Maraguay Network
Track4
Engineering
Approach
 Use Telco services initially
 purchase cable IRUs in year 3 - 4
 Single capital city POP in year 1
 expand to regional centres in response to
competitive pressure
Architecture
CPE
switch
Access routers
dial servers
core
servers
Design
 core router - 4500
 POP switch - catalyst
 POP access routers - 7500 - high density
 3600 access servers
 CPE model (1000)
 PC linux server platform
 UPS - AC?
Marketing
Questions










marginal capital cost per customer?
Initial capital requirement?
Initial comms (telco) T1 - M US $25,000 p.m.
Provision for regional Points of Presence?
Security - ethernet switch?
Spares inv
Inventory?
Build time? 2months!
Staff?
Poperational Management framework?
Marketing Group Name
 Duke Lawrence Ogbokor
 Denis Onyekwelu
 Sophie Mgaiwe
 Alisher Aminov
 Munkhbold Udval
 Assa Simbara
 Juma Okech
Marketing
To prepare a plan of the target
market sectors
TARGET MARKET
 Corporate
 Educational
 Government agencies
 Private sector
 NGOs
 Individuals
Market survey
 Visited ISP sites in Brazil
 Visited ISP sites in Paraguay
 Visited ISP sites in Argentina
 Visited ISP sites in Costa Rica
 Discussed with Service group
Maraguay: Some economic
factors
 Population : 12M
 Capital city population : 6M
 High economic growth
 4 GIG fibre optic cable installed
 Few ISPs exist
Corporate users
 Banks and Financial Institutions
 Oil companies
 Multinationals
 Other large private sector enterprise
Educational
 Higher institutions
 Secondary schools
 Primary schools
Government agencies
 Parastatals
 Corporations
 Research Institutions
NGOs
 Professional bodies
 Associations
 Cooperatives
Individuals
 Home
 Office
Service category
 Basic services
 Advanced services
 Managed services
 Value added services
Basic services
 Dial-Up access
Advanced services
 Dedicated leased line
 Bandwith:64K-2*NMbps
 National Backbone
 Wireless option
Managed services
 Link
 Equipment
 Technical support
Value added services
 Business solutions (E-Commerce)
 Virtual hosting of website
 Homepage
 Multimedia applications
 Distance learning
 E-mail
 FTP
Basic service (dial-up): US$10US$50
 Corporate
 Government
 Research Institutions
 NGOs
Anticipated Dialup Clients
Year 1
2,000
No. of
customers
Year 2
Year 3
6,000
15,000
Managed service : US$1,000US$2,000
 Corporate
 Oil companies
 Multinationals
 Banks
 Universities
Anticipated Corporate Clients
Year 1
5
No. of
customers
Year 2
Year 3
12
15
Advanced service( leased line):
US$100-US$1,800
 Corporate
 Schools
 Government
 NGOs
Anticipated Clients
Bandw
Year 1
Year 2
Year 3
64K
8
20
36
128K
2
6
10
256K
-
2
5
512K
-
-
2
2M
-
-
-
Value added service
 Business solutions
 Virtual web hosting
 Voice over IP
 Fax over IP
 IPTv service
 etc………..
Anticipated Clients
Cust.
Year 1
Bus. Sol 30
VoIP
35
FaxoIP 200
VWH 20
Hpage 20
E-email, 500
etc…..
Year 2
40
35
450
25
28
1500
Year 3
100
70
1000
45
60
6000
Service Reach

Phase I: Capital and
big provincial cities

Phase II: Rural area
Method of connectivity
Radio access
 Dial-up: This depend
on country’s telco
system

Marketing strategies
TV advertisement
 Radio advertisement
 Newspaper
advertisement
 Salesmen
 Seminar/Exhibition

