ISP License in India
The Internet Service Provider (ISP) Policy was announced in November, 1998. ISP Licenses, which prohibit telephony on Internet, are being issued starting from 6.11.98 on non-exclusive basis.
Based on Service Area of Operation, they are categorized as Category 'A', 'B'
Category A: This covers the territorial jurisdiction of the Union of India except specified areas that may be notified to be excluded from time to time.
Category B: West Bengal, Andhra Pradesh, Assam, Bihar, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Karnataka, Kerala, Madhya Pradesh, Maharashtra, North East, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh-West, Uttar Pradesh-East, Chennai, Delhi, Kolkata, Mumbai.
1. The one time entry fee of Rs. 30 lakhs for Category - A Internet Service License & Rs. 15 lakhs for Category - B Internet Service License is to be paid before signing of the License agreement.
2. An annual License fee @6% of Adjusted Gross Revenue (AGR) subject to minimum of Rs. 50,000/- (Rupees Fifty Thousand Only) and Rs. 10,000/- (Rupees Ten Thousand Only) shall be charged for category
A & B service areas respectively per annum per Licensed service area. The revenues accrued from pure Internet services will be excluded from the definition of AGR for the purpose of computing License fee.
3. A Financial Bank Guarantee (FBG) of Rs. Ten Lakh for Category A Service Area License and Rs. One Lakh for Category B Service Area License, valid for one year, is to be provided before signing of the License agreement (in prescribed format). Based on AGR, the amount of FBG shall be reviewed annually by the Licensor.
4. A Performance Bank Guarantee (PBG) of Rs. Two Crore for Category A and Rs. Twenty Lakh for each Category B service area valid for two years from any scheduled bank in the prescribed form.
5. The licensee shall provide service within 24 months from the date of signing of the License agreement. Commissioning of service will mean providing commercial service to customers.
6. The company having ISP License and a net worth of Rs. One Hundered Crore or more can only offer IPTV services subject to approval from Licensor. A certificate from Company Secretary or Auditor (certifying the net worth of the company) is to be submitted.
7. The applicant must be an Indian company, registered under the Indian Companies Act - 1956.
8. The applicant company shall submit the application in duplicate in the prescribed Application form enclosed as for each Service Area separately.
9. The applicant company can apply for License in more than one service area subject to fulfilment of all the conditions of entry.
10. The applicant company shall pay a processing fee along with the application (Two copies) of Rs. 15,000/- in the form of Demand Draft/Pay Order from a Schedule Bank payable at New Delhi issued in the name of Pay and Accounts Officer (HQ), DOT, Sanchar Bhawan, New Delhi and it shall not be refunded for any reason whatsoever.
