Necto

Everything one would need to start an ISP

High-Level Overview

Necto is a startup that provides an ISP starter kit designed to enable individuals and small businesses to launch their own local internet service providers (ISPs). Instead of charging end customers directly, Necto empowers "operators" who handle customer acquisition, pricing, and business operations while paying Necto a service fee for software and network management. This model lowers the technical and financial barriers to entry in the ISP market, offering an alternative to large incumbents like Comcast and AT&T. Necto’s solution targets local entrepreneurs, building owners, and contractors who want to provide fast, net-neutral internet access in their communities, thus fostering competition and diversity in broadband services[1][2][4].

Origin Story

Necto was founded by Benjamin Huang and Adam Montgomery and launched out of Y Combinator’s Winter 2018 batch. The founders initially tried to build their own ISP but faced high barriers in obtaining wholesale fiber access. They pivoted to wholesale wireless technology, which is becoming comparable in speed to traditional broadband and more accessible for resale. The idea emerged from the desire to democratize ISP creation by removing the complex network engineering and configuration hurdles. Necto acts as an "ISP school," guiding operators through equipment selection, network setup, and business launch. Early traction included running a fixed wireless service in San Francisco and receiving hundreds of applications from prospective ISP operators[2][4][7].

Core Differentiators

• Unique Business Model: Necto does not operate as a traditional ISP but provides the software, network management, and technical backend, while operators run the customer-facing business and bear upfront costs[1][4].
• Technical Simplification: Automates complex network configuration and monitoring, making it as easy as assembling "Ikea furniture" for new operators without deep networking expertise[2].
• Fixed Wireless Technology: Uses wholesale wireless networks to bypass the high cost and difficulty of fiber access, enabling faster and cheaper ISP deployment[2][4].
• Targeted Support: Offers an "ISP school" with guidance on equipment, customer targeting, and business operations, lowering the barrier for local entrepreneurs[2][3].
• Revenue Sharing: Operators pay a service fee and share revenue with Necto, aligning incentives for growth and sustainability[1].

Role in the Broader Tech Landscape

Necto rides the trend of decentralizing internet infrastructure and increasing competition in broadband markets traditionally dominated by a few large incumbents. The timing is critical as fixed wireless technology matures, making last-mile internet delivery more accessible and affordable. This shift addresses market failures where large ISPs control last-mile access, limiting consumer choice and innovation. By enabling many small, local ISPs, Necto contributes to a more diverse and net-neutral internet ecosystem, potentially influencing regulatory and market dynamics around broadband access[1][2][4].

Quick Take & Future Outlook

Necto’s approach could significantly lower the barriers to entry for new ISPs, fostering a wave of local providers that challenge entrenched telecom giants. Future growth will likely depend on expanding the operator network, refining the technology platform, and adapting to evolving broadband infrastructure trends such as 5G fixed wireless and municipal broadband initiatives. As the startup ecosystem increasingly values decentralized infrastructure and net neutrality, Necto’s model may gain traction, influencing how internet access is provisioned in underserved and competitive markets. However, the company was acquired by Monkeybrains, a San Francisco ISP, indicating a potential shift from pure platform provider to integration within a larger ISP framework[5].