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Internet Company Business Plan Template

Written by Dave Lavinsky

internet cafe business plan

Internet Company Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their internet companies.

If you’re unfamiliar with creating an internet business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write an internet business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is an Internet Business Plan?

A business plan provides a snapshot of your internet business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for an Internet Provider

If you’re looking to start an internet business or grow your existing internet company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your internet business to improve your chances of success. Your internet business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Internet Businesses

With regards to funding, the main sources of funding for an internet business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for internet companies.

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How to write a business plan for an internet business.

If you want to start an internet business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your internet business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of internet business you are running and the status. For example, are you a startup, do you have an internet business that you would like to grow, or are you operating a chain of internet businesses?

Next, provide an overview of each of the subsequent sections of your plan.

  • Give a brief overview of the internet industry.
  • Discuss the type of internet business you are operating.
  • Detail your direct competitors. Give an overview of your target customers.
  • Provide a snapshot of your marketing strategy. Identify the key members of your team.
  • Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of internet business you are operating.

For example, you might specialize in one of the following types of internet businesses:

  • WISP (wireless internet service provider): This type of internet business is often used to provide internet service to meet basic household needs in rural communities.
  • Wholesale internet provider: This type of internet business involves buying white label internet lines from large internet service providers (ISPs) such as AT&T or Frontier to then rebrand and resell to end-users.
  • Fiber broadband internet provider: This type of internet business specializes in providing service through fiber optic cables. Many customers prefer fiber over other types of internet because it is faster and supports heavy use.
  • Digital Subscriber Line (DSL): This type of internet provider connects users to the internet through a phone line. A significant portion of the U.S. population has access to this type of service.
  • Satellite internet provider: This type of internet business provides internet service via satellite and, although it is slower and less reliable than other types, it is often the only option for customers in very rural areas.

In addition to explaining the type of internet business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

  • When and why did you start the business?
  • What milestones have you achieved to date? Milestones could include the number of customers served, the number of geographical locations served, and reaching $X amount in revenue, etc.
  • Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the internet industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the internet industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your internet business plan:

  • How big is the internet industry (in dollars)?
  • Is the market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key suppliers in the market?
  • What trends are affecting the industry?
  • What is the industry’s growth forecast over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential target market for your internet business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your internet business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of internet business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other internet businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other types of internet service providers and large corporations that provide internet service such as AT&T or T-Mobile. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

  • What types of customers do they serve?
  • What type of internet business are they?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

  • Will you make it easier for customer to acquire your product or service?
  • Will you offer products or services that your competition doesn’t?
  • Will you provide better customer service?
  • Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a internet business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of internet company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide cable, satellite, or fiber internet?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your internet company. Document where your company is situated and mention how the site will impact your success. For example, is your internet business located in a busy retail district, a business district, a standalone office, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your internet marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

  • Advertise in local papers, radio stations and/or magazines
  • Reach out to websites
  • Distribute flyers
  • Engage in email marketing
  • Advertise on social media platforms
  • Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your internet business, including answering calls, planning marketing and sales campaigns, billing customers and collecting payments, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to acquire your Xth customer, or when you hope to reach $X in revenue. It could also be when you expect to expand your internet business to a new city.

Management Team

To demonstrate your internet business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing internet businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing an internet business or successfully running a small WISP.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you use a three-tiered subscription model, and will you offer a free month to new subscribers? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your internet business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a internet business:

  • Cost of equipment and office supplies
  • Payroll or salaries paid to staff
  • Business insurance
  • Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or testimonials from happy customers.   Summary Writing a business plan for your internet business is a worthwhile endeavor. If you follow the business plan outline above, by the time you are done, you will truly be an expert. You will understand the internet industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful internet business.  

Internet Business Plan FAQs

What is the easiest way to complete my internet business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your internet business plan.

How Do You Start an Internet Business?

Starting an internet business is easy with these 14 steps:

  • Choose the Name for Your Internet Business
  • Create Your Internet Business Plan
  • Choose the Legal Structure for Your Internet Business
  • Secure Startup Funding for Your Internet Business (If Needed)
  • Secure a Location for Your Business
  • Register Your Internet Business with the IRS
  • Open a Business Bank Account
  • Get a Business Credit Card
  • Get the Required Business Licenses and Permits
  • Get Business Insurance for Your Internet Business
  • Buy or Lease the Right Internet Business Equipment
  • Develop Your Internet Business Marketing Materials
  • Purchase and Setup the Software Needed to Run Your Internet Business
  • Open for Business

  OR, Let Us Develop Your Plan For You Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how a Growthink business planning consultant can create your business plan for you.   Other Helpful Business Plan Articles & Templates

Business Plan Template For Small Businesses & Entrepreneurs

Internet Provider Business Plan Template & Guidebook

Starting an internet provider business is a complex undertaking, requiring a great deal of research and preparation. Having the right plan in place can make all the difference in determining your business's success. The #1 Internet Provider Business Plan Template & Guidebook is the perfect resource for creating a detailed and comprehensive plan that will ensure your company's long-term stability and success. With its easy-to-follow instructions, proven strategies, and insightful advice, this guidebook is essential for any entrepreneur looking to start an internet provider business.

Nick

Get worry-free services and support to launch your business starting at $0 plus state fees.

  • How to Start a Profitable Internet Provider Business [11 Steps]

How to Write a Internet Provider Business Plan in 7 Steps:

1. describe the purpose of your internet provider business..

The first step to writing your business plan is to describe the purpose of your internet provider business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a internet provider business:

Our mission at [Company Name] is to provide high-quality and high-speed internet services to our customers in a timely, reliable, and cost-effective manner. We are committed to being an industry leader in customer service, providing exceptional customer experiences while using our innovative technology solutions to anticipate and exceed customer needs.

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2. Products & Services Offered by Your Internet Provider Business.

The next step is to outline your products and services for your internet provider business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

  • What is my business?
  • What are the products and/or services that I offer?
  • Why am I offering these particular products and/or services?
  • How do I differentiate myself from competitors with similar offerings?
  • How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

Image of Zenbusiness business formation

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your internet provider business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your internet provider business includes the following elements:

Target market

  • Who is your target market?
  • What do these customers have in common?
  • How many of them are there?
  • How can you best reach them with your message or product?

Customer base 

  • Who are your current customers? 
  • Where did they come from (i.e., referrals)?
  • How can their experience with your internet provider business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

  • How does it work, what features does it have, and what are its benefits?
  • Can anyone use this product or service regardless of age or gender?
  • Can anyone visually see themselves using this product or service?
  • How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

  • Which companies are competing with yours today (and why)? 
  • Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
  • What specific advantages does each competitor offer over yours currently?

