that are not capital-intensive then, or what do you think?
Re: I Have 1 Million Naira, I Want To Set Up An ISP by gbengaijot(m): 6:19pm On Mar 10, 2006
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Re: I Have 1 Million Naira, I Want To Set Up An ISP by oasis: 6:37pm On Mar 11, 2006
Don't go into ISP business unless you hold at least Linux+ certification.  Otherwise, you'd need to pay a linux expert a lot of money to manage your setup.  While taking the courses, ask your teachers and colleagues the question about how to become an ISP.  Also, if possible, go through cisco networking academy and obtain at least a CCNA.

You need Linux because in the long run, it'd save you millions of $$ in software purchase, and licensing costs.
You need cisco knowledge because as an ISP, your routers should be made by cisco.  Little sissy routers are okay for small operations only.

Bill Gates made $9.6 million A DAY last year!  Why?  It's because most people don't know Linux.  There are applications that cost hundreds of thousands of $$, but that happen to have free linux equivalents.

How long does it take to obtain Linux/cisco certifications?

Well, I don't know about Nigeria, but there are accelerated versions of cisco networking academy, which you can complete in 9 months to be ready to sit for your CCNA exam.  I would advice against the accelerated version though, unless you already hold Network+ certification.  Many things are identical between Network+ and CCNA, e.g. OSI model.

CCNA is good for an ISP, because you learn not only about LAN setup, but also MAN and WAN.  WAN networking involves routing, and that is an ISP's main challenge.  You must have a thorough understanding of subnetting, netmasks, etc.

If you take the regular version of cisco, it'll be about 2 years to complete.

The bottomline is, if you're thinking of going into ISP business, lay a solid foundation for yourself.  Or else, it'd cost you in the long run.
Re: I Have 1 Million Naira, I Want To Set Up An ISP by Seun(m): 8:20pm On Mar 11, 2006
Don't go into ISP business unless you hold at least Linux+ certification. Otherwise, you'd need to pay a linux expert a lot of money to manage your setup.

This is like saying "don't start a business unless you have an MBA". What you should say is, "don't go into ISP business unless you are good at using Linux.
Re: I Have 1 Million Naira, I Want To Set Up An ISP by oasis: 9:52pm On Mar 11, 2006
This is like saying "don't start a business unless you have an MBA".  What you should say is, "don't go into ISP business unless you are good at using Linux.

No.  I mean don't go into ISP business unless you have Linux+.

There are a lot of things you miss when you're self-taught.  The books you read cannot make up for a teacher's experience, and the knowledge you gain from other classmates.

When you're an ISP, you don't want anything to catch you off guard.  There are guides and howtos on how to do stuff, but I believe it's best to be able to create your own stuff without following some guide verbatim, or at least understand why you're doing certain things, and also be aware of alternative methods in case one method doesn't work.  Assignments at school force you to pay attention to things you may not like to deal with if you were learning on your own.

How about CCNA?  I don't see how you could get good at configuring a cisco router without going through the coursework.  In the course, you get your own router to play with.  These are routers that cost tens of thousands of $$.

You also get to take a tour of Internetwork hubs that cost hundreds of millions of $$. Check out the price tag on Cisco Line Card routers.   Just reading a book won't give you the experience of knowing what's out there.

Anyway, you wouldn't understand the point I'm trying to make, unless you've taken these courses I'm referring to.
Re: I Have 1 Million Naira, I Want To Set Up An ISP by Seun(m): 9:59pm On Mar 11, 2006
My knowledgeable and well certificated oga, I can get any certification I want by cramming without an instructor. That does not mean I'll remember a thing of what I read one week after the exam. Knowledge is key, not certification. 'Certifications' are even worse than degrees as measures of knowledge, which is why an Indian programmer friend told me that certifications are no longer valued by Indian employers. However, you have made yourself perfectly clear and further discussion is unwarranted.
Re: I Have 1 Million Naira, I Want To Set Up An ISP by oasis: 10:19pm On Mar 11, 2006
OK, now I understand your point.

I was referring to Linux+ in terms of the knowledge you gain, not the guy who memorised material for exams.
Re: I Have 1 Million Naira, I Want To Set Up An ISP by Ralex(m): 10:09am On Mar 13, 2006
U need a little knowledge of everything but not necessarily too detailed a knowledge to run a buisness. After all u will not do all the mundane tasks yourself.

