From ISPs and WISPs to networks in libraries, businesses, and universities, Internet usage is on the rise. However, as the demand for Internet access continues to grow around the world, so do the opportunities and challenges for service providers. As fast as your user base grows, the obstacles that providers face begin to emerge. From competition to dissatisfied customers, the company that once seemed sure of success can quickly test the will of even the most seasoned and tech-savvy business owner. network administrators However, for all types of ISPs, there are ways to make the process easier.
For all providers…
1. Set boundaries early on – When starting a new service, don’t let your users go wide open. You might be fine without putting rate caps on users when you only have 10 users sharing a 10 MB link, but when you get to 100 users sharing a 10 MB link, you’ll need to put rate limits on all of them. The problem with waiting is that your original users will get used to higher speeds and won’t be happy with sharing as your business expands, unless you apply some reasonable restrictions up front.
2. Prevent your network from crashing – Many Internet providers believe that if they set maximum rate caps for their users, their network is safe from crashing due to congestion. However, if you are oversold at your holding indices, you will crash and simple rate caps are not enough. Don’t make this mistake.
This may sound obvious, but let me explain. We often find operators with 500 users on a 20 megabyte link. Then they offer two rate plans: 1 megabytes up and down for consumers and 5 megabytes up and down for businesses. They then put rate limits on each type of user to make sure they don’t exceed their allotted amount. In a way, this is supposed to exonerate the trader from being oversold. This is all well and good, but if you do the math, 500 users on a 20 meg link will overwhelm your link at some point and no one will be able to come close to your “promised amount”.
If you’re oversold, you’ll need more than rate caps to avoid lockouts. At some point, you’ll need to go with a Layer 7 modeler like Packeteer or Allot NetEnforcer. However, you can use a NetEqualizer. Your only other option is to keep adding bandwidth.
3. Good technical support is essential – Don’t put all your faith in the local guru who created your network. There are many good technicians out there and there are many more that will ruin your business. This can create some really tough decisions. I like to use this analogy:
I’m not a concert pianist, not even close, so I can’t tell the guy who plays Beatles songs in my local pub’s piano bar a Julliard-trained pianist. Since I can’t play a lick, everyone surprises me. Well, the same is true for non-technical business owners who hire network technicians or developers. They all seem incredibly smart when in fact they can take you down. The only way to know is to find someone with a really good track record of making things work for people. So ask around.
The good guys have no vested interest in turning your business into a custom dynasty (another thing to keep in mind). It’s like the doctor who needs the patient to stay sick. You do not want that. Poor or wrong technical support can be the main cause of ISP failure or problems selling your business.
4. Don’t overspend – ISPs and WISPs, remember that on the open market your business is likely to only be valued at three-quarters of your revenue, so don’t fool yourself into spending too much on equipment and loans thinking a white night is coming. If your income is $500,000 per year, you’ll be in good shape if you get $400,000 for your business. And this can cover your debt. Yes, there are exceptions and you may get a little more, but don’t expect double your income. It’s just not going to happen, so plan your spending accordingly.
For network administrators in companies and institutions, both public and private, financing is not always granted. Budget cuts and reallocation of funds can leave administrators in a bind. Therefore, be wise when planning and managing your network. Keep things like recurring costs and license fees in mind when you make purchases. Over time, these expenses can add up.
5. Optimize your bandwidth – A NetEqualizer Bandwidth Controller will allow you to increase your user base by 10 to 30 percent without having to purchase additional resources. This allows you to increase the number of people you can put on your infrastructure without expensive construction. However, a purchase like this can be a difficult decision. It is best to think long term. A NetEqualizer is a one-time cost that will pay for itself in about 4 months. On the other hand, the purchase of additional bandwidth continues to increase month after month.
For commercial ISPs and WISPs…
6. Make sure you have a user base to grow – For ISP and WISP, maybe 500 homes before construction starts. Yes, you can do it for less, but 500 is kind of a magic number where you can pay yourself and maybe hire help so you can be profitable and take a day off. WISPs and ISPs with 100 customers are great, but at that size, they’re still going to be a hobby that you might not be able to download a couple of years from now.
7. Be the reliable alternative – If you are in a dense metropolitan area and have the resources, you can offer Internet connections to hotel and business customers with pay-as-you-go services. Many hotels and businesses have unreliable or no connections. Obviously you’ll need real estate across the street, but once secured, you can point a directional antenna at the building and give your signal a recognizable name for your users to connect to. Then offer them the connection for a daily fee. For many users, paying a small daily fee for reliable service will be worth it, especially if the hotel or business offers poor Internet service, no Internet service, or an exorbitantly priced connection.
8. Make checkout as easy as possible – When a customer is late on their bill, make sure you have a way to direct them to a payment site. Do not turn off their service and wait for them to call you. For small carriers, you don’t need to automate the payment cycle, just send them to a static page that tells them how to pay their bill. For larger carriers (3,000+ users), the expense of automatic bill payment may be worth the extra cost, but with a smaller set of customers, a static redirect to a page with instructions and a phone number will suffice.
9. Look for a competitive credit card processor – Your bank probably provides you with a service, but is usually an intermediary in this transaction. There are credit card processing agencies that sell their services directly and may be more profitable. These are obvious dollars that add up each month in savings.
10. Cross market – Don’t be shy about it. Once you have a captive audience, there are all sorts of cross-marketing ideas you can do to earn extra income. Tastefully done, your users won’t mind. This could be a special with the local car dealer running coupons for them. Or for something like a pizzeria. There’s unlimited potential here, and if you’re not taking advantage of it, you’re missing out on easy income.
Obviously, these 10 tips won’t apply to all Internet providers, but it’s almost a given that at least some of these issues will surface over time. While there’s no guarantee that a network will work perfectly, these tips should help point ISPs and network administrators in the right direction.
