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Wifi Dabba (YC W17) – Own a Piece of the Internet in India
- mildlyclassic 6y agoHi HN, We launched on HN 3 years ago and were part of YCW17. We'd love for you to be a part of our moonshot. Our master plan is simple: Develop low cost broadband distribution technology. Prove it works by connecting one million people in one city. Once it works, deploy worldwide. Step 1 done - We have built a low cost network stack and have lowered the cost of deploying a citywide broadband network from $50m to $5m. We use lasers and commodity components thereby avoiding the core expense at the heart of current ISPs - expensive underground fibre and its associated manpower, heavy capex and regulatory pains. Ready for scale - We've run a beta network with thousands of live customers over the last 9 months and we know the tech works. We're now ready to scale across our hometown of Bengaluru with its population of 11m people and less than 10% broadband penetration. A killer proposition - We have a killer offering for the customer - 1gbps speed with no data caps at $10/month and a free Wifi Dabba router. This is 10x better and cheaper than anything else on the market. This playbook has been executed successfully in the mobile 4G market in India by Jio, we're applying the same playbook in broadband Go where no ISP has gone before - We're taking an AWS-like platform approach to our tech stack, our goal is to deliver deep APIs, network integration points, edge-caching and much more. We believe this approach will result in a whole new class of applications and services for users. We want to be the ISP that developers will love. The ask - This is where you come in HN, buy a piece of our network and help shape the future of the internet. We're offering minimum guaranteed revenue, naming rights to your region and a host of other benefits. There are only 66 of 100 regions available. Each region is $20,000.
- omnifischer 6y agoWish you all good luck. Hope there can be alternatives to Jio's monopoly using wifi.
- devxpy 6y agoIn your videos you seem to talk a lot about your custom lasers. Is this some in-house tech, or did you outsource this from china like everyone else?
- mildlyclassic 6y agoOP here. It's in-house tech. Our goal is to move the state of the art forward as much as we possibly can.
- jeswin 6y ago> We're taking an AWS-like platform approach to our tech stack, our goal is to deliver deep APIs, network integration points, edge-caching and much more. The website wasn't convincing, but this doubly so. What is your technology (which scales) that enables 10x savings, given that ISPs are operating on razor thin margins already? Also, 20k*100 = $2million. If the technology is proven, wouldn't you be able to just raise it without a lot of trouble? I want you guys to succeed. It's just that you might need to provide better arguments here.
- mildlyclassic 6y ago90% of the cost of being an ISP comes from laying the core underground fiber network that serves as the backbone of the system. This usually costs anywhere from $30k - $50k per kilometre to lay because it involves digging trenches, getting permits, etc. It takes about $50M to deploy a basic network in a city like Bangalore for example - we know from our existing ISP partners that this is a reasonable figure. The fact that we are using FSOC to replace the underground fiber is what creates the 10x in savings. It only takes a few hundred FSOC units to do the job of the fiber as the core network and is much, much cheaper. I've added a reply further down the page that addresses why we'd like the public to be involved, I'd be happy to elaborate more if you've got more questions.
- newuser46547 6y ago>The fact that we are using FSOC to replace the underground fiber is what creates the 10x in savings Then why aren't other ISPs doing it?
- mildlyclassic 6y agoThe tech is extremely new and other telecom companies and ISPs are testing it to plug holes in their network, this gives them only limited ROI on the tech because they've already got fiber networks and their entire organization is geared towards the deployment of fiber. Also, it's worth noting that most ISPs/telcos are manpower and regulations based resource extraction organisations. Their moat is being able to handle local bureaucracy and pump in the heavy capital required to deploy the network. They like to buy and use proven tech that comes with SLAs and support from large tech vendors. They will wait for FSOC to be mature before they do anything meaningful. We get the largest ROI from FSOC tech simply because we're building the network from scratch and are targeting the low cost market that is currently underserved. Most other ISPs are aiming for the premium market.
- abishekk92 6y agoThis sounds amazing. Is there anyway I can sign up for your broadband plan in Bangalore?
