Why Being a Small ISP is still Viable

COMMSDAY SUMMIT SYDNEY 2013 Skeeve
Stevens

WHY BEING A SMALL/MEDIUM
CEO
&
Chief
Architect,
eintellego
Networks

Director
of
the
Internet
Society
of
Australia

ISP IS STILLVIABLE
SKEEVE STEVENS

Stevens
Stevens

Why being a small/medium ISP is still viable
What’s this talk about?
•  Why
being
a
small/medium
ISP
is
s6ll
viable
in
Australia
today

•  Details
of
the
forthcoming
book
“So,
You
Want
to
be
an
ISP?”

INTRODUCTION

Stevens
Stevens

Whats been happening
•  ISPs
are
disappearing
–
mostly
due
to
mergers
and
acquisiJons

•  The
Industry
is
changing

•  ISPs
are
starJng
to
diversify
their
oﬀering
to
customers

•  A
strong
wholesale
market
is
enabling
non-‐ISPs
to
sell
Internet
services
to
their

exisJng
customer
base

•  There
is
sJll
a
LOT
of
opportunity
out
there
for
verJcally
focused
ISPs
–
which

are
mostly
in
the
pico-‐small
size

BACKGROUND

Stevens
Stevens

MARKET CONSOLODATION
Where did all the ISPs go?
WestNet
OzEmail
TransACT
iiNet
iiNet
iHug
Netspace
AAPT
Residential
10 Others
Froggy
Esclipse
AOL|7
Commander
iPrimus
M2 Group
Hotkey
West
Australian
Networks
Datafast
aaNET
Platform
Networks
EFTel
Club Telco
Dodo
Other small
ISPs
VivaNET
Planet
Netcom
Internode

Stevens
Stevens

MARKET CONSOLODATION
…continued
B Digital
PPC-1
Pipe
Networks
TPG
TPG
Comindico
Soul
IntraPower/
Trusted
Cloud
RequestDSL
Powertel
Nextep
AAPT
Telecom NZ
Wizz
Star-Tech
Clever
Networks
BigAir
BigAir Grop
Vivid
Wireless
Unwired
Optus
Internet
Optus
iBurst
(Customers)
AccessPlus
Allegro
Uecomm

Stevens
Stevens

•  TradiJonally
ISPs
have
stayed
within
their
ﬁeld
of
experJse
–
or
close
to
it

•  Few
ISPs
are
known
for
their
prowess
in
Customer
Service
–
even
our
biggest

ones

•  It
is
going
to
go
both
direcJons
(I
will
explain
in
a
moment)

•  It
is
easier
than
ever
to
sell
you-‐branded
products

•  OEM
everything

•  Own
the
customers
–
everything
they
need/want!

DIVERSIFYING
New Markets

Stevens
Stevens

New Markets
Telephone

Home
/
Business

VoIP

Mobile

Internet
Services
Power
&
Gas
Insurance

Home,
Contents,
Car

Retail
Stores

Alarm
Monitoring

Others
to
come?

Health?

Financial
Services?

Dodo
DIVERSIFYING

Stevens
Stevens

New Markets
SoEware

ChromeOS

Search

Earth

Maps/StreetView

Android

Google+

Business
Solu6ons

Google
Apps

Adwords/SEO

Search
Appliances

Entertainment

Music,
Movies

TV,
Apps

Others
to
come

Television
-‐
trying

Wearable
Accessories

Internet
Access

Google
Hardware

Mobile
Phones

iGlass

Up to 5Mbps download, 1Mbps upload speed • No data caps • Free service
guaranteed for at least 7 years • Includes Network Box
$300 construction fee (one time or 12 monthly payments of $25) + taxes and fees
DIVERSIFYING

Stevens
Stevens

New Markets
Portable
Music
Computers
Mobile
Phones
Entertainment

Music

Movies

TV

Others
to
come

Television?

Wearable
Accessories

Internet
Access?

Apple Computer
Internet + TV + Music + Movies + Apps + Software + Hardware
DIVERSIFYING

Stevens
Stevens

New Markets
Fuel

Mobile
Services

Supermarkets

Groceries

Clothing

Credit
Cards

Credit
&
Prepaid

Insurance

Home,
Contents,
Car

Others
to
come

Internet
Access?

Health?

Coles/Woolworths
nbn
Internet
DIVERSIFYING

Stevens
Stevens

IMPORTANT TO UNDERSTAND
About being a small ISP
•  You
don’t
have
to
make
millions
to
be
happy

•  Making
a
difference
can
be
significant

•  Doing
it
right,
can
mean
a
payoff
later

•  Customers
prefer
personal
service
and
will
oên
go
away
from
the
big
guys

on
principle

Stevens
Stevens

WHY –YOU SHOULDNT
Why No
•  You
are
not
commi_ed

•  You
don’t
have
a
niche
or
micro-‐niche

•  You’re
not
involved

•  You
have
no
proﬁle

•  You
suck
at
partnerships

•  Your
products
aren’t
compeJJve
or
interesJng

•  You
aren’t
meeJng
a
need

Stevens
Stevens

WHY –YOU SHOULD
WhyYes
•  You
have
a
comfortable
niche
that
you
own

•  You
are
known
in
your
space

•  You
are
part
of
a
community

•  You
partner
well
with
others

•  Be
able
to
run
a
proﬁtable
business

•  Be
mulJ-‐skilled
(Management,
Sales,
MarkeJng….)

