What is virtual ISP?

Virtual Internet service provider, also known as virtual ISP or VISP, is a service provider that buys Internet services from the supplier, and then sells these services to customers. This approach is also sometimes referred to as the wholesale service ISP. Customers who buy Internet services from virtual ISPs receive access to the Internet through one or more presence or POPs that are owned and operated by the supplier.

with a typical arrangement of virtual ISPs, the Provider concludes an agreement with the supplier to generate a minimum amount of business within a specified time frame. In exchange for generating this volume of business, the supplier expands services to virtual ISPs with reduced rates. The Provider is then able to set prices that are still very competitive with rates offered by other Internet service providers, but allow a fair profit. Some contracts of this type include graded prices,Allowing provider to receive services at even lower rates because the minimum volume of business is exceeded.

Operating virtual ISP has significant advantages. One has to do with low direction. Since most equipment, maintenance and access to the network are provided by the supplier, the Provider can work with a smaller number of equipment and smaller employees. This in turn means that the provider will save a lot in terms of salaries and wages and employee benefits. The final result is a higher profit from each new customer signed.

One of the potential disadvantages of the operation of virtual ISP is the lack of control on the provision of the clientele service. If there is a problem to prevent clients from connecting, the provider is dependent on the supplier to implement the backup program while the problem is resolved. Depending on how well the top -provider canHaving relatively few losses in terms of clients or ending with a significantly smaller client base.

In some cases, virtual ISP sells services offered transparently. This means that the work arrangement between the service provider and the supplier is easily detected to potential customers. This is often the case where the name of the supplier brand is well known and is likely to attract clients to trade with the provider. Depending on the marketing model accepted by the provider, support for public awareness may lead to considerable income profits for all involved. Other times, the virtual ISP operator may prefer a private brand of service, a step that is often used if the goal is to look like the agent of services rather than an agent.