Top 5 reasons for choosing VNO License over ISP License

Both VNO ISP and ISP perform the same tasks. Both of them have the objective to provide internet service to the subscribers.

Both of them have to obtain license from the Department of Telecommunication – VNO License for VNO and unified license for ISP for ISP. However, there is one stark difference between the two – one is more pricey, provides more freedom the service provider, and provides more power to the service provider to grow.

But, we are going to convince you through this article to choose the other one. One that’s cheap, provides less options for customization and apparently has less power.

With that interesting segue, here are the top 5 reasons why you should choose VNO License over Unified License of ISP.

Reason number 1: VNO License is a cheaper option to start a business

Imagine yourself as someone who has access to limited capital, but still has the expertise and the inclination towards providing internet services. Provided that you’re also ambitious, you can’t stop a large capital requirement to stop you from signing the unified license agreement, are you? Which is why, the Department of Telecommunication provides the UL VNO License. Everything from the entry fee, application processing fee to financial bank guarantee is cheaper as compared to the ISP. What’s even more bewildering about the license is that the performance bank guarantee is completely removed from the VNO License fee. What we are trying to enunciate is that if you have access to even 3 lakh rupees, some empty building that you can run the operations from, and the knowledge, you can run a VNO without any problems.

Reason number 2: Less complex nature of the computer network

When you think ISPs, you think routers, linking, towers, wires, servers, protocols and other complicated terminologies that make the business appears more complex. And it is complex, for a very good reason. You don’t only have to ensure that you’re providing internet access, you have to ensure that the internet is provided without any downtime. And because ISPs are hardware intensive, they have work hard to manage the complex network. What if I tell you that you don’t have to manage a network on your own? What if the component you’re required to maintain while providing internet is only virtual? That’s the case with those who have signed a VNO License agreement. As per the terms of the agreement, those with the VNO License in India aren’t allowed to:

1. Use their own network, or
2. Establish their BGP

While it increases the dependency of VNO on Telecom service providers, it also reduces the complexity of the computer network. As you’re working with the network that you’ve been given, you only need to care about its virtual aspect to provide internet to subscribers. The burden of taking care of complex obligations is removed from your shoulders.

Reason Number 3: You don’t need much time to market your services

As someone with the MVNO License, you’re merely buying the bandwidth from established telecom service providers, and using their network to resell the bandwidth to subscribers. Bottom line is, you are just a middleman. You can market your services by attaching yourself with the telecom service provider’s brand. As people already are familiar with these providers, they won’t have any issues getting themselves familiar to you. So, you won’t need to spend a lot of time and energy tapping into the nuanced tricks of marketing, if you’ve the Unified license by DOT for your VNO.

Reason Number 4: You can possess enough knowledge to start an ISP

When you setup your Virtual Network Operator with the UL VNO License, you can think of it as your trial run for the real event – starting your own ISP. A VNO is small scale, and has to getting into contract with telecom service providers. As they will provide you their network so that you can provide internet services to the masses, you access to their architecture that you can study. Signing the agreement will help you establish contacts. And providing internet via Virtual network would help you get traction. When you have contacts within the telecom domain, knowledge of how everything works and initial traction in the market, once you’ve amassed enough to start your own large-scale ISP, you WILL be successful.

Reason Number 5: The process of getting VNO License is same as getting an ISP License

One thing that isn’t the matter of contention between VNO License vs. ISP License is the process, as both of them follow the same steps. VNO License online apply is still not an option like ISP, and you still need to:

1. Establish a business entity (private limited company)
2. Convene a board meeting
3. File the application
4. Pay the VNO License cost
5. Follow the letter of intent
6. And, get the unified license

So, if you have to follow the same painstaking process, why not choose the license that makes it worth it. That costs you time, but not a lot of money. Why not choose VNO License?

Author: Dushyant Sharma

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.