1.

Executive Summary
AST.Net Wireless Broadband is an innovative start-up company that provides wireless
broadband internet connections to several Dhaka Metropolitan Areas. Utilizing Wi-MAX
technology and proprietary antennas and repeaters, AST.Net will be able to serve a larger area
with broadband Internet connections.
AST.Net will be founded by Md. Anikul Islam, Mohammed Tajimul Islam and Shahriar
Hossain. With an MBA and an undergraduate degree from American International UniversityBangladesh (AIUB), we have the skills to execute on this well-researched business plan. We are
spent one year in various Associates, which gave him not only an incredible and reasonable
boost in confidence to accomplish a business venture, but also provided with solid project
management skills and experience.
The market for wireless broadband Internet connections in Bangladesh is new but is widely
open. Demand for traditional broadband connections is surpassing conservative forecasts. The
wireless market is even more exciting due to the significantly lower costs needed in terms of
delivery infrastructure. As AST.Net customer base grows, costs decrease through scales of
economy, creating an even more compelling argument for AST.Net existence.
AST.Net has targeted three distinct groups. First group is students, a market segment that uses
the Internet the most and also has high expectations regarding the speed of the connection.
Second group is professionals, people with disposable income, not a lot of excessive time on
their hands, and a group that uses the Internet a fair amount, both personally as well as
professionally. The last group that will be targeted is techies. This group is the early adopters of
any type of technology and spends incredible amounts of time immersed in Internet technology.
AST.Net is a compelling business concept that leverages advances in technology and
proprietary tools to offer a market need at below market prices. In addition to earning great
margins with low infrastructure costs, margins increase as the customer base increases. This
exciting business plan has a high likelihood of success. The business will earn modest profits in
year two, increasing exponentially in year three. Net profit is forecasted to be commensurate in
years two and three.

1.1 Mission
It is AST.Net Wireless's mission to provide fast, wireless Internet access at a reasonable price.
The most important thing to remember is that every customer must be satisfied with our
services.

1.2 Keys to Success

Practice disciplined growth.

Reach profitability by year two.
Ensure that the customer's needs are met and maintain a 90% customer retention ratio.

1.3 Objectives

Provide, fast, reliable, wireless Internet access.

Treat customers with the upmost respect.
Become profitable within two years.
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2. Company Summary
AST.Net Wireless will be formed in 2015 to offer an inexpensive, wireless broadband Internet
connection to compete with DSL or cable offerings. Using Wi-MAX technology, it is
inexpensive to set up a neighborhood network. The company was founded by Md. Anikul Islam,
Mohammed Tajimul Islam and Shahriar Hossain. AST.Net will rely on outside investors for the
necessary start-up costs.

2.1 Company Ownership

AST.Net Broadband Wireless is a Wi-NET BD Pvt. Ltd. company with Md. Anikul Islam,
Mohammed Tajimul Islam and Shahriar Hossain as the principal and majority owners.

2.2 Start-up Summary

Equipment that will be needed is as follows:

Three computer workstations.

Wireless access point.
Five repeaters.
Five antennas.
Assorted office equipment and supplies.

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Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets
Liabilities and Capital
Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities
Capital
Planned Investment
Investor 1
Investor 2
Additional Investment Requirement
Total Planned Investment
Loss at Start-up (Start-up Expenses)
Total Capital
Total Capital and Liabilities
Total Funding

Start-up
Requirements
Start-up Expenses
Legal
Stationery etc.
Consultants
Insurance
Rent
Research and Development
Expensed Equipment
Total Start-up Expenses
Start-up Assets
Cash Required
Other Current Assets
Long-term Assets
Total Assets
Total Requirements

$9,500
$60,500
$70,000
$5,000
$55,500
$0
$55,500
$60,500

$0
$0
$0
$0
$0

$15,000
$55,000
$0
$70,000
($9,500)
$60,500
$60,500
$70,000

$2,000
$100
$1,000
$200
$200
$1,000
$5,000
$9,500
$55,500
$0
$5,000
$60,500
$70,000
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3. Services
AST.Net offers wireless broadband Internet access. The service is DSL speed with customers
only needing a Wi-MAX card/modem and to live within range of the signal which covers a
thirty block radius currently. There are plans to enlarge the coverage area as more customers
sign up.
Wi-MAX technology is based off of 2.4 MHz spectrum wireless transmissions. Using the same
wave lengths that some cordless phones use, the Internet signals are broadcasted out through the
neighborhood. With the supplied password and a Wi-MAX receiver in each customer's
computer, customers will have fast, wireless Internet connections.

