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Launch HN: Necto (YC W18) – ISP Starter Kit

404 pointsby montasaurusabout 7 years ago
Hey, we&#x27;re Ben and Adam, the founders of Necto (<a href="https:&#x2F;&#x2F;nectolab.io" rel="nofollow">https:&#x2F;&#x2F;nectolab.io</a>). We&#x27;re enabling local entrepreneurs to start their own Internet Service Providers by providing network engineering, monitoring, and business support as a service. We&#x27;ve seen huge improvements in last mile distribution technology in the last few years (cost, reliability, thoroughput, ease of deployment), but it hasn&#x27;t translated into an explosion of ISP operators. We want to change that by allowing non-network-engineers to deploy their own networks and compete with the incumbents. Necto handles the networking setup, deals with the backbone providers, helps with distribution planning, and provides ongoing monitoring and support. The operators pick the markets, set the prices, and provide a great overall experience to their customers.<p>We started our own ISP here in the underserved San Francisco markets of Bayview and Portola, with more neighborhoods to come. If you live in SF, we&#x27;d love to be your ISP (<a href="https:&#x2F;&#x2F;joinnecto.com" rel="nofollow">https:&#x2F;&#x2F;joinnecto.com</a>). If you&#x27;re interested in starting an ISP, we&#x27;re looking for an initial batch of 5 operators. You can learn more about that here: <a href="https:&#x2F;&#x2F;nectolab.io" rel="nofollow">https:&#x2F;&#x2F;nectolab.io</a> .<p>Our product is a combination of a few important requirements for running an ISP effectively: a centralized Network Operations Center (NOC), a Operational Support System (OSS) to manage the subscribers and get visibility into issues, and an Operator&#x27;s Handbook that covers the how-to&#x27;s of running an ISP (both technically and our advice on the business side). Our NOC will handle things like BGP, routing, reachability, hardware issues, upstream connectivity, and distribution provisioning. The OSS supports managing subscribers, diagnosing common issues, and performing installations. Our handbook provides a list Standard Operating Procedures for day-to-day management of the ISP and, in combination with our community of ISP operators, strategies on how to effectively launch and grow an ISP.<p>We charge an initial setup fee and an ongoing percentage of revenue. The initial setup fee covers us designing your initial network, sourcing your backbone connection, and the cost of the core routing stack. The ongoing percentage of revenue aligns our incentives with our operators and covers monitoring, the NOC, and ongoing enhancements for the software and community. The exact numbers depend on the scale of the network the operators are building.<p>We&#x27;re staunch supporters of Net Neutrality and increasing broadband penetration without sacrificing privacy. We don&#x27;t sell personal information or throttle traffic (and our operators won&#x27;t either). We believe that the future is in highly localized ISPs competing on service quality. We&#x27;re excited to tackle this problem because we&#x27;ve had to deal with poor internet service before, and we now know that you can make a great business out of providing better quality access. Our backgrounds are in enterprise automation technology and the home services industry (air conditioning, plumbing, electric). We&#x27;re happy to answer as many questions about any of this as we can! If you&#x27;re at all considering starting an ISP in your neighborhood after reading this, let us know at nectolab.io and include your HN username!<p>Thanks, Ben &amp; Adam

37 comments

toomuchtodoabout 7 years ago
Is what you&#x27;re offering substantially substantive above <a href="https:&#x2F;&#x2F;startyourownisp.com" rel="nofollow">https:&#x2F;&#x2F;startyourownisp.com</a>?<p>I won&#x27;t mince words: you&#x27;re asking customers to outsource the core pieces of their business (netops, backhaul, billing) that they should be competent in, which puts them in a precarious position if you exhaust your runway, decide to move on to another venture, or are acquired by a less-than-ideal org.<p>Full disclosure: Muncipal&#x2F;coop broadband proponent.
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dslabout 7 years ago
Starting an ISP is relatively easy... get an uplink, some rack space somewhere, a router, hire a smart high school kid for tech support, and you are off to the races.<p>The really hard part is last-mile connectivity. You are either on someone elses lines (cable, DSL, etc), dealing with NIMBYs to bury your own lines, or working around line of site to do wireless. It isn&#x27;t clear that you&#x27;ve solved this problem (or even from your website what you are using for last mile).
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kbakerabout 7 years ago
Interesting project. With ARIN effectively out of IPv4 space, where do you get IPs from for a new ISP? Does it have to be transferred&#x2F;purchased from an existing block? I am assuming you are setting up IPv6 as well for your customers, are you deploying some sort of CGNAT?
