Industry Analysis & Industry Trends
Industry operators provide internet access via wired networks. Some internet service providers (ISPs) offer extra services such as web hosting, web page designing and connectivity consulting. ISPs may provide local or national coverage to retail clients or deliver backbone services, except telecommunications carriers, to other ISPs. Over the five years to 2014, rapid advancements in internet-related infrastructure and services led to explosive growth for the industry. Going forward, growth will remain strong, as the internet will become an even greater part of the daily lives of businesses and consumers... read more
Starting a New Business
The barriers to entry for this industry are considered to be medium, but increasing. Small ISPs are able to resell capacity from infrastructure owners and can target a particular geographic or market segment successfully. By reselling services, they are able to avoid investing in costly infrastructure that is often characterized as having a fairly short life cycle. Though resellers are able to enter and exit the market fairly easily they are subject to lower margins and often depend on regulators to set access pricing.
In some countries ISPs require a license to operate. The government may limit the number of licenses on offer. Having said this, in many countries it is not difficult to obtain and operate as an ISP... read more