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4. Market Analysis Summary

Within the last three years there has been a proliferation of broadband Internet connections.
With so many people enjoying fast connections at work, they are no longer willing to deal with
a dial-up connection at home. With the advent of Wi-MAX technology, customers can now
enjoy a fast connection without having to lay expensive cables since the signal is sent via radio
waves. The targeted market segments are: students, professionals, techies.

4.1 Market Segmentation

The market can be segmented into three distinct groups:
Students: these are people currently in academia and are accustomed to fast connections and
are willing to pay for it. This group uses the Internet the most, whether they are trading MP3s or
downloading videos.
Professionals: this group conducts a fair amount of business over the Internet, whether banking,
e-commerce, or communications.
Techies: this group embraces technology as they enjoy challenging themselves with technology
and the complexity it brings.
Other than the students, AST.Net' customers are fairly affluent (household income of >$50,000)
and spend their money on technology offerings, whether it is digital cable, cellular service, or
broadband Internet connections. The target customers are also generally well educated with
65% having a college degree and 20% having a graduate degree. Combining several
demographic factors, AST.Net arrives at the following primary customer profile:

Spends 10 hours a week on the Internet away from home.

Has purchased something from a website at least once within the last two months.

Educated with at least some course work for an undergraduate degree.

Household income of at least $50,000.

Market Analysis
Potential Customers

Growth

1st year

2nd year

3rd year

4th year

5th year

CAGR

Students
Professionals

9%
8%

54,000
34,000

58,860
36,720

64,157
39,658

69,931
42,831

76,225
46,257

9.00%
8.00%

Techies
Total

11%
8.87%

10,000
98,000

11,100
106,680

12,321
116,136

13,676
126,438

15,180
137,662

11.00%
8.87%

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4.2 Target Market Segment Strategy

AST.Net has chosen the three aforementioned target markets due to their adoption of broadband
Internet technology. It is these three groups that are most likely to use a fast connection and the
most willing to pay a premium for the connection.

4.3 Service Business Analysis

There are three main participants within the consumer broadband Internet market.
1
DSL (digital subscriber line). A connection that utilizes the copper phone lines as the method
of transmission.
Cable. A connection that uses cable TV wiring for transmission.
Satellite connections. These use satellites, in orbit to provide "cable" TV as well as Internet
connections to residential and remote consumers.

4.3.1 Competition and Buying Patterns

As mentioned in the previous section, DSL, cable, and satellite access are the competitors in the
broadband market. Consumer buying patterns are based on two factors:
Availability: not every type of broadband connection is available to every consumer.
Consumers often pick service providers based on what is available to them.
Convenience: this is often based on where the outlet cords are based in the house, whether the
computer will be located closer to the cable TV or nearer to a phone jack.
Strategy and Implementation Summary
Simply put, AST.Net' strategy is to offer a service, demanded by customers, at a price that
undercuts the competition. This will be accomplished, not by accepting below-market margins,
but by leveraging technology, to help drive AST.Net' costs down. Awareness regarding AST.Net'
services will be generated effectively and inexpensively to the specific target segments that
AST.Net has focused on.

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5. Strategy and Implementation Summary

5.1 Competitive Edge
AST.Net' competitive edge is the effective and efficient use of Wi-MAX technology. Wi-MAX,
while a fairly recent technology, has been adopted by several different service providers as well
as used for home-based networks. What provides AST.Net with a competitive edge is its
efficient use of the technology. AST.Net has developed a proprietary antenna that allows for
signal transmission over great distances with less signal loss. Additionally, AST.Net has
significantly reduced administrative costs by having most administrative activities like
marketing, sales, and service details administered via the Internet.

5.2 Marketing Strategy

As the name implies, AST.Net will be using a AST.Net approach to developing awareness of the
offered services. AST.Net will adopt a multi-pronged marketing approach:

Advertising/postings: with local retailers and commercial businesses. This will provide
AST.Net with great visibility in the exact community that it operates in.
Mailings: AST.Net will adopt a targeted mailing campaign to local residents.
Website: AST.Net will leverage its website as a comprehensive and efficient source of
marketing/sales information.

5.3 Sales Strategy

The sales strategy that AST.Net will adopt is based on developing an awareness of AST.Net'
service as a viable alternative to Cable and DSL within the community. The message used will
be that you can receive broadband speed connections to your computer, wherever it may be,
even your laptop on your front lawn, at a price that is a fraction of the current competitors'. This
will be done with targeted advertising with local retail/commercial establishments in the area.
Additionally, AST.Net will rely on mailings to get the word out. Lastly, AST.Net will have a
website for marketing, sales, and administrative purposes.

