The Internet for Free

By Paul Miller and R1 bbs, 26 September 2008


(How to do it legally, at virtually no cost)

To start your own internet service you will need to rent a leased line from one of the main companies. The line will give you one years full access to an Internet server 24 hours a day. This will be the only cost apart from your BT line rental. The number of BT lines you have determines the number of callers you can have on your service at the same time. (After you're set up the amount you charge your customers is up to you). That is very basically how the business works.

The cost of leasing an Internet line from one of the service providers, ie. Demon or CIX, is one of the main stumbling blocks. They range from £2,500 – S3000+.

How can you reduce this cost to almost nothing?

If you run a bbs already or have a 486 PC , 040 or a 25 mhz 030 MAC with at least 4 megs RAM, you're almost there. Try leasing your line from Demon UK they will supply you with a free modem (speeds of 14,400 +) to help you connect to their server. Once connected it's time to get some publicity and customers.

Our research has shown 100% of users we asked would not mind paying £100.00 less for their Internet connection!

SETTING UP AN INTERNET CO-OP Since the introduction of the commercial Internet in the UK a few providers have been making a large amount of profit from an unsuspecting public. I am not accusing anyone of racketeering but the true cost of Internet communications has fallen rapidly in the last few years and the options available to users have not been publicised enough. This is how it breaks down

(Costs are based on average UK prices )1

Cost of your leased line to Internet provider £3500 (max.)

Cheapest price to user for 1 years inter-net access @SI30.00

Therefore 27 users paying 5130.00 per year could cover the cost of leasing one line.

40 users would pay £87.50 per year

80 users would pay £43.75 per year

100 users would pay £35.00 per year

150 users would pay £23.33 per year

Let's assume you charge150 users £32.00 per annum your total would be

£4,800 which leaves a surplus of £51,300

BT have announced a deal for anyone wishing to install more than one line at a time.

From March 27, 2 - 5 lines will cost S79-00 each ex VAT.

So assuming we now have £4,800.00 and we have paid £167.28 inc VAT for 2 phone lines plus 216.00 for BT line rental per annum.

we now have a total of £4,416.72

Take away the original £3,500

and we are left with: £916.72

Which is about the price of a 486 DX from Morgan Computing or a reasonable small 040 MAC.

These costs do not of course allow for any tax or business rates you may have to pay on premises, but running a small operation like this as a 'Sole Trader' for tax purposes may see you paying no tax in your first year as most of your costs will be classed as 'Capital Expenditure' and deducted from your tax bill.

If you put this on any other bbs please give r 1 bbs a credit for further info on Internet Co-OPs call r 1 bbs 0181 778 6547 and leave E-mail addressed to `sysop'

Remember setting up an Internet Cafe is even better value

Have Phun P.


Courtesy Paul Miller & R1 bbs