- deleted 6y ago[deleted]
- otoburb 6y ago>>The ask - This is where you come in HN, buy a piece of our network and help shape the future of the internet. We're offering minimum guaranteed revenue I'm not a lawyer, but since you're part of YC, you may want to reach out to your legal mentors and ask if this post/advertisement/promotion satisfies the SEC's Howey Test[1] due to HN having a material portion of US participants some of whom may not be accredited investors and HN is publicly readable. The US legal case SEC vs. Howey[2] uses 4 prongs to determine whether an offer is an "investment contract", namely "a contract, transaction or scheme whereby a person invests his money in a common enterprise and is led to expect profits solely from the efforts of the promoter or a third party." It sounds like you're satisfying all 4 prongs of the Howey Test by offering: a) a purchase contract for a Wifi Dabba; b) investing funds in Wifi Dabba; c) expectation of profits via "minimum guaranteed revenue"; d) from the efforts of the promoter, Wifi Dabba. Many 2017 cryptoasset tokens tried to raise money via token sales to US investors which the SEC classified as unregistered securities offerings which violate the Securities Act[3]. The SEC has had varying success going after organizations that offered unregistered securities offerings, but I don't think you (nor YC) would want that legal hassle. Based on your website and explanation, Wifi Dabba's mission sounds exemplary and a net-positive to democratize connectivity in India. Hence, I'm really rooting for Wifi Dabba and hope that you've spoken to a US legal advisor or YC legal mentor. EDIT: You mention on your website that you're a Delaware entity with an office in California, which implies that you are really bound by US jurisdiction + potential US investors. Please seek legal counsel. [1] https://www.investopedia.com/terms/h/howey-test.asp https://www.investopedia.com/terms/h/howey-test.asp [2] https://en.wikipedia.org/wiki/SEC_v._W._J._Howey_Co https://en.wikipedia.org/wiki/SEC_v._W._J._Howey_Co. [3] https://www.govinfo.gov/content/pkg/COMPS-1885/pdf/COMPS-1885.pdf https://www.govinfo.gov/content/pkg/COMPS-1885/pdf/COMPS-188...
- mildlyclassic 6y agoOP here. It's a good point you raise, its something we did our homework on and were advised that since we're offering a commercial franchise agreement and not a share purchase agreement we don't fall afoul of the SEC. It's also the reason why we've been able to offer only a limited amount of information on the website.
- notRobot 6y agoThat website is really crappy for a tech company. The videos are absolutely unwatchable on mobile, even when I try to open them in desktop view. The YouTube embed is squeezed into a narrow, unusable box. Did you even test your website on mobile? C'mon, guys. Furthermore, all the explanations are in videos and not in text? I don't want to watch a bunch of videos just to figure out what this thing is. AND the videos don't have captions. So if I have a hearing disability, there's no way for me to figure out what you guys are doing? Is it too much to expect a YC company to have a half-decent website?
- santa_boy 6y agoi can't understand the reason to be so critical of the website. i am not a design guy but as a user it looks pretty ok to me. i'm on a laptop and there is a max button at the right bottom of the video. i clicked on it and it seems all clear to me. the squeezed view is also okish. i am watching the second video and it seems pretty neat to me. the speaker is quite clear and i can understand his explanation
- notRobot 6y agoI think it's perfectly justified for me to be critical of a website when it is COMPLETELY UNUSABLE. Like I said, I'm on mobile, and there's no way for me to figure anything out from the website. It's 2020. It's not hard to make a website that's usable on mobile.
- avh02 6y agoI'm on the same boat, closed it in 2 seconds as half the stuff was cropped out by other elements, etc. I've seen that problem on a few sites since i'm on an ultrawide, but even adjusting window size to a more regular/manageable size did not help.
- Brajeshwar 6y agoI'd not worry too much about that. Their tech is not "website-tech" per se. But yes, wish it was custom done, leaner and not a modified version of a commercial Bootstrap theme -- Goodkit[1]. 1. https://themes.getbootstrap.com/product/goodkit/ https://themes.getbootstrap.com/product/goodkit/
- rataata_jr 6y agoWhat the hell are these people trying to sell? What do I get out of it? Really crappy website.
- santa_boy 6y agotry this video ... the translation in english is there ... it's like an investment in a product that generates returns https://www.youtube.com/watch?time_continue=25&v=fT-emvifEl0&feature=emb_title https://www.youtube.com/watch?time_continue=25&v=fT-emvifEl0... > Minimum guaranteed predictable revenue > Fully managed including sales & maintenance > Includes hardware, software & team
- rataata_jr 6y agoAll the best. Hope your startup does well.
- crazy_hombre 6y agoThat is a super mediocre website you got there. Not a great first impression.
- nathancahill 6y agoYikes. I saw the comments about the website before clicking the link. Typical HN I thought, it can't be that bad. It is. The title and subtitle are completely cut off on desktop.