Marketing channels

  • Which marketing channel do you intend to leverage to attract new customers?
  • What is your estimated marketing budget needed?
  • What is the projected cost to acquire a new customer?
  • How many of your customers do you instead will return?

Form an LLC in your state!

broadband internet business plan pdf

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

  • The equipment and facilities needed
  • Who will be involved in the business (employees, contractors)
  • Financial requirements for each step
  • Milestones & KPIs
  • Location of your business
  • Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a internet provider business?

To run an Internet Provider business, the following equipment, supplies, and permits may be needed:

  • High-speed internet connection
  • Servers and servers hardware
  • Routers and networking hardware
  • Software licenses
  • Wireless network equipment
  • Specialized security hardware or software
  • Data center or leased space
  • Telecommunication license

5. Management & Organization of Your Internet Provider Business.

The second part of your internet provider business plan is to develop a management and organization section.

This section will cover all of the following:

  • How many employees you need in order to run your internet provider business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
  • The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
  • How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Internet Provider Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a internet provider business varies based on many different variables, but below are a few different types of startup costs for a internet provider business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your internet provider business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your internet provider business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your internet provider business plan:

  • Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
  • Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
  • Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
  • Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
  • Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
  • Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

broadband internet business plan pdf

Frequently Asked Questions About Internet Provider Business Plans:

Why do you need a business plan for a internet provider business.

A business plan for an internet provider business is essential for helping to define the services and products you will offer, establishing pricing objectives, identifying your target customers, and setting goals for the future. The plan also provides a roadmap for managing operations, recruiting and training staff, obtaining financing, developing marketing strategies, and increasing sales. Additionally, a business plan can help you attract investors or secure a loan from a lender.

Who should you ask for help with your internet provider business plan?

It is recommended to work with an experienced business consultant or attorney to help you create a comprehensive and detailed internet provider business plan. A business consultant can provide invaluable guidance, especially when it comes to writing a business plan that meets the requirements of potential investors and lenders. Furthermore, an experienced attorney can provide insight into any legal matters that may be involved in setting up your internet provider business.

Can you write a internet provider business plan yourself?

Writing a business plan for an internet provider can be a difficult undertaking, as it requires an understanding of many different aspects of the business, including market analysis, competitive research, cash flow projections, and marketing plans. While it is possible to write a business plan for an internet provider yourself, it is recommended that you seek professional assistance from an experienced business plan consultant. A qualified consultant can provide you with the expertise and guidance needed to develop an effective and comprehensive business plan for your internet provider.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

  • Business Plans Handbook
  • Business Plans - Volume 09
  • Internet Communications Service Provider Business Plan

Internet Communications Service Provider

BUSINESS PLAN     APPIAN WAY COMMUNICATIONS NETWORK, LTD.

119 Melton Boulevard Houston, Texas 77032

Appian Way Communications Network is a rapidly growing ISP and systems integrator which intends to become a leader in providing businesses, educational institutions, and governmental organizations with high-quality, cost-effective business solutions. Specifically, it helps customers take full advantage of the Internet without having to develop and maintain their own Internet technology, or hire and retain an extensive Internet staff. This business plan raised over $2 million for the company, and was successful for getting its sales up to $16 million in less than 2 years.

INTRODUCTION

Industry background & opportunity, the appian way communications network strategy, growth strategies.

  • SALES & MARKETING

COMPETITION

Business principals, financial projections.

Appian Way Communications Network is a rapidly growing ISP and systems integrator that targets middle-market businesses, educational institutions, the hospitality industry, and government organizations.

Our primary services include:

  • dedicated Internet access through our highly reliable network, which provides our customers with Internet access that is "always on"
  • wireless data services up to 5MB
  • co-location services, in which we provide secure space to house customer-owned Internet equipment
  • managed application hosting, in which we provide a server for the customer's exclusive use to install any software application the customer chooses
  • custom Internet appliance solutions
  • data center services include, among others, our co-location services and our managed application hosting services. These are similar to the services offered by computer service providers—or CSPs—which house, maintain, and supply power to their customers' Internet equipment.

We believe our growth and success in serving our target customer base is the direct result of our competitive strengths, including:

  • a network that permits our customers to bypass congested Internet exchanges and access points and avoid Internet exchange breakdowns, increasing the speed and reliability of our customers' Internet connection
  • Internet access that we can tailor to meet each customer's needs
  • knowledgeable and responsive customer support by our network experts
  • business Internet solutions that allow our customers to outsource a significant portion of their Internet technology and staff
  • a senior management team with more than 20 years of combined experience in designing, implementing and managing teleCommunications Network.

The Internet was originally conceived as a communications tool to be used by a limited number of researchers and academics. Today, it has escalated into a web of approximately 70 million interconnected users. The Internet has evolved from a static, text-based medium to a graphically rich communications infrastructure. The creation and rapid development of the desktop computer simplified access to the Internet, encouraging consumers to seek information through this new medium.

As the breadth of the information expanded, the Internet's applications and users grew as well. Businesses began investigating the potential of the Internet to reach the growing volume of customers on the Internet. To capture this emerging customer base, businesses needed a presence on the Internet and applications to facilitate electronic commerce.

The Internet Infrastructure

The Internet has emerged as a significant global business communications medium, enabling millions of people to communicate, publish and retrieve information, and conduct business electronically. A multi-tiered system of local, regional, and national ISPs has evolved to provide access to the Internet, transport data and, more recently, to provide value-added Internet services. ISPs exchange data in packets generated by their customers through direct or indirect connections with other ISPs. To meet the needs of ISPs to exchange data at centralized points, large ISPs have established a series of central Internet exchanges, which facilitate the transmission of data.

Despite the relatively centralized nature of these exchange points, data traveling across the Internet often makes multiple connections or "hops" through a variety of local, regional, and national ISPs, as it moves from the originating site, through a central exchange point, and to its final destination. While these centralized points have the advantage of having dozens of ISPs interconnected and exchanging Internet data, they increasingly face congestion problems that cause significantly longer response times for a user.

In addition, because data traveling across the Internet must often make connections through multiple ISPs, the failure of a single ISP's Internet connection can interrupt a user's Internet transmission. Many ISPs have sought to improve data transmission reliability and speed by establishing private "peering connections" and network access points. This permits the ISPs to directly exchange Internet traffic while reducing the number of hops in their Internet connection and avoiding the often congested major Internet exchanges.

