ISP License
What is ISP License?
The Government of India has introduced the Unified License to streamline telecom services across the country. To offer ISP services, obtaining a Unified License is a prerequisite. This license allows holders to apply for ISP authorizations in various regions. It's important to note that these ISP authorizations will remain valid only for the duration of the Unified License. In essence, the validity of any ISP authorization is tied to the tenure of the Unified License.
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:
Regulatory Body /Authority
The main regulatory authority responsible for issuing Internet Service Provider (ISP) licenses is the Department of Telecommunications (DOT). The Government of India has established a Unified License system for electronics and telecommunications, enabling license holders to apply for ISP licenses in various regions. Applicants need this license to operate an ISP within a specific area. Therefore, it is clear that there is no separate license for ISPs; instead, the Unified License is used for ISP authorization purposes.
Benefits of ISP License
Reputation- By securing an ISP license in India the applicant would be reputed in the eyes of the public. Compliance- An applicant receiving the above license would be compliant with the requirements of the DOT
Eligibility Criteria for Applying for ISP License
The following eligibility criterion has to be satisfied by the applicant to apply for the ISP license: The applicant must be a company registered under the Companies Act, 2013 or the Companies Act, 1956.
What are the categories of ISP License?
ISP license is categorized into three following categories:
How much fees will be involved?
The Government of India has initiated efforts to enhance internet accessibility in towns, cities, and villages with limited internet access. To support this objective, the cost of a Class C license is lower compared to the prices of Class A or B licenses.
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.
Procedure for Securing the ISP License in India
Step 1 - Register the Company The applicant must first register their company under the Companies Act, 2013, or any previous company law. This involves visiting the Registrar of Companies. Step 2 - Select the ISP License Category The applicant needs to choose the appropriate category for the ISP license. There are different categories: Class A, Class B, or Class C. Class A licenses are more expensive than the others. Step 3 - Budgeting and Financing Considerations The applicant must decide on the category of the ISP license based on the company's budgetary constraints. The chosen category should align with the company's financial plan. Step 4 - Complete the Application Form Once the category is determined, the applicant can fill out the application form, which must be accompanied by a non-refundable fee of INR 15,000/-. Two copies of the completed form, along with the fee, should be submitted. The fee must be paid via Demand Draft or Pay Order payable at New Delhi in the name of Pay & Accounts Officer (Headquarters) DOT. The applicant must also provide the necessary documentation. Step 5 - Submit the Application The completed application is then submitted to the Department of Telecommunications (DOT). The review process takes approximately 60 working days. Step 6 - Issuance of Letter of Intent If the application is free from errors or inconsistencies, the DOT will issue a letter of intent to the applicant. If there are issues, the application will be rejected, and the reasons for rejection will be provided. Common reasons for rejection include non-compliance with legal or regulatory standards. It is advisable to seek guidance from an ISP consultant before submitting the application under the Unified License system. Step 7 - Actions After Receiving the Letter of Intent Upon receiving the letter of intent, the applicant must fulfill several requirements: Pay a one-time fee and provide specific bank guarantees: Rs 2.4 Crores for Category A Rs 13 Lakhs for Category B Rs 90,000 for Category C Sign a license agreement with the DOT. These steps must be completed within a specified timeframe after the letter of intent is issued. Step 8 - Confirmation If all procedures are correctly followed, the DOT will grant the Unified License, valid for 20 years. The applicant will be contacted by the DOT once the application is approved.
Documents Required for ISP Registration
To register for an ISP license, the following documents are necessary: Company Incorporation Documents Certificate of Incorporation Memorandum of Association Articles of Association Details of Directors Information about the company's directors Bank Guarantees Specific bank guarantees as required by the category of the ISP license being applied for How to File an Application for an ISP License in India Select the ISP License Category Begin by choosing the appropriate ISP license category. Prepare the Application Complete the application form, ensuring you have two copies. Pay the non-refundable processing fee of INR 15,000/-. This fee should be paid via Demand Draft (DD) or Pay Order from a Scheduled Bank, payable in New Delhi to the "Pay & Accounts Officer (Headquarters) DOT." Gather Required Documents Collect and provide all necessary official documents as specified by government guidelines. Submit the Application Submit the filled application form along with the required documents and the processing fee to the Department of Telecommunications (DOT). Verification Process The Telecom Department will review and verify the application within 60 days. If the application meets all requirements and there are no issues, the DOT will issue a "Letter of Intent."
Validity of ISP Authorization
ISP authorization, granted under the Unified License, will be valid for a period of 20 years.
Frequently Asked Questions
If there are any issues, the Department of Telecommunications (DOT) may delay their response beyond the prescribed timeframe. Issues such as incomplete submissions, missing information, non-compliance, or incomplete documents can cause delays or rejections.
To avoid the rejection of an application, it is advisable to hire a consultant to review and file the application on your behalf. The ISP licensing process is quite technical, and there have been many instances where applications were rejected for the reasons mentioned above. Therefore, hiring a professional to handle the paperwork can save both time and money.
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