I wanted to start ISP business in small town in India and there aren't any known sources whom I can directly contact and they will give me details about plans etc. Before I can convience my friends to join me and search for such contacts, I need to do some calculations.

One of my friend told me that we can get 10Mbps connection and divide it in customers using Amplifier(never heard of it) and by using it we can provide 50 customers or even more with 1Mbps speed at the same time and they will all get that much speed. Any such thing is possible?

Any information on how does it work will be great.

Dani AI

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Short answer: you can only “sell” 1 Mbps to many customers from a single 10 Mbps feed because not everyone uses their peak at the same time. To guarantee 1 Mbps for 50 customers simultaneously you need ~50 Mbps of upstream capacity; in practice operators size backhaul using contention/oversubscription and busy‑hour estimates so the real requirement is lower if only a small fraction are active at once. ()

The word “amplifier” is probably being used incorrectly. Radio or coax amplifiers raise signal level or extend range, but they do not create extra Internet capacity — a noisy chain of amplifiers can actually make things worse. On cable systems the total throughput is set by DOCSIS channels and the CMTS scheduling; physical amplifiers only affect reach and signal quality, not the channel’s aggregate bits/sec. (arstechnica.com)

How real ISPs “divide” the pipe: they use statistical multiplexing plus per‑subscriber controls on edge routers (per‑user queues, token‑bucket shaping or policing, and QoS classes) and authentication/accounting (RADIUS/PPPoE or DHCP + billing). Design steps for a small ISP/WISP: estimate busy‑hour concurrency, pick a contention ratio you can guarantee, size backhaul to cover expected peak plus headroom, implement per‑subscriber shaping and fair‑queueing, and monitor usage (NetFlow/edge counters) to trigger upgrades. Hardware and router OSes can enforce per‑user limits and burst profiles; plan for growth and heavy users (video) which force much lower contention ratios. (cisco.com)

Practical calculator: required_backhaul ~= (advertised_rate_per_user number_of_users) / target_contention_ratio. Example: 50 users 1 Mbps / 10 = 5 Mbps average busy‑hour need — but buy extra for peaks, growth, and higher‑use apps. As said, confirm legal/contract permission first; as noted, a router with per‑user queueing will be the place to enforce plans. (bsimplify.com)

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First, you need to get permission from your ISP to do this, if law doesn't explicitly allow you to do so. You can route all the local people to your router assuming you have legal rights to do so. They will get whatever bandwidth is available based upon current usage. This isn't hard to do. Consider it a VWLAN (Very Wide Local Area Network). The biggest issue will be the distance from your router / modem to the most remote user. There are signal boosters you can use to increase the distance of either wired or wireless devices.

FWIW, I have never heard of Amplifier. I'll have to do some research and let you know what I find.

Ya we will have to obtain license first.

I had access to control panel of one of my local ISP. He had around 150 customers, most of them used around 1 mbps speed and few used maximum speed which was upto 4 mbps. When I saw speed of his router, it never crossed 5 mbps. As if his all cusomers were able to use same speed at the same time. Practically seems impossible to me, any thoughts?

Use Mikrotik Router (Winbox) to divide and control speed which you gave to your customers. Find appropriate model for you and enjoy it.
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