ISP License: Your requirement to start an ISP center
- 1.1 The First Step: Setting up the stage to operate your business
- 1.2 The second step: Filing the application form for ISP License Online Registration
- 1.3 The third step: Monitoring your application form as the Department of Telecommunication analyzes it
- 1.4 The fourth step: You’ll get the Letter of Intent
- 1.5 The final step: Picking up the ISP License
Ever since Reliance Jio got us hooked on the drug, it’s getting hard and harder to live without it. we seek it everywhere that we go, even when we are relieving ourselves in the morning. Even though there are both negative and positive aspects to this “drug”, there is one that can only be seen in a negative light – and it’s the monopoly that Jio has. Which is why ISP License is the most important topic to discuss.
Because that giant’s – Reliance’s – big hands captured people’s interest early, there is a lack of competition. And when there is a lack of competition, the lack of quality services. Which is why, to push forth better technology and obviously, faster and error free internet, government has promoted ISP License in India.
It’s the primary requirement to start an ISP center in India. Through it, you can choose to provide access all over the country. Or, if you seek concentrated good quality of service within a small region, you can choose that to.
So, let’s discuss how you can fulfil this requirement and start your own ISP center in India.
In this article, you’ll know:
- How to get ISP License in India
- How much ISP License fee is expected from you?
- And finally, how can assist you?
Let’s start with the how: The ISP registration process
The First Step: Setting up the stage to operate your business
Here, your stage is your business infrastructure, and your performance is your internet services. To grant ISP license, India has made it mandatory for the applicant to have a business entity. The business entity or business infrastructure that you need to setup is a Private limited Company or a Public Limited Company.
The second step: Filing the application form for ISP License Online Registration
Sorry for the misdirect. The term “online” has been added here purely for SEO purposes. The truth is, to this day, to start a business that enables others to go online, you can’t file an online application. It’s the same old – using pen to fill the application form, and then submit the application to the Department of telecommunication process. The documents that you need with the application form are:
- Certificate of incorporation of your company: It’s one of the primary documents required. It attests to the fact that you don’t have the power to apply for the ISP registration as a non-business entity or an individual.
- Memorandum of Association (MOA) of your company: The Memorandum of Association that highlights the object of your company should specifically state that starting an Internet Service Providing business is what you do.
- Board resolution signing off on starting an ISP company
- List of the directors that are heading your ISP company.
- List of shareholders that are involved with your ISP company.
- The net worth of the company.
- Description of your ISP company.
- A Challan form of the ISP license fees.
What purpose do these documents serve?
The third step: Monitoring your application form as the Department of Telecommunication analyzes it
In addition to checking the correctness of the way you’ve filed the application, the DOT officials also thoroughly assess your documents. We asked you what purpose do the documents service? Well, here is the answer:
- Through the incorporation certificate they see if you’re a registered business entity.
- Through MOA and Board resolutions they see if you’ve taken the right steps when you decided to start an ISP center.
- By checking the director and shareholder credentials, they analyze the people who are heading the business, and check their history.
- The net worth of the company is mandatory for DOT to analyze your financial ability to sustain an ISP centre.
That’s why, when you come across the question of how to get ISP License, remember that it’s all about the documents, mostly.
The fourth step: You’ll get the Letter of Intent
After DOT runs assessment on your application – keeping all four points in mind – and approves it, you get a Letter of Intent. In that letter, you’ll get further instructions. They include:
- Paying the guarantee requirements: The guarantees you’re required to pay vary widely depending upon the category of ISp you’ve chosen. That is why, it’s imperative that you set up your budget before the start of your business endeavour.
- Showing the proof that you’ve paid the guarantees: After you’ve deposited the guarantees, you’d sign an agreement with the bank. Submit it to the Department of Telecommunication as the proof that you’ve indeed paid the required amount as mentioned in the letter of intent.
The final step: Picking up the ISP License
After you’ve followed and completed the instructions of the Letter of Intent, you have two choices:
- Either to go the Department to pick your ISP registration.
- Stay patient, and wait for the department to mail it to you.
I won’t count on the second part though. Government departments, regardless of how active they are as claimed by the advertisers, are quite sluggish.
So, how to get the license once it’s issued? Well, you can go yourself. But if you know and have learned anything about licenses, the more people you meet, the more hands you have to grease. So, to prevent that, you’ll need help. Who will help you? You’ll know after you find out about ISP cost in Indiain the next section.
Let’s now talk about the How Much: You need to pay
There are three categories of ISPs, and depending upon the unified license for them, the ISP license price varies wildly. Take a look:
ISP category A to provide internet to the whole country:
- Entry fee: 30 Lakhs Rupees
- Performance Bank Guarantee: 2 Crore Rupees.
- Financial Bank Guarantee: 10 Lakhs Rupees
- Application processing Fee: 50,000/- rupees
- Capital requirement: 2 Crore 40 lakh 50 thousand
ISP category B to provide internet in one metropolitan state:
- Entry fee: 2 Lakhs Rupees
- Performance Bank Guarantee: 10 Lakh Rupees.
- Financial Bank Guarantee: 1 Lakh Rupees
- Application processing Fee: 15,000/- rupees
- Capital requirement: 13.15 Lakhs rupees
ISP category C to provide internet to one small SSA:
- Entry fee: 20,000/- rupees
- Performance Bank Guarantee: 50,000/- rupees.
- Financial Bank Guarantee: 10,000/- rupees.
- Application processing Fee: 10,000/- rupees
- Capital requirement: 90,000/-rupees
Seeing the ISP license cost, you can easily realize that it’s not cheap to provide internet – unless you choose the Category C.
Who can help you getting the ISP License?
Ever since starting an ISP became a thing, there are many business consultants – specialized ones – that have come forward to provide services. These experts or, “ISP License consultant” provide end to end services.
- The file your application: As a layman filing the application can lead to many errors, the consultants make sure to check every detail before putting a word on the application form.
- They monitor the progress as your application is being assessed: Once the application leaves the applicant and goes to the department, it takes time for it to be processed. The consultants, with their association, can expedite the process and ensure that everything is in order so that license grant can take place without any issues.
- They even pick up the ISP registration on your behalf – ensuring that no hand-greasing is required.
Through this article, you’ve found out who how to start an ISP center, and the consultants that can help you do it. Business licensing is the time when you don’t have to rely on yourself, so do take steps to find one as soon as possible. Do you want to find one closer to you to save time, so that you can get your hands on ISP License agreement easily? Reach out to our experts and find out. Your requirement to start an ISP center is the most valuable license you’ll have at this day and age. Read till the end to know how can start get it and the consultants who can assist you.