We're Wifidabba.com and we're in the current batch of YC. We provide low-cost internet in India at tea-stalls and bakeries. Consumers buy tokens and get access to wifi. In effect, we take a broadband connection and slice it into tiny pieces and sell that as wifi.
I guess in some ways we're an ISP, the government certainly thinks so, we've had to apply for an ISP license.
We're only a few months old, but we're reasonably profitable and the future looks good.
I think there's room for new ISP's if you're willing to be creative about how to grow the number of customers you want to reach. For example, we're getting tons of inquiries about being an IOT platform amongst other things.
*edited for clarity