The Growth of the Internet

The Internet has experienced tremendous growth and has become a global medium for communications and commerce. According to International Data Corporation (or IDC) the ISP market in the United States reached $10.7 billion in 1998, representing a 43 percent increase over 1997 revenues. Business-related Internet operations generated approximately $2.9 billion of the $10.7 billion aggregate 1998 ISP revenue. Moreover, IDC predicts revenues generated by business-related ISPs will increase by 75.9 percent to $5.1 billion in 1999 and reach $12 billion by 2003, growing at a compound annual growth rate of 32.5 percent from 1998 to 2003. In addition, IDC estimates that the total value of goods and services purchased over the Internet will increase from $50.5 billion in 1998 to approximately $734 billion by the end of 2002.

Trends contributing to the growth of the business-related Internet market include:

  • the increasing availability of high bandwidth capacity
  • the proliferation of Internet access and ancillary Internet services
  • the competitive need of small and mid-sized businesses to automate key business processes
  • the convenience and speed of conducting business over the Internet
  • the availability of Internet-enabled packaged software applications
  • an increase in the amount and diversity of business and educational information available on the Internet and the web
  • recent enhancements in the Internet's security and reliability

The demand generated by these new dynamics, combined with business customers' high quality service requirements, has fueled the growth of dedicated access connections and other Internet-related products and services for businesses.

Web Hosting and Co-Location

To realize the opportunities of the Internet, companies must develop an attractive Internet presence using a website that is easily accessible to potential customers. However, rapid Internet and technology growth have outpaced the ability of many businesses to develop the necessary internal information technology knowledge and tools.

A variety of companies, including web hosting companies and ISPs, have begun to focus on providing Internet co-location and other web-related services to their customers. Typically, companies offering these services build networks of numerous geographically dispersed data centers to be physically close to their customers. This reduces the cost of the services and the risk of transmission delay and data loss as data travels through multiple network connections. According to IDC, corporate Internet access and value-added services, such as web hosting and co-location, are the fastest-growing services offered by ISPs. Corporate access revenue and value-added services revenue were $5.9 billion in 1998 and are expected to grow to approximately $25 billion by 2003.

The Trend Toward Outsourcing of Internet Operations

Many businesses lack the resources and expertise to cost-effectively develop, maintain, and continually upgrade their network facilities and systems. Also, individuals with the expertise to establish and maintain sophisticated Internet technology are in great demand and their services are costly. Furthermore, businesses often find it difficult to keep up with new technologies and to integrate them into their infrastructure. Even if enterprises possess the necessary resources to accomplish these tasks, we believe that they often determine that this ongoing and significant investment in their own Internet technology and personnel is an inefficient use of their overall resources. Consequently, many enterprises are seeking outsourcing arrangements for their Internet needs. These arrangements allow enterprises to focus on their core operations, enhance the reliability and performance of their websites and reduce their Internet-related operating expenses.

The Convergence of Services in the Communications Industry

The traditional divisions within the communications industry are disappearing due to new regulations, customer demand, and technology evolution. Regulatory changes in the United States and around the world have opened the communications industry to increased competition. In particular, the Telecommunications Act of 1996 provides for comprehensive reform of telecommunications laws in the United States and is designed to foster competition in the local telecommunications marketplace.

With greater competition in the communications industry, customers have increasingly demanded that communications providers offer multiple services at lower prices. These services may include local and long-distance calling, wireless, Internet access, and high-speed dedicated lines. Also included are ancillary services such as single bill presentment, call forwarding, caller identification, voicemail, and similar services.

We believe that these integrated providers will increase efficiency in the deployment of communications services by selling multiple services in bundles over a single connection.

Enhancements in switching technologies are beginning to permit the delivery of numerous services over a single network, offering cost savings over traditional networks which were designed to deliver a limited number of services. We believe that as competition increases, providers who offer a range of services in a cost-effective manner will be best positioned to capitalize on the convergence of services within the communications industry. These providers will offer a well-designed package of services they can tailor to satisfy each customer's needs.

We intend to become a leader in providing businesses, educational institutions, and governmental organizations with high quality, cost-effective business solutions that will allow our customers to take advantage of the Internet without having to develop and maintain their own Internet technology and hire and retain an extensive Internet staff. To achieve this objective, we intend to continue to rely on the following core elements of our business strategy:

Providing Highly Reliable Internet Access

We intend to continue increasing the capacity, fault-tolerance, and geographic reach of our network to support customer growth. Our network is designed to respond quickly, be secure, and provide continuous availability to our clients. We can deliver our services to customers throughout the world from our Chicago data center. We connect our customers' Internet traffic to four very large ISPs who provide access to the central Internet exchanges. Our innovative network architecture often permits our customers' Internet traffic to bypass congested points on the Internet and avoid breakdowns at the Internet exchanges, which increases the speed and reliability of their Internet connection. We proactively manage and monitor traffic on the Internet and reroute traffic to provide high quality access.

Increasing the Percentage of Our Revenues from Value-Added Data Center Services

We intend to generate a higher percentage of our revenues from our value-added data center services, which typically provide higher margins than our Internet access services. We believe that value-added services are among the fastest-growing segments of the Internet marketplace. Our data center services provide a variety of options to our customers, and we work with their management and information technology teams to analyze their varied Internet service needs and choose the option that best addresses those needs.

We have offered our co-location services since September 1996, and as of December 1, 1999, we had 36 co-location customers. We have offered our managed application hosting services since September 1999, and, as of December 1, 1999, had six managed application hosting customers. We intend to emphasize our managed application hosting business in our marketing, and we have allocated greater resources to developing these services.

Targeting Middle Market Business, Educational, and Governmental Customers

The Internet service needs of middle market businesses, educational institutions, and governmental organizations differ significantly from those of the typical individual consumer because Internet access and related services are often critical to enterprise customers' businesses. They demand dedicated, high-speed Internet access and knowledgeable, prompt and responsive customer support. When marketing our services, we focus on creating the best solution to meet our customers' needs and not simply promoting our technology. Compared to individual consumers, enterprise customers are usually less price sensitive and more willing to pay a premium for custom solutions that meet their needs. As a result, we believe that providing services to enterprise customers generates greater revenues and higher margins per customer than servicing individual consumers.

Providing Superior Customer Support by Network Experts

Enterprise customers seeking broader access to the Internet increasingly face significant technological challenges, in part because the Internet is an evolving and rapidly growing medium. In addition, as new and more complex applications for the Internet are developed, we believe that even sophisticated users will increasingly encounter problems. Unlike many other ISPs who outsource their technical support to independent call centers, the Appian Way Communications Network, Ltd., professionals who implemented our network are among those who respond to and resolve customer inquiries and problems. We intend to continue providing superior customer support by hiring only customer support personnel who can demonstrate the ability to understand and manage our network. We believe that our strong emphasis on the superior customer support provided by our network experts has resulted in a high level of customer satisfaction and significant subscriber growth from customer referrals.