- samoa42 6y agoreally surprised that india apparently has data caps in the terrabyte range... typical usage in germany is around 150gig/mo. is p2p that much more popular? are you streaming everything in 16k+?
- sergers 6y agoI have 1Gbps up/down fiber, no monthly cap on data, i use zero p2p. Canada I stream alot. I have 3 IPTV boxes, Netflix, 2 mobile devices, and my kid watches a tonne of YouTube. We constantly hit at least 1.8tb/month. We don't upload anything, just alot of 1080p streams (don't have 4k device). I last had a 150GB/month cap when I had ADSL connection and only 1.5Mbps connection like 15 years ago. Heck I just did 110GB of wifi usage on my 1 phone this past month. How are you using so little data. Do u just read text and look at limited images?
- samoa42 6y ago> I stream alot. no kidding 1080p stream ~ 1-2GB/h -> 1TB/mo ~ 16h/day > I last had a 150GB/month cap when I had ADSL connection there is no cap, i meant what i said 'typical usage' > How are you using so little data. Do u just read text and look at limited images? indeed, we read a lot.
- searchableguy 6y agoPiracy is rampant so it doesn't surprise me especially games which require hundreds of gbs to download these days.
- fooker 6y agoHonestly, this seems like an exit scheme. What's the revenue from the existing points of presence? It's a bit misleading to compare to broadband where most people have effectively unlimited data on their phones nowadays. In 2017, this made sense sure. I will be very surprised if people pay for wifi in Bangalore today.
- tasogare 6y agoYeah seems like a scam. If the deployment was profitable, why not deploy then antenna incrementally has money from users pour in? It seems the company know it won’t be profitable on the long term.
- mildlyclassic 6y agoOP here. Its the exact opposite of an exit scheme. We're massively expanding our network to cover the whole city. We already serve thousands of paying customers and we're working to bring prices down dramatically. With regard to people having access via mobile data, you're right, India's made massive strides in 4g for sure. But our on ground experience over the last 3 years has shown us there's a massive appetite for more data so long as it can be provided at a reasonable price. Also, if you're in a dense market or housing area, current mobile signals don't provide good enough coverage and as the mobile networks are already running at 100% capacity there isn't much room for them to improve. As mentioned elsewhere on the thread, less than 7% of India has broadband access, there's still a large market open for a provider that can offer high speeds at a reasonable price.
- dash2 6y agoI think you would do best to get some "big players" to buy in first. Someone who pays $2m will do the due diligence that this works, hire an expert to check out your tech etc. That will add to your credibility when you ask others to put $20K in the pot.
- peey 6y agoI smell this too. Sent them a mail 5 days ago inquiring about the claimed FSO advancea, packet loss metrics and company financials and they haven't responded. Worse, the amount is just shy of typical angel investment but with their offering you'll likely have less rights than an investor does.
- shabinesh 6y agoIt would make more sense if they put their product comparison rates in INR, not USD.
- Brajeshwar 6y agoI believe I met Shubhendu Sharma at an event and if my memory recollects, showed interest in something like this for rural/remote Indian locations, especially the North-East. That was back then. In the past few months, Reliance Jio have dropped fibers everywhere even in that edge of India, reaching homes with Gigabit Internet options. I have a friend who invested in a small ISP there and I was interested in that. They no longer don't care and are now piled up with over-time work laying, connecting, and fixing up connections. I understand the philosophies of choices and alternative options. Nonetheless, what are your plans to compete and/or differentiate when the 99% of people don't really care from where they got their internet? The other things I see is the likes of StarLink[1], which is not physically bound by wires and is a matter of turning knobs as and when they have enough satellites to cover other areas of the world. Amongst all of these, where/how do you plan to compete/operate? 1. https://www.starlink.com https://www.starlink.com
- mildlyclassic 6y agoOP here. You make some great points that I'd love to address. - We know from first hand experience that the hype of Jio fiber doesn't reflect on ground reality. We know this because every ISP in Bangalore is a partner of ours. For the last 3 years we have been serving 100s of apartment buildings and tens of thousands of customers using ACT, Hathway, Airtel and Jio's network. We have dozens of instances where none of them can provide connectivity at the edges of the city or dense market areas. - Our plan doesn't require competing with any of the existing players. Less than 7% of India has broadband access, only 20 million households have broadband access. There's a large open market with room enough for multiple players. - Our offering to the consumer is also deeply competitive. We're offering gigabit connections with no data caps at one tenth the price of existing providers. - We're really excited about starlink, but for them to ramp up coverage and then get permission from the Indian government to allow their signals in India and then scale up to being able to provide access to 100s of millions of people is a long way off. Starlink is a great solution, but there are so many people in India that need access that they will be one of many players required in the market.