Projected Revenue in $
Basic
Manag
Advan 64K
128K
256K
512K
Year 1
72000
12000
12000
-
Year 2
2.16M
24000
30000
15000
7200
-
Year 3
5.40M
30000
54000
25000
18000
10000
Projected expenditure for the
first year in $
Strategies
Cost
Tv
10000
Newspaper
5000
Radio
1000
Salesmen
20000
Seminar/Exhibition
5000
Services
Wawa Anthony Ngenge
Vakhtang Svanidze
Konstantin A. Arsienko
Zakaria Ould Amar
Paisal Kiattananan
Target Customers
 Other ISPs
 Corporate customers
 Individual Dial-up customers
Type of access
 Dial-up access
 Wireless access
 High speed Internet access
•
•
•
•
Cable modem
xDSL
ISDN
Leased line
Services for Individual Customers
 Email services
• SMTP server
• POP3/IMAP4 for mail retrieval
 Web cache
Other Services
 Usenet
 FTP
 Internet fax service
 GSM messaging
 Radio paging
 Internet Telephony
Other Services
 Training
 Advertisement
 Free services
• Free personal homepage
• Free email
Services for Corporate
Customers
 Comprehensive service model
•
•
•
•
•
•
•
DNS services - Primary, Secondary
Secondary MX server (mail relay)
Mailing list
Web hosting
Web development and design
Technical support
Virtual Private Network
Services for ISPs
 Bandwidth
• Let other ISPs resell our bandwidth
 Roaming services
• Let the customers of other (smaller) ISPs use
our modem bank in other cities where that ISP
has no POP (Point of Presence)
DNS
WWW
Cache
Mail
Usenet
Others
US provider
Service plane
filter
Staff PCs
Gateway Router
Other ISPs
Router
Internal office network
Access Router
Corporate
Customers
Management plane
Dial-up
Customers
V.90 Modem
Bank
Accounting NMS
Server
Access Router
Other POPs
Business Plan
Maraguai
Actual situation
 There are
around 1 350 000 phone lines in
the capital;
 600 elsewhere.
 10% make simultaneous international calls,
using 1/2 the capacity of booked capacity
to US(4Mb).
 The other 2 ISPs only provide email access,
covering 0.5% of the telepopulation.
The new ISP - objectives
 It will follow a business philosophy of
growth and sale
 but…
 as it has government seed money, it will
have to provide reduced rates for
governmental departments and schools.
Target market
 The ultimate objective is to connect to
Internet 20% of the lines in 5 Years.
 As our business plan is written for 3 years,
the population to cover is 5%
Market strategy
 As:
• there are already 2 ISP with little initiative;
• There is a lot of money floating around but very
little internet awareness;
 There will be a strong campaign for
reputation and brand identification. For
that purpose:
• 25% of the budget will be allocated;
• the rate of customers/modem will be 5.
Business Plan
Year 1
Year 2
Year 3
Ser vices In Oper ation (SIO)
T ype
dial
dial mo dems
pstn
64K
128K
256K
512K
2500
500
25
10
1
0
0
10000
2000
200
50
15
0
0
54000
10800
400
200
50
5
1
T OT A L
536
2265
11456
Revenue
C o nnectio n charges
Serv ices
A ccess charges
dial
pstn
64K
64k fo r go v ernment
128K
256K
512K
$
1,222,500
13,107
$
3,216,500
41,942
$
15,059,200
212,333
2,621,389
25,895
22,373
11,186
8,203
0
0
8,388,446
207,157
111,865
55,932
123,051
0
0
42,466,506
414,313
447,458
223,729
410,170
89,725
29,831
T OT A L
Capacity calculation
C alc Line Lease
A ctual Line Lease
3 ,9 2 4 ,6 5 4
1 2 ,1 4 4 ,8 9 2
5 9 ,3 5 3 ,2 6 5
598
128
2,603
512
12,996
1 ,0 2 4
815,000
1,800,000
500,000
778,750
60,000
389,375
2,297,500
7,200,000
750,000
2,561,875
80,000
120,000
11,584,000
14,400,000
450,000
6,608,500
120,000
140,000
Costs
Equipment
Line Lease
Staff
Mark eting
O ffice Space
O v erheads
T OT A L
4 ,3 4 3 ,1 2 5
1 3 ,0 0 9 ,3 7 5
3 3 ,3 0 2 ,5 0 0
Net Result
P /L
(418,471)
(864,483)
26,050,765
Revenue
3 ,9 2 4 ,6 5 4
1 2 ,1 4 4 ,8 9 2
5 9 ,3 5 3 ,2 6 5
Costs
4 ,3 4 3 ,1 2 5
1 3 ,0 0 9 ,3 7 5
3 3 ,3 0 2 ,5 0 0
Pr ofit/loss
(4 1 8 ,4 7 1 )
(8 6 4 ,4 8 3 )
2 6 ,0 5 0 ,7 6 5