We intend to further develop our business by focusing on the core elements of our business strategy discussed above and pursuing the following key growth strategies:

Expanding Our Network Nationally and Internationally

We intend to build more data centers and POPs in the United States and pursue international opportunities. We believe that having a number of widely distributed and networked data centers and POPs improves network performance and reliability. We intend to add data centers in the following metropolitan areas by the end of 2000: Washington, D.C., Houston, San Francisco, Cincinnati, New York, Seattle and Miami. We intend to establish data centers in Las Vegas and Paris by the end of the first quarter of 2001.

Before purchasing or leasing a new data center, we will evaluate the market opportunity in the proposed location by analyzing Internet usage statistics and specific economic criteria as well as pre-selling our services in that market. For any given location we expect to require at least six months to select the appropriate site, construct or acquire the necessary facilities, install equipment, and hire the operations and sales personnel needed to conduct business at the site. We have already identified suitable sites for some of our proposed data center locations. We also intend to supplement the data center expansion by establishing POPs throughout the United States and at various international sites to aggregate and transport traffic to and from our planned data centers.

Broadening Our Marketing Activities

We intend to expand our marketing efforts to increase our customer base. We also intend to increase market awareness of our name and our commitment to reliable service and superior customer support. Therefore, while continuing to encourage referrals from existing customers, we are increasing print publication, radio, outdoor, and direct mail advertising and telemarketing in targeted metropolitan areas.

Pursuing Strategic Sales and Distribution Alliances

We are pursuing strategic sales and distribution alliances in markets where there are substantial opportunities to attract new customers. We believe that establishing relationships with businesses that provide products and services which complement our service offerings will permit us to use their expertise and market access, while lowering our costs of entering new markets. These relationships will also give us additional customer referrals and new solutions to offer existing customers.

For example, we currently obtain customer referrals through our Valued Internet Partner, or VIP program, in which we pay our partners a fee for referring new customers who ultimately purchase our services. We will also pursue strategic alliances with value-added resellers or other authorized partners through our Appian Way Affiliate Partner (or AWAP) program, which permits others to resell our services directly to customers in specified markets. We intend to further expand our customer base by establishing additional distribution relationships with network integrators, value-added resellers, system vendors, consulting companies, and other ISPs.

Engaging in Strategic Acquisitions

We will continue to consider acquisitions of strategically located operations and customer lists and associated customer accounts. In addition, we may consider acquisitions of businesses, including other ISPs, with complementary products, services, or technologies. We may also consider acquisitions that can provide personnel who augment our team of network experts.

Eventually Becoming an Integrated Communications Provider, Offering Both Voice and Data Services

We plan to pursue a long-term strategy of providing a complete portfolio of voice and data communications services. To achieve our goal, we plan to become a competitive local exchange carrier, or CLEC, which would permit us to provide voice and other data services to complement our current services. We believe that technology advancements and customer preferences are driving the convergence of communications services toward service providers who can offer multiple communication services through a single network. We also believe that to remain competitive in the face of these changes, we must eventually become a single-source provider of voice and data communications services.

We create tailored solutions for our customers based on their business and technical requirements, modifying these solutions as our customers' needs evolve. Unlike many other ISPs that outsource their technical support to independent call centers, our highly reliable services are supported by our knowledgeable and responsive network experts, some of whom are the same professionals that implemented our network.

Our primary services include dedicated Internet access, co-location services, and managed application hosting. We also offer web hosting, e-mail services, and domain name services.

Our customer contracts require us to provide our services for a one-year, two-year, or three-year term and contain, among other things, a limited service level warranty related to the continuous availability of service on a 24-hours-per-day, seven-days-per-week basis, except for scheduled maintenance periods. This warranty provides a credit for free service for disruptions in our Internet access services. At the end of the term of a contract, a customer may elect to extend the contract's term on a month-to-month basis. Any change or upgrade in service, however, typically requires a new contract for a new term.

Internet Access

Our Internet access services are designed to deliver the ease of expansion, high availability, and performance required by moderate to high volume Internet operations that are central to a customer's business.

Co-location

Through our co-location services, we provide secure space to house customer-owned Internet equipment. Based upon their business and technical requirements, customers may select from shared cabinet facilities, exclusive cabinets, or custom-built rooms with additional security features. All co-location facilities include dedicated electrical power circuits to ensure that we meet each customer's power requirements. Because the Internet operations of our co-location customers frequently require hardware and software upgrades, we give customers unlimited but secure access to their leased co-location space. Additional space, electrical power, and Internet services can be tailored to meet our customers' needs.

Our Trenton, New Jersey, data center houses the computers that operate the core functions of our business, including communications equipment, data storage and retrieval systems, security software and hardware, and related customer support. Our data center provides customers with a secure, climate-controlled facility that they cannot readily or inexpensively create at their own place of business. The data center contains:

  • a power supply with a back-up generator
  • fire suppression and containment capabilities
  • raised floors
  • fully redundant HVAC
  • high levels of physical security

We offer the following co-location services:

  • Switch Hotel —A dedicated, enclosed custom-built room with separate dedicated power circuits, providing additional security via key-card entry, access barriers, motion camera and tiles bolted to the floor.
  • Cabinet Co-Location —Mid-level service providing an exclusive cabinet for the customer. This is an economical solution for customers co-locating multiple servers.
  • Server Co-Location —Entry-level service providing an economical solution for customers co-locating a single server. The customer's server shares space in a cabinet with the servers of other customers.

We intend to open new data centers in Washington, D.C., Houston, San Francisco, Cincinnati, New York, Seattle and Miami before the end of 2000. We believe our data centers will be an important factor in attracting customers and marketing our data center services.

Managed Application Hosting

Our managed application hosting service, which we first introduced in September 1999, provides a server for the customer's exclusive use to install any software application the customer chooses. In addition, we will provide all required maintenance on the server hardware. This service, which is similar to the services being offered by computer service providers (CSPs) is targeted to businesses with high volumes of Internet traffic and with Internet-based applications and web services that are extremely important to their daily operations.

Unlike typical web hosting operations that host multiple customers' websites on a single server, we provide our managed application hosting services with only one customer per server. As a result, a customer need not be concerned about how its actions or applications might impact other customers' applications housed on the same server, or how its server might be affected by other customers' actions or applications.

Our managed application hosting services offer a suite of applications from leading software vendors that is designed to meet the Internet operations needs of middle market companies. We also offer proprietary e-commerce and web development software as additional options for our managed application customers. We presently offer these software products only in conjunction with our managed application hosting services. We implement the applications selected by the customer in our data center, configure them to meet the needs of the customer, and package them with a server, security, Internet access, back-up, and operational support. A customer may also use software applications it obtains from others on the server we provide to the customer in our data center.

