ATANet (AnyTime Anywhere Net)

SUBMITTED BY:
NEHA MITTAL, IGIT (CSE) NEHA AGGARWAL, IGIT (CSE) PANEHA BHASIN, IGIT (CSE) SHUBHI SAINI, IGIT (CSE)

Objectives
For the First year of operation :
An innovative product that is affordable and convenient . Creation of a unique environment that allows people access to their own files and programs. Placement of public Internet terminals in Delhi.

For the following two years :

A growth in public Internet terminals placed by 20% each year. A growth in revenues by 25% per year.

Keys to Success
The placement of an innovative product and quality service that is able to both expand existing markets and create new ones. A steady, disciplined pattern of growth. The development of a good relationship with clients and customers.

Risks
Will there be a demand for the services offered by ATANet in Delhi? Will the popularity of the Internet continue to grow, or is the Internet a fad? Will individuals be willing to pay for the service ATANet offers? Will the cost of accessing the Internet from home drop so significantly that there will not be a market for public Internet terminals?

COMPANY SUMMARY

Company Summary
Convenient and affordable Unique and innovative product and service Appeal to individuals of all ages and backgrounds Great locations

Company Ownership
Private Limited Company. A and B, co-founders, hold equal stock positions of 36% each as majority owners. Investors will receive one share of ATANet stock for every Rs.1000/- of investment, up to 30%.

Start-up Summary
Fixed Assets at Principal Office Fixtures
Item Name
Personal computers Laser Printer Scanner Tables with chairs

Qty
2 1 1 4

Value (In Rs.)

80,000 20,000 10,000 10,000

Computer desks with chairs

Telephones Total Fixed Cost

2
3

8,000
4,500 1,32,500

Fixed Assets at 10 Internet Kiosk Fixtures Item Name Internet Terminal Qty 10 Value (In Rs.) 10,00,000

Tables with chairs Telephones

Total Fixed Cost

10 10

10,000 15,000
10,25,000

Start-up Expenses
Item Marketing/ Advertising Design Fees Value (In Rs.) 1,25,000/1,00,000/-

Freight
Utilities Professional Fees Insurance

20,000/18,000/15,000/20,000/-

Postage
Total Expenses Startup Capital Required Fixed Assets at Principal Office Fixed Assets at Kiosks Total Startup Expenses

5,000/3,03,000/1,00,000/1,32,500/10,25,000/15,60,500/-

Start-up Funding
Promoter A Promoter A Promoter B Promoter B From Investors Banks
Total

Shares 200 shares @ Rs. 1000/as Loan Shares 200 shares @ Rs. 1000/as Loan Shares 161 shares @Rs. 1000/Loan

= Rs. 2,00,000/= Rs. 3,00,000/= Rs. 2,00,000/= Rs. 3,00,000/= Rs.1,61,000/= Rs. 4,00,000/---------------Rs. 15,61,000/-

START UP
1200000 1000000 800000 600000 400000 200000 0 expenses assets loan

Products and services

ATANet public internet terminals will provide customers full access to: EMAIL

VIDEO EMAIL
WWW

PREPAID STOREFONT

Products and Services Description

WALK-UP INTERNET ACCESS WIRELESS INTERNET ACCESS PREPAID STOREFRONT MULTIMEDIA ADVERTISING

1. Walk-Up Internet Access

Customers pay with either cash or credit card and receive a specific amount of time on the terminal in exchange for their payment. Customers can surf the Internet, check email and send video email.

2. Wireless Internet Access

Away from the home, WiFi users can access the Internet through our Wireless Hotspots.

3. Prepaid Storefront
An application that allows customers to purchase products such as Prepaid Calling Cards, Prepaid Wireless Top-up and Prepaid Mobile Content (games, graphics, ring tones, etc.).

4. Multimedia Advertising
Local, regional, or national companies can advertise using multimedia on-screen advertisements.

Advertisements consist of full motion video "commercials," picture files, or twelve advertising.

Technical Specification
Wheelchair Accessible Front access for easy service and maintenance 15.1 inch touch screen LCD monitor Industrial spill and vandal proof keyboard Web Camera with integrated microphone Bill Acceptor and Credit Card Reader Stereo Speakers Wireless Router Surfnet Premier

PC Specification
2.4GHz Celeron Processor 40GB hard Drive 256MB DDR-RAM 52X CD-ROM Floppy Drive Windows XP Professional 3-Year Hot swap

Why Do We Need It?

ATANet will be first to place public Internet Terminals in DELHI. It will differentiate itself from other ISPs in DELHI by providing its customers with the ability to access the Internet even when they are away from their own computer. We do not expect to replace standard internet access options (home, school, and work-based computers), but to supplement them; similar ventures, such as Internet cafes, have seen great success.

Technology
ATANet will invest in terminals with high-speed computers to provide its customers with a fast and efficient connection to the Internet. The computers will be reliable and fun to work with. ATANet will continue to upgrade and modify the systems to stay current with communications technology. One of the main attractions associated with public Internet terminals is the state of the art equipment available for use. Not everyone has a Pentium PC in their home or office

Future Products and Services

As we increase our presence in the public Internet access business, we will continue to seek out applications that will allow us to offer a greater variety of services. A key component of this will be customer feedback.

