In the previous article, we know that the internet cost is actually free, because we just connect to each other at the IXP. However, many internet users are living far from the IXP, which means there is a business opportunity that offers connection from user’s devices to the IXP. This kind of company that offer “internet connection” later in is called Internet Service Provider or ISP. In this article, we discuss “why dont you just build your own ISP”, get connection to the internet and share it to users with price.

Technically, what is ISP?
As its explain above, an ISP is a company that provide services to its user to connect to internet. so users just contact ISP, tell ISP that

How can ISP forward my signal to IXP / internet?
well, ISP build their network infrastructure from internet exchange (IXP) to the area where users are located. thats why, every ISP must have a coverage area.

IXP and ISP. picture from

Why not just cover the whole area?
For efficiency reason. Providing a coverage area means an ISP must build the network infrastructure (tower, cables, router, switches, etc) in that area so that customers can use their service. one thing for sure, building infrastructure requires resources (money, man, machine, time).

Therefore, marketing and operation department must carefully plan the coverage area to ensure they can sell their service there. if its just an empty space, no one is interested.

so, ISP has to be a big company?
no. please read the ISP definition above. the main job of ISP to connect users device to the internet. as simple as that. In indonesia, there is a movement named RT-RW net which basically doing the same thing like normal ISP do.

RT-RW net was born because big ISP did not provide enough coverage for people. technically, the RT-RW net works is by get an internet connection from bigger ISP, and share them to other users. Usually, one internet connection that is shared among several houses via cable or wireless.

This way, internet connection cost can be reduced because its shared among users. making more money is possible too as long as customers are happy. its cool right?

Any example of ISP?
just google it please

Can i become an ISP too?
sure why not? see story about RT-RW net above

Do i need to pay for the ISP license? why?
well, for non-profit RT-RW net above, you donot need a license. If you do it commercially, it make senses that you have to pay for the permit. Every country has their own law for ISP bussiness. just make sure you comply that. 🙂

Any steps to build an ISP (legally, in indonesia)?

  • Apply for ISP license to ministry of communication and information (KEMKOMINFO)
  • Apply for IP address block to APJII (indonesia) or APNIC
  • Connect to one of IXP in indonesia (setup BGP peering) or connect to local ISP in your area.
  • Build a network infrastructure to provide coverage for your customers. such as:
    • IP address planning. to make sure no overlap IP address
    • Router and switches: core and edge. Router is important device that allows forward signals from customers
    • Cables or wireless connection.
    • Authentication machanism. to make sure that only customer can login to our network
    • Billing. tracking internet usage of the customer
    • QOS / bandwidth management. managing bandwidth so that no user dominating the whole bandwidth
    • Helpdesk. customers should know where to contact in case there is an error in the network.
    • Others as needed
      example infrastructure:

      ISP infrastructure picture from

Please note that you must have a good marketing in order to sell your service.

Do you offer professional support?
Yes. We offer professional service to assist you building an ISP. We also provide GLC radius manager software that can be used for:
– AAA (Authentication, Authorization, Accounting)
– Billing
– handling postpaid and prepaid
– disconnect expired user from network
– provide usage report to customer

If you are interested, send email to and we will reply.

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