Our managed application hosting services are compatible with the products of many leading hardware and software system vendors, including Cobalt Networks, VA Linux Systems, Hewlett-Packard Company, Sun Microsystems, Silicon Graphics, Microsoft Corporation, and Macromedia Corporation. This multi-vendor flexibility enables our customers to select their own technical solutions and to integrate their Internet operations with their existing information technology. We offer our customers four different levels of managed application hosting service that range from simple to comprehensive solutions, each of which can be tailored to meet the specific needs of a given customer. In addition, our customers can augment their services with hardware or software that we provide or software that they purchase directly from others.

The Portable, Instant Internet

Ever think about using the Internet "on the fly" to look up information or send a quick e-mail? How many times have you not gone online because of the inconvenience of sitting down at your PC, turning it on, waiting for it to boot, clicking on an ISP icon, and waiting again for your modem to dial in and connect?

But imagine simply picking up a device the size of a clipboard, switching it on, and being instantly online from the comfort of your couch, kitchen table, or backyard lounge chair. What if you could access the Internet when you wanted, where you wanted, without using a PC or an appliance that competes with your TV program?

A Powerful Concept for Portable Access

Using the National Semiconductor GEODE™, Appian Way Communications Network has developed AXCESS-NOW™, a working prototype for a powerful, convenient Internet access device that can make web browsing as easy as using the telephone. AXCESS-NOW™ will allow you to tap into the vast universe of information available on the Internet, wherever you are in and around the house.

For example, if you're in the kitchen, use AXCESS-NOW™ to find a great dinner recipe online in minutes. If you're working on your car and need to know the answer to a diagnostic problem, get online with AXCESS-NOW™ right in your garage. If you're watching baseball and want to compare stats or find out more about the team, AXCESS-NOW™ can connect you to the Internet quickly and conveniently.

AXCESS-NOW™ isn't designed to replace conventional PCs as a productivity tool. Rather, it complements the PC as a single-application device, making it more convenient for Internet users to send or receive e-mail, chat, or browse websites instantly. Its portability and ease of use delivers the ultimate Internet experience.

Design Features for Single Application Use

Appian Way Communications Network is providing AXCESS-NOW™ to its customers by designing specific applications and developing their own Internet access devices with a variety of features and connection options.

AXCESS-NOW™ employs sophisticated wireless (radio frequency) data transmission technology to make it a truly mobile device, providing convenience similar to that of a cordless telephone. As an example an AXCESS-NOW™ could be 1.3 pounds, 6" x 9" featuring an LCD touchscreen supporting high-resolution graphics. Additionally, it comes with a stylus, enabling users to navigate the web using AXCESS-NOW's touchscreen technology.

AXCESS-NOW™ is completely integrated and sealed: There are no internal parts that can be upgraded, added, or removed, and there is no software to load. It's designed with dual Universal System Bus (USB) ports to add peripheral options such as a keyboard, mouse, printer, or gaming input device. While there are no disk or floppy drives, and no PC Card slots, the design would support these items if a customer application needed to feature them.

The AXCESS-NOW™ design includes three components: The AXCESS-NOW™ mobile display tablet, the charging unit, and a base station transceiver that can be plugged into any power outlet near an RJ-11 telephone jack. Depending upon how clients choose a solution, it could use a coaxial cable Internet connection as well. The design can support DSL and ISDN as well as cable and legacy 56K interconnect protocols, and it is Ethernet network ready. Eventually, pending availability of such services, "persistent" or instant-on service similar to cable television will be available, enabling users to pick up AXCESS-NOW™ and turn it on with instant, no dial-up access.

The transceiver base station, which delivers the Internet data via RF signals to the hand-held AXCESS-NOW™ unit, can be tucked out of sight or placed among other home entertainment system components. The charging unit is an inconspicuous desktop cradle similar to those that come with cordless telephones.

AXCESS-NOW™ is designed to carry a charge for up to six hours, with 20 hours of standby (out of cradle) power. It has a range of up to 500 feet from the base station, allowing freedom of mobility throughout a house, office, or even the immediate neighborhood. It will provide the Internet access of a PC in a product as portable and easy to use as a cordless phone.

Making Information Access Available

There are still variables that will determine when such a device will find favor in a vast numbers of homes and offices around the U.S. For example, one factor in mass-market acceptance of AXCESS-NOW™ devices is the maturation of the telecom and datacom industry infrastructures to support persistent Internet connections.

But with the acceptance of devices such as the VCR, the cellular telephone, and compact disc/DVD players, the industry won't be far behind in providing the technology infrastructure necessary to make AXCESS-NOW™ a reality. And in time, these and other technological improvements will likely bring the cost of AXCESS-NOW™ devices into a comfortable price range for consumers. Similarly, Internet services are very likely to evolve into either cable- or telephone-based access standards that will make persistent Internet connections possible.

Most of our customers are middle-market businesses, educational institutions, independent hotels or chains, and governmental organizations, but our customer base also includes other ISPs and several larger companies. The Internet service needs of our target customers differ significantly from those of typical individual consumers. Enterprises often view their Internet access and related services as critical to their business. They demand dedicated, high-speed Internet access and knowledgeable, prompt and often highly technical customer support.

When marketing our services, we focus on creating the best solutions to meet our customers' needs and not simply promoting our technology. We work with our customers' management and information technology teams to analyze their Internet needs and create solutions to specifically address those needs. Compared to individual consumers, enterprise customers are usually less price sensitive and more willing to pay a premium for creative solutions crafted to meet their needs. As a result, we believe that providing Internet services to enterprise customers generates greater revenues and higher margins per customer than servicing individual consumers.

As of September 1, 1999, we had 250 customers. We provide service to a number of enterprises, including:

  • Houston Convention and Visitors' Bureau
  • National League Baseball Player's Association
  • Las Vegas Chamber of Commerce
  • St. Louis Chamber of Commerce
  • Adam's Mark Hotel
  • Smith, Black, and Davis, CPAs

SALES AND MARKETING

We sell our services through a consultative approach developed by our management team based on their cumulative business experience. We use local technology-oriented sales personnel to understand individual customer needs and make the proper recommendations regarding tailored Internet-based solutions. The local field sales staff is supported by our in-house tele-sales staff based at our corporate headquarters in Chicago.

We refer to our employees who use the telephone to directly market and sell our services as our tele-sales staff. We use our tele-sales staff or our CAP partners, discussed below, to complete sales to smaller customers and to target customers in markets where we do not have field sales staff. In addition, we hire independent telemarketing firms to generate business leads. To support our sales efforts, we have also begun a new advertising and media campaign to build awareness of our name and quality of service. We intend to expand our field sales force, further develop our indirect distribution channels, and use telemarketing firms to increase sales leads and grow our customer base.

