DigiHUB

Baabul Singh

Supriya Jha

USB 2.0 @ 10 MBps Flash Drives @ 6 MBps Broadband @ 8 MBps

DigiHUB @ 100 MBps

What is a hub? A common connection point for devices in

a network. People can share data which they want to at

mind-boggling speeds.

What do you need to setup a hub? A hub can be setup even on personal

computer. Workstations and servers are used usually so

as not to compromise with the speed. The main requirement is a connection to the

local-area-network. A freeware known as PtokaX.

How to connect to a hub? Using freeware Dc++, Apex DC++ or Strong

DC++. Know the hub IP address and your IP address

must be configured accordingly. Must share some data. Must be registered on the hub.

Features of DigiHUB Speeds upto 100MBps 24*7 Uptime Highly secure Unlimited downloads Parental security Active administrators

Supriya Jha35%

Baabul Singh35%

ISP30%

Company Structure

Target Market Initially, broadband internet users in and

around Madhapur Beam Telecom, Hathway and Tikona users Age – Above 8 Sex – Both Income – Rs. 2 lakh and above Occupation – Any Educational Level – Basic computer knowledge Lifestyle (psychographics, hobbies) – Movies,

cyber gaming, internet

Current Opportunity LAN Hubs don’t exist in Hyderabad on

commercial scale None of ISPs have stepped into this business. In a population of 1,210,193,422 people, 99%

are not even aware of the full potential of an Ethernet cable.

The recent technological developments made Beam Telecom by using fiber cables can virtually hit limitless speeds.

Projection of Business Future DigiHUB’s network will grow throughout

Hyderabad and Secunderabad. Instead of relying on other ISPs, DigiHUB will

evolve into DigiNET which itself would be an ISP.

Financial Summary Funds sought for venture – Rs. 10, 55, 240 Estimated startup costs – Rs. 9,31,120 Projected average monthly expenses – Rs.

1,24,120 Projected average monthly revenue – Rs.

2,63,437

Current Status There has been no yesterday for a LAN Hub in

Hyderabad as such due to the lack of awareness.

We have the today in our hands. Once someone enters this business, it’ll invite

a lot of other competitors. Hence, future demands constant research and

development.

Competitive Analysis We face absolutely no competition. This promises us great fortune but also makes

it difficult to enter the market. Once we collaborate with an ISP to provide

such service, it is most likely the competitors would engage in such activities themselves.

Hence, we need to cater not just one but quite a few ISPs.

Demographics 10,000 Beam Telecom customers in and

around Madhapur 80% opt for Beam Telecom for its massive

download limits DigiHUB is not meant for internet browsers DigiHUB aims at downloaders

Entry Barriers The only barrier is the slightly high entry cost,

which will ultimately pay-off. This also limits the amount of competitors. Also, the network should be secure and virus-

free. An Internet Security Tool should do the trick.

Sales Strategy Our sales will be directly handled by the ISPs. The customer pays a minor surcharge along

with the internet rent. It is not only us who provide this service, but

even they have a share in it.

Promotion Internet Pamphlets 3 day free-trial

Pricing Strategy We intend to use “penetration pricing

strategy”, according to which we will initially set the price artificially low to gain market share; once achieved, the price will be increased.

The surcharge will be inversely proportional to internet rentals.

Web Strategy The web site will be used essentially for

marketing. It will provide a link to the ISPs website and

payment options. It will also be used to educate the customers.

Differentiation The main reason of our estimated success is

the fact that we face absolutely no competition.

Apart from that we ensure best service, exceptional quality, incredible speed and security.

Since we’ll be the only players in this market, we’ve complete advantage over pricing also.

Operation Plan Location - Room No. 2 (Ground Floor), 1-

98/42/B, Sai Nagar Colony, Madhapur – 500 081

Uptime – 24*7 Employees – 11 Space – 8 single rooms Capacity – Upto 4000 users at a time Accounts – Handled by Supriya Jha

Equipments Eight Dell’s PowerEdge 11G T410 Tower

Server Eight Dell’s PowerConnect 6248 Switches Eight Dell’s E190S Monitors

Permits & License The company has permit to do business in the

telecom circle of Hyderabad related to internet service provision according to ISP Policy, 1998.