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BroadcastSunnyabout 7 years ago
Net Neutrality has expired but remember it&#x27;s on the senate floor this week to bring it back. If you are for net neutrality, contact your senator. (You can find their contact information in the upper left hand corner at <a href="https:&#x2F;&#x2F;senate.gov" rel="nofollow">https:&#x2F;&#x2F;senate.gov</a> )<p>Despite that, I&#x27;m glad to see that you&#x27;re doing this even if net neutrality does come back. I remember the days of Earthlink and Mindspring. Now the ISP companies have become &quot;too big to fail&quot; and I&#x27;d like to see alternatives.
slovetteabout 7 years ago
If you guys haven’t, you should really look at <a href="http:&#x2F;&#x2F;Sonar.Software" rel="nofollow">http:&#x2F;&#x2F;Sonar.Software</a><p>That piece of software has been an amazing addition to our WISP here in Colorado. Simon and his team have made extreme strides in provisioning and IPAM management and continue to make bizops more and more turnkey.<p>The real magic though is the whole thing is VERY API focused. The entire platform can be automated and made more powerful with a little dev time.<p>We do a ton of 60Ghz (ignitenet), 24Ghz, 11Ghz and 5Ghz (ubnt &amp; mimosa) links to cover about 200 Sq miles. We’ve been mostly following a modified webpass model with redundant PTP and multiple interlinking. A few PTMP hub&#x2F;spoke exist too where needed (SFH).<p>We’ve been at this for a few years and have a dedicated lab and geo region that we test all kinds of new ideas and equipment both wireless and new fiber tech (10g GPON, bonded RF).
patrickg_zillabout 7 years ago
I was under the impression (would be happy to be wrong) that the real problem was the last-mile of fiber, or DSL over copper and the dealing with the ILEC that involves. Basically the ILEC won&#x27;t sell you DSL at a price that allows you to make any money. Am I correct about that?
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atourgatesabout 7 years ago
How do you guys handle the physical side of network operations with your partners?<p>I live in a rural area in Idaho, and we&#x27;ve got a pretty great WISP here. But, I know that the owners and employees are close to retirement age, and I&#x27;ve often thought of approaching them to see if they have any plans to sell the business.<p>How do you handle physical, local network management with your partners? Things like installing hardware customer homes and businesses, managing outages at broadcast sites, and all the rest. Is that totally up to your local partners, or something you provide training&#x2F;management for on any level?
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nickreeseabout 7 years ago
Ben &amp; Adam — Solid work. Maybe we can help expand the reach of the companies you partner with. We love helping small ISPs get their networks found by consumers looking for choice. Reach out to us at <a href="https:&#x2F;&#x2F;broadbandnow.com" rel="nofollow">https:&#x2F;&#x2F;broadbandnow.com</a> and let&#x27;s chat.
yodonabout 7 years ago
In case you haven’t found this lead yet, Microsoft has had a number of funding initiatives in the past looking to encourage startups to provide better connectivity to underserved markets. The first link google found on the initiative [0] is fairly old but I’m pretty sure this was&#x2F;is a multi-year effort that is likely still active and if not probably still has significant advocates within the company that are worth finding if underserved markets are relevant to Necto.<p>Full disclosure: co-founder of a Seattle-based startup that was invited into the Microsoft Ventures Accelerator and found it an incredibly valuable experience<p>[0] <a href="http:&#x2F;&#x2F;fortune.com&#x2F;2015&#x2F;11&#x2F;16&#x2F;microsoft-cheap-internet&#x2F;" rel="nofollow">http:&#x2F;&#x2F;fortune.com&#x2F;2015&#x2F;11&#x2F;16&#x2F;microsoft-cheap-internet&#x2F;</a>
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fiatjafabout 7 years ago
If you&#x27;re hacker looking to start your own micro-ISP using cool stuff, I think you should take a look at <a href="https:&#x2F;&#x2F;altheamesh.com&#x2F;" rel="nofollow">https:&#x2F;&#x2F;altheamesh.com&#x2F;</a>.
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csmajorfiveabout 7 years ago
Very cool, congrats guys. I am a Monkeybrains customer with a bunch of their equipment on my roof (I signed up for their enhanced &quot;FTTH&quot; campaign) and have wondered about replicating the service for myself and my neighbors if I were to move elsewhere.<p>Do you have an operating model for these small ISPs? Specifically I&#x27;m curious what the breakeven point is.
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willart4foodabout 7 years ago
This is interesting, I do have a few questions that I could not find in your FAQ:<p>- how do you provision the last mile? Copper? Fiber? or Wireless?<p>- Do you rely on the Local Exchanges? or is it on a case-by-case basis?<p>- Is your typical ISP customer selling to business? Individuals? or is best-fit an apartment complex&#x2F;business building?<p>Thank you.
