In today’s article, I will explain what the cable and broadband franchisee business is, how we can start it and how much it costs to start it. If you want to know about the cable TV and internet distribution business, then stay read this article.
We will discuss the problem statements and take a look at investments. Moreover, if you want more information I promise to get back in a week.
Introduction to subscription business
Businesses can be classified into two broad categories basis the longevity of the transaction. When we buy an FMCG product the transaction ends the moment we complete the exchange of goods with a value. The other set is where we do not complete the transaction soon after the exchange.
Here, I am talking about subscription businesses, like Mobile Recharge, DTH, Cable TV, Membership. and broadband, etc. In our society, you will find very few traders involved with the subscription business compared to the bricks & mortar businesses that are retailing. This high affinity to traditional businesses is due to ease of doing and less complexity.
On the other hand, the subscription business has less variety and low margin, as an example, we can say mobile recharge is a subscription type of business, by selling recharge to the customer a trader earns a maximum of 5% margin. But there are the cable and broadband businesses that are exceptions due to high-profit margins and low operating costs.
Internet Service Provider & Multi-Service Operator
Today there are many ISP (Internet Service Provider)/MSO (Multi-Service Operator) companies who are providing this service to customers through a business partner (we call them cable tv operators/internet franchisees), here I propose to become a part of that partner network, be a cable tv operator/ISP franchisee.
Cable TV operators ride on MSO’s infrastructure and take the service to households, similarly, wired broadband is bringing high-speed internet to our houses through fiber connectivity either from the MSO or ISP. Now gradually the local cable operators are becoming the service provider for both.
India has experienced a many-fold increase in cable and broadband users in the last couple of years including COVID time.
Who can be a cable and broadband franchise?
Anyone, there are no eligibility criteria, the applicant must be an adult and ready to invest.
Please note the most important thing here, in this discussion I have written about MSOs too, they have both cable and broadband service whereas an ISP operates on the internet only, so my strong suggestion is to get associated with MSO rather than the ISP.
Because in the locality where fiber network to be built will get both internet customers as well as Cable-TV customers using the same infrastructure, that is a big advantage as the business getting double revenue line,
To become a part of the partner network of an MSO one must invest in building infrastructures like fiber connectivity to the customer’s premises, renting a space for a small control room, and getting the control room connected with the service provider.
Apart from this some gadgets and accessories are also required like splitters, nodes, connectors, converters, etc.
Check home based business ideas here.
Check online business ideas here.
Check small business ideas here.
Investments required to start a cable and broadband business
- OLT (Optical Line Terminal) (Rs 40K/50K)
- UPS system (Rs 40K/50K)
- FIBER Rs 10/Meter (1/2 KM)
- SFP Module minimum 4 Pc Rs 2K each
- FAT Box Rs 2K each (4/5 pieces)
- 1 Big ladder
- Safety gears for line mechanics.
The above costs are estimated for 250 connections, the moment the subscriber count goes above 250 needs to install additional OLT, SFP Module, and so on. For the control room, 60 to 80 SQFT space is enough, and a minimum of two linemen is required for every 2 KM of service.
Please avoid setting “Cable TV” only network instead be future-ready and build infra for both cable and broadband business, this will cost you 30K more.
How will you start a cable and broadband business?
- Look for a dense locality where cable connectivity is not present but demand is there. [Broadband connectivity will be very less as fiber to home trends are just speeding up]. Check whether you can start with ten subscriptions and expand up to 1K. [Before you start, please do a survey by meeting prospective customers]
- Commercial and posh residential areas are best to be picked
- Take a space to rent. A small room of 70/80 SQFT will do, the room should be well ventilated, and have space to put on an AC in the future.
- Form a company (Proprietorship/OPC/LLP/Pvt Ltd), take a PNT license, Trade license, and commercial electricity. (You may require GST in the future)
- Appoint 2 Linesmen for service and collection.
- Negotiate hard with the MSO and try to avail a good introductory offer. That will help you get new customers onboard easily. Please do not make money on customer acquisition, rather, build relationships with the customer, and earn subscription revenue every month
Hope you have understood this cable and broadband business model, you may contact any MSO, the most professional and reliable MSO is GTPL and they have a good presence across India.
Best of luck!
