Starting an internet service provider (ISP) business in India can be a lucrative opportunity, given the increasing demand for internet access in the country. According to the Telecom Regulatory Authority of India (TRAI), as of December 2020, there were 661.37 million internet subscribers in India, with a penetration rate of around 50%. The demand for internet access is expected to continue growing in the coming years, driven by the increasing adoption of digital technologies and the government’s efforts to promote the use of the internet in various sectors.
There are several legal and regulatory considerations that need to be taken into account when starting an ISP business in India. The most important one is obtaining a license from the Department of Telecommunications (DoT), which is the regulatory body responsible for managing the telecommunications sector in the country. To obtain a license, the applicant must meet certain eligibility criteria, such as having a net worth of at least INR 10 crore (about USD 1.4 million) and having adequate technical and financial resources to provide internet services.
In addition to obtaining a license, ISPs in India must also comply with various regulatory requirements, such as obtaining necessary approvals and clearances from the DoT, following technical standards and guidelines set by the regulator, and submitting regular reports and compliance documents.
The ISP business market in India is highly competitive, with several players offering a range of internet services at different price points. Some of the major players in the market include Bharti Airtel, Reliance Jio, and Vodafone Idea. These companies have a significant share of the market and offer a wide range of internet services, including broadband, fiber-to-the-home (FTTH), and mobile internet.
According to a report by the Indian Brand Equity Foundation, the broadband market in India is expected to grow at a compound annual growth rate (CAGR) of 23.5% between 2020 and 2025, driven by the increasing adoption of digital technologies, the expansion of broadband networks, and the government’s efforts to promote the use of the internet in various sectors. The report also predicts that the fiber-to-the-home (FTTH) market in India will grow at a CAGR of around 36% between 2020 and 2025, driven by the increasing demand for high-speed internet and the expansion of fiber networks.
To succeed in the ISP business in India, it is important to have a clear understanding of the market dynamics, the regulatory environment, and the competitive landscape. It is also essential to have a well-defined business strategy and a strong focus on customer satisfaction. With the right approach, it is possible to build a successful ISP business in India and tap into the growing demand for internet access in the country.