What is IPLC License, and How does it work?

IPLC License is issued to those who wish to provide end-to-end International Private Leased Circuits (IPLC) between India and another country. The license holder must obtain the circuits from the international long-distance services providers – ensuring that the services reach end consumers.

Here are the general points of the IPLC license:

• The IPLC license holder can only use the license to provide IPLC services to the subscribers. 
• The license holder can sell bandwidth to telecom service providers other than other IPLC license holders. 
• The location of the license holder's cable landing station should be according to the terms of ILDO rules (International Long Distance Operators)
• As an IPLC License holder, you get the right to can create your infrastructure for multiplexing, de-multiplexing, and billing. 

Scope of an IPLC license

The scope of the IPLC license is stated in the following:

• An IPLC service provider provides an end-to-end International Private Leased Circuit (IPLC) between India and the destination country. This is done by obtaining the International bandwidth from International Long Distance Service Providers (ILDOs).

The IPLC service provider provides services to end subscribers by entering into arrangements for leased lines with the following:

• • Access Providers
  • National Long Distance Service Providers
  • International Long Distance Service Providers
• The IPLC Licensee can access the subscribers only for the provision of IPLC and not for any other purpose.
• The IPLC Licensee can sell bandwidth on a retail basis with or without value addition to the end subscriber.
• The IPLC Licensee must not sell the bandwidth to another Licensee for the resale of the IPLC License.
• The co-location of the equipment of the IPLC certificate holder at the cable landing station must be as per terms and conditions prescribed by the Telecom Regulatory Authority of India (TRAI).

The IPLC service provider can create its infrastructure limited to the following:

• • Multiplexing
  • De-multiplexing
  • Billing
  • Customer Management System
• An IPLC certificate holder must not engage with PSTN/PLMN/GMPCS/Internet Telephony Network.
• The service area of Resale of International Private Leased Circuit (IPLC) Service must be at National Level.

Eligibility Criteria for the IPLC License in India

Following are the eligibility criteria to obtain an IPLC license in India:

• The applicant should be a company incorporated as per the Companies Act 2013.
• The applicant company should be able to dispense the duties required by a licensee. 
• The applicant company should have a net worth of INR 2.5 Crores. 
• In case there is a Foreign Direct Investment in the applicant company, the applicant company must provide details of that. It should also provide a declaration that it unconditionally abides by the compliance requirements of the FDI rules. 

Documents Required for IPLC License in India

The following documents are required for an IPLC license in India:

• Certificate of incorporation
• Memorandum of Association
• Articles of Association
• Net Worth Certificate of the applicant company (verified and signed)
• An audited Balance sheet of the applicant company
• FDI details (if any foreign direct investment is involved)
• IPLC details

Process of Applying for an IPLC License in India

Following is the process of applying for an IPLC license in India:

• Gather the documents
• File the application form
• Get the letter of intent
• Pay the entry fee, and the bank guarantees
• Get the IPLC License

IPLC License Fee Structure

Entry Fee:

The IPLC license has to pay a one-time non-refundable Entry Fee of one crore rupees before the signing of the license in the form of a Demand Draft or a Pay Order in favour of Pay & Accounts Officer (Headquarter), Department of Telecommunications, New Delhi.

Net worth:

• The IPLC licensee must maintain a net worth as well as a paid-up capital of Rs 2.5 crores on the date of application.
• Then, the Licensee must submit the certificate certified by a Company Secretary or a Company's statutory Auditor alongwith the license application.
• The net worth, here, means the sum total of paid-up equity capital and free reserves of the licensee company only.
• The net worth of shareholders will not be counted for determining the company's net worth. The minimum net worth & paid-up capital shall be maintained during the license currency.

Annual License Fee:

• In addition to the entry fee, the annual license fee of Rs. 5 Lakhs or revenue share @ 6% of the Adjusted Gross Revenue (AGR), whichever is higher, is also payable by the IPLC licensee.
• The annual license fee includes 5% of AGR as the USO contribution.
• The license fee must be paid from the date of commencement of service or from the date of completion of one year from the effective date of the license agreement, whichever is earlier.

• • Full details of the settlement regime through accounting rate mechanisms must be filed by the IPLC licensee with the Licensor regularly.
  • All bilateral settlements between the IPLC service provider and other operators will be through normal banking channels in a transparent manner.

Financial Bank Guarantee (FBG):

• The IPLC service provider must submit a Financial Bank Guarantee (FBG) of Rs. 1 crore within one year from the date of the license agreement or before the commencement of service, whichever is earlier.
• The FBG must be valid for one year and can be renewed from time to time for the amount as directed by the Licensor.
• The amount of FBG for the subsequent period must be equivalent to the estimated sum payable for two quarters towards the license fee.