Stevens
Stevens

ISP SIZES
How big do you have to be?
Pico

?
10
-‐
100

Micro

?
100
-‐
500

Small

?
500
–
1,000

Medium

49
1,000
–
10,000

Large

24
10,000
–
100,000

Very
Large
8
100,000+

•  Medium-Very Large defined by the Australian Bureau of Statistics, the rest I defined
•  June 2012 ABS Data - http://www.abs.gov.au/ausstats/abs@.nsf/Lookup/8153.0Chapter6Jun%202012
•  ACMA Fact Sheet - http://www.acma.gov.au/WEB/STANDARD/pc=PC_1723
•  Lifehacker - http://www.lifehacker.com.au/2011/02/smaller-isps-are-a-dying-breed-in-australia/
•  ACMA
say
there
are
over
800
ISPs
in
Australia

•  ABS
say
there
are
about
81
ISPs
with
over
1000
users
in
Australia
(June
2012)

•  That
means
there
are
over
700
Pico
to
Small
ISPs

•  Total
ISPs
–
June
2011
=
97;
Dec
2011
=
91;
Jun
2012
=
81
(closing
or
merging?)

•  iiNet
in
2011
said
that
number
of
ISP
dropped
from
450
to
250
in
2010

Stevens
Stevens

NICHE/ MICRO NICHE
Examples
•  What
is
a
niche
to
an
ISP?

•  What
does
it
mean
being
niche
focused?

•  Examples
of
niche
ISPs

Stevens
Stevens

NICHE/ MICRO NICHE
Focus
Industry
Ethnic
Finance
Education
Mining
Food
Media
Real Estate
Entertainment
Sports
Aged Care
Sex
Age
Religion
Legal
Construction
Engineering
NGO
Energy
Government
Italian
Chinese
Greek
Korean
German
Arabic
Hobbies
Others?

Stevens
Stevens

NICHE/ MICRO NICHE
Examples – Regional Focus - Community Telco and Ace

Stevens
Stevens

NICHE/ MICRO NICHE
Examples – Legal Industry - BarNet

Stevens
Stevens

NICHE/ MICRO NICHE
Examples – Age Vertical - Seniors

Stevens
Stevens

NICHE/ MICRO NICHE
Examples – Satety Vertical

Stevens
Stevens

NICHE/ MICRO NICHE
Examples – Ethnic Focus - Japanese

Stevens
Stevens

WHOLESALE SERVICES
Where do I get it?
BigAir
NBNCo
Telstra
Tier 1
FirstPath ispONE
Exetel
iSeek
Tier 2
AAPT
Vocus
Optus
Tier 1.5
Nextgen
TPG/Pipe
M2 Group iiNet TelcoInABox
WIP
Highway 1
aka
ZettaNet

Stevens
Stevens

HOW EASY IS IT TO BE AN ISP
Easy as
•  Wholesale
Providers

•  Outsourcing

•  OperaJons

•  Support

•  MarkeJng

•  Systems
(Billing,
DNS,
HosJng,
etc)

•  Vendors

•  Consultants

•  eintellego
Networks
/
io
Networks
–
probably
others

•  Community

Stevens
Stevens

THE BOOK
So,YouWant To Be an ISP?

Stevens
Stevens

THE BOOK
•  Why
write
it

•  Who
is
it
for

•  What’s
in
it

•  Where
am
I
up
to

•  When
will
it
be
released

Stevens
Stevens

Case
studies
will
be
provided
which
will
be

based
on
some
ISPs
that
I’ve
worked
with

over
the
last
15
years
such
as:

Datacentres,

colocaJon/hosJng
providers,

wholesale

ISPs,
residenJal
ISPs,
virtual
ISPs
and

others.

Case Studies
Websites,
Mailing-‐lists,
Chat,
Podcasts,

Consultants,
CerJﬁcaJons,
etc

Resources
THE BOOK
What’s in it?
Detailed
informaJon
about
all
aspects

of
an
ISPs
network,
including
their
core

switching,
rouJng,
redundancy,

scalability,
security
(DoS)
&
more.

Technical Stuff
xDSL,
Fibre
(Lit
and
Dark),
Copper

(EFM),
Ethernet,
Wireless,
Satellite,
3G/
4G
wholesale,
including
some
old

technologies
such
as
Dialup/ATM/etc.

Tail Technologies
LNS/LAC,
RouJng,
MPLS,
CGN,
Transit

providers,
Peering
and
types
of
peering,

Datacentre
types.

ISP Technologies
A
brief
overview
will
be
provided
on

networking
vendors
such
as:
Juniper,
Cisco,

Brocade,
IBM,
HP,
SDN
Technologies,

VirtualisaJon,
Vya_a,
MicroJk,
as
well
as

some
wireless
–
all
as
it
all
pertains
to

Service
Provider
equipment.

NetworkingVendors
Should
you
or
shouldn’t
you
be
even

thinking
about
doing
this?

Telling
the

reader
the
good
and
the
bad.

Thinking About It
Staﬃng,
Equipment,
ISP
types/models,

Target
markets,
Legals,
Customers,

Outsourcing,
Products,
MarkeJng.

BeforeYou Start
The
Community,
Conferences,

OrganisaJons,
Business
operaJons,

innovaJon
of
technology,
trends,

strategy.

Life as an ISP
Internet
Governance,
IANA/RIR
and
IP

Addressing
especially
APNIC,
IETF
and

ISOC,
DNS,
RouJng,
Wholesale
Providers.

How StuffWorks
OperaJonal
Support
Systems
such
as

AuthenJcaJon,
Provisioning,
Helpdesk,

Billing,
Monitoring,
Backup,
etc.

OSS

Stevens

THANKYOU
www.eintellegonetworks.com

skeeve@eintellegonetworks.com

@eintellego
@skeevestevens
@networkceoau

/eintellegonetworks

Thanks
to:

-‐  Shara
Evans
of
Market
Clarity
–
www.marketclarity.com.au

-‐  AusNOG
Mailing-‐List
Members

TM

The
Experts
Who
The
Experts
Call™

Stevens
Stevens


Why Being a Small ISP is still Viable

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