Field Sales

Our field sales force consists of technically competent, locally based, and experienced Internet sales representatives. These individuals have strong Internet technical backgrounds and understand the local telecommunications tariffs as well as the needs of their local business communities. In general, members of our field sales staff pursue leads generated by our telemarketing campaign and our outdoor advertising efforts. Our field sales personnel also make "cold calls" on potential customers. Most larger sales are closed by a field salesperson who visits the customer. We believe that this localized approach allows us to provide better solutions for our customers' needs.

We are looking to staff a phone room to contact smaller potential customers in the geographic areas we serve as well as potential customers in new markets. We expect our tele-sales staff to develop the interest of large customers and close sales to small customers without requiring a face-to-face meeting between the customer and a member of our field sales force.

Indirect Sales

We are developing relationships with partners, including value-added resellers, network integrators, and web design companies, to use the expertise of their established sales organizations to help increase our sales. As an example, our Valued Internet Partner (or VIP program) is an agency relationship that offers referral fees to VIP partners who bring us sales opportunities that ultimately result in sales of our services. We intend to expand the VIP program into each new market area we enter.

Also, our Appian Way Affiliate Partner program (AWAP program) allows authorized partners to resell our services and maintain a direct relationship with customers in their local markets. In markets we have not identified as a high priority for our network expansion, we forward leads directly to our AWAP partners so they can arrange a visit to the customer. We provide service and technical support 24 hours a day, every day of the year and invoice the partners at a reduced rate, allowing them to profit from the resale of our services.

Internet Sales

We use the Internet as another source to generate sales. Our tele-sales staff handles many inquiries regarding our services received via e-mail, either closing the sale or passing the leads to our field sales force. We are internally developing systems and applications that will allow us to receive, accept, and implement sales electronically via the Internet.

Telemarketing

We will begin a telemarketing campaign in March 2000 using an outside telemarketing firm that we pay on an hourly basis. We also compensate the firm with performance-based bonuses. We create a sales script used by the telemarketers and train all telemarketing personnel. Our telemarketing program seeks to generate leads from small to medium-sized businesses that are pre-qualified for our services in our market areas. We may establish an internal telemarketing department to ensure the quality of our sales efforts.

Strategic Marketing and Reseller Alliances

We enter into strategic marketing and reseller alliances with partners to bundle and sell our services with those of the partners. For example, our agreement allows us to resell Potter's unique national dial-up service—MIA—bundled with our Internet access service. In addition, MIA jointly funds our marketing efforts for national dial-up services in geographic areas where this service can be offered. MIA also promotes our services as one of a dedicated number of its Internet access referral partners.

As a component of our marketing efforts, we plan to invest aggressively in building the Appian Way Communications Network brand. We will begin an outdoor and radio advertising campaign in the markets we currently serve. We intend to increase customer awareness of us and our services through an integrated marketing plan, which combines online and traditional advertising in business and trade publications, trade show participation, direct mail, and public relations campaigns.

In addition to other national, regional, and local ISPs, our current and prospective competitors include long distance and local exchange telecommunications carriers, cable television operators and their affiliates, satellite, and wireless communications companies and providers of co-location and other data center services. We also anticipate that if we offer services as a CLEC, we will face new competitors that already have established a market presence for local telecommunications access.

The principal competitive factors in our market include:

  • Internet system engineering expertise and advanced technical functions
  • price of services
  • availability and quality of customer service and support
  • timing of introductions of new services
  • network capability
  • network security
  • reliability of services
  • financial resources
  • variety and quality of services
  • ease of expansion
  • ability to maintain, expand, and add new distribution channels
  • broad geographic presence
  • conformity with industry standards

Our primary competitors include other ISPs with a significant national presence that focus on business customers, such as GTE Internetworking, PSINet, Concentric Network, MindSpring Enterprises, Verio and Intermedia Internet. We also compete with smaller regional and local ISPs in our targeted geographic regions such as Knit-Wit and Glendale. Our customer base includes smaller ISPs, which may also compete with us for customers in their markets.

Value-Added Services Providers

As we increasingly generate revenues from our value-added data center services, competition from other value-added service providers will become more intense. Our competitors in this market include co-location providers like Oasis Communications, Western Earth Center, Digit 7, and ITJump. They also include application service providers such as I-Fleet and Market Networks.

Telecommunications Carriers

All of the major long distance companies—including AT&T, MCI Worldcom, and Sprint— offer Internet access services and compete with us. The relatively recent sweeping reforms in the federal regulation of the telecommunications industry brought about by the Telecommunications Act of 1996 have created greater opportunities for local exchange carriers, including the regional Bell operating companies, to enter the Internet access market.

We believe that many long-distance and local telecommunications carriers will seek to acquire ISPs, enter into joint ventures with them, and purchase Internet access wholesale from ISPs to address the Internet access requirements of those carriers' current enterprise customers. Worldcom's acquisition of UUNET, GTE's acquisition of BBN, and Cable & Wireless's acquisition of InternetMCI are indicative of this trend. Accordingly, we expect to experience increased competition from the traditional large telecommunications carriers.

Cable Operators, Direct Broadcast Satellite, and Wireless Communications Companies

Many of the major cable television operators, such as MediaOne, have begun to offer or have announced an intention to offer Internet access through their existing cable infrastructure. Seeking to take advantage of this installed cable infrastructure and the Internet access opportunities it affords, many telecommunications providers have acquired cable companies, such as AT&T's acquisition of TCI and @Home.

While many cable companies are faced with large-scale upgrades of their existing plant equipment and infrastructure to support connections to the Internet and become competitive, we believe that some smaller enterprise customers may be attracted by the combined services already being offered by cable operators. Other alternative service communications companies have also announced plans to enter the Internet access market with various wireless and satellite services and technologies.

Appian Way Communications Network is the result of a joint marketing effort of two independent companies: Majestic Digital and GVC Communications, Inc.

Majestic Digital

Majestic Digital (MD) is an Internet management and services company which provides Internet strategy consulting and comprehensive technology solutions to Fortune companies and other corporate users of information technology. MD helps businesses identify how the Internet can be used to their competitive advantage and use our expertise in creative design and systems engineering to design, develop, and deploy advanced Internet applications and solutions.

Through its KOOR™ program, MD acts in the capacity for many high-tech and Internet based start-up and established businesses. In this capacity MD carries out the following mission:

  • To provide technology vision and leadership for developing and implementing IT initiatives that create and maintain leadership for the enterprise in a constantly changing and intensely competitive marketplace.
  • To report to a senior functional executive (EVP, COO, CFO) or CEO.
  • To help the organization shape and develop IT policies and IT strategy with the idea of coordination of its business strategies.

