Internet Service Provider (ISP) License

Internet Service Provider (ISP) License

GOI has came up with one license known as unified license to provide the boost to the services related to telecom sector.

The holders of this Unified License are eligible to apply for Internet Service Provider (ISP) License for different areas. One has to obtain the Unified License in order to provide the ISP services. There is no separate License for the ISP. Under the Unified License, the applicant is required to take the ISP authorization.
 

One Company can apply for only one Unified License. But the Company can take several ISP authorizations for different areas under the Unified License. The ISP authorization is valid only up to the validity of Unified License which means as long as the unified license exist, the ISP authorization will also exist.
 


 

Who are eligible to make an application for Internet Service Provider (ISP) License?

The Company registered under the Companies Act, 2013 (New Act) and under the Companies Act, 1956 (Old Act) are eligible to obtain Internet Service Provider (ISP) License.

If someone wants to obtain the ISP License, at first they have to form a company and then only they become eligible to apply for ISP License. In order to form a Company, the applicant has to make an application with the Registrar of Companies as per the prescribed guidelines.
 

Documents required for Internet Service Provider (ISP) License

  • A copy of Certificate of incorporation;

  • A copy of Memorandum of Association and Article of Association;

  • A certified true copy of Board Resolution stating the decision of making an application for ISP License

  • A certified true copy of Board Resolution mentioning the details of authorized signatory (name and designation) along with the specimen signature;

  • Original Power of Attorney by resolution of board of Directors that the person signing the application is authorized signatory on stamp paper;

  • A non-refundable processing fees. Processing fees can be submitted through Bharatkosh (www.bharatkosh.gov.in);

  • Equity breakup details. If foreign equity involved then the breakup of the same will also be disclosed;

  • Original certified copy of government approval in case of Foreign Direct Investment;

  • Form INC 22 if registered office is not same as per the Certificate of Incorporation;

  • List of Partners or Promoters;

  • Network Diagram.

Note: All the documents must be signed by the authorized signatory.
 

Category of Internet Service Provider (ISP) License

There are three categories of Internet Service Provider (ISP) License. The categories depend upon the factors like City or State or Town or Village or District. 

The 3 (three) categories of ISP License are as follows:

  • Class A (National Area)
  • Class B (Telecom Circle and Metro Area)
  • Class C (Secondary Switching Area)
     


 

Fees Involved

The required fees to obtain ISP License depend upon certain factors. The fees involved and the factors involved in obtaining the Internet Service Provider (ISP) License are discussed below:

Minimum Equity- NIL (For all Categories)

Minimum Net worth- NIL (For all Categories)

Service
Entry Fee (Rs.)
Performance BG* (Rs.)
Financial BG*(Rs.)
Application Fee*(Rs.)
ISP - Category “A” (National Area)
30,00,000
2,00,00,000
10,00,000
5o,000
ISP - Category “B” (Telecom circle/Metro Area)
2,00,000
10,00,000
1,00,000
15,000
ISP - Category “C” (SSA)
20,000
50,000
10,000
10,000
 
*Kindly Note: Here BG is Bank Guarantee.
  • The total fees required for Class A is Rs. 2,40,50,000/-
  • The total fees required for Class B is Rs. 13,15,000/-
  • The total fees required for Class C is Rs. 90,000/-
  • Class A is expensive in comparison to Class B & C
     

Procedure for Internet Service Provider (ISP) License application

One has to go through the following steps in order to make an application for Internet Service Provider (ISP) License and the steps are:

  • At first, one has to select an ISP License category as per the requirement and then have to make an application.
     
  • Then the applicant has to fill an application form to apply for ISP License.
     
  • Thereafter, applicant has to pay non-refundable Processing Fee of Rs. 50,000/- or Rs. 15,000/- or Rs. 10,000/-, as the case may, either by Demand Draft or Pay Order from any Schedule Bank and it should be payable at New Delhi on the name of “Pay & Accounts Officer (Headquarter) DOT”. Two set of copies of the application form is also required along with this.
     
  • After this step, the submission of other relevant documents along with the processing fee are required from the applicant’s end.
     
  • Once all the documents get submitted, the telecom department reviews the application. If no discrepancy is found in the application then the department issues a “Letter of Intent”. This whole procedure will take around 60 days. If any discrepancies found in the application, then the department can either ask for resubmission or will reject the application.
     
  • After receiving the “Letter of Intent”, the applicant has to submit the total required capital as mentioned above in the fees details as per the ISP License Category. This will be the One-Time Fee. The applicant also has to submit the documents as asked in the “Letter of Intent”.
     
  • After receiving and thoroughly reviewing the application, the department issues the ISP License.
     

Validity of the Internet Service Provider (ISP) License

The Internet Service Provider (ISP) License which is issued under the Unified License will be valid for 20 years.
 

Frequently Asked Questions (FAQ’s)
 

Who issues the Internet Service Provider (ISP) License?

Department of Telecommunication issues the Internet Service Provider (ISP) License.
 

Can Internet Service Provider (ISP) License be applied for different areas?

Yes, Internet Service Provider (ISP) License can be applied for different areas.
 

Why ISP License required?

ISP License is required by the companies to provide the services related to telecom. Under the Unified License, the ISP License is issued by the department.
 

What is the Validity period of ISP License?

The Internet Service Provider (ISP) License which is issued under the Unified License will be valid for 20 years.
 

How many Unified License can be obtained by a Company?

A Company can obtain only one Unified License. But the company can apply for several ISP authorization under Unified License.
 

Who are eligible for obtaining ISP License?

The Company registered under the Companies Act, 2013 (New Act) and under the Companies Act, 1956 (Old Act) are eligible to obtain Internet Service Provider (ISP) License. If someone wants to obtain the ISP License, at first they have to form a company and then only they become eligible to apply for ISP License. In order to form a Company, the applicant has to make an application with the Registrar of Companies as per the prescribed guidelines.
 

What are the different categories of ISP License?

There are three categories of Internet Service Provider (ISP) License. The categories depend upon the factors like City or State or Town or Village or District.

The 3 (three) categories of ISP License are as follows:

  • Class A (National Area)
  • Class B (Telecom Circle and Metro Area)
  • Class C (Secondary Switching Area)
     
When Letter of Intent is issued by the department?

The Department issued the Letter of Intent only if they find that there is no discrepancies in the application as submitted by the applicant.
 

Which ISP Category is costlier?

Category A is costlier in comparison to Category B & C.
 

What are the documents required for ISP License?

The documents required for ISP License are -

  • A copy of Certificate of incorporation.
  • A copy of Memorandum of Association and Article of Association
  • A certified true copy of Board Resolution stating the decision of making an application for ISP License. 
  • A certified true copy of Board Resolution mentioning the details of authorized signatory (name and designation) along with the specimen signature
  • Original Power of Attorney by resolution of board of Directors that the person signing the application is authorized signatory on stamp paper
  • A non-refundable processing fees. Processing fees can be submitted through Bharatkosh (www.bharatkosh.gov.in)
  • Equity breakup details. If foreign equity involved then the breakup of the same will also be disclosed.
  • Original certified copy of government approval in case of Foreign Direct Investment.
  • Form INC 22 if registered office is not same as per the Certificate of Incorporation.
  • List of Partners or Promoters
  • Network Diagram
     

Conclusion

As the demand of Internet is increasing day by day around the globe, it will be a best step for the companies to opt for the Internet Service Provider (ISP) License to have a business in it.
 

Edited by Minu Mishra

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