WISP build up on a very tight budget

Hi guys,
I’m thinking of a building a WISP using Mikrotik RF integrated solutions.
I have good background in RF ,wireless, networking , and system administration.
The problem is lack of fund for such a start up project.
I’m thinking of going with 2.4GHz radios for AP base station and CPEs.
I don’t mind to invest in base station AP for any potential expansion in the future my problem lies within the CPE unit SXT Lite2 seems to be good but still pricy at 40 USD or less for most of my customers I’m looking for something cheaper and up to the task.
What is your recommendation for me.

You have a technical background which is a big advantage in this business and this is the key word “Business”, I can only speak for myself but I do remember words of advice from a supplier
"Ok - the budget you have in mind, multiply that by 10 and then re-consider your business plan? “
At the time I thought he was just trying to put me off as he was involved with another WISP ,but on hindsight he was correct?
I equally don’t want to put you off but I would be concerned if I had to deal with customers who could not pay $40 would they also have difficulty in paying the monthly service rental?

Yes I know your point of view,A paying customer is not the problem when there is a need there is a paying customer
Put in the picture DSL links availability and wired networks that shares single and multiple DSL links and the final subscriber pays 3.5 USD per month or even much lesser.
So is there any CPE that is cheaper than SXT Lite2 and up to the task? it might be any other brand

Any suggestions?

Old junk from the ebay maybe?

I have considered buying used CPE units but if there are quantities within good price which worth shipping across countries.
But what about my question , Does anyone knows a cheap CPE or even soho wireless router with reasnoable EIRP power that work perfectly with mikrotik radios

I would be very cautious about purchasing old CPE’s unless surplus stock ?
Maybe you should be pointing out what in what climate you will be using the CPE’s as for me I have to ensure there is no water ingress, so SXT are not suitable for my location and have to have IP65 spec on the CPE’s.

Simple advice. A business which does not refinance this 40 USD/Customer is not a business. With CPEs this cheap the CPEs are the smaller part of the business cost.

Hi,

It would be useful if you could at least explain why any subscriber would be willing to utilise your service if the competition, if I understand correctly, already offer DSL service at 3.5USD or less?

If your potential subscribers are in areas that are not served by DSL/Cable or other already established providers, they should be at least prepared to pay a premium for just being able to get connected.

Just my POV.

Rgds,
Mark.

As I said earlier there is a competition from DSL providers and networks that relies on grouping multiple DSL links the final customer sometimes pays less 3.5 USD per month.

Your point of view is not always true . Let me prove I’ll give you a fictional scenario.
A WISP can operate on single WAN link which it cost let us say 100USD per month , a single AP for an example Metal2SHPn with either Omni or single sector antenna ( Metal2SHPn cost under 100 USD + antenna let us say under 200 USD ) Metal2SHPn came with MK license level 4 which permits up to 200 online user.
base station cost around 300 USD + monthly wan fees 100
for CPE’s let us assume we have 200 client let us assume Sxt Lite is the CPE which is 40USD.
200 Sxt Lite CPE * 40 USD = 8000 USD you see the cost for the end user equipments is too high
In theory the WISP can generate revenue from this solution as long as the WAN link can handle those users.
Is there any further suggestions or recommendation for a cheap CPE

A 256Kbps DSL link cost about 6.5USD per month which is not suitable for sharing with nearby neighbors it’s only a single user connection.
For an example a 1 Mbps connection cost about 20 USD which is suitable for sharing with nearby neighbors for an example 5 users each of them pays 4 USD per month for the household who pays for the DSL link no proper bandwidth utilization if 1 user download with maximum speed then it will affect the others.
I’m trying to offer a service will be dedicated for only one user per household with proper bandwidth that he will control it completely.

(1) Build your network – “ you can’t sell unless you have a good and reliable signal”

(2) The Client numbers per AP depends on bandwidth they use, but working on say 1Mbit per CPE a AP can deliver 40Mb 802.11a – ( not sure on 802.11n using NV2) throughput so for 200 clients that’s 5 AP sectors and not 1 X Metal2SHPn with either Omni or single sector antenna (I wish it was?)
Usually one location does not serve all 200 clients so maybe 3 sites are required with cross coverage layout being used and you may have to rent these sites with electricity bill(s) cost extra …….

(3) You don’t budget to purchase 200 CPE’s at once, but more like first purchase 20, install them and get paid and then purchase 20 more but this time the cost you have to pay should be reduced by the first 20 installation fee……….

For 100 USD per month what type and bandwidth connection can you get?

This makes it totaly clear. You should not try to start this business. Your calculation is financial and technicaly far away from beeing realistic. Invest some time in learning and planing.

The given example was totally fictitious not a realistic one . I have given it as a proof of the concept that the end user equipments sometimes cost a lot rather than central system.

Your approach for buying small quantities of CPEs , install them and get paid is the approach that I was going to follow from the beginning but the CPE still pricy at 40 USD the customer will not pay a 40USD for such device when he can get 20 meter of Cat5 cable for 4USD and connect it to his neighbor router or switch and pays his neighbor a 4USD per month for the connection you the comparison.

For 100 USD per month what type and bandwidth connection can you get?

You can get Kbps 8192 DSL link for around 100USD

Maybe you are right but I see the market can accommodate more competitors as there already many tiny WISPs operate here and get paid as well

You are omitting a lot of costs in your model. Service, Payment, … And with the given parameters (Small DSL based uplink, too many CPEs/AP) you would have a lot of service and angry not paying customers.
For 4USD/Month we could not provide any service. We would pay our customers.

I’m not omitting those variables in my research I’ve spent hours and hours in studying the possibilities for such project in order to succeed fail is not an option as I will fund it with all I have got.
As I’ve said the given example above was totally fictitious I don’t intend to serve 200 client for now but bulk clients will come in the future .
If follow the thread from the very beginning my question is all about building WISP on cheap CPE devices also I have said I don’t mind to invest in base station for any possible expansion in the future.
I’m looking for CPE devices similar to Zylog System http://wi5.in/cp.html

If customers cannot or will not pay 40 USD for a CPE and could run 20 meters of meters of cat5 and pay neighbor 4 USD, then you don’t have a potential market for your service using 1 x CPE per household, but there is always a market you just have to plan a different approach.

From reading 20meters to next house, this would indicate the houses are close together, then why not install 1 X CPE and use a 4 port switch and cable to 4 houses, will reduce the cost to each house, set this CPE to have 4Mbit bandwidth(assuming you sell 1Mbit per house) and can be easily controlled by PPPoE & simple queues on the CPE,

Kbps 8192 DSL link for around 100USD
Contention ratio and normal internet usage will probably result in approx. 50 CPE’s per 8192 DSL line

I already considered this as an alternative option the drawback in this option is that sharing the CPE connection over switch lead me to electricity problem what if the household that had the CPE or the switch turn down electricity for any reason.
Let us get back to my question again is there any cheap alternative like this http://wi5.in/cp.html

How much will a customer pay?

Will your service be better than is currently available in this area?

Is the current DSL service reliable and not highly contented?

And what will you do if they share a single connection?

I like many other Wisp’s have to compete in DSL areas where the customer receives in the post a Wi-Fi router once they have signed a contract, they have internet access in most cases for no installation fee?

How much will a customer pay?

It’s difficult to answer this question now , But I’m planning to offer a speed/price dependent service

Will your service be better than is currently available in this area?

I’m looking forward to compete with networks that shares single DSL or multiple DSL links and other WISP.

Is the current DSL service reliable and not highly contented?

To some extent yes it’s reliable and offer up to 98% / year availability

And what will you do if they share a single connection?

What do you mean exactly ?