The internet is becoming more and more important as its role within our lives changes, it’s hard to imagine life without the internet. This is a guide on how to start a WIFI business in South Africa.
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WIFI is a way of accessing the internet, accessing the internet using WIFI is often cheaper than when using mobile data. The best thing is that WIFI can be unlimited, which gives customers an unlimited access to the internet. This creates a business opportunity for the budding entrepreneur; to offer wireless internet access at a cheap or affordable price.
The good thing about WIFI is that most people will always choose the cheaper/more affordable option as long as coverage and signal is good. This makes this market a bit easier to penetrate, when you have funding.
South Africa is one of the most expensive countries when it comes to mobile data. We are paying a lot more compared to other countries for simply accessing the internet. This means there will be a demand for anyone who can offer more affordable prices while offering a good service.
The barriers to entry to this field may be a bit high, it’s not something that you can just wake up and decide to start. So much is involved in terms of licensing and infrastructure.
Choose your business structure
You need a broadband infrastructure in order to be an internet service provider. There are a few companies that control this market, setting up infrastructure can become super expensive.
It can cost billions just to make sure that you have covered enough areas in South Africa. You are unlikely to get that type of funding anywhere. However, you can set up enough infrastructure just to cover a small village or geographical area relatively cheaply.
Most people choose to buy broadband from companies with the infrastructure then just resell it. This same model is used by a lot of hosting companies. You pay fees to the main company and they sell you some broadband, which you can resell at a higher price.
This means that the companies with the infrastructure are the ones that are controlling the price in reality. You get hit each time they increase prices for their services. Soon after registering with one of them (MTN), you will have to go through a lot to get licenses, make sure your company is registered.
Marketing your company
Since the barriers to entry are so high, competition is not very stiff, you will compete with less internet service providers. This makes it easier to differentiate yourself by setting lower prices and an excellent service.
Common advertising platforms are Google and Facebook, YouTube is also great. You generally get a better return on investment from these platforms than traditional forms of marketing.
This was a guide on how to start a WIFI business in South Africa. Do you have any thoughts or questions? Comment below.