Telecom’s Unified License to provide internet services

by Gaurav Bansal Company Registration Consultants in Delhi

Internet services are quite easy to come by these days. Everywhere you go, every city you visit and even in most villages you travel you’re going to find affordable internet services. Such widespread reach of internet has only been made possible because of telecom’s unified license internet services.

By getting this unified license, you get authorization to provide internet services to people across India. In this article, we are going to dive into the various versions of ISPs and VNOs that you can open after getting the unified license.

What is a unified license?

As per the New Telecom Policy, 2012, unified license empowers companies to use digital technologies to provide digital services like internet access to subscribers. The term “unified license” means that all categories service centers, countrywide, state-wide and small region wide, come under one license.

What is an ISP?

ISP is Internet Service Provider it’s a company that provides internet access to subscribers. To provide such services, the internet service providers request vast amount of technological resources along with the unified ISP License. Under this license, you can setup any of the three types of ISPs:

1. ISP category A: ISP category is an internet service provider that’s big enough to provide internet services throughout the country.

2. ISP category B: ISP category B is a type of internet service provider that has just enough resources to provide internet services throughout one of the 20 known metropolitan cities in India.

3. ISP category C: ISP category C is the type of internet service provider that has minimal resources that are just enough to provide internet access to one small region.

In terms of pricing of the unified license:

1. ISP category A is the costliest;

2. ISP category B cost’s midrange, and

3. ISP category C is the cheapest.

Because of its inexpensive nature, ISP category C is the internet service center of choice for anyone who wants to provide internet services within a small colony.

That being said, don’t get fooled by this “inexpensiveness”. Setting up a category C ISP is still difficult because:

1. The hard resources involved still don’t come cheap.

2. The maintenance required to manage an A category ISP and C category ISP is the same.

3. Because a Category C ISP has many telecom resources clustered at a single place, the occurrences of accidents are common.

It’s because of this reason many who want to provide internet access to small colonies or villages are not opting for an ISP. But instead, they are opting for VNO.

What is VNO?

VNO is a virtual network operator. Instead of using hardware to produce internet bandwidth provide internet access to others, a Virtual Network Operator buys the internet resources from Large ISPS, and then sells the bandwidth to internet subscribers. It does so by creating a virtual network that becomes an intermediate body between an ISP and internet subscribers. The benefits of starting VNO are:

1. The hardware requirements are way less than an ISP.

2. Less hardware requirements make it easy to maintain a Virtual Network.

3. The cost of Ul VNO License is lower than an ISP.

The inexpensiveness because of the low hardware requirements and low maintenance makes starting a VNO a much better option for someone who wants to provide internet services within a small region.

What are the different categories of VNO?

Much like the ISP, a VNO has three categories:

1. PAN India: PAN India Virtual network operator resells internet services across India.

2. State-wise: PAN India Virtual network operator resells internet services across India.

3. Circuit Switched area: A Circuit Switched area Virtual network operator resells internet services in one small region.

What is the process to acquire the UL VNO License?

The following is the process to get the UL VNO License

1. Register a company. You need a private limited company as your business infrastructure if you are to start a VNO center.

2. Choose one of the three categories of VNOs. The entry fee and other requirements would differ based on your choice.

3. File the application of unified VNO License. Down the form from the online website and file it and submit it offline along with the mentioned documents:

a. Certificate of incorporation of your company

b. MOA and AOA of your company

c. ID proof of the directors

d. List of directors and the shareholding pattern of your company.

4. Let the DOT process your application in a timely manner.

5. Get the Letter of Intent

6. Follow the instructions given in the Letter of Intent

7. Get the ULVNO License.

Conclusion

Providing internet services is a pricey matter. However, with the rise of telecommunication technologies, starting a VNO has provided a way to internet service providers to provide internet services in a cost-effective manner. If you’re looking for the same, contact our DOT consultants.