5.3.1 Sales Forecast

AST.Net has developed a conservative sales forecast. Adoption rates of customers are fairly
steady from one month to the next. A conservative approach has been adopted to minimize any
external variables that may affect future operations. AST.Net believes that it will experience
extensive growth for several years for several reasons. The first is the general adoption of
broadband connections which has been encouraging for the last several years. Another reason
AST.Net believes their forecast to be accurate is it offers a viable, less expensive alternative to
current broadband connections.

5.4 Milestones
Milestones are a very important aspect of a business plan. They provide concrete, achievable,
yet lofty goals that the business must concentrate on. By targeting lofty goals, AST.Net ensures
that it is aiming high; therefore it is more likely to achieve more. The milestones that AST.Net
has chosen are very specific to the company and will be embraced by all employees.

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Milestone
Business plan
completion
First 10 customers
Profitability
Enlargement of the
network
Totals

Start Date
1/1/2015

Milestones
End Date
Budget
2/1/2015
$0

Manager
Md. Anikul Islam

Department
Management

1/1/2015
1/1/2015
1/1/2015

3/30/2015
2/1/2016
2/1/2016

Shahriar Hossain
Md. Tajimul Islam
Md. Tajimul Islam

Sales
Operations
Operations

$0
$0
$0
$0

6. Web Plan Summary

The website will be used for:
Marketing/sales,
Administrative functions.

6.1 Website Marketing Strategy

All of AST.Net' marketing information will be present on the website for viewing and for
downloading/printing. Awareness regarding the website will be accomplished by inclusion of
the website address on all printed materials. Additionally, the website will have a
comprehensive submission procedure to all of the popular search engines.

6.2 Development Requirements

The website will be developed in-house by leveraging interns.

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7. Management Summary
Md. Anikul Islam, Mohammed Tajimul Islam and Shahriar Hossain, founder and president will
be the anchor of the management team. The entire owner received their undergraduate degree
and Graduate in Business department from AIUB. After getting some experience invaluable,
providing them with extensive project management experience as well as giving them
confidence that he could accomplish anything he set his mind out to do.
After completing BBA getting back to the work field, all of three owners began the MBA
program at the University of AIUB. Our entire course of study concentrated on entrepreneurial
ventures, recognizing at some point his desire to start his own business. Near the end of his
second year, they are hearing about Wi-MAX technology. He became interested in what he saw
was a strong market need for inexpensive broadband Internet connections transmitted
wirelessly, thereby significantly decreasing delivery costs. Md. Anikul Islam, Mohammed
Tajimul Islam and Shahriar Hossain formed AST.Net Wireless to fulfill this market need.

7.1 Personnel Plan

The two main employees beyond are:
Technician: this position is responsible for the smooth operation of the wireless network as well
as the website.
Administration: this is a general customer service position, assisting in sales and support.

President
Technician
Administration
Total People
Total Payroll

Personnel Plan
Year 1
$24,000
$19,800
$15,000
3
$58,800

Year 2
$36,000
$21,600
$18,000
3
$75,600

Year 3
$48,000
$21,600
$18,000
3
$87,600

8. Financial Plan
The following sections outline important financial information.
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8.1 Break-even Analysis

Average per-unit revenue: based on the $20 monthly access fee. Average per-unit variable
cost: costs based on infrastructure, and administrative costs. Estimated monthly fixed costs:
Internet connections costs
Break-even Analysis
Monthly Revenue Break-even
$8,072
Assumptions:
Average Percent Variable Cost
5%
Estimated Monthly Fixed Cost
$7,668

8.2 Projected Profit and Loss

The following table and charts show the Projected Profit and Loss.
Pro Forma Profit and Loss
Sales
$36,584
Direct Cost of Sales
$1,829
Other Costs of Sales
$0
Total Cost of Sales
$1,829
Gross Margin
$34,755
Gross Margin %
95%
Expenses
Payroll
$58,800
Sales and Marketing and Other $2,400
Expenses
Depreciation
$996
Rent
$2,400
Utilities
$9,600
Insurance
$3,000
Payroll Taxes
$8,820
Other
$6,000
Total Operating Expenses
$92,016
Profit Before Interest and Taxes
($57,261)
EBITDA
($56,265)
Interest Expense
$0
Taxes Incurred
$0
Net Profit
($57,261)
Net Profit/Sales
-156.52%

$132,665
$6,633
$0
$6,633
$126,032
95%

$211,443
$10,572
$0
$10,572
$200,871
95%

$75,600
$5,600

$87,600
$12,000

$1,002
$2,400
$13,000
$3,000
$11,340
$6,000
$117,942
$8,090
$9,092
$0
$2,427
$5,663
4.27%

$1,002
$2,400
$15,000
$3,000
$13,140
$6,000
$140,142
$60,729
$61,731
$0
$18,219
$42,510
20.10%

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