ISP License facts that you can’t ignore

Thinking of applying for that ISP License? Good for you. There is no business more noble (or profitable) in India other than one to provide internet services to subscribers.

However, before you rush towards filing the ISP License application, there are some facts that you should know; facts that you shouldn’t ignore.

Fact 1: ISP License is provided by the Department of Telecommunication

There is a lot of misconception on the internet about ISP License – especially about who issues it. Many “experts” say that it’s TRAI (Telecom Regulatory Authority of India) that provides this particular business permit.

They are wrong. TRAI’s job is to oversee the way telecom companies are doing business. It sets up rules and regulations that shape the policies of the services that these companies provide. Furthermore, TRAI is another part of Department of Telecom Department, which is the primary authority that issues the ISP License in India.

So, whatever process you take to obtain the license, it happens under the watchful eye of this Telecom Department.

Fact 2:  There are 4 parts of the ISP license cost

The pricing of business licenses is complex. It’s especially the case with the ISP License cost. So, if you think that all you need to pay is the application process fee to get the license you’re wrong.

In actuality, the cost is divided in 4 parts:

1. The Application Process Fee: It’s the fee you pay when you’re filing the application.
2. Performance Bank Guarantee: The DOT wants a guarantee that your ISP will perform admirably. It secures that guarantee by making you deposit Performance Bank Guarantee.
3. Financial Bank Guarantee: By asking you to deposit the Financial Bank Guarantee, the Department of Telecommunication ensures that in case your ISP violates any policies, penalty can be automatically deducted.
4. Entry Fee: The Internet Services Market is extremely competitive. You’re required to pay the entry fee to show that you are indeed taking providing internet services seriously.

Fact 3: ISP License holds no value if you’ve not signed an agreement

Don’t think that just because you’ve signed an ISP license agreement with the DOT that you just get to do nothing and rest. WITHIN ONE MONTH after signing the ISP license agreement, you have to sign a contract with a telecom service provider whose bandwidth you’ll resell to subscribers. If you don’t, the ISP license agreement that you signed will be nullified.

Read More:  TEC Certification

Fact 4: ISP License application can now be filed halfway via online mode

When you ask the question of how to get ISP License, remember that you’re not going get one answer. The process of ISP license registration involves both offline and online process. It contains the following steps:

1. Company incorporation of the ISP
2. Filing the online application
3. Submitting the offline documents.
4. Obtaining the letter of intent
5. Following the LOI and paying the entry fee and bank guarantees
6. Obtaining the ISP License
7. Signing an agreement with a telecom service provider to validate the license.

Conclusion

If you’re actually serious about applying for the ISP License, then knowing these facts will help you obtain it easily. For more information in this regard, reach out to our DOT Consultants.

Here are the ISP License facts that you can’t ignore. Learn about them to make getting ISP license in India easier. For more info, call our DOT consultants.