Majestic Digital Project Responsibilities

  • Business technology planning process—sponsor collaborative planning processes
  • Applications development—new and existing for enterprise initiatives and overall coordination for SBU/divisional initiatives
  • Partnerships—establishing strategic relationships with key IT suppliers and consultants
  • Technology transfer—provide enabling technologies that make it easier for customers and suppliers to do business with our enterprise as well as increase revenue and profitability

MD's principal architect is David Stryker. From 1996 to March 1999, Mr. Stryker served as President and Chief Executive Officer of DigitJive Technologies, Inc., a computer telephony integration (CTI) based systems integration company that was sold to a publicly traded company named TKN. DigitJive created and developed a global systems architecture that allowed a user to access their e-mail text-to-speech via any touch-tone or cellular telephone. The company also developed an international data network that had an emphasis in telemedicine, which was accessible via telephone.

Prior to founding DigitJive, Mr. Stryker served as chief technology officer at LuftMark Corporation where he developed customer service plans following TQM protocols, and created and implemented the systems architecture for online systems. He was responsible for negotiating and developing strategic alliances and software site-licenses. He founded Diamond D Information Systems in 1991. This company provided consulting services in information technology and financial information systems, including LAN/WAN design online systems and the design and construction of Waterloo Computers. Diamond D was sold in early 1995.

Mr. Stryker brings significant experience in the areas of strategic planning, project management, systems architecture, and sales and marketing. Additionally, Mr. Stryker has written and published several white papers in the areas of e-commerce, knowledge management, and executive information management. Mr. Stryker received his Bachelor of Science degree in International Business from Texas A&M University.

GVC Communications

Products and services offered by the company.

  • website development
  • website hosting
  • mail hosting
  • nationwide dial-up access
  • computer sales
  • computer service depot
  • dedicated access
  • co-location of servers

GVC Communications Certifications

  • Solomon Accounting Software
  • MicroBiz Point-of-sale Software
  • MetaInfo Server Software
  • IBM Business Partner
  • Hewlett Packard Business Partner and Warranty Service Center
  • Data General Business Partner
  • Microsoft Product Specialist

GVC Communications Principals

Hernando Browning —Hernando Browning has over 12 years sales, operations, and information management experience. From 1989 to 1991 Hernando held several different management positions with Berwett Computers, finishing his time there as Repair Depot Sales Director. After leaving Berwett Hernando started his own consulting group, and serviced the business community with a specialty in Point of Sales systems and LAN installations. GVC was founded by Hernando in 1997.

Hernando also has an outstanding record for public and military service. He served as a police officer for Hamilton County in Cincinnati, Ohio, and enjoyed a 13-year career in the United States Air Force. He is a decorated veteran of the Desert Storm conflict and is currently on active duty with the Ohio National Guard. Hernando's specialties include strategic planning, network design and installation, procurement, and network operations.

Ken Gillette —Ken Gillette has over 12 years of operations and information management experience. As a solutions integrator he designed and implemented a system for a major Fortune 100 firm that helped them settle over 35,000 bankruptcy claims between 1991 and 1993. Ken then developed and implemented various systems for the federal court system between 1993 and 1995.

In 1995 Ken went to work for the accounting firm of Slinger, Bastian & Klip, LLP where he managed the information systems for the Chicago office of this prestigious firm. Ken continued here until 1999 when he formed his own consulting group and joined GVC as its Chief Operating Officer.

Ken has a strong background in systems development, network planning, and installation of both hardware and cabling.

Tim Sullivan —Tim Sullivan has been an attorney in Wyoming since 1979, first practicing under the shingle of Yemen Hottsfer III. Since 1984 Tim has practiced law under his own name, specializing in real estate and corporate and commercial law (both transactional and litigation).

Tim graduated from Ohio State University with a B.A. in Marketing, and then obtained his J.D. in 1979 from the University of Cincinnati Law School.

GVC Communications Responsibilities

  • IT infrastructure and architecture (e.g., computers and networks)
  • Training—provide training for all IT users to ensure productive use of existing and new systems
  • Customer satisfaction—interact with internal and external clients to ensure continuous customer satisfaction

Internet Communications Service Provider

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Sample Internet Service Provider Business Plan

Isp company business plan sample.

The world in which we live is now a global village. Two major factors are responsible for this. They are the computer and the internet . Although the computer plays a key role, the internet is indispensable in making the world a small community.

As a result, setting up a wireless internet service provider business is a move in the right direction. An internet service provider company offers services that are in very high demand. However, that is not all.

This business is capital-intensive and yields very high profits because of its demand.

If you are considering starting an internet service provider business , by now, we believe that you already know the requirements. This article contains an internet communication service provider business plan. You can stick to this sample when writing your business plan.

Here is a sample business plan for starting an ISP business.

Business Name: Jossy Tech

Executive Summary

Our Products and Services

Vision Statement

Mission Statement

Business Structure

  • Market Analysis
  • Sales and Marketing Strategy
  • Financial Plan

Competitive Advantage

Jossy Tech is an internet service provider based in the heart of Orlando, Florida. This company is owned by twin brothers Thomas and Sam Rice. These brothers have 40 years of experience in the internet service provider business.

They have worked at the highest level in other well-known internet service provider companies and have taken advantage of their wealth of experience to start their own internet service provider company.

Jossy Tech Internet Service Provider is a world-class company operating from a standard facility.

Although this internet service provider company is new, we are ready to compete for the top spot in this industry. Some of the services we will provide include; web hosting , dial-up internet access, and other internet-related services.

The aim of setting up Jossy Tech does not differ from the objective of setting up other businesses. This internet service provider company was set up to make profits.

We aim to make it to the top of this business. As a result, we have employed not just the most capable hand in this industry, we have also hired the services of some of the most experienced people.

We do not just aim to gain recognition in the United States but also to become a recognized brand in every part of the world. Some products and services we will offer at Jossy tech service Provider Company include web hosting, dial-up internet, software and hardware consulting, and broadband services.

At Jossy tech internet service Provider, our vision is to set up a top-quality provider that will not just be a force to be reckoned with in the United States alone. But a force to be reckoned with in the internet service provider business worldwide.

At Jossytech internet service provider company, we are looking to make available to our potential clients fast and trustworthy internet services as well as other internet-related services.

Our mission does not end at making reliable internet services available to our potential clients.

We also aim to become one of the top internet service provider companies in the United States and other parts of the world.

Jossy tech internet service provider company is a company that is interested in becoming as significant as other established brands in this industry. However, we are not looking to start big; we will start small and grow from there.

We are not ignorant that making it to the very top of this industry requires a lot. We know that very highly rated brands in the internet service provider industry have solid structures.

