How to start a Wi-Fi hotspot business: what you need, step by step

A hotspot is Wi-Fi that people pay to use for an hour, a day or a week. It suits places where many people gather and want cheap internet: markets, bus stands, hostels, housing estates and shopping centres. This guide walks through what you need, in the order you will need it.

Step 1: Choose your place and check the demand

• Pick a busy spotLook for a place where people already wait, work or live close together.
• Ask before you buildTalk to ten possible customers. What do they spend on bundles now? What would they pay for a day of Wi-Fi?
• Get permissionAgree with the owner of the building or land where your equipment will go, and put it in writing.

Step 2: Get your internet supply

• Ask for a business lineAsk internet providers for a quote for a dedicated line. Shared home packages slow down in the evening, which is exactly when you are busiest.
• Think about people online togetherPlan the speed for how many customers will be online at the same time at your busiest hour, not for how many customers you have in total.
• Keep a second optionIf the site is important, find a second provider you can switch to if the first one fails.

Step 3: Buy the main router

This is the brain of the business: it checks who has paid, applies each customer's speed and limits, and protects the network. Use a MikroTik router and let it run everything, instead of setting up billing on each access point.

• Small siteA MikroTik hEX RB750Gr3 is a common choice.
• Medium siteAn RB3011 or RB4011 gives you more room.
• Large venueA CCR2004 is built for many customers online at once.

Step 4: Choose and place your access points

• Use outdoor units for open areasDual-band (2.4 and 5 GHz) outdoor access points mounted high on a pole reach further and share the load better.
• Place them for coverageOne well-placed unit can cover 200 to 350 metres in open space. Walls and crowds reduce that, so test before you fix anything in place.
• Keep them simpleThe access points only spread the signal. All the rules live on the main router.

Step 5: Plan the power

• Add a battery backupA small backup power unit (UPS) keeps the router and access points on during short power cuts.
• Protect from weather and theftUse a proper box for the router and fix outdoor equipment where it cannot be reached easily.

Step 6: Connect billing and payments

• Create your accountStart a free trial on Gridix Billing. No card is needed.
• Connect the router with one scriptPaste one script into your MikroTik router. It sets up your Wi-Fi login page and everything else it needs, then tells you when it is ready.
• Turn on mobile moneyChoose the payment company you want to use, so customers can pay from their phone with M-Pesa, Mixx by Yas, Airtel Money or HaloPesa.
• Do a real testPay for a package yourself and check that the Wi-Fi starts and stops on time.

Step 7: Make your login page and your packages

• Choose a themePick one of the six themes, add your logo and your own colour.
• Set simple packagesFor example an hour, a day and a week. Give each one a price, a speed and a limit on devices.
• Work out your priceAdd up your monthly costs, divide by the customers you expect, and make sure each package leaves a profit.

Step 8: Sell vouchers for customers without mobile money

• Print vouchers in batchesGive batches to agents in the area, and record which agent got which batch.
• Track every codeYou can see which code was sold, by whom and when it was used, so cash sales do not disappear.

Step 9: Sort out the paperwork

Rules differ by business type and they can change, so check them with the offices themselves. We cannot give legal advice.

• Register the businessAsk BRELA about registering your business name or company.
• Get your tax numberAsk the Tanzania Revenue Authority (TRA) about your tax number and what you must file.
• Check the licenceAsk the Tanzania Communications Regulatory Authority (TCRA) whether your kind of service needs a licence, and which one, before you launch.

Step 10: Start small, then grow

• Open to a few people firstLet friends and nearby shops use it, watch how it behaves in the evening, and fix problems early.
• Watch the dashboardCheck payments, customers online and router alerts every day.
• Add the next siteOnce one site makes steady money, copy it. With one main router per site and one dashboard, a second site is quick to add.

What you will pay for

• OnceMain router, access points, poles and cables, battery backup, and the box to keep it safe.
• Every monthInternet supply, power, rent or site fee, repairs, your agents' share, and the Gridix Billing fee (3% of what you collect, or your plan's monthly minimum if that is higher).

Prices change from place to place, so ask for quotes. Our other hotspot guide shows the shape of the numbers with a worked example.