ISP License: 7 things you need to know before applying

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Getting an ISP License and starting an ISP is a difficult affair. The application process to acquire the ISP License, the ISP License cost involved in that process and the always changing timeline can deter you from your ISP dreams.  So, what’s the solution? It’s a simple one. You must know certain points about the license.

So, here are the 7 things that you need to know before applying for the ISP License

Know the authority to which you have to submit the application

One of the greatest sources of confusion regarding the titular license is the authority that accept its application. Many think that it’s try that provide ISP License in India, while some think that it’s can be started through independent means.

Both of those assumptions are wrong. To get the license, the primary authority to apply for application to is the Department of Telecommunication. Governed under the Ministry of Communication and watching over the ISP license of India, it’s the DOT that you need to convince to get the right to establish an internet service centre.

Know the requirements of starting an ISP center

We are not talking about the documents here, we are talking about the physical requirements. ISP as a business is one that needs you to have some type of technological background. And the technical equipment you have lay the groundwork of the range of services you can provide through your ISP. Thus, the basic infrastructural requirements of starting an ISP are as follows;

  1. You need enterprise grade routers that can provide internet access to a large number of people.
  2. You need computers to monitor and establish the internet connections.
  3. You need power generators to provide interrupted internet in case of power-cuts.

Regardless of the size of your ISP center or the size of the area in which you want to provide internet access, consider the above three points as your baseline.

Know all about the categories of ISP License

Depending upon the size of area that your internet services will cover, there are three categories of ISP Licenses. Knowing about these categories is of utmost importance because of the following reasons.

  1. They decide the initial capital you need to start the business.
  2. They decide the ISP License cost in India for you.
  3. They decide the hardware requirements of your internet service providing endeavours.

The categories that exist because of the above three reasons are as follows:

  1. Category A: A Category A ISP is one that provides internet access throughout the country.
  2. Category B: A category B ISP is one that provides internet access in one state or a metropolitan city.
  3. Category C: A Category C ISP is on that provides internet access in one SSA or Secondary Switched Area – one small town or village.

Related Content: Payment Gateway License in India

Know the business entity you need to sign the ISP License agreement

if you’re someone with a lot of capital and wants to provide internet service but on your own, you can’t. Providing internet is a complex business and thus requires participation of multiple elements. That’s why, even if you can afford the ISP License price, you need to first register your ISP idea as a private limited company.

Know how to get ISP License in India

When it comes to the question of how to get ISP License, you expect the answer to be a simple one. However, that isn’t always the case. For one, even though we live in an internet age, ISP License by online registration is not a possibility. You need to draft hard copies of the documents and pay a physical visit to the TERM cell within your city. And once you submit the application, the real process takes place:

  1. After assessing your application, the DOT decides whether to reject your application to send you a Letter of Intent.
  2. Upon receiving the Letter of Intent, you’ll realize that it’s at this stage you’re required to pay the bulk of the ISP License fees. This ISP License fee comes in the form of performance bank guarantee (PBG) and financial bank guarantee (FBG).
  3. After you pay the  PBG and the FBG, you get the ISP License.

Know the documents you need  to successfully file the application

Obviously, your application is not the only thing that the DOT analyzes. It is mostly interested in the documents that you’ve submitted with them. Following is a their list:

  1. Certificate of Incorporation
  2. Articles of Association
  3. Board resolution
  4. Memorandum of Association
  5. Challan form for the ISP License fees.
  6. Power of attorney authorizing an authorized signatory – one that signs and submits your application form.

Know the consultant that you can ask for help from

Providing internet service is a business that requires a lot of insight and your unbridled attention. Thus, you can’t expect to file the application, conduct a full follow up and get the license on your own. If you do take on the task on your own, it can take you about 4 years just to get the license. But if you want to reduce it to 2 months, you contact the ISP consultant to do everything you expected yourself to do.

Conclusion

It’s the Department of Telecommunication that accepts your application for ISP license. However, you have to take care of basic technical requirements before taking the step to submit the application at its premise. And before submitting the application at the premise, you have to first establish yourself as a serious business entity. All help from establishing the business entity to filing the offline application to conducting a full follow is a service that you can get from an ISP consultant. You don’t have to do everything on your own; not when you have ISP license consultants like us to help you.

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