Industry Analysis & Industry Trends
The Global Internet Service Providers industry remains one of the gastest-growing industries in the global economy. Explosive growth is being propelled by rapid advancements in internet-related infrastructure and services, particularly in developing economies where internet penetration remains low. Although developed markets such as Europe, North America and North Asia continue to dominate the industry, internet penetration in emerging markets has increased rapidly in recent years, despite competition from mobile broadband, which is not included in this industry. Over the next five years, industry revenue is expected to continue growing strongly, though competition will put pressure on profit and encourage greater consolidation... read more
Starting a New Business
The industry is characterized by medium but increasing barriers to entry. Smaller ISPs can often purchase data capacity from larger ISPs or internet backbone providers at wholesale prices and then sell these services to consumers. This is often the case with smaller companies, which do not have the resources to invest in infrastructure and networks. However, smaller ISPs are usually subject to lower margins and often depend on regulators to set competitive access pricing.
ISPs must carry a telecommunications license to operate in most countries, and some governments may limit the number of licenses available to potential entrants. However, in many countries it is not difficult to obtain and operate as an ISP... read more