ILD License in India

ILD License is the license that enables International Long Distance connectivity to networks that are operated by foreign carriers. Provided by the Department of telecommunication, it has enabled most unified license holders to go beyond their usual business and integrate international connectivity into their services.

Why are International Long Distance services needed?

The world's geography is quite diverse. In some places, it's easy to get network signals, and in some, it can be quite difficult. There is a need for specialized equipment to deal with the geography's diverse nature and ensure that uniform network connection can be provided to all the world's places. The usage of these specialized equipment need be to be watched by the Department of Telecommunications. It does so using the ILD license.

International Long Distance Services

• The ILD licensee is solely responsible for 

• Installation, networking, and operation of necessary equipment and systems for the provision of services
• Treatment of subscriber complaints
• Issue of bills to its subscribers
• Collection of its component of revenue
• Attending to claims
• Damages arising out of his operations.
• The ILD license holder must inform the Licensor one month prior of his intention of commencement of ILD service by establishing a Point of Presence (PoP). 
• However, the exact date of commencement of the International Long Distance service must be intimated to the Licensor within one week from the date of ILD service commencement, along with the proof of completion of interconnection tests.

Eligibility Criteria for ILD License in India  

For providing International Long Distance Services License, the applicant must know the following before applying:

• Regarding ownership of the license: Foreign Direct Investment in the ILD company is allowed up to 49% per the normal route. For FDI to be more than 49%, one has to get the approval of FIPB.
• Adhering to the security conditions: The ILD license holder must comply with the associated security conditions once they acquire the license.
• Net worth requirement: The net worth capital and the paid-up capital of the Company applying for the ILD license should be INR 2,50,00,000/- (2.5 Crore rupees).
• Validity of the license: Once issued, the permit would be valid for 20 years. After that period, the Company can apply for an ILD license renewal for 5 years.

ILD Licensee Obligations

• The ILD company must be governed under the provisions of the following:

• Indian Telegraph Act 1885
• Indian Wireless Telegraphy Act 1933
• Telecom Regulatory Authority of India Act, 1997
• Rules & Regulations framed thereunder as modified from time to time. 
• The ILD certificate licensee must furnish all necessary means and facilities required for the application of provisions of the Indian Telegraph Act, 1885, whenever occasion so demands.

Documents Required for ILD License in India

• Certificate of incorporation
• Memorandum of Association
• Articles of Association
• Complete Business Plan
• Funding arrangement for financing the project
• Pay order or Demand draft of the processing fee
• List of directors/promoters/partners/shareholders of the Company.
• Equity Details with Certificate of Company Secretary of the Company's statutory auditor.
• Certified copy of the agreement between the Indian Company and the foreign partner
• Board resolution that authorizes the authorized signatory
• Declaration that every detail you've entered in your application is correct.

Process for getting ILD License in India

To obtain the ILD license, you would have to go through the ILD license procedure that entails the following steps:

• Furnishing the documents: Compile a list of documents that you need. Afterwards, furnish the required documents and get them attested by an authorized signatory.
• Application filing: Once you've accumulated the documents, go to the official website and file the application online.
• Application assessment: Once the application is filed, the Department of Telecommunication completes a thorough evaluation of the application.
• Letter of Intent delivery: After the application is accepted, the applicant will receive the letter of intent from the Department of telecommunication.
• Pay the FBG and PBG: Upon receiving the letter of intent, the applicant has to fulfill the Financial Bank Guarantee and performance Bank guarantee requirements:

• Performance bank guarantee: INR 2.5 Crore
• Financial bank Guarantee: INR 20 Lakh
• Acquire the ILD License: Once you've committed to paying the Performance Bank Guarantee and the financial bank guarantee, you'll receive the ILD License by DOT.

License Duration

• The ILD license comes into force on the effective date of the license. 
• This license is issued on a non-exclusive basis. 
• Also, the ILD license is valid for 20 years unless revoked earlier for reasons stated in the license agreement.