MARKET ANALYSIS SUMMARY

MARKET ANALYSIS
Exciting opportunity of being the first-mover in the Delhi. Attractiveness of convenience, combined with the growing interest in the Internet, has been proven to be a winning concept. Number of internet users in India has reached 40 million in December last year.

MARKET SEGMENTATION
Our customers can be divided into two groups:1. familiar with the internet. 2. not familiar with the Internet Within this group, we will target two groups in particular: 1.Students 2.Traveling Business People Target market includes people between the ages of 18 and 65.

Market Analysis

Market Analysis 2005 Potential Customers Students Traveling Professionals Other Total 2006 2007 2008

Growth 2% 3% 0% 2.38% 35,000 24,000 900 59,900 35,700 24,720 900 61,320 36,414 25,462 900 62,776 37,142 26,226 900 64,268

Market Analysis (Pie)

Competition and Buying Patterns

Main competitors are Tata Indicom & Satyam. Competition also comes from online service providers. Due to the nature of Internet, no geographical boundaries restricting competition.

Strategy and
Implementation

Strategy and Implementation

Focuses on pulling in power Internet users. Focuses on building a large loyal customer base Which attract large, medium and small companies as clients for our interactive advertising.

Marketing Strategy
Position itself as an aggressive, innovative company. Will use advertising as its main source of promotion. Launch a diverse advertising campaign. Operate under the principle that our best marketing is an exceedingly satisfied customer.

Pricing Strategy
Considered two sources to determine the hourly charge rate. First, considered the cost to use other Internet servers, whether a local networking firm or a provider . Second, how other public Internet terminals went about pricing Internet access.

Evaluation of two factors resulted in:Walk-up Internet Access Charges Rs. 2 per 15 minutes. Wireless Internet Access Fee of Rs.10 per hour with one hour minimum.

Promotion Strategy
Implementing a pull strategy to build customer awareness and demand. Has budgeted Rs.1,25,000 for promotional efforts include advertising with coupons for fifteen minutes of free Internet time. Realizes that in future, when competition enters market, additional revenues must be allocated for promotion .

Sales Strategy
Employs route operators to collect sales transactions and to perform routine maintenance on its terminals. Full-time technician is also available for terminals in need of minor repairs. Commitment to prompt, dependable service makes it different from others.

FINANCIAL PLAN

Financial Plan
Salaries Expense: Mr. A and Mr. B, will receive a salary of Rs. 3,60,000 in year one, Rs. 4,20,000 in year two, and Rs. 4,80,000 in year three. Payroll Expense: 10 full-time employees : Rs. 72,000 P.A. each 1 full-time technician : Rs. 96,000 P.A. 1 full time employee at Principal office : Rs. 96,000 P.A. The total cost of employing twelve people : Rs. 9,12,000. Rent Expense: Hiring a 1000 square foot facility at Rs. 1,20,000 P.A. Utilities Expense: Rs. 1,20,000 P.A.

Marketing Expense: Rs. 1,25,000 for advertising on television, radio, the Internet and the local newspapers Insurance Expense: Rs. 20,000 for insurance for the first year. Legal and Consulting Fees: Rs. 15,000. Depreciation: In depreciating our capital equipment, we used the standard depreciating practices of 25%. Miscellaneous Unforeseen Expenses: Rs. 2,40,000 Interest on Borrowed capital for working capital shall be Rs. 96,000 Networking Expenses: Rs. 2,40,000 P.A.
The total Working expenses: Rs. 2,20,000 per month or Rs. 26,40,000 P.A.

Break Even Analysis

With estimated operating expenses at approximately Rs. 2,20,000 per month, including everything from payroll to rent and insurance to maintenance of the kiosks, and average direct costs at roughly 20% of the net sales, we reach break-even at approximately Rs. 2,75,000 sales per month. We project reaching the break-even point in the second year.

Projected Profit and Loss

We anticipate a net loss of approximately Rs. 2,00,000 in the first year as the ATANet idea catches on and sales increase. A Net profit margin of 18%.

THANK YOU

TECHNICAL IMPLEMENTATION
Wifi is the only globally accepted wireless technology, which allows users to connect to the internet without the use of wires. Wireless hotspots located in public areas,allow users access the internet on either a pay-peruse or subscription basis.

Wireless antennas create a wireless hotspot of 300 feet around the terminal.

 Connectivity radius that can be accessed by many people at once.

Allows devices such as PDAs, laptops and wireless peripherals to access the internet on a subscription basis.

Using pay kiosks terminals you can bring the connectivity to every room in your building.

As illustrated, the terminal is hooked up to your existing cable wire, which would naturally run through each guest room in your hotel.

Pay kiosks terminal delivers the signal to a wireless access point installed behind television sets in select suites. These are powerful enough to deliver wireless access to multiple rooms and floors.

The installation is invisible to the guests. Hardware is small and is powerful enough so only a few installations can provide access to the entire building.