Difference Between ISP and VNO License

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Difference Between ISP and VNO License

Internet service providers require a license from the Department of Telecommunications (DoT) to run their business legally. However, in the market, there are several licenses that are available for internet service providers as per their requirements. So, the two licenses we will talk about in this article are the ISP license and the VNO license.

Many people don’t know the differences between ISP vs. VNO these two licenses and find it difficult to choose the right license for their business. The basic functions of these licenses are similar in both cases but there are differences in pricing, validity, bandwidth, permission, etc. In this article, we shared how the Internet Service Provider license and Virtual Network Operator license are different from each other.

What is an Internet Service Provider License?

The ISPs are the companies that provide internet service connection through multiple means such as dial-up, DSL, cable, wireless and fibre-optic connections. The companies need a license to provide all these services. ISPs can take the bandwidth links from multiple Telcos and they can do the billing on their own company name. In the market, some companies offer multiple services and some focus on only one service. Here, the number of services offered doesn’t matter, whether you are an individual providing one service or a company providing multiple services. You require an Unified License to run a business in the telecom industry.

What are the Responsibilities of ISP?

The primary responsibility of the ISP is to provide broadband internet services and services such as Leased Line, Broadband, IPTV, etc. to ensure that the transfer of data through the internet is safe and instant. They also provide essential equipment and infrastructure to access the internet in any capacity.

According to the service plan, they provide their subscribers with a certain bandwidth amount and internet speed. The ISPs must go beyond providing access to internet services such as protecting their subscribers from cyber threats and informing them in case, there is a risk.

What is a Virtual Network Operator License?

For running an internet or data services business in India, you require a UL VNO certification. With this, you can resell the bandwidth as an operator and billing can be done on its own. It is a better and more convenient option for small ISPs. The authority that issues this license is the Department of Telecommunications.

The Virtual Network Operator (VNO) resells the extending high-quality network and management services to other networking companies that do not possess their telecom setup. The validity of this license is 10 years. 

In India, there are 3 types of Virtual Network Operator Certification, which you can choose as per the service area in which you want to operate your internet business. The three different categories are bifurcated by the Department of Telecommunications. The country is divided into 24 Service Areas consisting of 20 Telecom Circle Services and 4 Metro Service Areas. In Category "C" 322 Secondary Switching Areas and for Category "C" license is cheapest as only a single service area will hold the operations.

How ISP License is Different from a VNO License?

The main difference between the both is the nature of the services they provide and the infrastructure however the billing to the end users is similar in both the cases. Below are the other key differences between an ISP license and a Virtual Network Operator license.

Conclusion

To conclude, if you want to provide internet services on a larger scale then opting for an UL ISP license is a great choice. It is because of its cost that it only makes sense to pay a high amount when you provide services to a larger audience and maintain the business for a long time. But if you are a small-level internet service provider, then choose a UL VNO certification instead of an ISP because it's affordable and less complicated. If you want to obtain an internet Service Provider license or VNO license, reach out to Registrationwala. We assist you throughout the process from application to payment and getting a license.

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