Project 5 an ISP Business model covering all aspects of Inteent service..pptx

ISP Project Finance document showcasing the full aspect of running an ISP. It gives brief

1. Project 5 Financial Projections & Analysis

2. Cost Breakdown The approach of the project is consolidated investment in key sectors. The sectors are; System Setup Transmission & Distribution [wire & wireless] Office & Cyber café Setup Expenditure on Legalities & Bandwidth Advertising Working Capital Considering above are Fixed Costs, the MRC or Monthly Recurring Costs are as Follows; Monthly rental expenditure for Office, PoPs, Cybercafés & Utility bills. Employee Salary Monthly Bandwidth Charge.

3. System Setup Item Brand/Description Qty Unit Price Total Server [Blade] IBM or Dell 10 Tk. 100,000 Tk. 1,000,000 Primary Router Cisco 7200 series 1 Tk. 600,000 Tk. 600,000 Cache Engine ApplianSys CacheBox230 1 Tk. 800,000 Tk. 800,000 Switches Cisco 3800, 2900 or 500 series 4 Tk. 35,000 Tk. 140,000 Software MikroTik, Cybercafé Management , Billing, Help Desk etc Tk. 250,000 Cabinet [Rack] XRack Pro 2 with KVM 2 Tk. 100,000 Tk. 200,000 Air Conditioner 1 ½ Ton Capacity 2 Tk. 70,000 Tk. 140,000 Power Back Online & Offline UPS, Stabilizers, Generator etc Tk. 1,000,000 Others Cabling, Flooring, Grounding etc Tk. 100,000

4. Transmission & Distribution Item Brand/Description Qty Unit Price Total Wireless Backhauling SOMA Networks – Flex Max Wireless System [700 Mhz ] 1 Tk. 4,000,000 Tk. 4,000,000 Wireless Distribution Wavion WBS-2400, SysMaster 9 Tk. 200,000 Tk. 1,800,000 Optic Fiber 4 core/6 core 50 km Tk. 16,000 Tk. 800,000 Power Backup Tk. 1,000,000 Distribution Switches Linksys 5 Tk. 22,000 Tk. 110,000 CPE Wireless router, access point, USB Dangles etc Tk. 500,000 Others Grounding, cabinet, cabling etc Tk. 200,000

5. Office & Cybercafé Item Brand/Description Qty Unit Price Total PCs with UPS Intel powered 45 Tk. 32,000 Tk. 1,440,000 Laptops Lenovo/HP/Toshiba 4 Tk. 50,000 Tk. 200,000 Furniture & others Chair, table, cabinet, light, fan etc Tk. 800,000 Stationary Printer, scanner, paper, file etc Tk. 250,000 Air Conditioner 1 Ton capacity 10 Tk. 50,000 Tk. 500,000 Power Back Online & Offline UPS, Stabilizers, Generator etc Tk. 500,000 Others Cabling, Flooring, Grounding etc Tk. 100,000

6. Legal framework, Licensing & Bandwidth Item Brand/Description Qty Unit Price Total License & others Zonal ISP Tk. 60,000 Bandwidth [with VAT] Provider: BTCL & Mango 15 Tk. 21,000 Tk. 315,000 Company Formation Tk. 100,000 Working Capital - Due to the nature of operation working capital is expected to be Tk. 3,000,000 for the first year. Additional investment will have to be generated in-house for the subsequent years. Before reaching the break even point. Advertisement - Strong year long campaign is needed for increasing subscriber/client base. Utilizing print, TV, FM radio, Bill boards etc has to be operational within first quarter of operation year & then print presence last quarters are necessary. Expected cost to be around Tk. 2,000,000.

7. Total Capital Investment Avenue Amount System Setup Tk. 4,230,000 Transmission & Distribution [wire & wireless] Tk. 8,510,000 Office & Cyber Café Setup Tk. 3,790,000 Expenditure on Legalities & Bandwidth Tk. 475,000 Working Capital Tk. 3,000,000 Advertisement Cost Tk. 2,000,000 Total Tk. 22,005,000

8. Monthly Recurring Cost [End of 1 st quarter] Monthly rental expenditure for Office, PoPs, Cybercafés & Utility Bills Office Tk. 25,000 3 Cybercafés [Tk. 10,000] Tk. 30,000 PoPs [Tk. 1,000] with electricity bill; 10 units Tk. 10,000 Utility bill [Electricity, water, phone, printer cartridge etc ] & others Tk. 130,000 Employee Salary Project In charge[3], Marketing Head[1], Accounts Head[1] Range Tk. 15,000-20,000 Tk. 100,000 Executives[7] Range Tk. 8,000-10,000 Tk. 70,000 Junior Executives[10] Range Tk. 5,000-7,000 Tk. 70,000 Cleaner[1], Peon/Bill Collector[1] , Cable-man[5] Range Tk. 2,500-4,500 Tk. 31,500 Bandwidth Charge Monthly BTCL /Mango BW Charge [10 mb ] Tk. 21,000 Tk. 315,000

9. Monthly Projected Revenue Earning [ end of 1 st quarter-3 rd month ] Project 5 Client Category Monthly Serv. Charge No. of Clients Revenue Earning Unwire Individual Tk. 800 300 Tk. 240,000 SoHo Tk. 2,500 50 Tk. 125,000 Basic Business Tk. 5,000 25 Tk. 125,000 Premium Business Tk. 10,000 & above 10 Tk. 100,000 Project 5 Daily Earning Working Day No. of Cafes Revenue Earning Game Cafe Tk. 2000 30 3 Tk. 180,000 Project 5 Client Category Unit Charge No. of Clients Revenue Earning Hot Zone Build-Operate-Share 5 Tk. 25,000 Build-Operate-Transfer - Project 5 Client Category No. of Clients Revenue Earning Online BOT & BOS operators, other vendors 20 Tk. 100,000 Project 5 Products Unit Charge Revenue Earning Pro Wireless CPE & others Tk. 4000 20 80,000

10. 1 st Year Profit & Loss Summery Monthly 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th Revenue 975000 1023750 1072500 1121250 1177313 1233375 1289438 1353910 1418382 1482854 Cost 781000 781000 781000 898150 898150 898150 987965 987965 987965 1037363 Pro/Los 194000 242750 291500 223100 279163 335225 301473 365945 430417 445491 Revenue expected to grow 15% quarterly specially increase in revenue earning in following sectors; Project 5 Online Project 5 Unwire [Individual & SoHo ] Project 5 Hot Zone Similarly. cost will also increase by 15%, 10% & 5% quarterly [gradual decreasing rate], due to rise in the following avenues; Increase in employee number Increasing upstream bandwidth New Wi-Fi hardware installation *Holding quarterly progression base

11. Forecasted R evenue Year 1 2 3 4 5-Unwire 9,000,000 5-Game Café 1,800,000 5-Hot Zone 5-Online 5-Pro Total Tk. 12,000,000 Tk. 24,000,000 Tk. 30,000,000 Tk. 35,000,000

12. Financial Analysis The following are the project financial indicators: − Return on Investment [ROI] = − Internal Rate of Return [IRR] = − Net Present Value [NPV] = − Break Even Point [BEP] = − Payback Period = 4 Years