If u do all the mundane tasks your compnay will forever remain a "village one-man show".

What u need to do is to employ people smarter than you are and in Nigeria, you can employ them for a song.

There are a lot of developed experts in the nigerian job market relentless searching for a job, in actual sense, Though the quality of education is low, self-developed experts are numerous in Nigeria with all these certification u talked about and sometimes practical knowledge to back it up. Filling up the job market. You can get anything for a song, From accountants willing to work for a little above minimum wage to marketers that could sale jet fuel to the devil.

Nigeria's problem are multi-prong but one of them is NOT absence of skilled labour force but ENTHRONING neopotism (IM).

Bill Gate's Microsoft or Micheal Dell's Dell Coporation would all still remain one man show if they did not leave the "show" to people smarter than they are and concentrate on building a dream organisation
Re: I Have 1 Million Naira, I Want To Set Up An ISP by Seun(m): 10:51am On Mar 13, 2006
I second that. You can employ something with Linux+ experience if you are unable to concentrate on that. Without delegation, you can't have a growing business. This explains the stagnation of Nairaland.
Re: I Have 1 Million Naira, I Want To Set Up An ISP by sbucareer(f): 2:48pm On Mar 13, 2006

Gbenga, I did a little bit research last weekend, actually I called my dad and ask his assistance to help me find out how much ISP licence cost in Nigeria today. He just called my office and told me that if I was interested in acquiring the licence, it would cost me 20,000,000 naira which is about £85,000 just the licence. I have done a little research in the past when I was younger and energetic with burning ambition to open my own ISP. The dream has not died yet just working on the money issues.

You need to acquire these equipments. It does not include running cost and employee salaries. Beleive me you had need three intelligent people that will make up the CEO office with you in the future, preferable people from other ISP's with Dr degree or Ph.D and they would be your consultants maybe working for you just 1 to 2 hours a day during there lunch break on their main job.

1. Remote Access Server (RAS, buy the amount of port you want) Remember every customer connects into a single port.

2. 1x4 VSAT (Very Small Apature Terminal) Because Nigerian do not have Fiber Optic from NITEL or bandwith intensive cable running from NITEL to your office, so you would need VSAT, each one with at least 5.4GB totalling  21.6GB.

3. You need Servers:
  a. Autherntication Server
  b. Database Server
  c. Web Server
  d. Billing Server
  e. ISP server to manage your cisco routers

4. PC for yourself and other people you work with

5. Office, or if you have a house or your dad house rent one room or two rroms recommended, till you break even (Google started at a back house garage)

6. Compnay bank account (Make sure you start your business with an accountant. He organises the payment)

7. Register your logo (It may cost millions again Nigeria problem, here in UK it is only £35)

There are other small hardware you had needed just that I can't remember them all. Yes, you need cisco router not just cheap router, you need database, MySQl, it is not free for companies you had need to get a licence. Web server is free. You need to make that decision to rollout java, php or asp from start. Because when you start tiring your application to your database to migrate would be serious headache. Cost of migration cost lots of company money. So make that decision which programming language to use. You can see why many company in Nigeria start with PHP because PHP programmer are cheaper compare to java and asp or C/C++

Don't make yourself CEO yet, if possible get a reputable academic professor from Computer Science department and make him the current CEO, mind you he has a job already and would work very hard to leave his work and come and work for you for a fanstastic salary if he help grow the company. Or, get a bigtime Senior Vice President, Engineering & Research of an ISP and make him your CEO. Remember CEO do not necessary own a company. CEO & President owns company, remember that Bill Gates is not the CEO of Microsoft and even sometime ago he resigned as President of Microsoft to Steve Bulmer or Paul Allan co founders of Microsoft and remain Senior President, Engineering. You get the point.



1 Like

Re: I Have 1 Million Naira, I Want To Set Up An ISP by gbengaijot(m): 3:08pm On Mar 13, 2006
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Re: I Have 1 Million Naira, I Want To Set Up An ISP by sbucareer(f): 11:59pm On Mar 13, 2006

Gbenga, call me when you are in London. I do not like going out on weekdays as I work from Monday to Friday 9am-5pm and have other weekdays commitments . I am normally free at weekends as I do not work weekends. But let see how Wednesday turns out.

