ISP License: Your requirement to start an ISP center

ISP License: Your requirement to start an ISP center

Written by Deepak Bhagat, In Business, Marketing, Updated On
April 9th, 2024
, 697 Views

Ever since Reliance Jio got us hooked on the drug, it’s getting more complex and more challenging 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 crucial topic to discuss.

Because that giant’s – Reliance’s – big hands captured people’s interest early, there was a lack of competition. And when there is a lack of competition, there is a lack of quality services. This is why, to push forth better technology and, obviously, faster and error-free internet, the government has promoted ISP licenses in India.

It’s the primary requirement to start an ISP centre 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 select that too.

So, let’s discuss how you can fulfil this requirement and start your own ISP centre in India.

In this article, you’ll know:

  1. How to get an ISP License in India
  2. How much is the ISP License fee expected from you?
  3. And finally, how can I 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 an 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 set up is a Private Limited Company or a Public Limited Company.

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The second step is 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 a pen to fill out the application for the Department of Telecommunications process. The documents that you need with the application form are:

  1. 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 ISP registration as a non-business entity or an individual.
  2. Memorandum of Association (MOA) of your company: The Memorandum of Association that highlights the object of your company should expressly state that starting an Internet Service Providing business is what you do.
  3. Board resolution signing off on starting an ISP company
  4. List of the directors that are heading your ISP company.
  5. List of shareholders that are involved with your ISP company.
  6. The net worth of the company.
  7. Description of your ISP company.
  8. A Challan form of the ISP license fees.

What purpose do these documents serve?

The third step is monitoring your application form as the Department of Telecommunication analyzes it.

In addition to checking the correctness of the way you’ve applied, the DOT officials also thoroughly assess your documents. We asked you what the purpose of the documents service is. Well, here is the answer:

  1. Through the incorporation certificate, they see if you’re a registered business entity.
  2. Through MOA and Board resolutions, they can determine whether you took the proper steps when you decided to start an ISP centre.
  3. By checking the director and shareholder credentials, they analyze the people heading the business and check their history.
  4. The net worth of the company is mandatory for DOT to analyze your financial ability to sustain an ISP centre.
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That’s why, when you encounter the question of how to get an ISP License, remember that it’s mainly about the documents.

The fourth step: You’ll get the Letter of Intent

After DOT runs an 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:

  1. 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 you must set up your budget before the start of your business endeavour.
  2. Showing the proof that you’ve paid the guarantees: After you’ve deposited the guarantees, you’d sign an agreement with the bank. Please submit it to the Department of Telecommunication as 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 Department, you have two choices:

  1. Either go to the department to pick up your ISDepartmenttion.
  2. 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 the advertisers claim, are pretty sluggish.

So, how do you get the license once it’s issued? Well, you can go yourself. But if you know and have learned anything about permits, 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 costs in India in the next section.

Let’s now talk about 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:

  1. Entry fee: 30 Lakhs Rupees
  2. Performance Bank Guarantee: 2 Crore Rupees.
  3. Financial Bank Guarantee: 10 Lakhs Rupees
  4. Application processing Fee: 50,000/- rupees
  5. Capital requirement: 2 Crore 40 lakh 50 thousand

ISP category B to provide internet in one metropolitan state:

    1. Entry fee: 2 Lakhs Rupees
    2. Performance Bank Guarantee: 10 Lakh Rupees.
    3. Financial Bank Guarantee: 1 Lakh Rupees
    4. Application processing Fee: 15,000/- rupees
    5. Capital requirement: 13.15 Lakhs rupees
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ISP category C to provide internet to one small SSA:

    1. Entry fee: 20,000/- rupees
    2. Performance Bank Guarantee: 50,000/- rupees.
    3. Financial Bank Guarantee: 10,000/- rupees.
    4. Application processing Fee: 10,000/- rupees
    5. Capital requirement: 90,000/-rupees

Seeing the ISP license cost, you can quickly realize that providing internet is not cheap—unless you choose Category C.

Who can help you get the ISP License?

Ever since starting an ISP became a thing, many business consultants—specialized ones—have come forward to provide services. These experts, or “ISP License consultants,” provide end-to-end services.

  1. File your application: As a layperson, applying can lead to many errors. The consultants make sure to check every detail before putting a word on the application form.
  2. They monitor the progress of your application as it is being assessed. Once the department 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 the license grant can take place without any issues.
  3. They even pick up the ISP registration on your behalf – ensuring that no hand-greasing is required.

Conclusion

Through this article, you’ve found out how to start an ISP centre 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 see one closer to you to save time so that you can get your hands on an ISP License agreement quickly? Reach out to our experts and find out. Your requirement to start an ISP centre is the most valuable license you’ll have in this day and age. Read till the end to know how you can start getting it and the consultants who can assist you.

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