The company will be licensed under “Category B” of ISP Policy.

Other important details… 70:30 venture with Beam Telecom starting

Nov, 2011 for a period of 2 years Eight single rooms for a period of six months

each DigiHUB will be registered as a trademark and

the hub design will be copyrighted Earnings will be distributed every month Salaries will be paid on monthly basis

Service PricingPlan Corresponding

Beam Telecom PlanRent

D-Max400 B-Max400 @ 256 Kbps

Rs. 250

D-Max600 B-Max600@ 768 Kbps Rs. 220

D-Max850 B-Max850@ 1 Mbps Rs. 190

D-Max1000 B-Max1000@ 2 Mbps Rs. 160

D-Max1500 B-Max1500@ 4 Mbps Rs. 130

D-Max2500 B-Max2500@ 6 Mbps Rs. 100

Funding Source(s) Dr. R. N. Singh

Rs. 5,27,620 Mr. P. C. Jha

Rs. 5,27,620 No interest will be charged if the amount is

returned within an year

Initial Investment (Equipments)Equipment Quantity Cost/Piece

(Rs.)Total (Rs.)

PowerEdge 11G T410 Tower Server 8 30,000 240000PowerConnect 6248 Switches 8 67,500 540000

E190S Monitor 8 7,500 60000Logitech Keyboard 8 250 2000

Logitech Mice 8 150 1200Computer Chair 8 3,000 24000Computer Table 8 1,200 9600

Stationary N. A. N. A. 2,000Drinking Water Dispenser 8 150 1200SanDisk 4 GB Pen Drive 5 350 1750

Logitech Headphone 8 300 2400Lock & Key 8 90 720

Office Workspace Furniture Set 1 12,000 12000Net Total 8,96,870

Initial Investment (Workspace)Workspace Quantity Rent (Rs.) Total (Rs.)

Single Room 8 3,500 28000Net Total 28000

Initial Investment (Licensing & Registration)License Quantity Fee (Rs.) Total (Rs.)

Category "B", ISP Policy, 1998 1 6,000 6000Domain Name 1 250 250

Net Total 6250Grand Total 9,31,120

Monthly ExpensesQuantity Cost/Unit

(Rs.)Total (Rs.)

Room Rent 8 3,500 28000Section Head Salary 2 10,000 20000Server Host Salary 8 7,000 56000

Customer Care Executive Salary 1 7,000 7000Drinking Water 24 30 720Electricity Bill 8 300 2400

Extra Overheads 1 10,000 10000Grand Total 124120

Number of users…

Nov/1

1

Dec/1

1

Jan/

12

Feb/

12

Mar

/12

Apr/1

2

May

/12

Jun/

12

Jul/1

2

Aug/

12

Sep/

12

Oct/1

20

100

200

300

400

500

600

D-Max400D-Max600D-Max850D-Max1000D-Max1500D-Max2500

Nov/11 Dec/11 Jan/12 Feb/12 Mar/12 Apr/12 May/12 Jun/12 Jul/12 Aug/12 Sep/12 Oct/12

-1,000,000

-500,000

0

500,000

1,000,000

1,500,000

Investment (Rs.)

Income (Rs.)

Balance (Rs.)

Cost Recovery

Conclusion If all goes as planned, a minimum of Rs. 40

lakhs would be generated within a period of two years.

The area served can be expanded within this period to generate extra revenue.

DigiHUB can be made available on other networks also.

Evolution into DigiNET must be considered as well.

DigiHUB must thrive to be the best & shall always be the fastest and most secure hub on the network.

Bibliography http://www.webopedia.com/TERM/H/hub.html http://accessories.ap.dell.com/sna/

category.aspx?c=in&category_id=4009&cs=inbsd1&l=en&s=bsd&~ck=mn&redirect=1

http://www.dell.com/in/business/p/poweredge-t410/pd

http://www.dell.com/in/business/p/powerconnect-6248/pd

http://www.beamcablesystem.com/index.php?option=com_content&view=article&id=149&Itemid=91

Thank you…