Why do you need an ISP License?
The opportunities in the field of Internet Services in India area are rapidly increasing. While a lot of big players are entering the market, smaller operators and ISP’s hold a significant place in expanding the broadband penetration in India.
If you want to start your own ISP Network and become an Internet Service Provider in India, you need to get an ISP license. It not only makes you a legal entity to provide access to the Internet but also helps you grow and expand your reach.
In this blog post, we have summarized the step by step process to get an ISP License in India. By the end of this post, you will know how to become eligible to offer internet services to your neighborhood and earn good revenue.
Who issues ISP License In India?
The Department of Telecommunications (DoT), on approval from the Telecom Regulatory Authority of India (TRAI), issues ISP (Internet Service Provider) Licenses in India.
What is a Unified License?
The Government of India has introduced a single license for all telecom related services. It is called a Unified License.
It fulfills one of the objectives of the National Telecom policy-2012, which is “Strive to create One Nation – One License” across services and service areas.
You can read more about it here.
As a Unified License holder, one can easily apply for an ISP license for different areas in the country. To provide internet services in a specific area, you should have a Unified License under which the D0T (Department of Telecom) will authorize you for providing ISP services within the particular area. To summarize, the ISP license is an authorization provided to a Unified License holder to offer Internet Services.
As a single company, you can only have one Unified License; however, that does not stop you from getting separate ISP License Authorizations for different service areas.
What is the validity of the Unified ISP License in India?
The ISP license authorization is issued for 20 years under the Unified License by the Department of Telecom (DoT)
Who is Eligible to get an ISP License in India?
Any Private Limited Company registered under Companies Act 1956/2013 is eligible to apply for an get an ISP license anywhere in India. If you want to know more about how you can register a company in India, please visit the ROC website here.
Here are the steps to get an ISP License:
- Make sure you are eligible as a registered company.
- File an application form with the prescribed fees.
- Organize and Submit the required documents
- Acquire the Letter of Intent (LOI)
- Sign the ISP License at Sanchar Bhawan
Let’s discuss the process of applying for an ISP license in detail now.
Step 1: How to become eligible to apply for an ISP License?
To become eligible to apply for an ISP license with DoT, you need to have a legal entity registered with the Registrar of Companies. Here is the step by step process to register a company in India.
Step 2: How to file an application form to get an ISP License?
ISP Application form has to be filled carefully, and if you need assistance, you can hire a consultant with us, and we can help you with every step. Here are the steps involved in filing an ISP Application form.
- Select an ISP License Category
- Submit the non-refundable application processing fee as per the license category
- Submit the required documents for ISP License. See the list of required documents here.
- Wait for the application review process.
- Receive the LOI (Letter of Intent)
- Sign the ISP License
Once you submit the application form with the prescribed fees and the required documents, the Department of Telecom will verify your application and issue a Letter of Intent in 60 days if there are no issues in the application form.
Please make sure to choose the right ISP License Category before you apply for the same.
There are three categories of ISP License: A, B, & C
The ISP License categories define the areas that you can offer Internet Services in as an ISP. Here is the description of all the three ISP license categories:
- ISP License Class A: The Class A ISP License covers the entire national area
- ISP License Class B: The Class B ISP License covers a telecom circle or a metropolitan area
- ISP License Class C: The Class C ISP License covers an SSA (Secondary Switching Area) (See the SSA List here)
Category C ISP license is the easiest way to get started with your ISP business, and you can upgrade as you grow. With the assistance we offer, you can grow within your budget and expand as needed.
What is the Cost of Different types of ISP Licenses?
The cost of an ISP License depends on the license class for which you are applying. While Category C is the cheapest to enter, Category B offers a broader area of coverage. However, as there is a massive demand for the Internet in the rural and semi-urban areas, the government has reduced the pricing of the Category C ISP license.
The cost of the ISP licenses is listed below:
| Service | Minimum Equity | Minimum net worth | Entry Fee
INR |
Performance BG
INR |
Financial BG
INR |
Application Processing Fee
INR |
| ISP A | Nil | NIL | 30 Lakh | 2 Crores | 10 Lakh | 50 Thousand |
| ISP B | NIL | NIL | 2 Lakh | 10 Lakh | 1 Lakh | 15 Thousand |
| ISP C | NIL | NIL | 20 Thousand | 50 Thousand | 10 Thousand | 10 Thousand |
Step 3: Organize and Submit the required documents
The below documents are required for ISP registration in India:
- COI (Certificate of Incorporation) of the Company given by ROC
- MOA (Memorandum of Association)
- AOA (Articles of Association)
- Certified copy of Form-18 along with the Challan form
There might be other documents required based on the company structure, like FDI (Foreign Direct Investment); however, they don’t need to be discussed here.
Step 4:Acquire the Letter of Intent (LOI)
What is a Letter of Intent?
After the Department of Telecommunication reviews your ISP License Application, a Letter of Intent is issued to your Company by the DoT. Based on the review process, it can take up to 60 days to receive the LOI.
If the application is not approved or any clarifications are needed, it can take longer than 60 days, and a followup letter will be sent to you, and if you do not respond to it promptly, the application will be rejected.
The team at Wiber has the necessary process in place which you can use in order to apply for your ISP license and receive it without any rejections.
After the DoT issues the Letter of Intent to the applicant of ISP License in India, you need to submit the one-time fee, and Bank Guarantees as listed above.
Step 5: Sign the ISP License at Sanchar Bhawan
Once all the above steps are completed, you will be called to sign the ISP license and submit a signed copy at the department of telecom (DoT), and you will get an ISP Authorization through the Unified License. It is valid for up to 20 years. For any clarifications and questions, DoT will contact you as and when required.
So you can follow the above five steps to get an ISP license in India. The process is simple; however, with the help of our experienced ISP consultants, we can help you avoid any hassles and get your ISP license in the stipulated time.
