What is the licensing fee required for the IPLC Licensee?

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What is the licensing fee required for the IPLC Licensee?

IPLC License is sought by such businesses who wish to provide International Private Leased Circuits between India and other nations. The IPLC licensee must obtain the required circuits from the ILD (International Long Distance) service providers. They must ensure that the network services reach end-line consumers. In this article, we have discussed the licensing fee requirements for IPLC registration. Let us look at them one by one.

IPLC License Entry Fee

Every IPLC license applicant must pay a one-time Entry Fee of one crore rupees. This fee is non-refundable. The Licensee must pay the fee before the license signing in the form of a Demand Draft or a Pay Order. The DD or the payment order must be in favor of the Pay & Accounts Officer (Headquarters) of the Department of Telecommunications (DoT).

Net worth of an IPLC Licensee

Every IPLC Licensee must maintain a net worth and paid-up capital of two and a half crore rupees on the date of application. The Licensee must also submit a net worth certificate in support of the claim. This IPLC in Telecom licensee must certify it by a Company Secretary or its Statutory Auditor alongwith the IPLC application.

The net worth, in this case, means the total of paid-up equity capital and free reserves of the IPLC applicant company. He must not count shareholders' net worth to determine the net worth. Lastly, the applicant must maintain the minimum net worth & paid-up capital throughout the license currency.

Annual License Fee of an IPLC Licensee

Apart from the Entry Fee, the Annual License Fee of an IPLC licensee is five lakh rupees. The ALF can also be revenue share @ 6% of the AGR, i.e., Adjusted Gross Revenue, whichever is higher. It is payable by the IPLC applicant company.

This licensing fee also includes 5% of AGR as a USO contribution. The applicant must pay the annual license fee from any of the following dates:

• Commencement of Services
• Completion of One Year from the effective date of the IPLC license agreement

Here, the earlier date must be chosen.

The IPLC services applicant must regularly submit full details of the settlement regime through accounting rate mechanisms to the Licensing Authority. The Licensor will settle all bilateral issues between the IPLC service provider and other operators through normal banking channels in a transparent manner.

IPLC Licensee: Financial Bank Guarantee (FBG)

Every registered IPLC must submit a Financial Bank Guarantee (FBG) of Rs. 1 crore. The submission must be within one year from any of of the following, whichever is earlier:

• Date of the License Agreement
• Commencement of Service

The IPLC applicant must ensure that the FBG is valid for one year. The applicant must also renew the FBG from time to time for the stated amount as directed by the Telecom Licensor. The applicant must also ensure that the FBG amount for the subsequent period is equivalent to the estimated sum payable for two quarters toward the IPLC licensing fee.

If you wish to know more about the IPLC license and it registration process and compliance, then connect with the Telecom Experts at Registrationwala.

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