How to become an ISP
For the purpose of licence, the country has been
divided into separate service areas in two
categories as mentioned below:
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 Licence & Rs. 15 lakhs for Category-B
Internet Service Licence
is to be paid before signing of the licence
2. An annual licence fee @6% of Adjusted
Gross Revenue (AGR) subject
to minimum of Rs.50,000/- (Rupees Fifty Thousand
Rs.10,000/- (Rupees Ten Thousand Only) shall be
charged for category
A & B service areas respectively per annum per
licenced service area.
The revenues accrued from pure Internet services
will be excluded
from the definition of AGR for the purpose of
computing licence fee.
3. A Financial Bank Guarantee (FBG) of Rs.
Ten Lakh for Category ‘A’
Service Area Licence and Rs. One Lakh for
Category ‘B’ Service Area Licence, valid for one year, is to be provided
before signing of the licence 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 licence agreement. Commissioning
of service will mean
providing commercial service to customers.
6. The company having ISP licence 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
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
9. The applicant company can apply for
Licence in more than one service
area subject to fulfillment 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 the same shall not be refunded for