Start Your Own ISP

Original Article ↗ Hacker News Discussion ↗

Entrepreneurs exploring how to start their own internet service provider weigh the appeal of small wireless or fiber ISPs against regulatory hurdles, high upfront costs, and technical complexity. Commenters compare local WISPs with alternatives like Starlink and 4G/5G fixed wireless, noting that satellite can be transformative in remote areas but often can’t match wired speeds, pricing, or capacity. A recurring theme is that good network engineering and realistic business planning are critical, as many small operators struggle with poor equipment choices, municipal barriers, IPv4 scarcity, and eventual pressure from large incumbents.

Regulation and feasibility by region

  • Mixed views on Canada: some describe heavy regulation, regulatory capture, and hurdles around wholesale access (especially fiber), citing small ISPs being bought by incumbents; others say barriers are low, especially for rural WISPs.
  • Mention of a Canadian government move to require telecoms to provide backup for each other after a major outage, but details and impact are debated and somewhat unclear.
  • Similar complaints from Spain and San Francisco about municipal barriers and entrenched incumbents.
  • In the US, some counties have municipal fiber constraints and cost-sharing models that make individual upgrades expensive.

Economics and business risk

  • Classic joke: “how to make a small fortune with an ISP: start with a large one.”
  • Some report starting small WISPs with modest funds, but note that profitability is hard and regulatory/wholesale dynamics can force small ISPs to sell out.
  • Fiber builds face high upfront capex and permitting delays; some operators focus on MDUs and dense areas to make the economics work.

Starlink, 4G/5G, and competitive pressure

  • Many see Starlink as a major threat for rural WISPs, noting customers defecting from WISPs and DSL.
  • Counterpoints:
    • Starlink is more expensive than cable/fiber, often slower, and capacity-limited per area.
    • It’s seen as a replacement for dial-up, legacy satellite, and weak DSL, not for good cable/fiber.
    • Satellites have limited lifetimes but the constellation is continuously refreshed.
  • 4G/5G fixed wireless: experiences range from “budget, high-latency, CGNAT” to “surprisingly good if capacity-managed,” especially for low-end users.

Technical practices and equipment

  • Good WISPs can outperform Starlink, especially if they:
    • Pull fiber near communities and distribute via 60 GHz or 5 GHz.
    • Gradually reinvest profits to extend fiber deeper.
    • Serve MDUs efficiently.
  • Reality described as “cowboy” operations: poor design, technical debt, overuse of certain low-cost gear, and reluctance to pay real network engineers.
  • Debate over gear:
    • Low-cost platforms (e.g., Mikrotik, Ubiquiti) are great for homelabs and small setups but can struggle at ISP scale, especially with advanced routing/MPLS.
    • Higher-end vendors (Juniper, Nokia, etc.) are recommended for core/edge in serious deployments.

Addressing and protocol issues

  • IPv4 address costs are a significant barrier; ARIN waitlists and auctions are mentioned.
  • Some ISPs run IPv6-first with NAT64/DNS64 or similar to minimize IPv4 needs.
  • CGNAT on cellular/FWA causes connection instability and is a pain for advanced users.

Quality of advice and resources

  • The “start your own ISP” site is seen as a useful high-level starting point but not authoritative.
  • Concerns raised about relying on random online guides and Facebook groups; good network design advice is hard to identify and usually costs money.
  • Several talks and case studies of individuals building fiber ISPs are recommended as more in-depth resources.