License Extension:

• The ILD license is extendable by a period of five years. 
• But this extension is subject to the satisfactory performance of the licensee in accordance with the terms and conditions of the License Agreement, particularly in regard to QoS parameters. 

Licensing Fee:

International Long Distance License Fee

Entry Fee

1. The ILD licensee must pay a one-time Entry Fee of 2.5 crore rupees. 
2. This fee is non-refundable and is payable before the signing of license. 

Annual License Fee

• In addition to the entry fee described above, an annual license fee must be paid, which is 15% of the Adjusted Gross Revenue (AGR), including the USO levy.
• The license fee must be paid quarterly in advance. 
• The licensee must file complete details of the settlement regime through accounting rate mechanisms with the Licensor on a regular basis.  
• All bilateral settlements between the International Long Distance Services licensee and other foreign partners (carrier) must be through normal banking channels in a transparent manner.  

Payments for Point-to-Point Radio links 

Also, the fee or royalty for using the frequency spectrum and also for the possession of wireless telegraphy equipment for the point-to-point radio link must be paid as per the prescription of the Wireless Planning & Coordination Wing.  

This fee or royalty depends upon various factors such as frequency, link length, area of operation, and other related aspects.

Bank Guarantees:

Performance Bank Guarantee

• A Performance bank guarantee for Rs. 2.5.00 crores, favoring the Licensor, guaranteeing due fulfillment of the stipulated roll-out conditions in this license, must be submitted before signing the License Agreement. 
• The guarantee will be released as soon as the roll out obligations are met. 
• Non-fulfillment of the roll out conditions within the prescribed period will result in encashment of the bank guarantee by the Licensor. 
• And, this will be without any prejudice to any other action which the Licensor may consider appropriate for the failure of the licensee to fulfill license conditions. 

Financial Bank Guarantee   

• The applicant Licensee must submit a Financial Bank Guarantee (FBG) of Twenty crores within one year from the date of the license agreement or before the commencement of International Long Distance services, whichever is earlier.
• The FBG must be valid for one year and can be renewed from time to time as directed by the Licensor.   
• The amount of FBG must be equivalent to the estimated sum payable for two quarters towards the license fee. 
• The fee for using spectrum and possessing Wireless Telegraphy equipment must be securitized by furnishing FBG with an amount equivalent to the estimated sum payable annually to WPC.

License Modification, Suspension, Revocation, or Termination:

License Modification

The LICENSOR can modify, at any time, the terms and conditions of an ILD license if it is necessary to do so in the public interest or the interest of the security of the State, or for the proper conduct of telegraphs. The decision of the Licensor in this regard will be final.   

License Suspension

• The LICENSOR reserves the right to suspend the operation of an ILD licensee in whole or in part at any time if, he thinks it is necessary or expedient to do so 

• In the public interest
• In the interest of the security of the State
• For the proper conduct of telegraphs 
• During the suspension period, the revenue share, payable to the Licensor, is not required to be paid. 
• Also, during the suspension, the claim of refund of any charge or fee is maintainable.

License Termination

For breach of any conditions of the license agreement, the Licensor, by a written notice of 60 days issued to the licensee at its registered office, can terminate this license in whole or parts under any of the following circumstances:

• The ILD licensee fails to commission or deliver any or all of the services within the time period(s) specified in the license agreement. 
• The license holder fails to perform any obligation(s) under the license agreement, including timely payments of fees and other charges due to the Licensor.
• The ILD license company does not rectify the failure within the notice period, as the Licensor pointed out to the licensee.
• The ILD company becomes bankrupt/ goes into liquidation, is declared insolvent, or is ordered to be wound up.
• Or the ILD company is recommended by TRAI for license termination for non-compliance by the licensee with the terms and conditions of the license agreement. 

License Surrender

• The ILD license holder can surrender the license by giving advance notice of at least 60 days to the Licensor.
• The licensee can also notify all its subscribers of the consequential withdrawal of its services by sending a 30 days notice to them.  
• The licensee must pay all dues payable until the date on which the surrender of the license becomes effective.  
• The date of surrender of the ILD license will be effective on the 60th calendar day from the date of receipt of such notice by the Licensor.

