How to start a WIFI business in South Africa
This is a guide on how to start a WIFI business in South Africa. The internet is becoming more and more important as its role in our life changes, it’s hard to imagine a life without the internet.
7 best practices to start a business offering Wi-Fi solutions
- Target small clients.
- Use low-cost access points.
- Target locations with 1-2 access points.
- Indoor access points are easier to install.
- Target clients that already have an internet connection.
- Offer a simple login method.
- Keep potential upsells for a second phase.
WIFI is a way to access the internet, accessing the internet via WIFI is generally cheaper than using mobile data. Best of all, the WIFI can be unlimited, which gives customers unlimited access to the internet. This creates a business opportunity for the budding entrepreneur; to offer wireless Internet access at an affordable or affordable price.
The good thing about WIFI is that most people will always choose the cheapest / cheapest option as long as the coverage and signal are good. This makes this market a little easier to break into 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 than in other countries simply to access the internet. This means there will be demand for anyone who can offer cheaper prices while offering good service.
The barriers to entry in this camp can be a bit high, it’s not something you can just wake up and decide to start. A lot is involved in terms of licensing and infrastructure.
Choose your business structure
You need broadband infrastructure to be an internet service provider. There are some companies that control this market, building infrastructure can be very expensive.
It can cost billions just to make sure you’ve covered enough areas in South Africa. It is unlikely that you will be able to get that type of financing anywhere. However, you can set up enough infrastructure just to cover a small town or geographic area relatively cheaply.
Most people choose to buy broadband from companies with the infrastructure and then simply resell it. This same model is used by many hosting companies. You pay taxes to the main company and they sell you broadband, which you can resell for a higher price.
This means that the companies with the infrastructure are the ones that are actually controlling the price. They hit you every time they increase the prices of their services. Shortly after registering with one of them (MTN), you will have to go through a lot to get licenses and make sure your company is registered.
Marketing your business
Since the barriers to entry are so high, the competition is not very stiff, you will be competing with fewer Internet Service Providers. This makes it easier to differentiate yourself by setting lower prices and excellent service.