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The challenging ISP Business


ISP business is not easy in the age of MTN, Glo and Airtel. In the last five years, out of 103 ISPs who received licenses in Nigeria from NCC, only 11 renewed last year. Simply, many are dying out as data prices drop in the sector. With the WIFI entrepreneurs coupled with free Google services, ISPs will see only challenging future in Nigeria.

According to him, as there is a need to check on the bigger players, the mobile network operators, they can afford to slash data prices because they have significant customer base, “however, their actions are impeding the services rendered by ISPs.”Statistics from the Nigerian Communications Commission (NCC), showed that in the past five years, the Commission had licensed about 103 ISPs nationwide, but only 10 per cent applied for renewal of the licence as at last year.

Prof. A company that operates in this sector how can they succeed, despite the challenges.

ISP business is not really a great business in Nigeria in its current form. It is a cost-plus business: you buy from someone, you add your margin. The problem is that you are also competing with the person you are buying from. Our model is to find VAS on top of this. There is a huge latent opportunity in this space but it requires a new business model. ISPs are final gateways to the consumers: they have a role. I will make a video on that model when time permits.

Please I would appreciate it if you tag me on the video at the time so I dont miss out on it. Thank you

Please I would appreciate it if you tag me on the video at the time so I dont miss out on it. Thank you

I will surely do that - team has noted your email. But let me drop this hint which I also noted in another thread.

Please note that one of the key things to look is Value-Added-Services in the ISP world. For example, ISP can power clinics on electronic medical records, IoT for tracking, etc on an enterprise level with special structure. ISPs cannot just exist on pure selling of data. That is an expired model.

Rural ISP services could broaden into support industries. Think of plans for hospitals, farming cooperatives, etc in ways that bring scale while delivering special value. The mass-market model has value but ISPs have to innovate. I do think I will like to use IoT to offer logistics, ecommerce firms, etc tracking services with structured plans and simplified system that give them value even as they pay me in bulk. The market is not for students because big telcos have eaten that market. The real future must be sector-focused with special products. So, instead of waiting for video, these are pointers. Security with IoT and tracking system is going to be huge in Nigeria. An ISP has an advantage in that space. You can use IoT for tracking inventory and helps shippers.

Please I would appreciate it if you tag me on the video at the time so I dont miss out on it. Thank you

My team will do that. Cheers

Wonderful! Prof, thank you for sharing.

Prof I want to once more thank for your far and above justice you have done to the issues I have raised around ISP business, I was actually conflicted about it before and am wiser now.

However, with your guidance I would love to look into the possibilities and if possible pursue the model you have raised.