Quality of Service

• If the period of a notice of termination or surrender of an ILD license is pending, then the licensee must ensure the Quality of Service (QoS) to the subscribers as per prescribed standards.
• In case of failure of QoS, the negligence will be treated as a material breach by the LICENSOR, and the Licensor will take appropriate action(s) against the licensee.

License Revocation

The Licensor reserves the right to revoke the ILD license at any time in the public interest by giving a notice of 60 days to the licensee counted from the date of issue of such notice.  

License Takeover

• The Licensor can take over the entire ILD services, equipment, and networks of the licensee in the public interest or national security or in the event of a national emergency, war, low-intensity conflict, or similar situations. 
• Also, the Licensor reserves the right to keep any area out of the operation zone of the ILD service if implications of security so require.  
• The decision of the Licensor will be final and binding in such cases.

On termination, surrender, or expiry of the ILD license, the Bank Guarantees will be released to the licensee only after ensuring clearance of all dues and fulfilling roll-out obligation. If not, then the Bank Guarantees will be encashed to recover the amounts due to the Licensor.

License Transfer

• Without the LICENSOR's prior written consent, the LICENSEE must not assign or transfer this ILD certificate to a third party.
• Also, the ILD service provider must not enter into any AGREEMENT for sub-LICENCE or partnership with any third party in whole or part. There must be no sub-leasing, partnership, or third-party interest.
• Licensor must grant the written consent permitting transfer or assignment of the ILD license in accordance with the terms and conditions and procedures described in the Tripartite Agreement. 
• The agreement must be duly executed amongst the Licensor, licensee, and lenders or whenever a merger of companies, as approved by a High Court.

Our Assistance to file the ILD License in India 

Our ILD license consultant knows the terrain you must walk on to get an ILD License. As India's leading telecom experts, we understand the big (and small) details that you need to take into account when applying for ILD License. That's why the process is easier for you.

• To take the whole responsibility of filing your application.
• Our In house-chartered accountants shall issue you the Net worth certificate.
• Once the application is filed, we conduct a follow-up to expedite the ILD licensing process.
• Once you obtain the letter of intent, we ensure that all your details are securely filled in.

Our end-to-end business solutions for ILD License and other regulatory requirements are second to none. Reach out to us now so we can get you ahead of the line and initiate the licensing process immediately.

Our end to end business solutions for ILD License and other such regulatory requirements and second to none. Reach out to us now so that we can get you ahead of line and initiate the licensing process right away.

FAQs About ILD License

Q. What is the ILD full form in telecom?

A. The ILD in Telcom stands for International Long Distance.

Q. What are NLD and ILD in telecom?

A. In telecom, NLD stands for National Long Distance, and ILD stands for International Long Distance. Both these licenses are issued by the Indian Telecom Authority to provide long-distance network services in India.

Q. How to get an International Long Distance certificate in India?

A. To get an ILD certificate, the applicant must register for the ILD license with the Department of Telecommunication's WPC wing. 

Q. What is the cost of an International Long-Distance license/certificate?

A. The following fee payments are the cumulative cost of the ILD license:

• One-time Entry Fee of 2.5 crore rupees: This fee is non-refundable and is payable before signing of the license. 
• Annual license fee, which is 15% of the Adjusted Gross Revenue (AGR), inclusive of USO levy.
• Fee or royalty for using the frequency spectrum and possessing wireless telegraphy equipment for point-to-point radio links.

Q. What is the duration of an ILD license?

A. The ILD license comes into force on the effective date of the license. Also, the ILD license is valid for 20 years unless revoked earlier for reasons stated in the license agreement. This license is issued on a non-exclusive basis.

Q. Is the ILD license extendable?

A. Yes, the ILD license is extendable by five years. But this extension is subject to the satisfactory performance of the licensee in accordance with the terms and conditions of the License Agreement, particularly in regard to QoS parameters.