Broadband Satellite Internet as a Small Business Opputunity

Though DSL and Cable internet connection are ubiquitous is cities, broadband internet connection has not penetrated the rural and far flung areas. That does not mean there is no demand for high speed internet connection in those areas.

The only broadband option available in those areas is satellite internet.

Cost has been a major factor in the slow acceptance and growth of satellite internet in rural areas. There are two components of broadband satellite internet cost. First the hardware cost, which is the cost of the satellite dish and equipment. This is an upfront cost of around $500. Then the monthly cost of the service from a service provider, which is around $60.

The initial cost of satellite internet being so high, it is imaginable that not many consumers can afford to have a broadband connection at home.

Demand for high-speed internet connection in far flung areas is driven not only by the residents of that area, but also by visitors who visit those areas for business or for pleasure.

Satellite Internet as a Business Opportunity-

Satellite internet can be easily adopted by local small businesses as a viable business opportunity in areas with little or no broadband access but with a high outside visitor base.

Satellite internet kiosks can be set up with a small investment in camping areas, national parks, ski resorts, gas stations in or around such areas. The investment involved to set up such kiosks will be as follows.

Initial Cost

1. Cost of PC $400.00

2. Billing/Time management Software $200

3. Satellite internet Equipment Cost $500.00

Total one time Cost $1100

Monthly Cost

1. Satellite Internet connection $100.00

2. Maintenance $100.00

Total $200

1st Year Total Cost = $1100 + 12 x $200 = $3500.

The above cost break up assumes that, internet kiosks will be set up inside already established business locations and there will be no real estate investment required.

Revenue Possibility-

Internet access can be sold on a per hour basis. If a user/customer can be charged $5 per 30 minutes of high-speed internet access, the kiosk will need to sell only 35 hours of internet access during the 1st year to recover the initial investment and break even.

Many locations, like ski areas, national parks, camp sites where city dwellers visit for pleasure will have enough customers willing to spend five dollars to catch up with their work or personal emails, check their voip voice mails, find driving directions or a pay a credit card bill they forgot to pay.

With the above cost and revenue possibility break up, it is possible to break even in a couple of months and then enjoy a steady additional stream of revenue after that.

Satellite internet connections can be bought from providers like HugesNet, a leading provider of Broadband Satellite internet connections.

Source by Amit Mukh