The use of the internet has increased rapidly in the last few years and now it has become a part of day to day life. Everyone needs an internet connection, there is an increase in demand. To start an Internet Service Provider (ISP) business, one should have an ISP license.
Before jumping into the application process, you must know the details and categories of ISP licenses. It will help you decide which category license you need and how much it will cost you.
Internet Service Provider (ISP) License is services to provide internet services to individuals or businesses. The Government of India came up with one license for all telecom related services known as Unified License.
In this, a service provider can apply for ISP license authorization of different services in different areas. An individual or company must have a Unified License to obtain authorization to provide internet services. A company can hold only one license to provide services.
In India, there are three types of categories of ISP license to obtain a license and provide internet services. The type will depend on the scale of city, state, town, district or village. Basically there are three types of ISP licenses which are differentiated by the scale of coverage area/ territory.
This license is for PAN India operations which means the services can be provided all over India. License holders of class A ISP are very few in India because of the high license fees.
If we talk about the entry fees, it is 30 lakhs and the application fee is 50 thousand. This fee is not negotiable, that's why it is called foundation fees.
However, having a class A license is lucrative and if you have good funding, and are willing to have a unified license in category A then apply for ISP license.
If someone wants to provide internet service and have a Class B license, then it means the service can be provided in 20 major states or any of the following metro cities: Mumbai, New Delhi, Kolkata, Chennai, Bengaluru, Pune, Ahmedabad and Hyderabad.
However, for a new business the class B license will cost 13 lakhs and 15 thousand in total. So to operate ISP business in urban areas, one should choose a unified license in category B.
This license is only for a particular secondary switching area which is defined by the government and it can be a composition of several small villages, towns or districts. A class C license holder will only have access to 1 particular Secondat Switching Area (SSA), until he applies for the unified license.
As compared to the other two licenses, applying for a Class C license is inexpensive. In total it will cost you 90 thousand. For many startups it is a great way to start ISP services, if you want to provide internet services in a small town, village or district, go for an ISP class C license.
Following are the fees for ISP different category licenses. To obtain an ISP license in India, one must have the below mentioned fees to start an ISP business.
Note: All the above amount is in Indian Rupees.
Following is the process to apply for an ISP license:
If a Department of Telecommunication (DOT) is delaying the process to give response and raise an issue regarding incomplete application and documents, non-compliance, etc.
To avoid such rejection on application in any category, hire Registrationwala to review your documents, and file application on your behalf to the department. The ISP licensing process is technical and has minor details which need to be filled carefully. It is always advisable to hire a professional to save time and money.
Also read: A Comprehensive Guide on Model Approval Certificate
Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.