Security Conditions

• The IPLC service provider can take IPLCs from the licensed ILDOs. The interception and monitoring of IPLC circuits must only occur at the Gateway of the ILDO from whom the Licensee has taken the IPLC.
• The ILD Operator must make the provision for Lawful Interception & Monitoring of the IPLC circuits.
• The ILDO are responsible for Lawful Interception and Monitoring of the traffic passing through the IPLC.
• The Licensee must extend all cooperation regarding interception and monitoring of its IPLC. He is also responsible for the interception results.
• The IPLC Licensee is responsible for interacting, corresponding and liaisoning with the licensor and security agencies for security monitoring of the traffic.
• The IPLC Licensee must get the details of services or equipment to be connected on both ends of IPLC, including the following:

• • Type of terminals
  • Data rate
  • Actual use of circuit
  • Protocols or Interface to be used.

• The IPLC service provider must permit only those services or protocols on the IPLC for which the ILDO has the capability of interception and monitoring.
• The IPLC Licensee must pass on any direct request placed by security agencies on him for interception of the traffic on their IPLCs to the concerned ILDOs within two hours.

How can we help?

With Registrationwala, you get help from India's best telecom service providers. With us, you can:

• File an error-free application as our experts file it on your behalf. 
• Be thorough when it comes to documents as we put them together for you. 
• Deal with any issues with the application as we vigilantly monitor the processing of your application. 

If you wish to know any details about the IPLC service or want to start filing it today, contact us now. 

Frequently Asked Questions - FAQs About IPLC License

Q1. What is IPLC in telecom?

A. IPLC License is a legal permit issued to those who wish to provide end-to-end International Private Leased Circuits (IPLC) between India and another country. The license holder must obtain the circuits from international long-distance services providers – ensuring that the services reach end consumers.

Q2. What is the general working of an IPLC license holder?

A.  The general working principle of an IPLC license are:

• The IPLC license holder can only use the license to provide IPLC services to the subscribers. 
• The license holder can sell bandwidth to telecom service providers other than other IPLC license holders. 
• The location of the license holder's cable landing station should be according to the terms of ILDO rules (International Long Distance Operators)

Q3. What does an IPLC license company consist of?

A. The IPLC service provider can create its infrastructure limited to the following:

• Multiplexing
• De-multiplexing
• Billing
• Customer Management System

Q4. What are the pre-conditions to be observed before applying for the registration of an IPLC license?

A.  The following are the eligibility criteria for obtaining an IPLC license in India:

• The applicant must be a company incorporated as per the Companies Act 2013.
• The applicant company should be able to dispense the duties required by a licensee. 
• The applicant company should have a net worth of INR 2.5 Crores. 
• If there is a Foreign Direct Investment in the applicant company, the applicant company must provide details. It should also provide a declaration that it unconditionally abides by the compliance requirements of the FDI rules. 

Q5. What documents are required to be submitted along with the IPLC license application?

A.  The following documents are required for an IPLC license in India:

• Certificate of incorporation
• Memorandum of Association
• Articles of Association
• Net Worth Certificate of the applicant company (verified and signed)
• An audited Balance sheet of the applicant company
• FDI details (if any foreign direct investment is involved)
• IPLC details

Q6. How to get an IPLC license in India?

A.  The following is the process of applying for an IPLC license in India:

• Gather the documents
• File the application form
• Get the letter of intent
• Pay the entry fee, and the bank guarantees
• Get the IPLC License.

Q7. What is the entry fee for the IPLC license registration?

A. The IPLC license has to pay a one-time non-refundable Entry Fee of one crore rupees before the signing of the license in the form of a Demand Draft or a Pay Order in favour of Pay & Accounts Officer (Headquarter), Department of Telecommunications, New Delhi.

Q8. What is the net worth requirement for applying for an IPLC license?

A. The IPLC Licensee must maintain a net worth as well as a paid-up capital of Rs 2.5 crores on the date of application.

Q9. What annual licensee fee must an IPLC licensee pay to its authorized Licensor?

A. In addition to the entry fee, the annual license fee of Rs. 5 Lakhs or revenue share @ 6% of the Adjusted Gross Revenue (AGR), whichever is higher, is also payable by the IPLC licensee.

Q10. What is a Financial Bank Guarantee in the IPLC license registration?

A. The IPLC service provider must submit a Financial Bank Guarantee (FBG) of Rs. 1 crore within one year from the date of the license agreement or before the commencement of service, whichever is earlier.