There is a lot of misconception behind VNO license. Some think it’s a license that allows them to open a call center. Some think it’s a mandatory authorization for international calling. And some, think that without it, they can’t start their shops. The reason of these ignorant notions is not lack of information available on the internet, it’s lack of interest in knowing about some facts.
And the facts are, this license is only needed for a specific purpose: providing internet services. If your services diverse from this purpose, you don’t need it.
So here, checkout these facts about VNO license that no one talks about.
FACT 1: VNO License is only used to provide internet services
Over the past few days, our consultants have tackled quite a few weird calls. People calling have been saying that they have received information that to open an internet cafe, they need to obtain the license of Virtual network Operator. Also, there are OSPs who think that signing a unified license agreement for VNO is important. To both of these people we have said that it’s not necessary and for one simple reason.
It is only used to provide internet services. It’s not a requirement of starting every business that involves internet. You don’t need it for any internet cafe or a call center.
Fact 2: UL VNO license is not valid for forever
Because the process of gaining the license is difficult, many think that it’s only a one-time thing. There is a misconception surrounding this license that makes people think that once they have obtained the license, they can provide internet services forever. The reality is contrary. The license is not valid for eternity.
Once you obtain the license,the validity is only up to 10 years. Afterwards, you’re required to renew the license. However, that would be subject to your code of conduct during the time you had the license.
FACT 3: There are multiple types of VNO licenses
When people ask for VNO license India, they are only concerned with one license. They don’t know it’s validity, what it’s for and definitely don’t know about its type. We have received queries that state their desire to buy the cheapest license that can allow them to provide internet all over India.
There is not one type of such license in India.Instead, the license is divided into three types:
- The category A License
- The Category B License
- The Category C License
With Category A license, the applicant can provide internet services through Virtual Network to the entire country.
With Category B license, the applicant can provide internet services through Virtual Network to one metropolitan state or a metropolitan city.
With Category C license, the applicant can provide internet services through Virtual Network to one SSA or Switched Service Area network. It entails one village or a town.
The VNO license fee for these licenses are different. Other factors that makes the cost of these licenses different are:
- Infrastructure required
- The application processing fee
- The Financial Bank guarantees.
FACT 4: You cannot start a VNO through a small office
Many people tend to confuse a Virtual Network Operating center with a simple business entity. They think that once they obtain the license, they can start providing internet services through their apartments. But that’s not the case. In order to obtain the license, the applicant must have the financial stability AND the infrastructure to handle it.
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- The need an elevated building from which wired and wireless signals can go out.
- They need to have ample of space within that building that can be used to store servers and other equipment to provide internet services.
FACT 5: The validity of the license is subject to policy changes
Support you’ve had your VNO license for five years. And suddenly, the Department of Telecommunication declares that the validity of the license is now 7 years instead of 10. In such cases, the original terms on which you obtained the license will change. You’ll receive a notification that your license is now valid for 7 years.
So, before you opt for VNO license only apply, think about its validity.
FACT 6: The cost of VNO license is not only limited to the processing fee
Unlike other business licenses, VNO license doesn’t involve only the processing fee. Because the business is complex and the governments wants to get some assurances from you, you’re also required to submit the entry fee and the financial bank guarantee. Those combined with the application processing fee, form the total license cost.
What is VNO License if not the permit to provide low cost internet services? However, people still hold misconception even about this simple explanation. We have attempted to quell some of them through this article. However, if you’re still confused, you can consult with our DOT consultants. They will portray you the meaning of the license and it’s uses in a way that you need.