Re: I Have 1 Million Naira, I Want To Set Up An ISP by oasis: 5:15pm On Mar 16, 2006
U need a little knowledge of everything but not necessarily too detailed a knowledge to run a buisness. After all u will not do all the mundane tasks yourself.

If u do all the mundane tasks your compnay will forever remain a "village one-man show".

What u need to do is to employ people smarter than you are and in Nigeria, you can employ them for a song.


1 million naira is chicken change. So, employing people is out of the question.

You'd be a better manager if you know a lot about the business you're planning to setup. This is moreso in the ISP area. Therefore, acquiring knowledge before starting is key.

A new business stands a chance of succeeding if it has a low TCO in the beginning.
As the business grows and begins to make money, you can then begin to hire people and delegate duties to them.
Re: I Have 1 Million Naira, I Want To Set Up An ISP by segs4eva(m): 11:50am On Mar 22, 2006
I believe sbucareer is a great guy. Thanks a lot. Am encouraged that people like you are still there trying to support young enterprenuers. God bless you real good. Please kindly reply my mail, its important.

And to seun, you r doing a great job, please keep it up. cool
Re: I Have 1 Million Naira, I Want To Set Up An ISP by sbucareer(f): 12:14pm On Mar 22, 2006

segs4eva, thanks for your commendations and may God almighty bless you too and help you towards your becoming your own boss. My active email is gmail. I do not really check the other emails as they contain junks. Try and forward any email to [email=valentine.obih@gmail.com?subject=Have a Million, I want to set up an ISP]Gmail[/email]

Re: I Have 1 Million Naira, I Want To Set Up An ISP by segs4eva(m): 12:21pm On Mar 22, 2006
for your info, it cost N500k for basic licencing in nigeria for 5 years Internet services. check http://www.ncc.gov.ng/index2_e.htm
Re: I Have 1 Million Naira, I Want To Set Up An ISP by sbucareer(f): 12:27pm On Mar 22, 2006

Thanks for that, I have bookmarked it and will go through it later.
Re: I Have 1 Million Naira, I Want To Set Up An ISP by oasis: 8:58pm On Mar 22, 2006
segs4eva  and sbucareer are in love. grin
Re: I Have 1 Million Naira, I Want To Set Up An ISP by Laptopsell(m): 12:38pm On Dec 26, 2007
do you thin 1 million will set up a functional isp
Re: I Have 1 Million Naira, I Want To Set Up An ISP by medicgold: 2:26pm On Dec 26, 2007
i
Re: I Have 1 Million Naira, I Want To Set Up An ISP by medicgold: 2:29pm On Dec 26, 2007
i understand one can use mtn internet facility for internet bussinesses, how true is this
Re: I Have 1 Million Naira, I Want To Set Up An ISP by babasin(m): 10:12pm On Dec 30, 2007
for your info, it cost N500k for basic licencing in nigeria for 5 years Internet services. check http://www.ncc.gov.ng/index2_e.htm

dont believe what you READ on nigeria govt webpage.
Re: I Have 1 Million Naira, I Want To Set Up An ISP by yamakuza: 7:43am On Jun 28, 2011
@gbenga

are u looking at an isp like
1. Glo
2. Linkserve, hyperia, etc
3. Cobranet, swift, etc
4. Community isp
5. Wisp

?

That will determine total cost. U might want to bootstrap and work your way up the ladder. You can also save a lot of costs by franchising or buying into an existing setup, and have them open a branch in your area.

To get more detailed advice on how to bootstrap with 1m or less, please add more details to your query eg:

1. Ur location
2. Desired coverage area
3. Range of services
4. Estimated client base
5. Reason for starting or projected future growth or diversification plans
Re: I Have 1 Million Naira, I Want To Set Up An ISP by Jencejyde(m): 10:48am On Feb 08, 2012
@ SBUCAREER, Pls i wanted to know if its okay to request your email or phone number as I am an IT system Admin for a large organization. We plan on embarking on a serious project of becoming an isp (Serious project) Our business plans and marketing strategy are well in place but we would still require some information as to purchsaing equipments and recruiting the required and efficient personnel.

Plus if you have any contacts whom we can speak to Locally (Nigeria ) as I presume you are Uk based.

Thank you once again for your very informative and educative post.

I believe we will get to hear from you soonest.

jtobun@yahoo.com aolunoiki@yahoo.com

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