As a result of this, we are looking to do the same. To ensure our system is standard and runs smoothly, we will hire good IT guys and managers. We will also provide an enabling and conducive environment for our employees.

Market Analysis Market Trends

Innovation is a significant trend in the Internet service provider industry. The rapid increase in technological advancement has even made innovations in this industry more noticeable.

Also, the presence of some more prominent brands in this industry in recent times has made it necessary for the smaller brands to come into some form of partnership to survive.

Target Market

There are pretty several businesses that require the services of ISP companies to function. After our research, we have concluded those that need our services the most. They are;

  • Research Companies
  • Development Companies

Financial Plan Source of Startup Capital

We will require $400,000 to get our company started. This amount will be used to get office space and the needed equipment to get Jossytech Internet Service Provider Company began to.

We already have 50% of the amount we need to start this business; the remaining amount will be sourced from the bank.

Jossy tech internet service provider business is a new internet service provider company. However, that does not mean we will be pushovers.

We are stepping into the internet service provider industry with a team of highly skilled IT individuals and managers. Also, our price is one of the cheapest for the top-quality service we will provide.

This is a business plan sample for an ISP startup company. This company will be located in Orlando, Florida, and is owned by Thomas and Sam Rice.

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New FCC rules require 'nutrition label' for high-speed internet plans

The largest internet service providers are required to disclose broadband nutrition labels for plans starting wednesday.

Evercore ISI Senior Managing Director Mark Mahaney details a change and maturity in the internet sector and its stocks.

Internet-based stocks have become more investable: Mark Mahaney

Evercore ISI Senior Managing Director Mark Mahaney details a change and maturity in the internet sector and its stocks.

Broadband internet providers are rolling out new breakdowns of their plans' speeds and costs in disclosures modeled after nutrition labels to comply with requirements from the Federal Communications Commission (FCC) .

The FCC's new rules took effect Wednesday for the largest internet service providers (ISPs) to display the nutrition label-style broadband disclosures at any point of sale — including online and in stores — starting Wednesday, April 10. Smaller providers with fewer subscribers face a deadline to implement the broadband labels Oct. 10.

Broadband labels are required to tell consumers whether a monthly price is an introductory rate, how long an introductory rate applies, the monthly price after the introductory rate, length of contract with a link to the contract and the name of the plan and its speed tier. 

They display the typical download speed, upload speed and latency for a given plan, in addition to the amount of data provided in a plan with details about charges for additional data usage.

FORMER FCC HEAD AJIT PAI BLASTS NET NEUTRALITY VOTE AS 'COMPLETE WASTE OF TIME'

FCC Broadband Nutrition Label

The FCC's broadband nutrition labels disclose information about speed, cost, data limits and other information for a given broadband plan. (Federal Communications Commission / Fox News)

The labels must also list additional charges and terms that were assessed by providers, one-time purchase fees, early termination fees and government taxes . Information about discounts and bundles, such as those that combine broadband service with video, phone and wireless service, would also be included with a link to a website with full details.

The FCC requires that the broadband labels also include links to the provider's network management policy, its privacy policy and the phone and website information for its customer support.

FCC INVESTIGATING AMAZON AND OTHER RETAILERS OVER ALLEGED SALE OF BANNED PRODUCTS

FCC Headquarters

The FCC developed the broadband nutrition labels in response to a provision of the bipartisan infrastructure law. (REUTERS/Andrew Kelly / Reuters Photos)

"Today is an exciting day for consumers," FCC Chairwoman Jessica Rosenworcel said in a press release. " Broadband nutrition labels are finally here. Consumers across the country can now benefit from consistent, transparent and accessible point-of-sale information about broadband prices and services.

"These 'nutrition label' disclosures are designed to make it simpler for consumers to know what they are getting, hold providers to their promises and benefit from greater competition, which means better service and prices for everyone," Rosenworcel added.

US SPENDING OVER $42 BILLION TO MAKE INTERNET ACCESS UNIVERSAL BY 2030

FCC Chair Jessica Rosenworcel

FCC Chairwoman Jessica Rosenworcel said the broadband nutrition labels will make it easier for consumers to learn about a broadband plan. (Andrew Harrer/Bloomberg via Getty Images / Getty Images)

The FCC noted that the broadband label requirement comes in response to the Infrastructure Investment and Jobs Act of 2021, also known as the bipartisan infrastructure law , which instructed the FCC to develop consumer-friendly labels with information about broadband services.

The FCC adopted rules in 2022 that require broadband providers to display labels at the point of sale showing information that includes prices, speeds, fees, data allowances and other critical information.

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By Oct. 10, 2024, providers will also be required to make their broadband labels machine-readable so that third parties can more easily collect and aggregate data for the purpose of creating comparison-shopping tools for consumers. That date coincides with the deadline for smaller providers to begin displaying labels.

broadband internet business plan pdf

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Broadband firms must publish all the fees and specifics of their internet plans

Alina Selyukh 2016

Alina Selyukh

Broadband companies are now required to publish details about internet plans in the form of "nutrition labels" — as part of a bid to improve transparency for consumers.

LEILA FADEL, HOST:

Starting this week, big broadband companies like Verizon and Comcast are required to publish labels describing all the fees and specifics of their internet plans. It's like a nutrition label but for your internet connection. NPR's Alina Selyukh reports.

ALINA SELYUKH, BYLINE: You know the exciting surprise when you get an introductory offer to hook up your phone or house to high-speed internet, and then the price expires and jumps, or you discover you're paying a whole new fee for renting a modem? Well, federal regulators have long been trying to rein this in. And here's President Biden now taking a victory lap.

(SOUNDBITE OF ARCHIVED RECORDING)

PRESIDENT JOE BIDEN: My administration is taking a major step toward eliminating junk fees on internet bills.

SELYUKH: The major step is this new label requirement. It's a chart that looks very similar to the nutrition facts on the back of a soup can, except instead of sodium and calories, it's download speeds and early termination fees. The idea is to have a universal way that internet providers have to show all the details of your broadband contract so that consumers can compare plans apples to apples or, I guess, speeds and fees to speeds and fees. Experts at the Federal Communications Commission have been working on this for almost a decade. Both the president and Congress have called for consumer friendly labels. This week, the label requirement formally goes into effect for big providers, and smaller providers have until October to bring any hidden fees into the light.

Alina Selyukh, NPR News.

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Copyright © 2024 NPR. All rights reserved. Visit our website terms of use and permissions pages at www.npr.org for further information.

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  19. Sample Internet Service Provider Business Plan

    We will require $400,000 to get our company started. This amount will be used to get office space and the needed equipment to get Jossytech Internet Service Provider Company began to. We already have 50% of the amount we need to start this business; the remaining amount will be sourced from the bank.

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