- blueblisters 6y agoHey this is a great idea, but I have a few questions/comments: - The website looks fine to me (it's not egregious like the other commenters say), but it might be worth making the landing page clearer. - Are the PoPs meant to be purchased by retail investors? $20,000 seems a bit steep for most people to invest in. It's also too small for most institutional investors. Do you guarantee returns for eternity? This sounds like a "too good to be true" proposition. Why not package multiple PoPs into a larger financial instrument so that returns are more even, and then sell them to institutional investors? Lambda school has taken a creative approach to bundling ISAs: https://lambdaschool.com/the-commons/announcing-our-new-isa-financing-blueprint-and-100m-in-new-financing https://lambdaschool.com/the-commons/announcing-our-new-isa-... - What are the parameters for your FSO technology? How well does it work in rain/smog and other environmental conditions? What wavelength are you using? - last mile is tricky because you still have to invest in infrastructure and marketing to the end user. Does $20k really cover that? Either way, I love the idea, just skeptical about the economics and the technology. Hoping to hear more about you guys in the future!
- mildlyclassic 6y agoOP here. Thanks so much for the questions. - The PoPs are meant to be purchased by retail investors, we've sold 35 of them so far. We're offering it as a franchisee agreement for a period of 6 years with a 70-30 revenue share split with minimum guaranteed revenue. - Regarding the FSOs, we've been serving thousands of live customers for the last 9 months off the FSOs and have greater than 99% uptime through rain, hail and heavy winds. FSO has come a long way in terms of reliability and throughput since the early days. We're using the 1535nm - 1565nm wavelength. - We've wired thousands of public wifi hotspots as well as large buildings and campuses over the last 3 years and a have a really clear deployment strategy and team in place. - Yes, the $20k covers the cost of the lasers, deployment, sales and management of the service and customers. We've put in a huge amount of effort over the last 3 years to bring costs down by using a lot commodity components for routers, switches, etc. - The $20k price point hasn't been much of an issue so far, but happy to hear more feedback on that. We're thinking about setting aside a few PoPs where a group of people can pool money to purchase one. Would love to hear your thoughts on that.
- BIackSwan 6y agoInterested, but few questions - There are several "traditional" financial instruments you can use to fund this rollout across Bangalore. This includes but is not limited to - Bank Debt, Venture Debt, Equity, Revenue Share based Debt, indie.vc style debt (revenue share debt payback), ads on billboards below/above/next to the wifi towers and so on. Why go the public retail investor/franchise model route? Are all of the above exhausted or infeasible? If so - why? Further, the network doesn't require a city coverage for it to work. It can be added piecemeal over time. Thus, you don't need the entire city coverage to start with - but major population dense areas to make the $20k payback in a few months. And the profits there on can be reinvested into more PoPs. Starting capital is $1.3M - its not hard to raise with a working solid business - in debt format if you don't want to give up equity.
- mildlyclassic 6y agoOP here. Thank you for your interest and questions. There are a few reasons why we would like to get the public involved: 1. It's taken 20 years, 13 telecom companies and about $200B to bring mobile internet access to 600 million Indians. Broadband deployment is more expensive than mobile deployment so even napkin math gives you an idea of the magnitude of money and time it will require to truly make a dent in the connectivity of the country. If we can lower the cost of the deployment tech then we will able to lower the cost of ownership and distribution of the tech. This would be a win-win for consumers and investors. 2. A whole lot of the issues that plague the internet today, from the splintering of it into a chinese network, censorship, net neutrality and other issues comes from the fact that it's so expensive to deploy these networks that they fall into the domain of mega-corps or nation states. As a result, control of the internet falls into a few hands and we have an internet that is getting increasingly centralized. If Wifi Dabba can spread ownership of the network then we hope that it will lead to more open internet that is harder to control or shutdown. 3. You're right, we're aiming to raise only $2M from the public - 100 PoPs x $20k each. Not sure where the $13M comes from, if you could point out where you see that number, I'd be happy to rectify it. 4. We've also built a lot of safety elements into the purchase process. We're following Kickstarter-ish rules where you only have to make a $1000 deposit - the remainder to be paid only when we sell all 100 PoPs. Furthermore we offer a 100% refund in the first 12 months should you choose to change your mind at any point.
- CKN23-ARIN 6y agoDo you have an ASN? Where are you getting your bandwidth from?