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komali2about 7 years ago
From what I&#x27;ve read so far, this is fucking awesome. I have a couple questions about your &quot;operators&quot;:<p>1. Do you mean Comcast&#x2F;ATT i.e. is this only a last-mile solution that must connect to some hub of theirs?<p>2. &quot;We don&#x27;t sell personal information or throttle traffic (and our operators won&#x27;t either)&quot; - how do you know this is true now, will be true in the future, and if your operators are comcast&#x2F;AT&amp;T why did they agree to this? (given that they are hell incarnate and would sell a baby to satan for profit ;) )
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manavabout 7 years ago
What kind of residential density would you require? Is this only feasible for MDUs?
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lsiebertabout 7 years ago
How does your join necto privacy policy compare to local ISPs like Sonic? What about ISPs you help get started? Because your writeup about privacy is about net neutrality and throttling.<p>I see nothing about limiting data retention, not selling member data, or refusing to provide data voluntarily.<p><a href="https:&#x2F;&#x2F;www.sonic.com&#x2F;privacy-policy" rel="nofollow">https:&#x2F;&#x2F;www.sonic.com&#x2F;privacy-policy</a>
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icedchaiabout 7 years ago
What&#x27;s $25k get you? One tower &#x2F; roof top location?<p>I&#x27;m real skeptical that this is profitable on the low end.
uniclaudeabout 7 years ago
Great! This has the potential to help a lot of Americans (and more people, even).<p>Quick question regarding your business model. Do you intend to charge forever, or is there any option for your customers to get out after the setup if they decide to grow their business with their own resources?
arrelabout 7 years ago
Amazing idea! I&#x27;d love it if the site could give some sense of how profitable the business could be, and over what timescale. I don&#x27;t need specific numbers, just the fundamental expectations for a model: How do I calculate ongoing costs? How many customers does it take to get to breakeven? What&#x27;s the marginal profit for a customer after that point?<p>It would be great to see a blog post about how joinnecto.com got off the ground. &quot;Be the savior the Internet needs and start your own ISP&quot; is a good slogan, but &quot;Start a great business and save the Internet in the process&quot; seems even better.
djweisabout 7 years ago
&quot;the underserved San Francisco markets of Bayview and Portola&quot;<p>Next time you fly over the midwest, look at density. If you can see your neighbor, you&#x27;re probably not underserved.
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whalesaladabout 7 years ago
It&#x27;s a bummer that this looks to be a turnkey kit that does exactly what I would imagine is the most fun part of building an ISP: network engineering, building routing hardware, etc...<p>I see that your own ISP relies on PPPoE... is that a decision you intend to rely on for the necto lab customers (other ISPs) or was that something you had to do specifically in your own case? Have you seen any downsides to that? I know as a consumer PPPoE is kind of a pain in the butt.
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ameliusabout 7 years ago
So how much money do you need upfront to start an ISP?
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xur17about 7 years ago
I&#x27;m really interested to see what comes out of this.<p>It&#x27;s interesting to see you list apartment complexes as one of the target markets - I&#x27;ve always wondered why more complexes don&#x27;t just provide internet access as a perk instead of outsourcing to Time Warner, AT&amp;T, etc.
deepnotderpabout 7 years ago
Just wanted to say congrats!<p>Is this still bay area only or are you ready to expand to other areas?
z3t4about 7 years ago
1) Roll out fiber to every house hold 2) Lease a few fibers to the nearest Internet exchange. 3) Negotiate as much peering as you can, and buy Internet transit 4) Profit 5) Work towards tier 1
SandersAKabout 7 years ago
This is so dope - I would love to do this in east oakland
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goatherdersabout 7 years ago
Having run a very large enterprise channel in the past, I&#x27;m a big fan of powering new businesses this way. Good luck
wasdabout 7 years ago
Is it $25k per site? Suppose I want to ISP several buildings. Should I budget $25k per building? How far apart can be?
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RyanShookabout 7 years ago
What about US markets outside the Bay Area?
WrtCdEvrydyabout 7 years ago
Can you guys bring it to Miami, I will be the first one signing up for personal internet and an ISP.
kizerabout 7 years ago
I live in Bloomington, Illinois. So... I assume we&#x27;ll be eligible in a month or two?
notyourdayabout 7 years ago
This is a solution for optimizing existing small ISPs that are overwhelmed by growth, it is not a solution for starting an ISP.<p>If one cannot figure out how to solve all these problems himself or herself that ISP will go out of business in a matter of months.
martinaldabout 7 years ago
Is this wireless or FTTB? Can&#x27;t really understand.
gonzoabout 7 years ago
Curious what your “routing stack” looks like.
osrecabout 7 years ago
Do you cater to the UK market as well?
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akskosabout 7 years ago
we really need change in the isp business (yeah, captain obvious here)
wittedhaddockabout 7 years ago
this is so awesome thank you hope it takes off in a big way
Rotdhizonabout 7 years ago
[redacted]
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