What is ISP License?
The Government of India has taken initiative for telecom related services in India and came up with one license which is known as Unified License.Unified License Holder is eligible to apply for ISP license for different areas. For providing ISP services one has to obtain Unified License. Therefore it has been cleared that there is a requirement of obtaining ISP authorization under the Unified License.
Unified License holder is eligible to apply for multiple ISP authorizations of different areas. However, if we talk about the validity of the ISP authorizations then it will be valid up to the tenure of the Unified License.
What is the eligibility of filing an application for ISP license in India?
A Company registered under Companies Act 1956/2013 is eligible to obtain ISP license in India. For Company Registration, one can file an application with the Registrar of Companies in the prescribed format through consultant.
What are the categories of ISP License?
ISP license is categorized into three following categories:
Following categories depends upon the various factors such as City/State/Town/District/Village:
- Class A (National Area)
- Class B (Telecom Circle/Metro Area)
- Class C (Secondary Switching Area)
How much fees will be involved?
Government of India has taken initiative to promote accessibility of internet in those towns, cities & villages where people has less access of internet. For this purpose prices of class C is cheaper than prices of a Class A or B license.
order to obtain ISP license, one must fulfill the following below mentioned conditions:
|Service||Minimum Equity||Minimum Net worth||Entry Fee (Rs.)||Performance BG (Rs.)||Financial BG (Rs.)||Application Processing Fee (Rs.)|
|ISP “A” (National Area)||Nil||Nil||30 Lakh||2 Crores||10 Lakh||50 Thousand|
|ISP “B” (Telecom circle/Metro Area)||Nil||Nil||2 Lakh||10 Lakh||1 Lakh||15 Thousand|
|ISP “C” (SSA)||Nil||Nil||20 Thousand||50 Thousand||10 Thousand||10 Thousand|
For Class C license, total required capital is INR 90,000/- whereas in case of Class A license it is 2 ½ crores.
Now let's discuss about the process of filing an application for ISP license.
How to file an application for ISP license in India?
- The first step is to select an ISP license category thereafter an application is required to be filed.
- An applicant has to pay non-refundable Processing Fee of INR 15,000/- either by DD or Pay Order from a Schedule Bank payable at New Delhi on the name of Pay & Accounts Officer (Headquarter) DOTalong with the two copies of application form.
- Besides this, other official documents are required to be provided as per the prescribed guidelines of the government.
After filing of an application form along with the prescribed fees, Telecom Department of the Government will verify the application and respond back within a period of 60 days. After verification if DOT finds no issue than department will issue "Letter of Intent".
What will be the validity?
ISP authorization will be issued for a period of 20 years under the Unified License.
Hire a professional to avoid Rejection
However, in case of any issue department (DOT) may delay in giving response with in a prescribed period of time. Issue can be raised by the department due to incomplete submission or information, non-compliance, incomplete documents etc.
To avoid such rejection of an application one must hire a consultant to review application or file on your behalf with the department. As the ISP licensing process is quite technical. There are many instances in the past where the application is rejected due to above mentioned reasons. Therefore it is always advisable to hire a professional for documentation to save time and money.