- ignoramous 6y agoThis wasn't the wifidabba I knew which was more like low-cost captive portals for tea stall vendors to make money off of? Sounds like an interesting pivot. Can you please share the backstory, if you're okay? How does Starlink and Amazon's Project Kuiper compare to FSOC in terms of delivering cost effective Internet? Also, what are the most pressing challenges with a FSOC deployment? I'm guessing line-of-sight issues are a real problem? 5G changes things radically too, I guess, would wifidabba remain competitive in face of that? Is wifidabba similar to something that https://starry.com https://starry.com is doing? Is it the same tech Emrod is deploying in New Zealand? https://news.ycombinator.com/item?id=24422897 https://news.ycombinator.com/item?id=24422897 Thanks and all the best! As someone passionate about this space, I'll continue to keep an eye on your progress.
- mildlyclassic 6y agoOP here. Thanks for remembering who we are! We're very much in the low cost wifi business, we're just taking the leap to fully own the backhaul part too. For the last 3 years we used partner ISP infrastructure to power our network, much like an MVNO. We saw first hand the terrible quality of service our partners provided mostly due to the limitations of their tech stack and their fiber deployments. We're taking the leap to deploy a much more reliable backhaul backbone at a much lower price. Starlink & Kuiper are a totally different ballgame. Their satellites communicate with each other via FSOC, but the end delivery to the customer is a phased array solution. We're using FSOC as the backbone and overhead fiber to the customer premises. Although 5G is a few years away in India, spectrum sales haven't started and its unclear whether our telecom companies can even afford it given the level of debt the industry already has. That being said, we're poised to be an enabler of 5G once it does arrive because all those 5G small cells are going to require much more backhaul than they currently have. Less than 30% of the mobile phone towers in India right now have fiber backhaul, that situation is only going to get worse when 5G arrives, so we see it as an opportunity to be a backhaul provider for 5G services. Starry.com is using millimetre waves in the radio spectrum, whereas we're using lasers. The big difference is in India the 5G spectrum is not for public use as of yet, the big advantage of lasers is that they use unlicensed free space so there's no spectrum charges that apply.
- chakrihacker 6y agoFirst of all congrats for innovating and trying to bring internet to every home. I have few questions 1. If you launched in India why the prices are showing in dollars? 2. 1.5 crore rupees is a lot of investment. I think one can cover 1 km of fiber network with that amount of money, no need to go for wifi dabba 3. On website it said better for rural areas. How is it good for rural areas where houses are not multi storey buildings (can't grab bunch of customers, but in apartments that can be done)?
- mildlyclassic 6y ago1. The purchase will be made to our US corp, so therefore dollars. 2. It's 15 lakhs INR, not 1.5cr :) 3. The biggest challenge of rural connectivity is getting fiber to those areas, FSOC does a great job of covering long distances with high bandwidth across forests, rivers and other hinterlands. Right now we're able to do distances about 20km between links.
- guywithabowtie 6y agoWhat is percentage of minimum guaranteed return ? Where do you buy your source connectivity from? What is the cost of last mile fabric. What is approximately the number of customer you can get from each POP.
- mildlyclassic 6y agoWe're offering a minimum of $1500/quarter. We source connectivity from the national fiber grid from multiple providers. Our operating experience from the last 3 years shows us that we can get thousands of customers per PoP.
- guywithabowtie 6y agoWhat would be the approximate earning per customer on your plan. Who does the marketing and sales?
- luminati 6y agoSince you guys are us incorporated and hq-Ed, how were you able to get the legal permits sorted out? Iirc, India has very strict foreign ownership controls on ISPs and telcos. Also in one of the comments you briefly mentioned that you can help democratize/prevent censorship? But aren’t you guys by law supposed to block certain websites? And wouldn’t your foreign ownership be under scrutiny if some incident were to happen?
- imheretolearn 6y agoCalling it Dabba and the website not displaying the title and subtitle correctly on desktop certainly made me think that this was a parody.
- ketcomp 6y agoKudos for working in this area - I hope you succeed wildly! I definitely echo all the bad feedback about the website - it does not give a good impression at all and makes me re-think about all of your other claims as well.
- amit9gupta 6y agoA similar initiative; though non-commercial and based on different technology: https://www.nycmesh.net https://www.nycmesh.net
- YogeeKnows 6y agoI'm curious to see the pitch video submitted for YC application. So if you can share it, that'd be awesome. Just want to see how you simplified the offering in your video.